ACCTG 101 Chapter Notes - Chapter 1: Financial Institution, Cash Flow, Financial Statement
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Users: institutional and private investors, creditors and others: Include private pension funds (associated with unions and employees of specific companies), public pension funds (for provincial and municipal employees), mutual funds, endowments and trust funds (to fund a university or college) and charitable foundations. They often control majority of publicly traded shares of canadian companies. Include individuals who purchase shares in companies. Private investors normally lack the expertise to understand financial statements and resources to gather data efficiently. So they end up relying on advice from intermediaries or turn their money over to the management of mutual and pension funds (institutional investors) Include suppliers, banks, commercial credit companies and any other financial institution that lends money. They use the same info but most companies willingly provide additional information like monthly statements. Lenders are the primary external user group for financial statements of.
