Introduction to Financial
Statements 04-
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A corporation's primary external business partners are those
who provide its financing- creditors (liabilities)
and owners (contributed capital and retained
earnings). Given their financial interests in a corporation, they tend to be the
main users of the annual financial reports. Those who are properly trained and
motivated will use all of the elements of the financial reports required by the
SEC, especially the financial statements and ratio analyses of those statements.
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