(a) Potential investors
(b) The owners or managers of the concern
(c) Creditors and Lenders
(d) Government
Internal analysis of financial statements is done by?
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The correct option is (b) and (d)
As the internal analysis is done for the internal assessment of the firm, only those persons can carry out the assessment who has access to the internal accounting records of a business firm. As the owners or managers are the members of the top-level management executives they can carry out the work of internal analysis. Also, the government agencies can carry out internal analysis as they have been given the statutory powers of doing such works.
To make it clear, let me explain a little about internal analysis-
To determine the profitability of various activities and operations or to know the performance of the business concern, the top-level executives along with the management accountant carry out an internal assessment of the financial statements within the concern, this process is known as internal analysis.