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Who are the main users of Financial Statements

David McGuinness Englisch 10 Karten

Karten in diesem Stapel (10)

1Who are the main users of Financial StatementsTHE MAIN USERS
1. Investors & potential investors
2. Lenders
3. Other Creditors
OTHER USERS
4. Employees & Trade Union Representatives
5. Government
6. Suppliers
7. Customers
8. The Public
9. Management & Competitors
21. Investors & Potential InvestorsInvestors are interested in the potential profit and the security of their investment.
32. LendersThey need to know if they will be repaid. This will depend on the solvency of the company.
43. Other creditorsSuppliers and trade creditors require information that helps them understand and assess the short-term liquidity of a business.
54. Employees & Trade union RepresentativesThey need to know if the employer can offer secure employment & management.
65. GovernmentAgencies need to know how the economy is performing in order to plan financial and industrial policies.
76. SuppliersThey would like to know if they will be paid. Also potential new suppliers may like reassurance of the financial health of the business before supplying goods.
87. CustomersThey would like to know if the company can supply them in future. Especially if the customer is dependent on a company for specialised supplies.
98. The PublicThey may wish to assess the effect of the company on the economy, local environment and local community
109. Management & CompetitorsThey would use the Financials statement of the business to make economic decisions. (however, they would mainly use monthly management accounts as their main source of financial information)