Question

Who are the users of Financial Reports?

Answer 1

The Users of the Financial Statements are as follows:

1.Company Manangement : They will know the Cash flows and Profitability of the company of Financial Statements.

2.Employees : Employees know their performance efficiency and how they can improve in future.

3.Customers : Customers will be able to understand the liquidity and improvement of the company.

4.Competitors : Based on the Financial Statement, they can change the compitetive strategies.

5.Government : Government will look into the statements to understand whether all the taxes were accounted properly and paid them.

6.Investors : Investors being owners want to know the performance of the company.

7.Lendors : To provide a debt, a lendor looks into the statements whether the company can payback the money.(liquidity)

9.Labour Unions.