Financial Statements Flashcards
1
Q
Who are the main users of financial statements?
A
- The government
- Investors
- Suppliers
- Customers
- Employees
2
Q
What do THE GOVERNMENT use a firm’s financial statements for?
A
Collection of taxes - ensure they are paying the correct amounts of tax
Statistical information
3
Q
What do INVESTORS use a firm’s financial statements for?
A
To monitor the performance of the business
4
Q
What do SUPPLIERS use a firm’s financial statements for?
A
To review the solvency of the business
To ensure payments will be paid
5
Q
What do CUSTOMERS use a firm’s financial statements for?
A
To ensure continuation of supplies in the future
6
Q
What do EMPLOYEES use a firm’s financial statements for?
A
To ensure security of employment
For information about pay rises or bonus schemes
