Users of financial accounting

Question 1

Owners

Answer 1

Information for costing, planning and control.

Question 2

Managers

Answer 2

Information for return on investment

Question 3

Shareholders

Answer 3

Information on buying and selling shares and on managers performance

Question 4

Employees

Answer 4

Long term future stability of the business for future employability angles

Question 5

Lenders

Answer 5

Ability to repay loans when due, repay interest and security of loans (assets and collateral)

Question 6

Suppliers

Answer 6

Ability to pay amounts owing when due, future of the business for further supply

Question 7

Customers

Answer 7

Whether the business is a secure source of supply for repeat purchases and after-sales care

Question 8

Government

Answer 8

Information on profits as a basis for tax calculation and information on contribution to the local and national economy

Question 9

Investment analysis

Answer 9

Information for buying and selling securities

Question 10

Community

Answer 10

Information about the contribution of the business to local economy and the impact on the environment