Users of financial statements Flashcards
1
Q
Who use financial statements?
A
- Owners
- Employees
- Competition
- Investors
- Lenders
- Inland Revenue (HMRC)
- Trade union
2
Q
Owners:
use of finacial statement
A
They measure the profits made and inform decision making
3
Q
Employees:
use of financial statement
A
To ensure job security
4
Q
Competition
use of financial statement
A
To measure their sucess against competition and compare and analysis
5
Q
Investors:
use of finacial statement
A
To assess the potential for investment
6
Q
Lenders:
use for financial statement
A
To decide of the business can be given a loan
7
Q
Inland Revenue (HMRC):
us eof financial statement
A
To ensure the business is paying the correct amount of tax
8
Q
Trade Union:
use of financial statement
A
To assess if their members are due a pay rise
