Who needs accounting statements? Flashcards
who needs the accounting statement that is directly connected to the organisation
owners, managers, employees
who needs accounting statements that are not directly connected to the organisation
public, lenders, customers, suppliers, government, donors, advisers
what is an owner
someone who is responsible for day to day running of a small business
what does an owner need to know from a financial statement
are they making enough profit, do they have enough cash for bills, who owes money, what do they own and how much is it worth
what is a shareholder
not involved in running the business day to day
what would a shareholder want to know from a financial statement
potential dividends, future prospects, company policy an activity
what does past information tell a manager
it shows the progress of the business
what does current information tell a manager
about the on-going operations and control
what does forecasting tell a manager
how they can plan for future activities
what do current and prospective employees want to know from a financial statement
the growth and financial sustainability of the company
what do employees and trade unions want to know from a financial statement
information to help negotiate pay and employment terms
what do lenders (banks) and potential lenders need to know from financial statements
can the business make interest (short term) and loan (longer term) repayments, do they own assets to sell to be able to repay the loan
what would customers want to know from a financial statement
will the business continue to provide the goods and services and do they have long term financial stability
what would suppliers want to know from a financial statement
can the customer pay for the goods and services supplied, is the contract going to be viable long term
what would the government need from a financial statement
profits to calculate tax and monitor the economy
