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14 10 2007

The Users Of Financial Statements

Posted by: slang in a. Accounting Concepts
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For those unfamiliar, we might be surprised that some users like the company’s suppliers too can be a user of the financial statement. Append below is a listing of the user group who will consistently use the financial statements for their own needs:

POSSIBLE USES OF THE FINANCIAL STATEMENTS BY DIFFERENT USERS:

Equity Investor group: Assessing their investment

Loan Creditor group: Assessing the ability to make repayment of loan

Employee group: Assessing security of employment

Analyst-adviser group: Assessing their investment

Business contact group: For the suppliers: likelihood of future supply and for the customers: reliability of future supply

Government: Collection of tax and for economic statistics

Public: Assessing impact on local economy.

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One Response to “The Users Of Financial Statements”

  1. Snapshot Of Articles Under Heading Of Accounting Concepts | MBA Accounting says:
    March 19th, 2008 at 10:11 pm

    […] Who Are The Users Of Financial Statements? […]

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