Accounts - Users of Ratios and their Needs Flashcards
1
Q
The 8 Users of financial information
A
Investors, employees, lenders, suppliers, trade creditors, customers, government , puvlic
2
Q
Investors
A
Interested ib the risk inherent and return provided by investment. Therefore they are interested in profitability ratios
3
Q
Employees and their groups
A
Interested in job security and therefore interested in financial performance and liquidity ratios
4
Q
Lenders
A
Interested in creditworthiness and therefore will use liquidity and solvency ratios.
5
Q
Suppliers
A
Interested in liquidity and solvency ratios
6
Q
Customers
A
Interested in continuation of the business
7
Q
Governments
A
Interested in taxation and formulating legal frameworks
