USERS OF FINANCIAL STATEMENT

Question 1

SHAREHOLDERS

Answer 1

This user will look at the financial statement to judge how the preparer of the financial statement has performed and to assess the return on their investment

Question 2

SUPPLIERS

Answer 2

This user will look at financial statement as part of its credit control to determine how much they are willing to sell before asking for payment upfront.

Question 3

LENDERS

Answer 3

This user will look at the financial statement to identify which assets may be available to use as collateral whether the preparer of financial statement will be able to pay on time and in full.

Question 4

TAX AUTHORITIES

Answer 4

This user will look at financial statement as a source of information to calculate how much tax is payable

Question 5

EMPLOYEES

Answer 5

This user will look at financial statement to gain comfort that the preparer of financial statement is a going concern and will provide security