Solution : The basic users of financial statements and the way they use them are given below: 1st Investors: Investors use financial statements to know the risk they are taking by remain invested in the company and returns they are going to get for the risk they have taken. 2nd Lenders: Lenders use financial statement to know the ability of the company to pay interest and financial health of the company to provide further loans to the company. 3rd Creditors/Suppliers: Suppliers use financial statements to determine whether their debtor is able to pay due amount in time and profitability of the company to decide the terms of futures transactions to be done. 4th Owners or management : Management uses financial statements to make financial or operational decision for business . 5th Governments : Governments uses financial statement to know the activities of the company are appropriate for general public at large and whether pay taxes or not and law compliant or not. 6th Employees: Employees uses financial statement to know the stability & profitability of their employer business to know the value of stock options if any they get from their employer and their salary and job stability too. 7th Rating agencies: Rating agencies uses financial statement to do credit rating of the company or its securities. 8th Unions : Unions uses financial statements to know the ability of the company to pay compensation or other benefits to the members of their unions. Please feel free to ask if anything about above solution in comment section of the question..

1. Solution
: The basic users of financial statements and the way they use them are given below:
1st Investors: Investors use financial statements to know the risk they are taking by remain
invested in the company and returns they are going to get for the risk they have taken.
2nd Lenders: Lenders use financial statement to know the ability of the company to pay interest
and financial health of the company to provide further loans to the company. 3rd
Creditors/Suppliers: Suppliers use financial statements to determine whether their debtor is able
to pay due amount in time and profitability of the company to decide the terms of futures
transactions to be done. 4th Owners or management : Management uses financial
statements to make financial or operational decision for business . 5th Governments :
Governments uses financial statement to know the activities of the company are appropriate for
general public at large and whether pay taxes or not and law compliant or not. 6th
Employees: Employees uses financial statement to know the stability & profitability of their
employer business to know the value of stock options if any they get from their employer and
their salary and job stability too. 7th Rating agencies: Rating agencies uses financial
statement to do credit rating of the company or its securities. 8th Unions : Unions uses
financial statements to know the ability of the company to pay compensation or other benefits to
the members of their unions. Please feel free to ask if anything about above solution in
comment section of the question.