Microsoft Fabric Analytics Engineer (DP-600) Exam Dumps 2024.pdf
USERS OF FINANCIAL STATEMENT.pptx
1. USERS OF FINANCIAL STATEMENT
INTERNAL
.OWNERS
.MANAGERS
.EMPLOYES AND
WORKERS
EXTERNAL
.BANKS AND
FINANCIAL
INSTITUTIONS
.CREDITORS
.GOVERNEMENT AND
ITS AUTHORITIES
.RESEARCHERS
.PRODUCT PRICING
.PUBLIC
2. 1.INTERNAL USERS
(i) Owners : Owners can use the statements to evaluate whether their
investment is safe and whether the company is providing an
acceptance return on their money.
(ii) Managers : Managers are the primary users of Financial statements
because they have to make decisions whether to add debt or how to
maintain cash flow. For example investment into new projects , cost
controls and reduction etc .
(iii) Employees and workers : Employees and Workers are entitled to
bonus at the year end, which is linked to the profit earned by the
company. Therefore, the employees and workers are interested in
Financial Statements.
3. 2. EXTERNAL USERS
(i) Bankers : The Banker is interested to see that the loan amount is secure
and the customer is also able to pay the interest regularly. It is through the
Financial statements that a banker can keep a watch on the business plans
and performances of its customers.
(ii) Government : The Financial Statements are used to assess tax liability of
business enterprises . The Government studies economic situation of the
country from these statements . These statements also enables the
government to find out whether business is following rules and regulations or
not.
(iii) Researchers : The information in financial statements helps researchers
in studies or surveys related with a particular firm or industry.
4. (iv) Investors: The investors include both long- term and short-
term investors. They will not only analyse the present financial
position but will also study future prospects and expansion plans
of the concern.
(v) Creditors : If you owe money or you’re slow paying your bills ,
your creditors may want to double-check your statement.
(vi) Public: They want to see the business running since it makes
substantial contribution to the economy in many ways, e.g.,
employment of people etc. Thus this statement provides useful
information to various user groups for decision-making.