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Who might use financial statements? List at least 3 examples of likely users/stakeholders and the
types of decisions they might employ financial statements to aid them in making?
Solution
Following are the 3 users of financial statements:
1. Banks , they use financial statements so as to estimate the financial health of the company and
take decision of lending loan to the company or not.
2. New investors , they perform ratio analysis and other parameters and then take decision to
invest in that company or not.
3. Regulators , they keep eye on accounting representation and check accounting manipulation if
any

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Who might use financial statements List at least 3 examples of like.pdf

  • 1. Who might use financial statements? List at least 3 examples of likely users/stakeholders and the types of decisions they might employ financial statements to aid them in making? Solution Following are the 3 users of financial statements: 1. Banks , they use financial statements so as to estimate the financial health of the company and take decision of lending loan to the company or not. 2. New investors , they perform ratio analysis and other parameters and then take decision to invest in that company or not. 3. Regulators , they keep eye on accounting representation and check accounting manipulation if any