IMPORTANCE(or users)of top five Financial Statements.
No:01= Owners.The owners provide funds for the operations of a business and they want to know whether their funds are being properly utilised or not. The financial statements prepared from time to time satisfy their curiosity.
No:02= Creditors. Creditors (i.e., suppliers of goods and services on credit. bankers and other lenders of money)want to know the financial position of a concern before giving loans or granting credit.
No:03= Investors. prospective investors. Who want to invest money in a firm. world like to make an analysis of the financial statements of that firm to know how safe the proposed investment will be.
No:04= Employees. Employees are interested in the financial position of a concern they serve. particularly when payment of bonus depends upon the size of the profile earned.
No:05= Government. Central and state governments are interested in the financial statements because they reflect the earnings for a particular period of taxation.
Thanks for the reding
Thanks for the reding
No comments:
Post a Comment