Ask Experts Questions for FREE Help !
Ask
    koalabear's Avatar
    koalabear Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 8, 2009, 07:35 PM
    Financial Statement
    Who are the users of financial statement and why they need the financial statement?
    lost??'s Avatar
    lost?? Posts: 234, Reputation: 7
    Full Member
    		  
    #2

    Jul 8, 2009, 07:58 PM
    If the company is public, investors who buys stocks use the financial statements. Investors rely on the financial statements to see where the company stands at a certain point in time, usually at the company's year end (this is the balance sheet). They also use them to see how the company performed over the year (the income statement and statement of cash flows). They use the statements in order to evaluate the company to see if the company wold make a sound investment. Public companies are also required to file certain forms with the government (10-K, etc) which also include the financial statements. Private companies also compile financial statements for their owners. Banks and other lending institutions also usually request audited financial statements when a company is apply for a loan or a line of credit. Anyone who is evaluating a company has to use the financial statements as well as the notes to the financials in order to see how the company has performed in the past and is currently performing.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Financial Statement with Balance sheet and income statement [ 1 Answers ]

Here's the problem: The Hobart Company incurred the following transactions during 2003: A. Acquired $50,000 of cash capital from owners B. Paid $10,000 to acquire manufacturing equipment C. Paid $5,000 cash for materials used in production D. Paid $2,000 for wages of production workers...

Financial Statement [ 2 Answers ]

The Crab Company purchased land costing $2,400 cash. THe company earned $2,000 revenue on account and incurred $1,100 operation expenses on account. As a result of these transactions: - total assests increased by $2,400 - liabilities increased by $1,100 - total assets increased by $5,400 -...

Financial Statement [ 1 Answers ]

For what purposes do external users use information of financial statements for?

What is the correct financial statement-statement of cash flows wording? [ 2 Answers ]

Cash (used) in operating activities <10,000> Cash (used) in investing activities 10,000 Thank you for any help you can provide.

Financial statement [ 1 Answers ]

Can you explain me in detail the natural and the purpose of the three major financial statement.

View more questions Search