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How might creditors use this information that contained in financial statements?
Wiki User
∙ 12y ago
To improve the company's performance in other to maximize shareholders wealth
Wiki User
∙ 12y ago
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Importance of financial statements for creditors?
Importance of Financial statements are declarations of information in financial terms about an enterprise that are believed to be fair and accurate. They describe certain attributes of the enterprise that are important for decision makers, particularly investors (owners) and creditors.
Who is an internal user of financial statements?
Accounting information is presented to internal users in the form of management accounts, budgets, forecasts andÊfinancial statements. External users are communicated accounting information in the form of financial statements. These users are creditors, tax authorities, investors, etc..
Impact of finance on financial statements?
Finance are the reason for financial statements. Without financial information, financial statements can't be created. Investors use this information to make decisions about investing in a business.
Who are the primary users of financial accounting information?
creditors
What is the End product of financial accounting?
Financial Accounting is concerned with preparation of Financial Statements that would serve the interests of Investors, Banks, Creditors, and general public at large. The aim of Financial Accounting is to facilitate Financial Decision Making based on Accurately Gathered Significant financial Information pertaining to the Performance of the Organization and also giving information about the Current position of the Organization's Assets and Liabilities.
What is meant by the concept of neutrality in accounting?
financial statements are not prepared in a way to favor groups of users (managements, owners, creditors ect) over other groups. the information is prepared to be helpful to all
What is the end product of accounting?
Financial Accounting is concerned with preparation of Financial Statements that would serve the interests of Investors, Banks, Creditors, and general public at large. The aim of Financial Accounting is to facilitate Financial Decision Making based on Accurately Gathered Significant financial Information pertaining to the Performance of the Organization and also giving information about the Current position of the Organization's Assets and Liabilities.
What is misstate?
In financial statements a misstatement is a material misstatement if a user of the financial statements who places reliance on that information reaches at a wrong conclusion.
What is material misstatement?
In financial statements a misstatement is a material misstatement if a user of the financial statements who places reliance on that information reaches at a wrong conclusion.
Which financial statement or statements would be of most interest to creditors?
Balance Sheet!!maybe some kind of balance that have deposite.and it current only...
What provide the necessary information to determine the liquidity of a company?
Financial Statements
Provide the necessary information to determine the liquidity of a company?
Financial statements
