Who might use financial statements List at least 3 examples

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