EDUCATION 101: FINANCIAL STATEMENTS.

USERS OF FINANCIAL STATEMENTS

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USERS OF FINANCIAL STATEMENT

Business owners

They will use the financial statements in gadging the financial performance of the business.

Management

The management will financial statements in ensuring that the performance of the business is within the set projections

Prospective Investors

They will use financial statements of a company in evaluating the viability of the business entity.

Creditors

They will use financial statements is assessing the going concern assumption of the company

Banks

Banks will use the financial satatements in evaluating whether of not to grant loan to a company.

Government Agencies

To mention just but a few, KRA_Kenya Revenue Authority, KNBS_Kenya Burea of Statistics . These institutions will be interested with Financial performance of the company in assessing Tax Obligation, GDP_Growth Domestic Progression and so on.

Enjoy!

 

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