Published Financial Statements Essay Example | Topics and Well Written Essays - 2000 words

Published Financial Statements - Essay ExampleAs the study stresses published financial statements ar used by millions of people who consider on them for vital information. This information is, in most instances, on the financial health of the business concern in question. Tracy classifies these users as investors and financial analysts, vendors, or creditors, and the management. These users are the ones who make it necessary for financial statements to be published. Financial statements are published for the following reasons To religious service information and data concerning the companys financial cast and performance. This information includes the hard cash flow and profitability position of the company. This information allows financial analysts to assess the financial position and performance of the company and trends in the performance To avail information to outside investors who comprise people or organizations that may be interested in buying the companys stocks or le nd it money. Lenders film information about the companys stability and cash flow. Publication of financial statements avails them with this information. To avail information concerning the likelihood of the firm to have enough cash to pay its debts in the immediate future. This information is needed by vendors and creditors in view of the fact that they advance funds to the company in form work and products. To avail information concerning the failures and successes in each of the many facets of running a business to the management. The management makes use of this information to identify relative strengths and weaknesses in trading operations and to find the areas to put effort to correct problems and enhance performance.