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Briefly explain why the following parties may be interested in the financial statements of an organisation: (i) Employees (ii) Financial analysis (iii) The Government. (iv) The public.

      

Briefly explain why the following parties may be interested in the financial statements of an organisation:
(i) Employees
(ii) Financial analysis
(iii) The Government.
(iv) The public.

  

Answers


Mutiso
(i) Employees : They would like to know how the firm is performing and its financial
position so as to make decisions about their terms (salaries and benefits) and job
security.
(iii) Financial Analysts: They are experts who advise other users. They
require information about the financial performance and position so as
to advise their clients.
(iv) The Government: Concerned about tax and compliance with the law. Will
need to know the performance of the company so as to assess the tax
payable and also come up with the relevant national statistics.
(v) The public : They require information about the financial performance and
position of the company so as to determine whether the firm can offer
employment opportunities and also check on how socially responsible the
firm is.
Mutiso answered the question on November 20, 2018 at 05:27


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