UrbanPro
true

Take Class 12 Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Search in

Introduction To Accounting: Part 6: Users Of Financial Statements

Nishant Kumar
23/06/2017 0 0
  1. As is evident from above, the first and foremost user of the Financial Statements would be the owner of the Business.
  2. Apart from owner, there are certain other parties who could be the users of the Financial Statements.
  3. Examples:
    1. An organisation has taken a loan from the Bank for the purpose of carrying on its business. Now, that Bank would also like to know whether the organisation is profitable or not. This can be only be known from the Financial Statements. Hence, Bank also becomes a “user” of the Financial Statements.
    2. The creditors, i.e. the people to whom the organisation owes money, would also like to know whether the business is profitable or not, and hence, Creditors are also “users” of the Financial Statements.
  4. Therefore, any person, who has a stake in the business of an organisation will become a “user” of the Financial Statements of that organisation.

 

0 Dislike
Follow 0

Please Enter a comment

Submit

Other Lessons for You

Best shortcuts to use in mathematics problems.
Many students ask me question "is there any shortcut methods to solve a question?" actually I want to refer to the answer of this question. First of all, shortcuts is not acceptable by your board exams....

Vishal Pandey

1 0
0


4 Things Every Tech Startup Needs to Know About The Coaching Industry
Knowledge on any subject is widely available to those who wish to learn. However, just gathering knowledge from other people doesn’t guarantee results in business. Results come from applying what...

Importance of Measurements Units and Uncertainties.
This is the foremost important physics topic. Students very often than not forget Conversion of Units of physical quantities to one system while solving numerical questions. This leads to wrong answers...

GST By CA Prashanth Reddy
GST on services fixed; Ola, Uber rides and flights to be cheaper, education and health exempt. The GST Council on Friday finalised tax rates for services under the Goods and Service Tax (GST) regime,...
X

Looking for Class 12 Tuition Classes?

The best tutors for Class 12 Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take Class 12 Tuition with the Best Tutors

The best Tutors for Class 12 Tuition Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more