Question 1

Investors. Investors are concerned with the risk inherent in and return provided by their
investments.
Bondholders use the firm's financial statements to assess the ability of the company to make its
debt payments.
Stockholders use the statements to assess the firm's profitability and ability to make future
dividend payments.
Financial analysts gather financial information, analyze it, and make recommendations.
Manager. Managers use financial statement to look at trends in their own business, and to
compare their own results with that of competitors.
Governments use financial statement to determine the accuracy of tax stated in the tax returns.
However, government also keeps track of economic growth via analysis of financial statement of
businesses from different sectors of the economy.
Employees use financial statements for encouraging to note that some companies produce a
separate employees report. Thus, employees and their representatives require information on
business performance for two principal reasons which are salary negotiation and assessment of
current and forward opportunity in term of employment. However, they would be interested in
order to financial stability and longer-term financial viability of the business.