users of financial statements

The financial statements of a business are used to provide investors and creditors with information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the income statement, balance sheet and statement of cash flows.

The two main users of businesses financial statements are the investors and creditors. The information they require depends on their objectives. The information supplied by the statements aims to provide the credito...