Answer all of the following: Who are the users of the financial statements? What kind of information does the financial statements convey? How is this information useful? Visitoneof the following...

Answer 1:    Financial statements are used by a number of entities for different purposes. These entities and their purposes are:
1. Government: Government taxation bodies are interested in company’s financial statement as it depicts their financial condition and therefore aids them in computing their tax liability.
2. Corporations: Corporations are the users of financial statements as it helps them in comparing their financial performance for different departments and comparison with rival firms as well.
3. Investors: Investors use financial statements of companies to analyze their growth potential. Investors that hold shares in companies use their financial information to decide when it is time to pull out their money or when it is time invest more money.
4. Owners: Small business owners use financial information to decide whether to continue with their business or to exit from it. Small business owners look at the growth potential of the business for decision making.
5. Public: Public uses financial information for government organizations and public, private companies for many purposes. For instance, students and teachers use financial information for education purposes, researchers and analysts use the information for analysis and research.
6. Lenders: Lenders use financial information of the borrower to assess the financial ability of the borrower to repay the debt. For instance, banks and financial institutions assess the financial position and ability of companies before advancing loans.
7. Employees: Employees...