Understanding What Information Financial Statement Users Demand

Understanding What Information Financial Statement Users Demand

Understanding What Information Financial Statement Users Demand

Match each of the financial statement users listed to the question they are most likely to ask.

1. What is the expected net income for next quarter?
Banker
Company CEO
Current shareholders
Equity analyst
Supplier
Correct answer: Equity Analyst is the expected net income for next quarter?

2. Will the company have enough cash to pay dividends?
3. Banker
4. Company CEO
5. Current shareholders
6. Equity analyst
7. Supplier

Correct answer: the company will have enough cash to pay dividends to Current shareholders

3. Has the company paid for inventory purchases promptly in the past?
Banker
Company CEO
Current shareholders
Equity analyst
Supplier

Correct answer : the company has paid for inventory purchases promptly in the past to its supplier
4. Will there be sufficient profits and cash flow to pay bonuses?
Banker
Company CEO
Current shareholders
Equity analyst
Supplier
Correct answer: there will be sufficient profits and cash flow to pay bonuses to company CEO

5. Will the company have enough cash to repay its loans?
Banker
Company CEO
Current shareholders
Equity analyst
Supplier

Correct answer: the company will have enough cash to repay its loans to Banker

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