There are many users of accounting information, such as business owners, stokhol

Question

There are many users of accounting information, such as business owners, stokholders, customers, lenders, and suppliers. Among the financial statements is the statement of financial position. Answer, the following questions about the statement of financial position: what information can be obtained from the statement of financial position? do you think there is difference in the type of information that different users of this statement may find useful? share two examples to justify your viewpoint.

Explanation / Answer

Statement of Financial position is called as Balance Sheet.

what information can be obtained from the statement of financial position?
Answer : The actual Position of Assets and Liabilities as on the date of preparation of balance sheet of a Company, it portrays the actual real assets of the company which are existing on the date of its preparation, and also the liabilities to be paid off as on the date of its preparation.


Do you think there is difference in the type of information that different users of this statement may find useful?
Answer : Yes, there are different view points in analysing the Financial Statements by the different stakeholders,
for example, Creditors generally look in to the financial viability of the company whether it is financially stable or sound in order to meet its liabilities in time

ShareHolders look in the view point of analysing the profits of the year and can make the expectations of dividends.

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