Financial Accounting Standards Board (FASB) identifies investors, lenders, and other creditors as the primary users of the financial statements. Solution to BE1-2 Financial Statement Users and Other Parties Role 10. Shareholders of the company. 10Equity Investors 1. Banks and other financial institutions that lend 1Creditors money to the company. 5. Use financial information to review and analyze 5Financial Analysts reported results of the companies they cover and make investment recommendations. 8Employees and Labor Unions 8. Use financial information during negotiation of new labor agreements and compensation 2Suppliers and Customers contracts. 7Government Agencies 2. Use financial statements to determine whether to conduct business or purchase products from a 3Competitors company. 7. Review the financial statements of publicly traded 4External Auditors companies for a variety of reasons that are in the 6Internal Auditors public interest. 3. Use financial information to determine their 11Regulatory Bodies market position relative to the reporting entity and to attempt to identify future strategies of the 9Professional Organizations reporting entity. 4. Independent of the company and responsible for ensuring that management prepares and issues financial statements that comply with accounting standards and fairly present the financial position and economic performance of the company. 6. Employees of the company serving in an advisory role to management. They provide information to management regarding the company’s operations and proper functioning of its internal controls. 11. Protect investors and oversee the accounting and auditing standard setting processes. 9. Support accounting professionals throughout their careers by providing training, professional skills development, and other resources.
Financial Accounting Standards Board (FASB) identifies investors, lenders, and other creditors as the primary users of the financial statements. Solution to BE1-2 Financial Statement Users and Other Parties Role 10Equity Investors 1Creditors 5Financial Analysts 8Employees and Labor Unions 2Suppliers and Customers 7Government Agencies 3Competitors 4External Auditors 6Internal Auditors 11Regulatory Bodies 9Professional Organizations 10. Shareholders of the company. 1. Banks and other financial institutions that lend money to the company. 5. Use financial information to review and analyze reported results of the companies they cover and make investment recommendations. 8. Use financial information during negotiation of new labor agreements and compensation contracts. 2. Use financial statements to determine whether to conduct business or purchase products from a company. 7. Review the financial statements of publicly traded companies for a variety of reasons that are in the public interest. 3. Use financial information to determine their market position relative to the reporting entity and to attempt to identify future strategies of the reporting entity. 4. Independent of the company and responsible for ensuring that management prepares and issues financial statements that comply with accounting standards and fairly present the financial position and economic performance of the company. 6. Employees of the company serving in an advisory role to management. They provide information to management regarding the company’s operations and proper functioning of its internal controls. 11. Protect investors and oversee the accounting and auditing standard setting processes. 9. Support accounting professionals throughout their careers by providing training, professional skills development, and other resources.
Solution-Manual-for-Intermediate-Accounting-1st-Edition-by-Gordon.docx