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Which order should kept in mind.in order to prepare financial statements.
financial statements are useful for wide range of users in order to make economic decisions...these users are as under:
managers: because they want to manage the affairs of the company by assesing the financial performance and position and as a result make important business decisions.
the second ultimate users are shareholders, because they have to analyze the level of risk and return of their investments and subsequently make investment decisions based on their analysis.
the third users are investors because financial statements provide basis for the investment decisions of potential investors by given historical dividends and calculated risks.
and the rest of the users are financial institutions,suppliers,customers ,emlpoyees ,competitors and governments because each of the above has his own interest FS.
simple answer is stake holders. Those who have any kind of intrest in organisation, FS can be helpfull to them.
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