Explain how each selected stakeholder may use financial statements to make decisions related to the company.
In your reading this week, you learned about external financial statement users or stakeholders. Common examples include:
Current stockholders
Potential investors
Creditors
Suppliers
Customers
Auditors
Taxing authorities
Select two of the stakeholders listed above and address the following points:
Explain how each selected stakeholder may use financial statements to make decisions related to the company.
Describe at least one thing the stakeholder could learn from the income statement (other than net income) and one thing they could learn from the balance sheet and explain the significance of the item you choose from each statement.
Discussion Post #2
Write: Make sure your response addressing the following question is more than 200 words, and you include an in-text citation or a brief quote from the reading material where appropriate.
Develop a balance sheet based on your personal financial condition:
Use actual accounts, such as house, mortgage, accounts payable, etc.
Do not use actual amounts but invent numbers.
Use the layout as described in the chapter, see page 1–20.
Post your balance sheet to the discussion area and tell us what, if anything, surprised you. Also, indicate how you would like this to look ten years from now.
Layout 1-20 link:
https://plus.pearson.com/courses/urn:xl-hed:course:7537541/products/9b394190-b569-4949-b5e1-f7150eaf1837/pages/urn:pearson:entity:64309e85-3b0e-437f-a1c7-e29e026eb9bb?locale=&isTpi=Y&key=8867308781231479857172023
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Answer preview to Explain how each selected stakeholder may use financial statements to make decisions related to the company.
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