Notice: Payments for answers will end 4/10/2017. Click for more info.
You have new items in your feed. Click to view.
Question and answer
Q: how the financial statements would be useful to external users such as investors and creditors.
A: Investors use financial statements to review the return on their funds. Investors provide funds to companies in exchange for shares of stock. [ They want to see the stock value increase while they hold the shares to increase the value of their investment. Investors review the income statement to see how profitable the company performed. They also review the statement of stockholders equity to
review changes in the company's shares outstanding. Creditors use financial statements to make lending decisions to companies. They look at the income statement, the balance sheet and the statement of cash flows. The income statement communicates how much income the company generated during the period. The balance sheet tells the creditor how its liabilities compare to its equity. Companies with high liabilities already owe a considerable amount of money, impacting the creditor's decision. The statement of cash flows communicates the company's ability to manage its cash, which it needs to meet financial obligations ]
rhey22787|Points 1477|
Question
Asked 11/29/2012 12:25:28 AM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
26,572,378 questions answered
Popular Conversations
6. Solve the equation. Show your work. Check your answer. 3x – 7 = 5x ...
Weegy: 3x – 7 = 5x + 19 , 3x - 5x = 19+7, -2x = 26, - x=26/2, x=-13
1/10/2018 8:46:51 AM| 3 Answers
9/11= /22
Weegy: Multiply the numerator of the first fraction by the denominator of the second fraction. Set this equal to the ...
1/10/2018 4:50:25 PM| 3 Answers
19. In which one of the following circumstances could the doctor ...
Weegy: The following circumstances could the doctor charge a premium: An emergency call at 1:30 A.M.
1/7/2018 10:15:00 AM| 2 Answers
Simplify this expression: 19 – (–8) – (–14) = ? A. 25 ...
Weegy: 19 ? (?8) ? (?14)
1/15/2018 10:29:20 PM| 2 Answers
what does irrelevant mean
Weegy: An irrelevant cost is a cost that will not change as the result of a management decision. User: Find the ...
1/8/2018 8:16:56 AM| 2 Answers
Which of these lines contains a metaphor? A. You are like a ...
Weegy: The line that contains a metaphor is: User: Repeating consonant sounds, typically the last letter of a word, ...
1/8/2018 3:55:57 PM| 2 Answers
Cells are the basic of our bodies.
Weegy: Cells are the basic of our bodies. TRUE
1/10/2018 7:36:07 AM| 2 Answers
Weegy Stuff
S
L
R
Points 451 [Total 743] Ratings 1 Comments 441 Invitations 0 Online
S
L
Points 70 [Total 4521] Ratings 0 Comments 30 Invitations 4 Offline
S
P
L
P
Points 64 [Total 182] Ratings 0 Comments 64 Invitations 0 Offline
S
Points 17 [Total 17] Ratings 0 Comments 17 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 0 Comments 0 Invitations 1 Offline
S
P
Points 5 [Total 44] Ratings 0 Comments 5 Invitations 0 Offline
S
Points 4 [Total 4] Ratings 0 Comments 4 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
P
L
Points 1 [Total 188] Ratings 0 Comments 1 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.