FIN Assignment
INTI INTERNATIONAL UNIVERSITY
FIN 2210 FINANCIAL MANAGEMENT
AUGUST 2014
INDIVIDUAL ASSIGNMENT (20%) Instruction: Answer ALL questions. Marks allocated for each question is shown.
There are several groups of people, who are interested in obtaining the financial statements, basically for decision making purposes. You are to LIST example (at least 4) of the users and the REASONS they are interested in the financial statements. (10 marks) Financial statements are a collection of reports about an organization’s financial result, condition, and cash flow to various user groups. This assignment mainly introduces 5 users of financial statement and the reasons why they are interested in financial statement.
Managers
The first users are managers. Managers play an important role in running the business for the owner of an entity. There are main three reasons why they are interested in financial statements.
For one thing, they need financial statement to help them employ the resources and funds of the business in an efficient way in order to meet the objectives of business. For another, they need financial statement to assess an entity’s financial performance and position so that they can manage the affairs of an entity well. Last but not least, financial statements are helpful for them to make wise business decisions of an entity’s continued operations.
Investors
The second users are investors. Investors pay more attention to making investment for an entity. There are three reasons why they interest in financial statements.
Firstly, investors enable to use financial statement to evaluate the risk of their investment to determine whether they should buy, hold or sell the stock. Secondly, investors can use financial statement to assess the ability of the entity to pay dividends. It is helpful for them get maximum profit when they invested. Thirdly, they also use financial statement to
FIN 2210 FINANCIAL MANAGEMENT
AUGUST 2014
INDIVIDUAL ASSIGNMENT (20%) Instruction: Answer ALL questions. Marks allocated for each question is shown.
There are several groups of people, who are interested in obtaining the financial statements, basically for decision making purposes. You are to LIST example (at least 4) of the users and the REASONS they are interested in the financial statements. (10 marks) Financial statements are a collection of reports about an organization’s financial result, condition, and cash flow to various user groups. This assignment mainly introduces 5 users of financial statement and the reasons why they are interested in financial statement.
Managers
The first users are managers. Managers play an important role in running the business for the owner of an entity. There are main three reasons why they are interested in financial statements.
For one thing, they need financial statement to help them employ the resources and funds of the business in an efficient way in order to meet the objectives of business. For another, they need financial statement to assess an entity’s financial performance and position so that they can manage the affairs of an entity well. Last but not least, financial statements are helpful for them to make wise business decisions of an entity’s continued operations.
Investors
The second users are investors. Investors pay more attention to making investment for an entity. There are three reasons why they interest in financial statements.
Firstly, investors enable to use financial statement to evaluate the risk of their investment to determine whether they should buy, hold or sell the stock. Secondly, investors can use financial statement to assess the ability of the entity to pay dividends. It is helpful for them get maximum profit when they invested. Thirdly, they also use financial statement to