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Financial Statements - Characteristics, Uses and Limitations
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User of Financial Statements are ____________.
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A
all of the above
💡 Explanation:
Users of financial statements are the people who refer the financial statements for various reasons. Creditors, employees and owners are some of the users of financial statements. Creditors use the financial statements to ascertain whether the company to whom they are lending money are capable to repay the same. The employees use the financial statements to understand the business better which will ensure active participation. The owners use the financial statements to understand whether their business is profitable or not.