Who uses a company's accounts, and what for
Shareholders, lenders, suppliers and HMRC all read the same accounts with different questions. See what each one looks for.
Task 1The people who read the accounts4 questions
A company's accounts are read by people outside it. Each reader has a different question.
- Shareholders
- is my money safe, and what dividend can I expect?
- Lenders
- can the company pay the interest and repay the loan?
- Suppliers
- will my invoices be paid on time?
- HMRC
- is the tax worked out on the right profit?
- Employees
- is my job secure?
Each reader goes to the figures that answer their question. A supplier looks at current assets and current liabilities, because that is where the money to pay invoices comes from.
Task 2Who prepares them, and who can see them2 questions
Task 3A figure a shareholder works out3 questions