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a business’ money during a specific time. 

The Shareholder’s Equity Statement is used to summarize the changes in owner’s equity accounts during the fiscal year that are the distribution of cash dividends, issuance of stock shares, buy of own capital stock shares, and report of gains and losses not covered in other parts of the financial reports. 

Different audiences, for an assortment of reasons, use the financial statements. It can be employees to assess the value of their company when negotiating pay increases or to sign up for a 401K or to anticipate revenue from company profit sharing. Investors will use it to decide or not invest in a company, assessing the past performance and speculate what future revenue may be. Financial institutions will decide or not lend money to the company. Creditors may use for the same reason, which is loan additional money or collect on a past debt. Shareholders will use to decide or not to acquire or sell shares, the current and future value of those shares, or to assess the viability of the company. 

Business managers and owners, CFO’s use managerial reports. Those reports allow them to make important executive level decisions. It can be used also to assess pricing, cost management, performance, and revenue or to evaluate, plan and control company resources. Those reports detail about the overall outlook of a company’s viability and are presented to stockholders as part of the Annual Report. 

Government tax authorities will use both reports when assessing the tax liability of a company, when auditing or red flagging a company’s tax return. 

Making Informed and Ethical Business Decisions 

Those financial statements will help all audiences in making ethical and informed decisions. The way to maintain a long-term position in the market is to be aware of shareholder’s values and concerns. In adopting policies that maximize values in the market, the company can attract investments, provide local employment, and work with local leaders to make the relationship profitable for all. 

Shareholders may use statements of a failing company to decide sell their shares. Managers may use the financial statements to notify employees about layoffs or close of the company, as well to show how good the company is doing and motivate the employees to keep the good work to have their share increased. Creditors may increase or rescind a line of credit based on the company’s report. Financial Institutions may use the statements to decide to loan money based on the company’s past performance. 

Conclusion 
Financial Statements provide information about the performance of a company, which will be used to develop business plans and short and long-term goals. They provide powerful information to all audiences when used together, and are the best tool for directing investments, wisely. Those Financial Statements are relevant to all companies when analyzing the past, projecting, and building the future. Through them, all companies, small or not, using efficiently, will increase the growth, and remain competitive. 

References 
Block, S. B., & Hirt, G. A. (2005). Foundations of Financial Management (11th Ed.). New York: McGraw-Hill. Chapters 1本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。