Question

When considering companies’ financial statements, we often think of investors and analysts using the information contained in those statements to assess whether or not to invest in the companies. However, financial statements are not just for investors. Please explain who else should be concerned with a company’s financial statements and why they are important.

As portfolio activities are to be self-reflective, please make sure to connect the portfolio assignment to:

• Your personal experiences. Reflect on how this assignment topic is applicable to and will benefit you.
• Course readings and any external readings.
• Discussion forum posts or course objectives.

The Portfolio Activity entry should be a minimum of 500 words and not more than 750 words. Use APA citations and references if you use ideas from the readings or other sources.

- As I was an employee in a bank, working in customer service.How can financial statements would be important to me and how can I get benefit ???

and these are the:

1. Describe the role of managerial accounting in business organizations.
2. Define the balance sheet, income statement, and statement of cash flows;
3. Demonstrate financial statement literacy by determining a company’s key financial values by interpreting relevant portions of its financial statements,
4. Analyze, evaluate and develop conclusions about a company by interpreting its financial statements.

Answer 1

Question(1): Please explain who else should be concerned with a company’s financial statements and why they are important.

Answer(1): Financial statements are not just for investors, these are for all the Stakeholder of the company.

Company's audited financial statements are presented in public domain so that all the stakeholder can have a look of company's financial position. Stakeholder are the people who are directly or indirectly related to company, they are also the users of financial statements, such as:

• Creditors/Banks- Use the financial statements for granting loan to the company.
• Investors- Use to invest their money into the company.
• Competitors- Use to make the strategies for counter attack.
• Customers- Use to see how well company is doing.
• Government- Uses to provide the subsidy and tax reforms.
• Managers- Use to make policies and taking decisions.
• General Public- Use to compare the companies of the same industry.

Question:  As I was an employee in a bank, working in customer service.How can financial statements would be important to me and how can I get benefit?

Answer: Being an employee of the company, specially in the customer service department where your interaction is directly to the customers, customers are the Kings, they should be provided fair and true information, if you know about company's financial statements, financial position, profitability, liquidity position, you can better explain the same to customers and you will be able to bring new customers to the business and in this way, company's revenue will increase and you will also get monetary benefits by bringing the new customers.

Note: Please post remaining questions as separate one.