a.

They loan money to the company. The financial statements help them assess the credit-worthiness of the company.

b.

They review the filings of public companies in the U.S.

c.

They create accounting concepts, rules, and guidelines that will result in financial statements that provide financial information that is relevant and that faithfully represent the financial performance and position of the reporting entity.

d.

They buy stock in the company, that is, they purchase a percentage of the company itself. The financial statements help them make investment decisions.

e.

They can use the financial statements to determine a company's financial position and whether they want to do business with the company.

f.

They provide information to management regarding the company's operations and proper functioning of its internal controls.

g.

They use the financial statements to assess the company's performance, which is important information in wage negotiations.

ldentify at least four different types of financial statement users and discuss why each would use the financial statements. Select four types of financial statement users and the corresponding letter for the description of each financial statement user. (Click the icon to view the descriptions of financial statement users.) Financial statement user Description Accounting standard setters Auditors Creditors Employees and labor unions Equity investors Regulatory bodies Suppliers and customers