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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1006 |
Essay's paper body
They use the financial statements to determine the current profitability of the firm and attempt to predict its future profitability. Their interest is in the future growth of a company's stock price and/or the likelihood of the company paying dividends to the owner.
To be useful to investors financial reporting should provide information about the economic resources of an enterprise, the claims to those resources (obligations of the enterprise to transfer resources to other entities and owners' equity), and the effects of transactions, events and circumstances that change resources and claims to those resources...
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The information should be comprehensible and help investors assess the amounts, timing and uncertainty of prospective net cash flows to the related enterprise.
It should provide information about an enterprise's financial performance during a period. Investors often use information about the past to help in assessing the prospects of an enterprise...
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