Critically evaluate how the following types of users will use the financial statements. Provide suitable imaginary or real examples of a production or service company.

1. Shareholders

2. Lenders / Bankers

3. Employees

4. Customers / Debtors

5. The Statement of Comprehensive Income (Profit & Loss Account) shows how much cash has come into and left the business during the accounting period and the resulting cash balance at the end of the period.

6. In order to be included in the Statement of Financial Position (Balance Sheet) as an asset, an item must have a resale value that is all.

7. The accounting equation is: Assets = Owners Equity Outside Liabilities

8. Non-current assets are things that cannot be moved.

9. Goodwill has an indefinite life and so should not be amortized.