NABTEB Accounting 2024 Theory — Question 5

Model answer

1. Investors: use accounting information to make informed decisions about buying, holding or selling shares, assessing profitability and potential for growth. 2. Creditors: banks and lenders use accounting information to assess a company's financial stability and creditworthiness before extending credit. 3. Managers: use accounting information to monitor performance, allocate resources and develop strategies to improve overall performance. 4. Government: uses financial statements to ensure compliance with tax laws and regulations and to assess adherence to industry standards. 5. Employees: are interested in accounting information as it may affect job security, compensation and benefits.