Module 1: Financial Accounting for MBAs exam 2022/2023

Managers and employees demand financial statements for... benchmarking, compensation, profit sharing, stock options, unions, pensions. Investment analysts and information intermediaries demand financial statements to... predict a firm's future performance (cash flows, price of securities, future borrowing power) to provide stock recommendations or write commentaries. 00:31 01:24 Creditors and suppliers demand financial statements to... determine loan terms, loan amounts, interest rates, and required collateral. There might be a covenant with the firm - an agreement that restricts borrower behavior (for instance, a minimum amount of working capital). Shareholders and directors demand financial statements to... assess profitability and risk and evaluate managerial performance. Fundamental analysis can be used to estimate company value and form buy-sell stock strategies. Customers demand financial statements to... assess a company's ability to provide products/services as promised and to assess staying power or reliability. Strategic partners demand financial statements to... assess fairness of returns on mutual transactions and strategic alliances. Regulators and tax agencies demand financial statements for... antitrust assessment, public protection, price setting, import-export analysis, and setting tax policies. Voters and representatives demand financial statements to... make policy decisions, and to assess impact of donations (in the case of nonprofits). benefits of disclosure capital, labor, input, and output markets costs of disclosure