ACCT 370 - Discussion Board: Problem 1-1. Essay. Latest 2021. A+ Graded.

ACCT 370 - Discussion Board: Problem 1-1. Essay. Latest 2021. A+ Graded. Discussion Board: Problem 1-1 Importance of Financial Information to Various Groups Financial disclosure are very important indicators of not only the current financial position of a company but as well as its projected future. Financial statements can be used as analytical tools, performance reports to management, warnings signs, predictions sources, and measures of accountability (Revsine, Collins, Johnson, Mittelstaedt, & Soffer, 2018). Therefore, the information financial statements provide is very valuable and impactful to those who interact or conduct business with the organization both internally and externally. Different interest groups will find the information more useful than others for their specific needs. A company’s shareholders, for example, are interested in how the company performs and how it will impact their shares. Shareholders expect and review the annual report/10K releases to educate themselves on the performance of a company. Balance sheets are very useful because it allows shareholders to compare the company’s figure to previous periods. The financial statements also allow current shareholders as well as prospective investors decide whether to obtain, purchase more, or sell stock based on the companies record of performance as well as its projected growth by analyzing returns. If shareholders do not find their interests as profitable then they will take their resources elsewhere. Financial analysts such as brokers, stock analysts, and portfolio managers regularly study and review the financial statements of the company they work with as well as its competitors to provide sound recommendations to investors and creditors (Revsine, Collins, Johnson, Mittelstaedt, & Soffer, 2018). These statements are not only valuable to those who hold or seek financial stake in the company but also provide insightful revelations for the company’s employees