Class 10 Exam > Class 10 Notes > Business Studies for GCSE/IGCSE > How Stakeholders use the Accounts
How Stakeholders use the Accounts | Business Studies for GCSE/IGCSE - Class 10 PDF Download
Using Financial Accounts to make Decisions
- The financial accounts of a limited liability business must be submitted to Companies House annually. Public Limited Companies are required to audit their accounts before making them public.
- Public Limited Companies need to have their accounts audited before they publish them.
- Different stakeholders utilize business accounts for various purposes.
Stakeholder Interactions with the Financial Accounts
The document How Stakeholders use the Accounts | Business Studies for GCSE/IGCSE - Class 10 is a part of the Class 10 Course Business Studies for GCSE/IGCSE.
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FAQs on How Stakeholders use the Accounts - Business Studies for GCSE/IGCSE - Class 10
| 1. How do stakeholders use financial accounts to make decisions? |  |
Ans. Stakeholders use financial accounts to analyze the financial performance of a company, make strategic business decisions, assess profitability, evaluate liquidity, and determine the overall financial health of the organization.
| 2. What are some common financial ratios that stakeholders use to analyze financial accounts? | |
Ans. Stakeholders commonly use financial ratios such as the current ratio, quick ratio, return on equity, gross profit margin, and debt-to-equity ratio to analyze financial accounts and make informed decisions.
| 3. How do stakeholders interpret balance sheets and income statements to make decisions? | |
Ans. Stakeholders interpret balance sheets to understand the company's assets, liabilities, and equity, while income statements help them analyze revenues, expenses, and profitability. By comparing and analyzing these financial statements, stakeholders can make decisions about investments, operations, and future strategies.
| 4. Why is it important for stakeholders to regularly review financial accounts? | |
Ans. Regularly reviewing financial accounts allows stakeholders to stay informed about the company's financial performance, identify trends, assess risks, and make timely decisions to address any financial challenges or opportunities.
| 5. How can stakeholders use cash flow statements to make decisions? | |
Ans. Stakeholders use cash flow statements to analyze the sources and uses of cash within a company, assess its ability to generate cash, and evaluate its liquidity. By understanding the cash flow dynamics, stakeholders can make decisions related to budgeting, investment, and financial planning.
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Oct 03, 2025
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