The primary goal of financial accounting is to provide decision makers with useful information which enables them make informed decisions on business policies and investments. here are the various users of a financial statement of an organisations,

1. Creditors The lending decision involves two issues: whether or not credit should be extended, and the specification of a loan’s terms. For example, consider a bank loan officer evaluating a loan application. The officer must make decisions about the amount of the loan (if any), interest rate, payment schedule, and collateral. Because repayment of the loan and interest will rest on the applicant’s ability to generate cash, lenders need to estimate a firm’s future cash flows and the uncertainty surrounding those flows. Although investors generally take a long-term view of a firm’s cash generating ability, creditors are concerned about this ability only during the loan period.

2. Financial analysts and advisors. Many investors and creditors seek expert advice when making their investment and lending decisions. These experts use financial statements as a basis for their recommendations.

3. Customers. The customers of a business are interested in a stable source of supply. They can use financial statements to identify suppliers that are financially sound.

4. Employees and labor unions. These groups have an interest in the viability and profitability of firms that employ them or their members. As described in Reality

5. Regulatory authorities. Federal and state governments regulate a large array of business activities. The Securities and Exchange Commission (SEC) is a prominent example. Its responsibility is to ensure that capital markets, such as the Nigeria
Stock Exchange, operate smoothly. To help achieve this, corporations are required to make full and fair financial disclosures. The SEC regularly reviews firms’ financial statements to evaluate the adequacy of their disclosures.