Who are considered users of financial statements?

Financial statements are designed to provide valuable information to a broad audience interested in the financial performance and position of a company. The correct answer includes a diverse range of users: investors, employees, lenders, and the public.

Investors use financial statements to assess the profitability and viability of their investments, making informed decisions about buying, holding, or selling securities. Employees may look at financial reports to understand the company's performance and job security, especially if they are considering career advancement or salary negotiations. Lenders analyze financial statements to evaluate the creditworthiness of the business, which helps them determine loan terms or whether to extend credit at all. The public, including regulators and potential customers, utilizes financial statements to gather insights about the company's integrity and operational success, which can influence their decisions and perceptions.

Thus, the answer reflects the multifaceted role of financial statements in providing critical information to various stakeholders who have legitimate interests in the company's operations and performance.