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The statements can be used by private individuals, non-profit organizations, manufacturers and service industries. The three major groups that take advantage of usefulness of financial statements are large corporations, investors and the government.
Financial statements play a big role in each of these groups financial decisions. Corporations decide how much credit to extend to customers and how much should be distributed to investors in dividends. Investors use a company's financial statements to decide whether or not it would be an advantage to invest their money, and if so, how much. The government uses financial statements to determine how much has to be paid in taxes...
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