Order Now
  Back to all posts Economics Essays

What decisions might a manager make based on financial statements?

22 Mar 2017Economics Essays

Financial Statements are considered to be an important piece or source of information not only to the external users of the information such as investors, creditors, government and the regulatory agencies and analysts, but also to the internal users, which predominantly includes managers.

Need essay sample on

"What decisions might a manager make based on financial statements?" topic?

We will write a custom essay sample specifically for you


Managers, especially financial managers may use this information for the following reasons:

  • To help in making decisions, in general
  • To help in deciding where to spend money and what amount of money
  • Budgeting
  • Deciding on where to invest money, i.e. cash management
  • Deciding on which type of financing to go for, equity financing or debt financing
  • Interpreting agreements or contracts that include provisions based on such information, i.e. when agreements are being structures between firm and other entities, based on financial statement variables management may include contractual terms
  • To make day to day operating decisions
  • To allocate new jobs, i.e. create new job vacancies or lay-off people, depending on whether the company wants to grow or not


  • Charles T. Horngren, Gary L. S.William O. S., (2002). Introduction to Management Accounting. New York. Prentice Hall
Learn more:
What Determines Economic Growth? The Emergence of Middle Class What is at is Optimal Rate of Inflation?

Do You need a paper on this topic?

Order Your Essay

Order your paper now!

I need
My email
By clicking “Continue”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related emails.

EssayLab Reviews

  • Jason (student)

    I asked Essay Lab to write an essay for me and received paper the next day after I ordered it! Thank you!

  • Kimberly (student)

    Awesome WORK! If I ever need to write my essay – I will use only EssayLab!

  • Matt (student)

    These people are lifesavers! Just ask – “write me an essay” and they will start right away!