Question

Q3. Explain why the investors are interested in financial information.

Answer 1

Answer:

Explanation:

they rely on our accounting informaton available to them and seek answer to question such as what is earning capacity of enterprise and how safe is ur investment

Answer 2

Answer:

in exchange for their investment, investors become part of the owner of the business, entitled to share any operating profits. as such they have legitimate interest in knowing how well or poorly their business is doing.