Question

Use of accounting information to its different stakeholders

Answer 1

Use of Accounting information to its different Stakeholders. - - -


1// Investors-- Investors are the main users of the accounting information. They use accounting information for know about risk and % on return on investment of the business. In other words, they get information on risk and return on investment with the use of accounting information.


2// Employees - - These are the internal users of the accounting information. They also want to know the stability, profitability and distribution wealth power of the business. All these information they easily get by the use of accounting information.


3//Lenders and financial institutions - - These users also get accounting information to know about the creditworthiness of the business and also as well as to know the power to repay loans and interest..


4//Customers-- customers are external users of accounting information. They uses accounting information to know that How much business is stable, How much business earn profits and how much it ready to pay interest and loans or what services provided by business.

5//Government - - These are also the external users of accounting information. With the help of accounting information, They easily get the information about the allocation of resources. In this way government, uses accounting information.


6//Supplers and creditors - - They also use the accounting information to know the business credit facilities, supply facilities, or how much business exist in the market for long period.