Quick Answer: Which Stakeholder Would Be Most Interested In Profitability And Share Performance?

Why would stakeholders be interested in financial statements?

Financial statements are important to investors because they can provide enormous information about a company’s revenue, expenses, profitability, debt load, and the ability to meet its short-term and long-term financial obligations..

What is objective of Class 11 accounting?

The main objectives of accounting are:To maintain a systematic record of business transactions.To ascertain profit and loss.To determine the financial position.To provide information to various users.To assist the management.(1) Identifying financial transactions and events.(2) Measuring the transactions.More items…

What is the first chapter of accounts Class 11?

The first chapter in the Class 11 Accounts book deals with the theoretical base required for the practice of accountancy. It defines in detail the Basic Accounting Terms which students will come across repeatedly in their studies.

Which stakeholder group would be most interested in knowing the long term solvency position of the firm?

Debenture holders: Debenture holders are the lenders or creditors of the company. They want to know the short term and long term solvency position of the company.

What are key stakeholders in a business?

The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers. However, with the increasing attention on corporate social responsibility, the concept has been extended to include communities, governments, and trade associations.

Who are the users of accounting information class 11?

Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

What four groups are interested in the financial dealings of a business?

What four groups are interested in the financial dealings of a business? The four groups are owners, creditors, investors, and government.

How financial statements are helpful to the parties interested to know the position of the enterprise?

Shareholders are interested in financial statement analysis to know the profitability of the organization. Profitability shows the growth potentiality of an organization and safety of investment of shareholders. Investors and lenders are interested to know the solvency position of an organization.

What are the 3 definitions of accounting?

Johnson; “Accounting may be defined as the collection, compilation and systematic recording of business transactions in terms of money, the preparation of financial reports, the analysis and interpretation of these reports and the use of these reports for the information and guidance of management”.

Which stakeholder group would be most interested in?

Introduction to AccountingWhich stakeholder group…would be most interested in(Lenders)(d) whether the firm has a long-term future(Suppliers and Creditors)(e) profitability and share performance(Customers)(f) the ability of the firm to carry on providing a service or producing a product3 more rows