Place yourself in the role of one of the following stakeholders in a company: an
ID: 2774006 • Letter: P
Question
Place yourself in the role of one of the following stakeholders in a company: an investor, a creditor, or a manager. Summarize the information you would look for on each of the four basic financial statements, and explain why that information is pertinent to you. Include answers to two of the four questions below in your summary: Why is the balance sheet important in order to understand the financial condition of the organization? What types of accounts are found in the balance sheet, and how are the accounts arranged and grouped? What types of business transactions add to the balances in each grouping of accounts on the balance sheet? What types of information may users of the balance sheet discern by properly analyzing it?
Explanation / Answer
Ans) As per investor is concerned investor wants to know return on investment that is how much return get form its investment. They anlyasis the financial statement that is profit & loss account and financial statement .
As per credidtor is concerned they wants to know capability of short term liabilities payment for decison of supply of goods on the basis of credit.
As per Manager is concrened they wants to know financial position of business because their remunartion based on financial result of enterprise.
Ans of besic four questions:
1) Balance sheet is important in order to understand the financial condition of the organization because it describes resource and obligation of the busniess. It analyses the financial position of busniess.
2)In balance we found three types of accounts namely Capital A/c, Liabilities and Assets A/c.
Further it is grouped Assets: Fixed Assets and current Assets & Liabilities: Short Term and Long Term Liablities.
3) In balance sheet we added transtion sale and purchase of fixed assests and issue and and payment of Liabilities and cash & bank transction are recorded.
4) Financial position of busniess information may users of the balance sheet discern by properly analyzing it.