Financial Accounting Question plz help!!!

1) Entities have many different stakeholders. Explain why the same information may not be suitable or appropriate for all stakeholders?

Asked by: Salman Khan 522 days ago - 3 Answers - 1133 views

3 Answers

-1
Votes
0 Votes 1 Votes

Entities have many different stakeholders, Because each stakeholders have there on number of share and par value so ever Entities information is diff rent from one to another because of there share

Answer by Lulit Semunigus 518 days ago
- 0
  Votes
  0 Votes 0 Votes
  
  Lulit misunderstood the question which was about stakeholders, not shareholders.
  
  Answer by Carolyn 426 days ago
0
Votes
0 Votes 0 Votes

Directors, employees, customers, shareholders, vendors and the local community are all stakeholders in a company. The financial information needed by each of these groups differs and would require a different kind of report.
Vendors will want access to the company’s payment history with other vendors. Some will also want to know the total revenues vs. total expenses in order to determine if the company can afford their product. Customers and employees don’t need that same information.
Employees will want to know their gross earnings and each deduction from earnings on an annual basis.
Shareholders and directors will want more comprehensive information not only regarding revenue and expenses, but also regarding assets and liabilities of the company.

Answer by Carolyn 426 days ago

Your Answer

Ask your question

How This Works:

Ask a Question

Type your question - try to be as detailed as possible, this way you get a better answer. That's it, you're done!

The Community Answers

Thousands of other users like you will read your question and supply the answers you're looking for! If you know the answers to other's question feel free to answer them.

Choose the Best Answer

Finally, reward the person who submitted the Best Answer.

Important Notice:

Answers are provided by members like you. They are not professional unless identified. As such, BusinessDictionary.com does not evaluate or guarantee the accuracy of any content, and answers should not be construe as professional advice. You agree that any use you make of BusinessDictionary Answers is at your own risk and that BusinessDictionary.com is not responsible for any losses resulting from your reliance on any content on BusinessDictionary Answers.