Financial Accounting Question Answer 2022

Running head: FINANCIAL ACCOUNTING
Financial Accounting:
Name of the Student:
Name of the University:
Author’s Note:

1FINANCIAL ACCOUNTING
Table of Contents
Answer to question 1:......................................................................................................................2
Answer to question 2:......................................................................................................................5
Sub part (a):.................................................................................................................................5
Sub part (b):.................................................................................................................................7
References and bibliography:..........................................................................................................8

2FINANCIAL ACCOUNTING
Answer to question 1:
Financial statement of an entity reveals financial and operational performance of the
entity for a particular period. It also shows the financial position of the company as on a
particular date. There are two important parts of the financial statement, one is the Income
statement for a particular period and the other is the statement of financial position or the balance
sheet. The profitability of the entity can be analyzed from the income statement and the financial
position can be judged from the balances sheet. Financial statements are prepared with an
objective to evaluate the financial and operational performance of the entity and to serve the
different stakeholders with their financial information needs (Williams and Dobelman 2017).
Different stakeholders have different information needs based on their interest in the entity. In
the following parts, the different information needs of the stakeholders have been pointed out.
Managers:
Managers are responsible for managing the regular business activities and they are
always striving to achieve the overall organizational goals with the efficient and optimum
utilization of the resources of the company. They need to take various important business
decisions and formulate strategies with the objective of achieving the mission and vision of the
company. Therefore, they need information about the financial and operational performance of
every department of the company and information related to the overall financial performance of
the company (Williams and Dobelman 2017).
Investors: