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Accounting-Introduction To Bookkeeping And Accounting Igcse Edexcel

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  1. Types-Of-Business-Organisation Igcse Edexcel
    4 主题
  2. Accounting-Concepts Igcse Edexcel
    1 主题
  3. Use-Of-Technology-In-Accounting Igcse Edexcel
    2 主题
  4. Professional-Ethics Igcse Edexcel
    1 主题
  5. Business-Documentation Igcse Edexcel
    3 主题
  6. Books-Of-Original-Entry Igcse Edexcel
    4 主题
  7. Ledger-Accounting Igcse Edexcel
    9 主题
  8. Capital-Expenditure-And-Revenue-Expenditure Igcse Edexcel
    2 主题
  9. Depreciation Igcse Edexcel
    4 主题
  10. Irrecoverable-Debts Igcse Edexcel
    2 主题
  11. Other-Receivables-And-Payables Igcse Edexcel
    2 主题
  12. Trial-Balance Igcse Edexcel
    1 主题
  13. Control-Accounts Igcse Edexcel
    3 主题
  14. Correction-Of-Errors Igcse Edexcel
    3 主题
  15. Bank-Reconciliation Igcse Edexcel
    2 主题
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Exam code:4AC1

What are the stakeholders of a business?

  • Stakeholders are people or groups of people who have an interest in the business

  • Stakeholders can be internal or external to the business

  • Stakeholders have different interests in the financial statements of the business

Internal stakeholders

Why might internal stakeholders be interested in the accounting information?

Stakeholder

Reason for their interest in the financial statements

Owners

  • To compare the performance with previous years

  • To evaluate the profitability of the business

  • To plan for the future

  • To make decisions about which areas need action

Managers

  • To check on the efficiency of the business

  • To check on the progress of the business compared to previous years

Employees

  • To check that the business is profitable and likely to continue to trade so that they have job security

  • To check the profitability to see whether a pay rise is reasonable

External stakeholders

Why might external stakeholders be interested in the accounting information?

Stakeholder

Reason for their interest in the financial statements

Customers

  • To check on the probability that their goods will continue to be supplied by the business

Suppliers

  • To check whether the business can pay for its supplied goods as agreed

  • To set the credit terms for goods and services

Banks

  • To assess whether the business is suitable for an overdraft or a bank loan

  • To assess the value of the assets owned by the business so that they can be used as security against loans

Investors

  • To assess the profitability of the business

  • To assess the likelihood of the investors making money if they invested in the business

Competitors

  • To compare the profitability of the business against their own business

  • To identify gaps in the market

Government and tax authorities

  • To calculate how much tax is owed

  • To gather data for the government statistics

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