ACCT200 Chapter Notes - Chapter 1: Financial Accounting, Financial Statement, Management Accounting
19 May 2016
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Stakeholders are the parties that use accounting information. Stakeholders with a direct interest include owners, managers, creditors, suppliers, and employees. These individuals are directly affected by what happens to the business. Stakeholders with an indirect interest include financial analysts, brokers, attorneys, government regulators, and news reporters. These individuals use information in the financial reports to advise and influence their clients. Students may give many different answers under the above categories depending on their level of experience in business. All students are direct users of accounting information related to tuition and fees, financial aid, and account balances. Accounting provides information that is useful in making decisions by all participants in the market for resource goods and services, both profit-oriented and nonprofit oriented. Because accounting"s role is so important, it is often called the language of business. The primary mechanism used to allocate resources in the u. s. is competition for resources in the open market.
