1: Introduction to Accounting

Question 1

Explain the difference between trading and service business.

Answer 1

Trading - buys from suppliers and sells goods to customers.
Service - provides services to customers.

Question 2

State the stakeholders that businesses deal with. (8)

Answer 2

Owners & shareholders
Managers
Employees
Lenders
Suppliers
Customers
Government
Competitors

Question 3

Explain why stakeholders find non-accounting information important when they already have accounting information.

Answer 3

Non-accounting information refers to qualitative factors that may reflect current or future trends and fundamentals of a business but are not captured by the accounting information.