The Users of Financial Accounting Information

Question 1

What is the difference between stakeholders in investor owned hospitals and not-for-profit hospitals?

Answer 1

It is the same except investor owned hospitals have owners as well

Question 2

stakeholder

Answer 2

A party that has interest, often financial, in a business. Stakeholders can be affected by the business’s actions, objectives, or policies.

Question 3

What are the two investor categories

Answer 3

-Owners who supply equity capital to investor-owned businesses
- creditos or lenders who supply debt capital to both investor-owned and not-for-profit

Question 4

What do investors create based on financial statements?

Answer 4

Investors create financial targets based on numbers reported that managers must attain or suffer some undesirable consequences.

Question 5

Who are the primary users of financial accounting information

Answer 5

Parties that have financial interest in the organizations economic status. Usually Investors and Managers.