ACCOUNTING ASSIGNMENT

Accounting assignment

Stakeholders of business

In every business, the people which are affected with every transaction of business and they have stake in the business are stakeholders of the business (Madura, 2006, pp. 11-17). Stakeholder can be of five different types as below:

Owner - refers to entrepreneur or entrepreneurs, with whom business begins by his ideas. It is the act of managing, organizing and creating a business. These are the stakeholder of business.

Employees - the people working in any organizations, and providing their services at some cost are the employees of the business. They are also the stake holder of the business.

Creditors - typically every organization requires financial help and support despite the support provided by the company owner. Sometime firms require cash from outside to support his operations. Creditors are also stakeholders of business as they provide a business financial support. Creditors may be friend, family member or financial institution giving financial support to business (Farrell & Fraedrich, 2012, pp. 37-40).

Customers - a person who purchases the product or services of the organization are the customer of the business and they are also the stakeholder of the business.

Suppliers - a business or person supplying material or services to a company are the supplier of the business and also stakeholder of the business.

The above discussed are the possible stakeholder of the business and they are affected with business decisions. As in every business, the people which are affected with every transaction of business and they have stake in the business are stakeholders of the business (Madura, 2006, pp. 11-17)

Managerial and financial accounting information

Managerial accounting

In any business, manager uses financial information for decision making for business's day to day operations and future planning. The accounting information used in managerial accounting is mostly used for decision making.

These decisions depends on for example classification of costs related to manufacturing and for mentioning it in financial statements, assessment of cost behavior related with different level of activities, and deciding for product to be manufactured or outsourced based on their costs etc.

Therefore we can say that managerial accounting information is mostly based on accounting information that is needed for decision making (Heitger, 2007, pp.6-8).

Financial accounting information

Financial accounting information refers to fixed interval reporting based on monthly, yearly, quarterly in form of financial statements for general purpose. Financial accounting information includes the income statement, balance sheet, retained earnings statement, and cash flow statement. ...