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Tamil Nadu Board of Secondary EducationHSC Commerce Class 11

Why is the following party interested in accounting information? Investors - Accountancy

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Question

Why is the following party interested in accounting information?

Investors

Short Note

Solution

Investors: Persons who are interested in investing their funds in an organisation should know about the financial condition of a business unit while making their investment decisions. They are more concerned about the future earnings and risk-bearing capacity of the organisation which will affect the return to the investors.

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Chapter 1: Introduction to Accounting - Short answer questions [Page 13]

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Samacheer Kalvi Accountancy [English] Class 11 TN Board
Chapter 1 Introduction to Accounting
Short answer questions | Q III 4. (a) | Page 13
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