Question

In: Accounting

What do you plan to communicate, and why should your investors pay attention? In other words,...

What do you plan to communicate, and why should your investors pay attention? In other words, try to persuade your investors that the accounting information you are about to share is important. Just enough info for a power point slide

Solutions

Expert Solution

Answer)

1)The accounting information that I provide proves that it works. It means that with the accounting information I provide the targets like sales etc that are targeted by my organisation will be achieved.

2) the accounting information I provide proves that my commitments are reasonable.Here, the investors will get to know that my commitments like return on investments etc will be possible or not by examination of accounting information.

3)It helps them in analysis of risk.Here,by examination of cash flows etc they can know that from where the funds are coming and how they are spent to use.

4)It helps them in decisions making.By examination of income statement,Balance sheet etc they can know the worth of business and results of operating from which they can make decision whether to invest in business or not.

5)It helps them to know whether the business is genuine or not by examination of accounting information prepared in trasperant manner or not.


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