Concept Introduction:
A company shares its financial and non financial information with the public in order to keep them inform and attract towards the investment in the company. The public financial information includes the financial statements of the company and non financial information includes the operational information.
To indicate:how might information on a company’s operation in different industries be helpful to investors.
Explanation of Solution
An investor is always keen to know about the profitability and operational progress of the company. The financial information allows the investor to know the profitability and financial position but it does not fulfill the investor’s need to know about the operations of the company. Hence operational information is also shared with the investors.
Information on a company’s operation in different industries helps the investor to take effective decision on their investments. An investor may not be interested in a company operating in specific industry or an investor may be looking for a company which is operating in a specific industry. Hence operational information guides the investors to choose the business of his choice.
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Chapter 13 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
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