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State the role of Accounting information
Accounting information has a significant role to play in reporting the extent to which different groups have benefited from the business. Hence, owners may depend on accounting information to check whether the pay and benefits of managers are in line with agreed policy. A further illustration is the potential conflict of interest between owners and lenders. There is a risk that funds loaned to a business won't be used for purposes which have been agreed. Lenders may, consequently, rely on accounting information to check that funds have been applied in an appropriate manner and that terms of the loan agreement aren't being broken.
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Fakari had the following asset at the ending of the year 2013 having started the business at the beginning of the same year. kSH.000 Account payables 15,800 equipment 46,000
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