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I am confused with two questions following below list :-
1) Which group bears the financial risk in a private limited company
A) Director
B) Shareholders
C) Managers
D) EmployeesIn this question, I cannot identify A and B, because these also include in company’s financial.
2) Which of the following are financial accounting tasks
i) Classifying
ii) Summarizing
iii) CommunicatingThe Communicating should be taken into account for financial accounting tasks ?
Q1 The shareholders stand to lose their investment if a company fails. Of course all the others lose their jobs so experience some risk, but I don’t think that is what the question is getting at.
Q2 I would include ‘communicating’ because financial accountants prepare the financial statements and these tell shareholders how the company did.
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