[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-648096-105":59,"doc-detail-648096-en":129},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":122,"head_meta":124,"extra_data":126,"updated_unix":128},105,"en","financial-statements-learning-objectives","Financial Statements - Learning Objectives","","Chapter content introduces the next stage of financial accounting: preparing financial statements, and explains the information needs of different stakeholders. It defines stakeholders and contrasts internal versus external users, including owners, managers, government, prospective owners, and banks. The chapter also emphasizes distinguishing capital and revenue items and outlines key learning points such as profit and loss concepts, gross/net/operating profit, balance sheet preparation, asset and liability grouping, and initial journal entries.",{"@graph":69,"@context":121},[70,84,104],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/financial-statements-learning-objectives/648096/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":98,"encodingFormat":97,"isAccessibleForFree":99,"interactionStatistic":100},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/financial-statements-learning-objectives/648096.png","ImageObject",300,407,{"name":92,"@type":93},"Terk","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-23",true,{"@type":101,"interactionType":102,"userInteractionCount":4},"InteractionCounter",{"@type":103},"ViewAction",{"@type":105,"mainEntity":106},"FAQPage",[107,113,117],{"name":108,"@type":109,"acceptedAnswer":110},"What are the main learning objectives of this chapter?","Question",{"text":111,"@type":112},"The chapter aims to help learners describe financial statements, identify stakeholders and their information needs, distinguish capital and revenue items, and explain the preparation of trading and profit and loss account and balance sheet, including grouping of assets and liabilities and making an opening entry.","Answer",{"name":114,"@type":109,"acceptedAnswer":115},"How are stakeholders classified in the chapter and why does it matter?",{"text":116,"@type":112},"Stakeholders are classified as internal or external users depending on whether they are inside or outside the business. Different users have different objectives, so they require different accounting information to make informed decisions.",{"name":118,"@type":109,"acceptedAnswer":119},"What is the accounting process up to the trial balance described in the chapter?",{"text":120,"@type":112},"It includes identifying money-measured transactions, recording them in journals using double entry, using subsidiary books/special journals, posting entries to ledger accounts, balancing and listing accounts in a trial balance, and using the trial balance to prepare trading and profit and loss account and balance sheet.","https://schema.org",{"og:url":83,"og:type":123,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":125,"canonical":83},"index,follow",{"doc_id":127,"site_id":62},648096,1792792241,{"code":4,"msg":5,"data":130},{"doc_id":127,"user_id":131,"nickname":92,"user_avatar":132,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":133,"file_id":134,"file_url":135,"file_type":136,"file_size":137,"view_count":4,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":138,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":128,"read_time":143},1099525198933,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","Financial Statements -I  \nLEARNING OBJECTIVES  \nAfterstudying this chapter,you will be able to:  \n·state the nature of thefinancial statements;  \n·identify the variousstakeholders and theirinformation require-ments;  \n·distinguish betweenthe capital and reve-nue expenditure andreceipts;  \n·explain the concept oftrading and profit andloss account and itspreparation;  \n·State the nature ofgross profit,net profitand operating profit;  \n·describe the concept ofbalance sheet and itspreparation;  \n·explain grouping andmarshalling of assetsand liabilities;  \n·prepare profit and lossaccount and balancesheet of a sole prop-rietory firm;and  \n·make an openingentry.  \n11J1ZCH09  \nVTou have learnt that financial accounting is aI well-defined sequential activity which beginswith Journal (Journalising),Ledger(Posting),and preparation of Trial Balance (Balancing andSummarisation at the first stage).In the presentchapter,we will take up the next step,namely,preparation of financial statements,and discussthe types of information requirements of variousstakeholders,the distinction between capital andrevenue items and its importance and the natureof financial statements and the preparation thereof.  \n# 8.1 Stakeholders and theirInformation Requirements\n\nRecall from chapter I (Financial Accounting Part I)that the objective of business is to communicatethe meaningful information to various stakeholdersin the business so that they can make informeddecisions.A stakeholder is any person associatedwith the business.The stakes ofvarious stakeholderscan be monetary or non-monetary.The stakes canbe active or passive;or can be direct or indirect.Theowner and persons advancing loan to the businesswould have monetary stake.The government,consumer or a researcher will have non-monetarystake in the business.The stakeholders are alsocalled users who are normally classified as internaland external depending upon whether they are insidethe business or outside the business.A₁1 usershave different objectives for joining business and  \nconsequently different types of information requirements from it.In nutshell,the various users have diverse financial information requirements from thebusiness.  \nFor example we have classified the following into the category of internaland external users specifying their objectives and consequent informationrequirements.  \n\n| Name   | Internal/  \u003Cbr>External  \u003Cbr>users   | Objective for participating  \u003Cbr>in business   | Accounting Information requirements   |\n| --- | --- | --- | --- |\n| Current  \u003Cbr>owners   | Internal   | To make investment in the  \u003Cbr>business and wealth grow.   | Likes to know extent of profit in the  \u003Cbr>last accounting period,current  \u003Cbr>position of the assets/liabilities of the  \u003Cbr>business.   |\n| Manager  \u003Cbr>and   | Internal   | For a career.They essenti-  \u003Cbr>ally act as the agent of  \u003Cbr>owners (their employers).   | Accounting information in the form  \u003Cbr>of financial statements is like their  \u003Cbr>report card and they are interested  \u003Cbr>in information about both profits  \u003Cbr>financial position.   |\n| Government   | External   | Its role is regulatory and  \u003Cbr>tries to lay down the rules  \u003Cbr>in the best public interest.   | Its concerns are that the rights of all  \u003Cbr>stakeholders are protected.Since the  \u003Cbr>government levies taxes on the  \u003Cbr>business,they are interested in  \u003Cbr>information about profitability in  \u003Cbr>particular besides lot of other  \u003Cbr>information.   |\n| Prospective  \u003Cbr>owner   | External   | He is expecting to make  \u003Cbr>investments in the business  \u003Cbr>with a view to make his  \u003Cbr>investment and wealth grow.   | He is interested in information about  \u003Cbr>past profits and financial position as  \u003Cbr>indicative of likely future performance.   |\n| Bank   | External   | Bank is interested in safety  \u003Cbr>of the principal as well as  \u003Cbr>the periodic return  \u003Cbr>(interest).   | Bank is interested in adequacy of  \u003Cbr>profits only as an assurance of the  \u003Cbr>return of principal and inter","cbCaisE6FC6QsB2C","https://ap.wps.com/l/cbCaisE6FC6QsB2C","pdf",3163174,41,"English","# 8.1 Stakeholders and their Information Requirements\n## Stakeholder categories and information needs\n## Accounting Process (up to Trial balance)\n# 8.2 Distinction between Capital and Revenue","[{\"question\":\"What are the main learning objectives of this chapter?\",\"answer\":\"The chapter aims to help learners describe financial statements, identify stakeholders and their information needs, distinguish capital and revenue items, and explain the preparation of trading and profit and loss account and balance sheet, including grouping of assets and liabilities and making an opening entry.\"},{\"question\":\"How are stakeholders classified in the chapter and why does it matter?\",\"answer\":\"Stakeholders are classified as internal or external users depending on whether they are inside or outside the business. Different users have different objectives, so they require different accounting information to make informed decisions.\"},{\"question\":\"What is the accounting process up to the trial balance described in the chapter?\",\"answer\":\"It includes identifying money-measured transactions, recording them in journals using double entry, using subsidiary books/special journals, posting entries to ledger accounts, balancing and listing accounts in a trial balance, and using the trial balance to prepare trading and profit and loss account and balance sheet.\"}]","Financial Statements - Learning Objectives | PDF",103]