Users Of Accounting Information

This financial data is useful for users of accounting information system for reporting the financial information to owners shareholders managers prospective investors creditors bankers and other lending institutions government etc.

Users of accounting information. Accounting information provides important information to customers about current position of a business organization and to make a judgment about its future. Internal and external users. Labor unions customers and consumers suppliers sec tax authority chamber of commerce press competitors auditors etc. The accounting information provides information that is necessary for making changes to the existing laws at the right moment for the economy and society betterment.

Users of accounting information. Internal users may consist of owners and management. That is users of accounting information may be grouped into two classes viz internal users and. Users with direct financial interest 3.

Other examples there are other external users for example. Users with indirect financial interest. According to slawin and reynolds conceptually accounting is the discipline that provides information on which external and internal users of the information may base decisions that result in the allocation of economic resources in society. Internal users are people within a business organization who use financial information examples of internal users are owners managers and employees.

Users of accounting information. Users of accounting information may be inside or outside a business. Accounting is the language of business it brings life to the otherwise lifeless business activities. External users are people outside the business entity organization who use accounting information examples of external users are suppliers banks customers investors potential investors and tax authorities.

It acts as a bridge between users of the information and the day to day transactions that occur inside a business. Owners are the persons who contribute capital in the business and ultimately responsible to bear all risk associated with the business. Customers can be divided into three groups manufactures or producers at various stages of production wholesalers and retailers and end users or final consumers. Lenders good financial health is indicated by the borrower s ability to pay its liabilities on time high profitability substantial securable assets and liquidity.

They are interested in the profitability and solvency of the business. Management is a group of people who are responsible for using the resources and managing the affairs of an entity to achieve. Accounting information system ais is a system which collects stores and processes the accounting and financial data.