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The users of accounting information are divided into two categories:-
1) internal users
2) External users
1. INTERNAL USERS
These are the management and employees' of the organisation.
- Management/managers need accounting information to assist them in making different decision concerning the business. eg. changing the product line, increasing production or sales of a certain product, expanding its operation or reducing its coverage etc.
- Employees need accounting information in order to know their productivity, whether their earnings will be increased in the future, whether the business is able to pay their wages/salaries etc.
2. External Users
These are the users apart from those within the organisation who need accounting information so as to make their own decision in relation to the bosiness/organisation. example of those external users are customer, suppliers, bankers of the business, competitors, tax authorities, investors, the government etc.
Some the external users and their information needs are:-
- Customers need information such as whether the business will continue to lender them services or not, and the ability of the business to meet their orders at the specified time.
- supplier need accounting information so as to know whether the business will be able to pay their debts for the goods or services sold or lendered to it , and the time the business will take to pay its debt.
- Investors need the accounting information so as to decide whether they should invest with the business, whether withdrowing their investments and or increase their investment in the business.
- tax authorities need accounting information so as to predict/calculate how much will be received from the business as tax, or to increase or decrease tax payable by the business.
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Who are the user of accounting information system?
Following are the users of accounting information systemmanagementemployees etc.
Is employee an external user of accounting information?
External ueser
What is most likely to be a user of information in a managerial accounting setting?
Creditors
Who are the user's of accounting information?
The users of accounting information include tax specialists, bookkeepers, and most business owners. Accounting information is also used by the IRS and the federal government.
How are cost accounting and financial accounting similar?
Simple answer: They both provide useful information to users. Thus is the true goal of accounting. Cost accounting users= managers Financial accounting user= shareholders
Who are the user of accounting information system?
Following are the users of accounting information systemmanagementemployees etc.
Is employee an external user of accounting information?
External ueser
Who are the user of information system?
Following are the users of accounting information systemmanagementemployees etc.
What is most likely to be a user of information in a managerial accounting setting?
Creditors
Who are the user's of accounting information?
The users of accounting information include tax specialists, bookkeepers, and most business owners. Accounting information is also used by the IRS and the federal government.
How are cost accounting and financial accounting similar?
Simple answer: They both provide useful information to users. Thus is the true goal of accounting. Cost accounting users= managers Financial accounting user= shareholders
User of accounting information?
these are daily or day to day people dealing with accounting information these includes -the managers -prospective buyer -investors -Business Owners etc.
Why accounting is called the language of business?
Because it communicates financial information, accounting is often called "the language of business." The information that a user of financial information needs depends upon the kinds of of decisions the user makers. The differences in the decisions divide the users of financial information into two broad groups: internal users and external users.
Who is primary user of management accounting information are?
Management and directors will use them to determine how well the company is doing and where to go from there.
What is creative accounting?
It is "thinking outside the box" when such practice is not permitted. Creative accounting is actually a good description of the practice, as it tends to "create" a picture that is not technically correct from the perspective of the information's intended user.
Disadvantages of financial accounting?
Cost accounting is usually involved with management accounting. Financial accounting tends to deal with the past and presents information like statements for public and private use. Management.Cost Accounting related to accounting methods and techniques used by managers to operate their firms. Examples include raw materials, labor and manufacturing overhead management. On the other hand,... Simple answer: They both provide useful information to users. Thus is the true goal of accounting. Cost accounting users= managers Financial accounting user= shareholders
Limitation of accounting information?
The limitations of accounting information Despite the usefulness of accounting information, there are some limitations: 1. An accountin
