Question

9.Financial Accounting Reports always useful to those outside the organization owners, lenders, tax authorities and regulators.Single choice.


True

False​

Answer 1

Answer:

The accounting process provides financial data for a broad range of individuals whose objectives in studying the data vary widely. Three primary users of accounting information were previously identified, Internal users, External users, and Government/ IRS. Each group uses accounting information differently, and requires the information to be presented differently.

Internal Users

Accounting supplies managers and owners with significant financial data that is useful for decision making. This type of accounting in generally referred to as managerial accounting.

Some of the ways internal users employ accounting information include the following:

Assessing how management has discharged its responsibility for protecting and managing the company’s resources

Shaping decisions about when to borrow or invest company resources

Shaping decisions about expansion or downsizing