Accounting is regarded as a language of business. It also performs the service activity by providing quantitative financial information that helps the users in various ways. Accounting as an information system collects and communicates economic information about an enterprise to a wide variety of interested parties. Name the user of accounting of the given information.
(CONSIST 5 MARKS EACH QUESTION CARRY 1 MARK)
7.1). This group is seek information to prepare cash budget, sales budget, cost reduction plan etc. * 1 point
(a) Investors and potential investors
(b) Management
(c) Suppliers and creditors
(d) Social responsibility groups
7.2). This group is seek information to know the rate of return. * 1 point
(a) Investors and potential investors
(b) Unions and employee groups
(c) Suppliers and creditors
(d) Management This is a required question
7.3). This group is seek information on whether amounts owed will be repaid when due, and on the continued existence of the business. * 1 point
(a) Investors and potential investors
(b) Unions and employee groups
(c) Suppliers and creditors
(d) Social responsibility groups This is a required question
7.4). This group is seek information on the stability, profitability and distribution of wealth within the business. * 1 point
(a) Investors and potential investors
(b) Unions and employee groups
(c) Suppliers and creditors
(d) Social responsibility groups
7.5). This group is seek information on the impact on environment and its protection; * 1 point
(a) Management
(b) Unions and employee groups
(c) Suppliers and creditors
(d) Social responsibility groups
Answers
Explanation:
The American Accounting Association defines accounting as “the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.”
Accounting involves two main elements: (1) an information process summarizing financial events; and (2) a reporting system that communicates financial information to interested parties.
Double-entry bookkeeping first emerged in Northern Italy in the 14th century, where trading ventures began to require transactions that involved more than one investor.
Management (or internal) accounting and financial (or external) accounting are generally the two key branches of accounting.
Management accounting provides relevant and useful information to people inside the business, such as employees, managers, owners and auditors. It provides information for decision making and company strategy.
Financial accounting, on the other hand, also provides information to people outside the business, such as investors, regulators, analysts, economists, and government agencies.
1)The chief financial officer, controller or equivalent executive
2)Accounting is a process of recording, classifying, summarising, analysing and interpreting the financial transactions and communicating the result thereof to the users of such information.
3)The U.S. Environmental Protection Agency (EPA)