Question

state the various users of the accounting information.​

Answer 1

Answer:

Users if accounting information are internal and external.

Explanation:

# Intarnal users of Accounting information.

Internal users are that individual who runs, manages and operates the daily activities of the inside area of an organization.

Example of internal users of account information;

@ Directors

@ Manages

@ Officer

@ Internal Department

@ Employees

@ Internal Auditor

# External users of Accounting information.

External user are those individuals who take interest in the account information of an organization but they are not part of the organization's administrative process.

Example of external users of accounting information are;

@ Creditors

@ Investors

@ Government

@ Trading partners

@ Regulatory agencies

@ International standardization agencies

@ Journalists

Answer 2

ANSWER :

The users of accounting information may be broadly classified into two types —

• (1) Internal users

• (2) External users

[1] Internal Users :-

• ✎ Internal users of accounting information at the parties who are involved in the internal activities such as planning, organizing, managing or running a business.

❒ Some Internal users of accounting information are as follows :-

• (i) Owners/partners : Owners or partners of a business want the accounting information on fund position, profit or loss, position of asset and liabilities etc. so that they may form and opinion relating to earning and safety of their investment.

• (ii) Managers : Managers of a business are interested in the accounting information for the purpose of planning, decision-making, controlling, motivating, directing and monitoring the functions of the business.

• (iii) Production Supervisors : In case of a manufacturing concern, the production supervisors are interested in accounting information to know the production level, profit or loss from production etc.

• (iv) Finance Directors : Finance directors wants the accounting information for the purpose of getting knowledge about thr finance position of the business, position of liabilities and assets etc.

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[2] External Users :-

• ✎ External users of accounting information are parties or groups of persons/association which are not directly connected with the conduct of the business; but somehow they are directly or indirectly influence by the accounting information conveyed through financial statements of the business.

❒ Some Internal users of accounting information are as follows :-

• (i) Creditors : Creditors or suppliers are the external users of accounting information. They use accounting information to ascertain the short term liquidity, long term liquidity, earning capacity, ability to repay the debt in schedule time of the business.

• (ii) Employees : Employees of a business are interested in accounting information in order to assess the stability of their employment in the business, to lodge their claim for hike in wages, share in profit, bonus etc.

• (iii) Bankers and Lenders : Bankers and lenders advance money to the business use accounting information to ascertain short term as well as long term debt repaying and debt servicing capacity of the business.

• (iv) Consumers : Consumers are interested in accounting information for the purpose of safeguarding their interest in regard to quality of products, changes in price and upholding the consumers movement.