Who are the users of accounting information, and why do the users need accounting information? How this information helpful to the users?
Answers
Investors, employees,lenders, suppliers and creditors, customers, govt.and their agencies,public,management.
Because know the firm profit and loss and financial position.
Some external users may be:
Suppliers: TO determine whether the organization is capable of meeting deadlines to pay for supplies
Competitors: THEY will make use of publicly available accounting information to assess the level of competition it faces
Creditors: TO assess creditworthiness i.e. their ability to pay back a loan at any time
Customers: TO evaluate the capability of the firms to continue supplying them with their needs in the future
* I will include internal users in another post, thanks for waiting *
Hope this helped
- Miles
(comment is this helped; pls it will rly make my day)