Who is not user of accounting information?
(a) Owners
(b) Management
(c) Investors
(d) Minors
Answers
Answer:
(d) Minors
Explanation:
Owners: Owners invest capital to start and run business with the primary objective to earn the profit. They need accurate financial information to know what they have earned or lost during a particular period of time. They need accounting information to know the profitability and the financial position of the concern in which they have invested their funds
Management: One of the major roles of management is to set rules and procedures to achieve organizational goals. For this purpose, management uses the information generated by financial as well as managerial accounting system of the organization.
Investors: Normally investors provide capital and management run the business. The accounting information is used by both actual and potential investors. Actual investors use this information to know how their funds are used by the management.
Answer:
investors correct answer