why is accounting information is relevant for the owner explain
Answers
Answer:
Accounting information usually provides business owners information about the cost of various resources or business operations. These costs can be compared to the potential income of new opportunities during the financial analysis process.
Answer:
Accounting information are necessary for a business, both from owner's and business perspective. Here's some points why accounting information are important -
a) Accounting information helps owner in making about various type of business decisions
b) Accounts also shows the profit/loss & the financial position of the business by financial statements. Owner can understand if the business is growing or not by reviewing them.
c) Owner can compare accounting information of different years to understand the long term growth of the business.
d) Accounting information helps to know if owners capital is using properly in business.
e) Accounting information also helps to get loans/debts from financial institutions and investors.
I hope it helps :)