Question

why the following parties are interested in accounting information?a. Investors b.Government?

Answer 1

investors are intrested because they want to know that are they going to get any profit or not
and government do so because they wana know about there develop ment of country
another thing can be that investor are doing for there own self and govn. for welfare of society

Answer 2

Answer:

Both investors and government are interested in accounting information.

Explanation:

The person who neither belongs to owner nor employees of the business but somehow interested in business activities and their results are known as External users.

The External Users refers to the:

1. Investors
2. Creditors
3. Government
4. Foreigners
5. Research Scholars
6. Others..

• Investors are those who invest amount in business by knowing the profitability and sound financial position of the business.
• They take decisions about making investment and accounting information is of great use to them in connection in making judgments for return on their investment.
• Accounting information is used by the government for following reasons:

1. Fixation of tax rates
2. Introduction of tax rates
3. To compute national income
4. To know industrial growth

Thus, Both investors and government are the external users who use accounting information in various fields whether to Calculate the return on investment or Growth of industry.

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