Write short notes on Users of Accounting information.
Answers
Hello Mate,
An accounting information system (AIS) is the collection, storage and processing of financial and accounting data used by internal users to report information to investors, creditors and tax authorities..
Examples of these are ÷accountants, managers, analysts, consultants, Chief Financial Officers (CFOs), regulators and tax agencies too..
The purpose of an accounting information system (AIS) is to collect, store, and process financial and accounting data and produce informational reports that managers or other interested parties can use to make business decisions....Internal users are people within a business organization who use financial information. Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information.
Hope this helps you
Internal users :-
♥ Owners - They contribute capital in the business and are exposed to maximum risk .
♥ Management - They make decisions such as determination of selling price , cost , etc...
♥ Employees - They are entitled to bonus at the end of the year which is dependant on the profit earned by the enterprise .
External users :-
♥ Banks - Provide loans to business by watching their performance . They assess it by analysing the accounting information .
♥ Creditors - Supply goods and services on credit . Before granting it , they analyse the credit worthiness of business .
♥ Researches - They use it in their research work .