Users of Accounting Information - 1665 Words

inAccounting information helps users to make better financial decisions. Users of financial information may be both internal and external to the organization. Internal Users of accounting information are those individuals directly involved in managing and operating an organization and users within the company. They include managers, internal auditors, sales staff, budget officers, controllers, officers, directors, and other important internal decision makers. Internal users make the strategic and operational decisions for the business or organization. The internal role of accounting is to provide information to help improve the efficiency or effectiveness of an organization in delivering products or services to the marketplace.†¦show more content†¦They include shareholders, lenders, customers, suppliers, consumer groups, external auditors, government agencies, regulators, lawyers, brokers and the press. Yet these users can affect and be affected by the organization. External users rely on accounting information to make better decisions in pursuing their goals for the organization. External users are communicated accounting inform ation usually in the form of financial statements. The purpose of financial statements is to cater for the needs of such diverse users of accounting information in order to assist them in making sound financial decisions. The external users would receive limited financial information from the target company, such as general-purpose financial statements; these statements have just enough information to inform external users of the company’s economic position. General-purpose statements are in the area of financial accounting, which is the type of accounting aimed at supplying information to users not directly affiliated with the target company. External users of accounting information include the following: * Lenders: lenders have an interest in both a company s profit and cash flow. These users may have given loans to the business. Lenders such as investors, banks and other financial institutions are interested in such statements for the fact if they were to lend the company money they would need to asses that the company would be able to afford to repayShow MoreRelatedAccounting Information; User and Uses1701 Words   |  7 PagesACCT101 - USERS OF ACCOUNTING INFORMATION AND THEIR NEEDS ACCT101 [Assignment 1] - Accounting Information, Users and Uses Abdul Samad Mustafa [1283] Course: ACCT101 [Dr. Naim Hassan El-Sayed] NYIT – Abu Dhabi, U.A.E. CONTENTS Abstract 3 Users of Accounting Information and their needs 4 Introduction 4 Users of accounting Information and responsibilities of accountant 4 External Users 6 Internal Users 7 The needs of accounting information 7 Conclusion 8 References 9 Abstract External users of accountingRead MoreAccounting Information for Internal and External Users11290 Words   |  46 PagesON ACCOUNTING AND ACCOUNTING INFORMATION FOR, INTERNAL AND EXTERNAL USERS PRESENTED BY Mr. EMMANUEL FONGEH IN PARTIAL FULFILLMENT OF AN EXECUTIVE MASTERS DEGREE IN BUSINESS ADMINISTRATION. CHAPTER 1 1.1 INTRODUCTION. At a glance, accounting can appear extremely complicated and confusing. The untrained eye may struggle to grasp the entire nature of accounting andRead MorePublished Financial Statements: Users and Their Need for Accounting Information6104 Words   |  25 PagesC H A P T E R O N E INTRODUCTION 1.1 BACKGROUND OF THE STUDY Accounting as a profession or discipline, has always been seen as an information-generating one, which fittingly makes the job of the Accountant to be that of observing economic activities, recording the observations in the prescribed books, analysing the recordings, interpreting his analysis and preparing reports to all users of Accounting Information. The prepared reports are generally referred to as financial statements, which clearlyRead MoreQualitative Characteristics of Accounting Information846 Words   |  4 PagesQualitative Characteristics of Accounting Information Qualitative characteristics are the attributes that make the information provided in financial statements useful to users. The four principal qualitative characteristics are understandability, relevance, reliability and comparability. It is also pointed out that these qualitative characteristics may need to be balanced against one another. (John Wiley Sons Australia, Ltd, 2009) The relative importance of the characteristics in different casesRead MoreManagerial Accounting vs Financial Accounting Essay761 Words   |  4 PagesManagerial and Financial Accounting ACCT/300: Principles of Accounting April 9, 2008 Managerial and Financial Accounting This paper will attempt to differentiate between managerial and financial accounting, the users of managerial and financial accounting and what type of business decisions would be made with the information. Managerial Accounting Managerial accounting provides accounting information to managers who are inside an organization and who directs and controls its operationsRead MoreAccounting and Financial Statements Essay example1585 Words   |  7 Pagesidentify external users of accounting information and give detail on the main characteristics and how these characteristics and the conceptual framework develop the benefits of financial statements for external users. Financial accounting includes information distributed to external users that are not part of the enterprise, e.g. stockholders, creditors, customers and suppliers, although the information is also of interest to the companys officers and managers. (Yahoo, 2007) External users have an interestRead MoreFinancial Accounting Information And Management Accounting1434 Words   |  6 Pagesassignment is to â€Å"Identify the ‘other users’ [of business accounts] and assess the extent to which financial accounting information is of use to managers, and management accounting information is of use to ‘other users’.† The appropriate definitions and roles of financial and management accounting will be given and the ‘other users’ of accounts will be identified. Thereafter, the uses of both financial accounting information and management accounting information will be discussed and analysed to evaluateRead MoreConceptual Framework1208 Words   |  5 Pageswhich comprises Statement of Accounting Concepts. Apart from that, the essay also clarifies on how the financial information is essential for the users as stated in the SAC 2, for decision making purposes. Additionally, an illustration of the relationship b etween the SACs and how they are interrelated to fulfil the objective of general purpose reporting is pictured. Introduction The Conceptual Framework adopts financial reporting as issued by the Financial Accounting Standards Board (FASB) of USARead MoreFacts and Information about Accounting1606 Words   |  6 Pages1.0 Introduction What is accounting? How many people know the fundamental accounting concepts? Let me explain briefly some to you. Accounting is a system to identify, measure, record and present the information to the users to help to help make evaluations or financial decisions. There are few general rules and concepts in the accounting field. These general rules and concepts are referring to the basic accounting principles and guidelines. From the basic accounting principles and guidelines, thereRead MoreThe Accounting Integration Platform Permits1310 Words   |  6 Pages The accounting integration platform permits users to integrate and standardize accounting from non–Oracle transactional systems to create accounting entries in any general ledger. If customers have high volumes of transactions from different industry applications, such as billing systems, the Oracle Fusion accounting hub will add plus-reference information on raw transaction information. Then, it applies rules to create detailed accounting entries to meet virtually any accounting requirement