Users of Accounting Information

Users of Accounting Information:- 

There are two categories:-              

(1) Internal Management  and owner

(2) External uses or outsiders.

Following are various uses:-

(1)    Investors: They provide capital to business.  They need information to assess whether to buy, hold or sell their investment.

(2)    Employees:- Growth of employee directly related to growth of organization.  So they require much information.

(3)    Lenders:- They are interested to know capability of business to repay principal and interest.

(4)    Supplier and creditors :-  They want to know ability of firm to pay their dues.  It is generally done by credit policy of concern.

(5)    Customer;- Customers are also interested  to know stability and functioning of business.

(6)    Government and their agencies :- They are also interested due to various reasons like for allocation of scarce resources among competing enterprises, tax rate, and collection.

(7)    Public:- They are also interested in functioning of business since they contribute substantially too many ways.

(8) Management as a whole is also interested in the accounts for various managerial decisions

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