Accounting Information; User and Uses
Running head: ACCT101 - 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 accounting information (especially investors) use accounting information like annual and quarterly reports to base their investing decisions on, and to compare different companies with one another. Internal users of accounting (mostly managers) use internal accounting information in order to plan for the future. Therefore accounting information is not only vital to the one's individual business or investments but is also of great benefit to the wider society and the world at large. In addition to which this will allow each country to organize their funds in a more systematic approach as such making room for development of one's country and the upward social mobility of the people of that specific country. In all simplicity, accounting information prepares us for the future
Users of Accounting Information and their needs
Introduction
The product of accounting is accounting information. Accounting information is used in deciding between different courses of action and results in informed decision making. It serves to reduce the uncertainty inherent in the business environment where decisions are made about the future. It further reduces entropy based on the assumption that chaos exists where there is no information. This implies that the greater the uncertainty or entropy, the more accounting and other information are required.
At first glance, accounting can appear extremely complicated and confusing. The untrained eye may struggle to grasp the entire nature of
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 accounting information (especially investors) use accounting information like annual and quarterly reports to base their investing decisions on, and to compare different companies with one another. Internal users of accounting (mostly managers) use internal accounting information in order to plan for the future. Therefore accounting information is not only vital to the one's individual business or investments but is also of great benefit to the wider society and the world at large. In addition to which this will allow each country to organize their funds in a more systematic approach as such making room for development of one's country and the upward social mobility of the people of that specific country. In all simplicity, accounting information prepares us for the future
Users of Accounting Information and their needs
Introduction
The product of accounting is accounting information. Accounting information is used in deciding between different courses of action and results in informed decision making. It serves to reduce the uncertainty inherent in the business environment where decisions are made about the future. It further reduces entropy based on the assumption that chaos exists where there is no information. This implies that the greater the uncertainty or entropy, the more accounting and other information are required.
At first glance, accounting can appear extremely complicated and confusing. The untrained eye may struggle to grasp the entire nature of
References: Department of Accounting & Finance. (n.d.). Unit 1: Financial statements. Retrieved May 26, 2008, from University of Strathclyde Web site: http://accfinweb.account.strath. ac.uk/ammsc/p101.html Kanter, H. A., & Pressley, M. M. (n.d.). Multimedia slides of chapter 1: Uses of accounting information and the financial statements (In Financial accounting by Belverd E. Needles, Jr. & Marian Powers). Retrieved May 25, 2008, from Houghton Mifflin College Web site: http://www.college.hmco.com/accounting/needles/fa/instr/ppt/ch01/sld001.htm Wild, J. J., Larson, K. D., & Chiapetta, B. (2007). Fundamental accounting principles (18th edition). Boston: McGraw-Hill/Irwin.