The Purpose Of Users Of Accounting Info

The purpose of users of accounting information is helps userd to make better financial decisions. Users of financial information is separate to internal and external users . Internal users is also primary users . It include managerial accountant from inside of the business , example : management , employee and owners. Management is decision making , planning and analyzing the organization's performance and position and taking appropriate measures to improve the company results of business activities .Employees is for assessing payment of salary , other benefits , career growth and company's profitability and its consequence on their future remuneration and job security. Owners is determining any future course of action and analysing the viability and profitability of their investment . External users is also secondary users . It include creditors , tax authourities , investors , customer and regulatory authorities . Creditor is determining the credit worthiness of the organization and include suppliers as well as lenders of finance such as banks .Tax authourities is determining the credibility of the taxes returns filed on behalf of the business .Investors is a company future plans for analyzing the feasibility of investing in the company before they commit any financial resources to the company. Customers is a long term supply of goods for assessing the financial position of its suppliers which is necessary for them to maintain a stable source. Regulatory authorities is order to protect the interests of the stakeholders who rely on such information in forming their decisions for ensuring that the company's disclosure of accounting information is in accordance .

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