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Difference between external users and internal users of accounting information?
External Users of accounting information are NOT directly involved in running the organization. Internal Users of accounting information are those individuals directly involved in managing and operating the organization.
Which type of accounting information is intended to satisfy the needs of external users of accounting information?
Financial accounting
What group or groups of people are not considered to be the external users of accounting information?
Internal Users of accounting information would not usually be external users. Management, staff, the board, would all be classed as internal users of financial information.
Examples of external users of accounting information?
external aiditor,shareholder,goverment etc
Is a vice president an internal or external user of Accounting?
internal users
Two common areas of accounting that respectively provide information to internal and external users are?
Internal users with information are managerial accounting is to provide relevant and timely information for managers' and employees' decision-making needs. (private accounting) External users of accounting information include customers, creditors, and the government. These users are not directly involved in managing and operating the business are call financial accounting. Their job is to provide relevant and timely information for decision-making needs of users outside of the business. 1. managerial accounting and financial accounting
The main users of accounting information?
This are in two groups, external users and internal users. External come from outside the business while internal are from inside the business. Examples of external are insurers, suppliers, customers, government tax auditors, etc while internal accounting users are within the business, thus shareholders, owners of the business
Is Managerial accounting information used by external and internal users equally?
Yes
Why does accounting exist?
Accounting exists to report financial numbers of a business to external users like creditors, shareholders, and suppliers.
Why accounting is called language of business?
Accounting is a language of business because it communicates all the financials information about working of business to external users.
What are the basic categories of the users of accounting information?
The basic categories of users of accounting information include internal users and external users. Internal users, such as management and employees, utilize accounting data for decision-making, performance evaluation, and operational planning. External users comprise investors, creditors, regulators, and other stakeholders who require financial information to assess the organization's financial health and make informed decisions regarding their involvement with the entity. Each group relies on accurate and relevant accounting information to meet their specific needs and objectives.
Are shareholders internal or external users of accounting information?
Internal users would be managers so that they can make decisions about how to manage and also see how effectively they have managed. External users would be potential investors, the Government, lenders, the public, unions...
