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Sources of information needed to make financial decisions in business organizations?
Wiki User
∙ 9y ago
Customers, vendors and researchers are all sources of information for managers. Managers must analyze the information to determine whether it is reliable.
Wiki User
∙ 9y ago
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Why accounting is called the language of business?
Because it communicates financial information, accounting is often called "the language of business." The information that a user of financial information needs depends upon the kinds of of decisions the user makers. The differences in the decisions divide the users of financial information into two broad groups: internal users and external users.
What are the purpose of management accountong?
The purpose of management or managerial accounting is to obtain financial information to help make business decisions. Another type of accounting is financial accounting.
What are financial information systems and what do they do?
What are financial information systems and what do they do, for a small business
How will managers use financial information to predict outcomes for business?
How will managers use financial information to predict outcomes for business?
What decisions pertain to financial management?
Many decisions pertaining to financial management include how much risk to take on, what projects will make the most money and what interest rates are acceptable for the business. Financial managers make most of these decisions with a team.
What is the scope of financial objective of business organizations?
Financial objectives are created to guide managers with their financial decisions. By comparing their decisions to the financial goals of the organizations, the manager can determine whether they are on the right track.
Why accounting is called the language of business?
Because it communicates financial information, accounting is often called "the language of business." The information that a user of financial information needs depends upon the kinds of of decisions the user makers. The differences in the decisions divide the users of financial information into two broad groups: internal users and external users.
Impact of finance on financial statements?
Finance are the reason for financial statements. Without financial information, financial statements can't be created. Investors use this information to make decisions about investing in a business.
What are the purposes of accounting information?
The purpose of accounting information is to provide financial data that will serve as a basis for future decisions. This information is commonly used by business owners and shareholders.
What are the purpose of management accountong?
The purpose of management or managerial accounting is to obtain financial information to help make business decisions. Another type of accounting is financial accounting.
Why do you need to study accounting?
Simply put, Accounting is the language of business. It is the means by which relevant and reliable financial information can be communicated to the users who can analyze that information to make business decisions. Think of all of the different groups of people that use financial information. Current and potential investors analyze a firm's financial statements to determine growth potential, how effectively a firm has been using its resources, how profitable it is, etc. Similarly, creditors use them to determine how liquid a firm is (how likely it is that the firm can meet its short-term obligations). Managers use different financial information to make decisions about various costs to the firm. Furthermore, Accountancy allows firms to analyze the tax impacts of their various business decisions. Even if you do not choose to accounting as a course of study, you will very likely need to be able to use information prepared by accountants if you find yourself in any position in which you are required to make business decisions. That is not to say that financial information is the only factor that should influence your decisions; but it is a tool that it often works to your advantage to use.
What are financial information systems and what do they do?
What are financial information systems and what do they do, for a small business
What does accounting involve?
Accounting is the practice of collecting, summarizing and presenting financial transaction and balance information in order to help end users make business decisions based on that information.
What is meant by interpretation of financial statement?
Interpretation is purely a synonym for understand and it is the ability to be able to comment on the financials and make future business decisions from that information.
What is accounting about?
Accounting is an information science. It is used in collecting, classifying, as well as manipulating financial data for individuals and organizations.
Why are shareholders interested in the financial report?
Shareholders are interested in the financial report because it provides them with information about the company's financial performance and health. It helps them evaluate the company's profitability, cash flow, and overall financial stability. This information is crucial for making informed investment decisions and assessing the value of their shares.
What are the decisions taken by financial managers?
Decisions are not taken, they are made. Financial managers obviously make decisions about MONEY. Where to spend it and how much and why. Business owners are typically the financial manager of a company simply because they want to make money.
