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What uses of financial accounting information are by (a) investors and (b) creditors?
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List 6 users of accounting information?
1 - Financial institutions 2 - Creditors 3 - Banks 4 - Public 5 - Creditors 6 - Investors
List 5 users of accounting information?
1 - Owners 2 - Creditors 3 - Financial institutions 4 - Investors 5 - Public
Importance of accounting information to government?
shareholders,creditors,suppliers,managers,investors,public and customers need accounting information for?
What is the End product of financial accounting?
Financial Accounting is concerned with preparation of Financial Statements that would serve the interests of Investors, Banks, Creditors, and general public at large. The aim of Financial Accounting is to facilitate Financial Decision Making based on Accurately Gathered Significant financial Information pertaining to the Performance of the Organization and also giving information about the Current position of the Organization's Assets and Liabilities.
Accounting and bookkeeping?
Accounting is the measurement, processing and communication of financial information about economic entities. It is also called "language of business", and measures the results of an organization's economical activities and delivers this information to a variety of users including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants.Bookkeeping in business, is the recording of financial transactions, and is part of the process of accounting. Transactions include purchases, sales, receipts and payments by an individual or organization. The accountant creates reports from the recorded financial transactions recorded by the bookkeeper and files forms with government agencies.
List 6 users of accounting information?
1 - Financial institutions 2 - Creditors 3 - Banks 4 - Public 5 - Creditors 6 - Investors
List 5 users of accounting information?
1 - Owners 2 - Creditors 3 - Financial institutions 4 - Investors 5 - Public
Importance of accounting information to government?
shareholders,creditors,suppliers,managers,investors,public and customers need accounting information for?
What is the End product of financial accounting?
Financial Accounting is concerned with preparation of Financial Statements that would serve the interests of Investors, Banks, Creditors, and general public at large. The aim of Financial Accounting is to facilitate Financial Decision Making based on Accurately Gathered Significant financial Information pertaining to the Performance of the Organization and also giving information about the Current position of the Organization's Assets and Liabilities.
What is the end product of accounting?
Financial Accounting is concerned with preparation of Financial Statements that would serve the interests of Investors, Banks, Creditors, and general public at large. The aim of Financial Accounting is to facilitate Financial Decision Making based on Accurately Gathered Significant financial Information pertaining to the Performance of the Organization and also giving information about the Current position of the Organization's Assets and Liabilities.
Who is an internal user of financial statements?
Accounting information is presented to internal users in the form of management accounts, budgets, forecasts andÊfinancial statements. External users are communicated accounting information in the form of financial statements. These users are creditors, tax authorities, investors, etc..
Importance of financial statements for creditors?
Importance of Financial statements are declarations of information in financial terms about an enterprise that are believed to be fair and accurate. They describe certain attributes of the enterprise that are important for decision makers, particularly investors (owners) and creditors.
Accounting and bookkeeping?
Accounting is the measurement, processing and communication of financial information about economic entities. It is also called "language of business", and measures the results of an organization's economical activities and delivers this information to a variety of users including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants.Bookkeeping in business, is the recording of financial transactions, and is part of the process of accounting. Transactions include purchases, sales, receipts and payments by an individual or organization. The accountant creates reports from the recorded financial transactions recorded by the bookkeeper and files forms with government agencies.
Cost accounting and financial accounting?
Financial accounting refers to the branch that prepared financial reports (known as financial statements) that are for general use. Primarily however, they are prepared for external users (owners, investors, government, suppliers, creditors). The goal of financial accounting is to provide financial statements that follow generally accepted accounting standards or GAAP. Cost accounting is the branch that focuses on manufacturing costs, i.e. direct materials, direct labor, and factory overhead. It is often considered part of management accounting, the branch that provides information for internal purposes and focuses on helping management make decisions instead of strictly complying with GAAP. Cost accounting deals with manufacturing concerns.
Why are ethics so important in the accounting field?
Investors and creditors rely on financial statements when making decisions on allocating capital. If a company has a poor ethical track record when reporting financial results, investors will take their money elsewhere. This can be observed when a company's stock plunges after news of accounting errors or manipulation. Ethical accounting is foundational to an efficient capital market and lowers a firm's cost of capital.
Is it true that the sole purpose of accounting is to help managers evaluate the financial condition of the firm so that they may make better decisions?
No. Accounting information is used by managers to make decisions and plans; but it is also commonly used by investors to make investment decisions and creditors (such as banks) to make lending decisions.
Why do investors need accounting information?
Investors need the accounting information to see that how company is performing to decide whether to invest or not in company.
