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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.
Is a creditor an internal user of accounting data?
Creditor need a company's financial information to minimise their business risks. The bank wants to collect its loans back. Supplies expect to be paid on time for delivered goods ( meterials, equipment, or service). Insurers and bonding companies want to minimise their risks.
How are cost accounting and financial accounting similar?
Simple answer: They both provide useful information to users. Thus is the true goal of accounting. Cost accounting users= managers Financial accounting user= shareholders
Are Bondholders the internal users of company's accounting information?
Generally bondholders would be external users of financial information. Prudent investors would most likely look over a company's external financial statements and disclosures before purchasing bonds from the company.
What are internal controls in accounting?
Internal controls in accounting are systems set in place to regulate the financial process. This ensures valid financial statements and allows businesses to track progress on their financial goals.
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..
Is company management an external user of financial information?
no it is an internal user of information.External users are financial analysts outside the company, lenders and creditors such as banks and suppliers, and groups such as environmentalism groups and govermental bodies.
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 is misstate?
In financial statements a misstatement is a material misstatement if a user of the financial statements who places reliance on that information reaches at a wrong conclusion.
Components of financial information systems?
There are six major components of financial information systems. Those components are people, procedure and instruction, data, software, IT infrastructure and internal controls.
Who are the four non-management user groups those in need of information that is in the financial statements?
good
What is material misstatement?
In financial statements a misstatement is a material misstatement if a user of the financial statements who places reliance on that information reaches at a wrong conclusion.
What is internal cache information?
A cache is a data store, thus "internal cache information" is metadata relating to a data storage facility that is used solely by a system. That is, a data store that is not intended for user consumption (internal use only).
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.
Who are the internet user of the financial statement?
The auditors and accountants are the internet user of the financial statement.
Identify user groups of financial statements and explain what information they are likely to want from them?
One user group for financial statements is external investors. They use the documents to determine whether the business is profitable. Internally, managers look at financial documents to determine whether their department is profitable.
Who are the users of financial information that are focused on the business ability to meet their financial obligation?
the internal and external users are the persons who uses the financial information , either they are directly related to the company or indirectly to their use, they are basically shareholders, debentureholders,creditors, employees and the government, financial institutions and other organisation to evaluate the status of the company.
