0
How does the description of accounting as the language of business relate to accounting as being useful for investors and creditors?
Wiki User
∙ 12y ago
creitors are the persons who have extended credit to the company.they are also interested in the financial statements because they wiil help them in ascertaining whether the enterprise will be in a position to meet its commitment towards them both regarding payment of interest and principal...
investors: a person who is contemplaing an investment in a business will like to know about its profitability and financial position.a study of the financial statements will help them in this respect
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Why does accounting exist?
Accounting exists to report financial numbers of a business to external users like creditors, shareholders, and suppliers.
Users of accounting data?
Users of accounting data include shareholders, potential investors and suppliers. All of these shareholders want to make sure that the business is profitable before they do business with the company.
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.
Who are the user's of accounting information?
The users of accounting information include tax specialists, bookkeepers, and most business owners. Accounting information is also used by the IRS and the federal government.
User of accounting information?
these are daily or day to day people dealing with accounting information these includes -the managers -prospective buyer -investors -Business Owners etc.
Why does accounting exist?
Accounting exists to report financial numbers of a business to external users like creditors, shareholders, and suppliers.
Users of accounting data?
Users of accounting data include shareholders, potential investors and suppliers. All of these shareholders want to make sure that the business is profitable before they do business with the company.
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.
Why a business need creditors?
Why a business have creditors
Who are the user's of accounting information?
The users of accounting information include tax specialists, bookkeepers, and most business owners. Accounting information is also used by the IRS and the federal government.
User of accounting information?
these are daily or day to day people dealing with accounting information these includes -the managers -prospective buyer -investors -Business Owners etc.
Why is business communication is important?
To check and to provide the performance of the company , to give information to investor for investors; accounting the value growth in the trade market:
How does accounting benefit a business?
1. Accounting helps to manage the financial records of a business in an organized manner 2. Financial transactions can be retrieved easily 3. Profit and loss can be tracked in a simpler way 4. Provide accurate information to investors, bankers and other business authorities
What is the role of accounting and accounting information?
Think of accounting as the language of business. In order to communicate to investors, lenders, boards of directors and other stakeholders, it is critical that one is well versed in the language. Accounting records are the source information for financial statements which are used for many purposes including evaluating a business, making strategic decisions and assessing the health of an organization.
Is the accrual system of accounting is used by investors and banks for financial statements?
This can be used by some of them. It is an easy way for them to keep track of the money that is coming in and out of the business.
What is the Importance of investors in a firm?
Investors provides the funds (business capital) which the company uses to operate. With no investors there is no business.
What is the need of accounting for business?
sir i have a question that.. why we need accounting in business or what is the need of accounting in business
