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02 FABM1 Module1 - Lesson2 Independent Assessment

The document classifies 10 types of users of accounting information as either external or internal. It then provides a table with the type of user and the decisions they make using accounting information. For each user type listed, it describes how that user would utilize the accounting information to make business or investment decisions.

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Atasha Nicole G. Bahande
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281 views

02 FABM1 Module1 - Lesson2 Independent Assessment

The document classifies 10 types of users of accounting information as either external or internal. It then provides a table with the type of user and the decisions they make using accounting information. For each user type listed, it describes how that user would utilize the accounting information to make business or investment decisions.

Uploaded by

Atasha Nicole G. Bahande
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Independent Assessment.

Classify each of the following as either external user (E) or internal user (I).
E1. Academe
E2. Creditor
E3. Customer
I4. Employees
E5. General Public
E6. Government
I7. Management
I8. Owners or Stockholders
E9. Potential Investors
E10. Lenders
Making Generalization
Fill in the table.

Type of User Decisions made using accounting


information

Customers The decisions made by the customers using the


accounting information is to whether or not to
acquire the goods or services offered by the
business. They will decide if they will establish a
business relationship and engage with any
dealings.

Creditors Using the accounting information, the creditors


will decide if they will lend their resources or
additional funds to the business. They will see to
it that before lending any resources and funds
they will check if it is not too risky.

Potential Investors The potential investors before making a decision


to engage with the business, they will decide
whether or not this business will produce
reasonable returns.
Government The government will keep an eye on the activities
that the company made to see that the business
can improve the economy. The government will
verify the accuracy of the financial statements
made by the company.

Academe The accounting information will be used for


academic purposes. Through this, the teachers
or the students can study about the field of
accountancy and it can be used as a reference
for their future work.

General Public The general public will use the information to see
and to get involved about the economy’s overall
performance using the financial information.

Management Holding the financial information, the


management will use it to make strategic
business decisions and this will lead them to
identify or spot problems quickly and they can
respond to it appropriately.

Employees The employees will take a look into the financial


status of the company to determine if the
company is profitable enough and to see if they
will receive benefits or compensation.

Owners or Owners or stockholders are primarily concerned


Stockholders with the return on investment. They will actively
look after how their business will run and to see
the results if it is a success or needs an
adjustment.

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