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DS Accounting

Accounting is the process of recording, classifying, and summarizing financial transactions and events. Users of accounting information can be internal, such as owners and management, or external, including creditors, investors, and regulatory bodies. This information is crucial for decision-making and evaluating a business's performance.

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13 views3 pages

DS Accounting

Accounting is the process of recording, classifying, and summarizing financial transactions and events. Users of accounting information can be internal, such as owners and management, or external, including creditors, investors, and regulatory bodies. This information is crucial for decision-making and evaluating a business's performance.

Uploaded by

ogiridharreddy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Accounting

Accounting is the art of recording classifying and summarizing in


an significant manner and in terms of money, transactions
and events which are in part at least, of a financial character,
and interpreting the result

Accounting information
It refers to the financial statements generated
through the process of book keeping and accounting

Users of Accounting Information


Users of accounting information are people who
use financial data to make decisions or evaluate
a business's performance. That can be internal or
external to the organization
Types of users in Accounting

Internal Users
Internal users are the individuals or groups within an organization who use accounting
information to make decisions, plan, and control the
organization's operations.
 Owners: To monitor financial performance
and make decisions regarding growth and
investment.
 Management: Department heads, managers,
and executives use accounting information to
make strategic decisions, allocate resources,
and evaluate performance.
 Employees: Employees may use accounting information to understand their
department's or team's performance, make budgeting decisions, or identify areas for
cost savings.
External Users
External users are individuals or groups outside an organization who use accounting
information to make decisions about investing, lending, or doing business with the
organization.
 Creditors and financial institutions: Banks, suppliers, and other creditors use
accounting information to evaluate an organization's creditworthiness and ability to
repay loans.
 Investors: Shareholders, potential investors, and financial analysts use accounting
information to assess an organization's
financial performance, growth prospects, and
risk.
 Customers: Customers may use accounting
information to assess an organization's
financial stability, product quality, and
reliability.
 Tax authorities and regulatory bodies: Tax
authorities and regulatory bodies refer to
government agencies responsible for
overseeing and enforcing laws related to
taxation, financial reporting, and business
operations.
 Government: The government is an external user of accounting information, relying
on financial data of taxation, regulation and oversight, economic planning and
development etc.
 Researchers: Researchers in accounting information refer to individuals or
organizations that conduct systematic investigations and analyses of accounting data,
practices, and theories to advance knowledge and understanding in the field of
accounting.
 General public: The general public in accounting information refers to individuals or
groups outside of the business or organization who have an interest in the financial
information of a company.

Darshan. S
MBA

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