users of accounting

Customers

• Internal User

• External User

• Internal user

• External user

Government

• Internal users

• External users

Financial Institution

• Internal Users

• External Users

Definition of Accounting

• Accounting is a process of identifying, recording, classifying, summarizing, communicating and interpreting the results of business or economic transactions to users in order for them to make better decisions.

• Accounting is a process of identifying, recording and classifying economic transactions to users.

• Accounting is a process of preparing Income Statement and Financial Position Statement.

The users of accounting information are...

• Internal users

• External users

• Internal & External users

Which one is the internal user?

• Potential investor

• Management of a company

• Creditor

To know the company’s profitability and the amount of dividend paid out to shareholders.

Which user refers to the above statement?

• Investor

• Potential Investor

• Creditor

Users of accounting information include

• Creditors

• Lenders

• Customers

• All of the above

Which of the following is the example of internal users

• Government

• Investors

• Creditors

• Employees