FUND OF ACCTING 1

Investors

• Ability of business to pay dividends

• To buy, hold or sell shares

• Risk associated with the capital invested

• external users

accounting is

• is a service activity. Its function is to provide quantitative information primarily financial in nature, about economic entities that is intended to be useful in making economic decisions (SFAS 1)

• the process of identifying, measuring, and communicating economic information to permit informed judgements and decisions by users of the information (AAA)

• the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the results thereof. (AICPA)

• none of the above

External users

• Make decisions concerning their relationship to the business.

• Make decisions directly affecting the internal operations of the business

Internal Users

• Make decisions directly affecting the internal operations of the business

• Make decisions concerning their relationship to the business.

Employees

• Ability of the business to pay remuneration, retirement, employment opportunities

• Ability of business to pay dividends

• Ability of business to pay dividends

• Risk associated with the capital invested

 

Lenders

• Ability of the business to pay for loans as well as interest

• Ability of the business to pay remuneration, retirement, employment opportunities

• Ability of business to pay dividends

• Risk associated with the capital invested

Suppliers & Other Trade Creditors

• Ability of the business to pay for the items purchased

   

• Pay taxes

• Regulate the activities of the business

• Ability of the business to maintain the products and services required

   

Governments & their Agencies

• Pay taxes

• Regulate the activities of the business

• Ability of the business to pay for the items purchased

• Ability of the business to pay for loans as well as interest

Customers

• Ability of the business to maintain the products and services required

• Contribution to local economy

• Corporate social responsibility

• Pay taxes

 

Public

• Contribution to local economy

• Corporate social responsibility

• Pay taxes

• Regulate the activities of the business