Users and Uses of Financial Information

Users and Uses of Financial Information - Users and Uses of...

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Unformatted text preview: Users and Uses of Financial Information The purpose of financial information is to provide inputs for decision making. Accounting is the information system that identifies, records, and communicates the economic events of an organization to interested users. Users of accounting information can be divided broadly into two groups: internal users and external users. Internal Users Internal users of accounting information are managers who plan, organize, and run a business. These include marketing managers , production supervisors , finance directors , and company officers . In running a business, managers must answer many important questions, as shown in Illustration 1-2 . Illustration 1-2 Questions that internal users ask To answer these and other questions, you need detailed information on a timely basis. For internal users, accounting provides internal reports, such as financial comparisons of operating alternatives, projections of income from new sales campaigns, and forecasts of cash needs for the...
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This document was uploaded on 11/03/2011 for the course ACCOUNTING ac 201 at Montgomery.

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Users and Uses of Financial Information - Users and Uses of...

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