• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Business Finance
  • Learn Management
  • Business Growth
  • Know Entrepreneurship
  • Run SuperMarket
  • Decision Making

Googlesir

  • Employee Training
  • Marketing and Sales
  • Investment & Earning
  • Managerial Economics
  • Entrepreneurship and Career

14 Users of Financial and Accounting Information (Explained with Example)

Updated on: April 15, 2022 2 Comments

Many peoples are interested in the financial information provided by your accounting books and reports and statements. These parties are called users of financial and accounting information.

Users of Financial and Accounting Information
Users of Financial and Accounting Information

Users of Financial and Accounting Information

Following are the Persons or Users or Parties interested in Financial and Accounting Information:

1. Owners

Accounting provides necessary information to the owners of the business.

So, that they can know the results of business operations and financial position, Owners are interested in the Safety of their investment as well as in reasonable returns Thereon.

Read more: Top 4 Types of Financial Statements For Reporting

2. Managers

Large Business Organisation and corporate bodies have separated management body and Owners (All Shareholders) are not included in Management.

Management of such a business organization is more concerned with the accounting information because managers are answerable to the owners.

Thus, Managers are responsible for the efficient operations of Business and to Earn maximum returns on capital employed.

3. Potential Investors

Investors ask concerned with the Profitability And Safety of their investments.

They derive the information from the published Accounts.

They also want to know whether the business will survive and pay Attractive dividend bonuses etc or not.

Related: Top 9 Types or Sub-fields of Accounting (Explained)

4. Government

Financial statements of the business become the basis of government for future Tax Planning, production, price control, import-export facilities, Grants, license policy, etc. 18 Reasons and Importance of Product Innovation (Explained).

5. Employees and Labour Unions

Employees and level unions are interested in business information as the basis for supporting Wages’ demands.

Which are demands they are interested in the earning of the enterprise because the increase in wages and payment of bonuses depends on the size of profit earned?

6. Trade Creditors

Creditors for the supply of goods, Creditors for Expenses and other short term and long term creditors are interested in liquidity and stability.

They would be satisfied if their payments are made on time.

Related: Departmental Stores Accounts: Explanation, Importance.

7. Regulatory Agencies

Different types of agencies and Government Departments use Accounting information for Evaluating how well the Variance business are Operating under Regulatory legalization. they also use accounting data as a basis for Assessment.

8. Researchers

Accounting information I also used by Research Scholars in their research work. They do research on business affairs and practice and give suggestions for making decisions.

Read More:

  • Cost Accounting Vs Management Accounting
  • Management Accounting Vs Financial Accounting

9. Other Users

In addition to above 1. Financial Analysts and Advisers, 2. stock exchanges 3. Trade Associations 4. Consumers 5. Sociologist and 6. Economists and the Public at large are the Uses of Accounting Statements.

Thus, Now you know all the Users of Financial and Accounting Information.

Read More

  • Financial Statements: Meaning Nature And Objectives (Updated)
  • Top 9 Role of Managerial Economist in Business (Explained)
  • Top 9 Limitations or Disadvantages of Management Accounting
  • Top 10 Difference between Management Accounting and Financial Accounting
  • Herzberg’s Hygiene Theory or Two-factor Theory (Explained)
  • Top 17 Importance and Role of Small-Scale Industries (Explained)
  • 21 Role And Importance Of Managerial Economics (Step-by-Step)
  • 5 Main Types of Disequilibrium in Balance of Payments (BOP)

Share Now:

  • Share
  • WhatsApp
  • Tweet

2 Comments

Reader Interactions

Comments

  1. Sylivia says

    September 9, 2019 at 7:59 PM

    Woooo I found solutions to my question

    Reply
    • Manma says

      September 12, 2019 at 6:50 AM

      howcan help u

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

More to See

process of forecasting in supply chain management

6 Steps in Process of Forecasting in Supply Chain

opportunities for reduction of physical distribution costs

7 Tips for Reduction of Physical Distribution Costs

factors affecting logistics cost

Top 5 Factors that Affecting Cost of Logistics

duties and responsibilities of logistics manager

Top 10 Duties and Responsibilities of Logistics Manager

impact of lack of coordination on supply chain

7 Impacts of Lack of Coordination on Supply Chain

types of information technologies in supply chain management

10 Types of Information Technologies Used in Supply Chain or Logistics

importance of information technology in supply chain management

7 Key Importance of Information Technology in Supply Chain

E-mail Newsletter

Footer

Recent Comments

  • Jennifer theron on 10 Different Concepts of Entrepreneurship (Explained)
  • Angela on 21 Types of Entrepreneurs (Explained With Examples)
  • Milton Ruto on 10 Different Concepts of Entrepreneurship (Explained)

Search

Please enable JavaScript

Financial Reporting and Analysis Quiz | Examsegg

Join Us

  • Home
  • Contact Us
  • Privacy Policy
  • About us
  • Sitemap

© 2022Copyright www.Googlesir.com