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    Grade 11 ABM USERS OF ACCOUNTING INFORMATION

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    Leslie Perez
    Users of accounting information can be classified as internal or external stakeholders. Internal stakeholders include managers at all levels who use accounting information to oversee performance and ensure strategic and operational alignment. External stakeholders include potential investors, creditors, customers, suppliers, tax authorities, regulatory bodies, and the public who use financial information to make investment, credit, purchasing, and oversight decisions regarding the organization. Accounting communicates financial information to both internal and external decision makers who are collectively known as users or stakeholders of accounting information.

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    Grade 11 ABM USERS OF ACCOUNTING INFORMATION

    Uploaded by

    Leslie Perez
    596 views10 pages
    Users of accounting information can be classified as internal or external stakeholders. Internal stakeholders include managers at all levels who use accounting information to oversee performance and ensure strategic and operational alignment. External stakeholders include potential investors, creditors, customers, suppliers, tax authorities, regulatory bodies, and the public who use financial information to make investment, credit, purchasing, and oversight decisions regarding the organization. Accounting communicates financial information to both internal and external decision makers who are collectively known as users or stakeholders of accounting information.

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    Users of accounting information can be classified as internal or external stakeholders. Internal stakeholders include managers at all levels who use accounting information to oversee performance and ensure strategic and operational alignment. External stakeholders include potential investors, creditors, customers, suppliers, tax authorities, regulatory bodies, and the public who use financial information to make investment, credit, purchasing, and oversight decisions regarding the organization. Accounting communicates financial information to both internal and external decision makers who are collectively known as users or stakeholders of accounting information.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    596 views10 pages

    Grade 11 ABM USERS OF ACCOUNTING INFORMATION

    Uploaded by

    Leslie Perez
    Users of accounting information can be classified as internal or external stakeholders. Internal stakeholders include managers at all levels who use accounting information to oversee performance and ensure strategic and operational alignment. External stakeholders include potential investors, creditors, customers, suppliers, tax authorities, regulatory bodies, and the public who use financial information to make investment, credit, purchasing, and oversight decisions regarding the organization. Accounting communicates financial information to both internal and external decision makers who are collectively known as users or stakeholders of accounting information.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    USERS OF

    ACCOUNTING
    INFORMATION
     Accounting communicates financial information to decision
    makers

    USERS OF  Different decision makers are users of these information

    ACCOUNTING
     Users of accounting information are collectively known as
    INFORMATION stakeholders

     They can be classified as Internal and External Users


     Are those who make the decisions in behalf of the organization

    Internal Users
     They include :
     Managers/Management – they plan organize and run a business

    I. Top Level Management – CEO / CFO / COO


    They use the information to oversee the performance of the whole
    Organization and set its strategic direction

    1. Middle Level Management- Dept Heads/ Branch Managers


    Internal Users
    They ensure that their unit performances are aligned with the
    organizations objectives

    2. Lower Level Management – Supervisors / Team Leaders


    They oversee the day to day operations and direct employees in the
    performance task
     Employees / Labor Unions
    they assess the companies profitability and stability and
    Their consequence on future job and salaries
    Internal Users
     OWNERS
    they provide capital to the business.
     DO WE HAVE ENOUGH CASH TO PAY THE BILLS?

     HOW MUCH IS THE COST OF PRODUCING EACH UNIT OF


    PRODUCT?

     CAN THE COMPANY AFFORD TO GIVE SALARY INCREASE ?


    Internal Users
     WHICH PRODUCT IS MORE PROFITABLE ?

     HOW MUCH IS THE COMPANY SALES?

     HOW MUCH IS THE TAX PAYABLE TO THE GOVERNMENT?


    EXTERNAL  Are those who make their decision based on the companies
    financial information
    USERS
     POTENTIAL INVESTORS
    They need information to help them decide whether they
    should invest in a business

     CREDITORS AND POTENTIAL CREDITORS


    EXTERNAL
    They assess the credit worthiness and capabilities of business
    USERS to pay its obligation.

     CUSTOMERS
    assess financial position of their suppliers which is necessary for
    them to maintain a stable source of supply in the long term
     SUPPLIERS
    they use financial statements of their customers to determine
    whether the debts owed to them will be paid when due.

     TAX AUTHORITIES
    uses financial reports to determine credibility of the tax returns
    EXTERNAL filed on behalf of the company
    USERS
     REGULATORY BODIES
    ensure that the company’s disclosure of accounting information
    is in accordance with the rules of regulation.

     PUBLIC
    uses financial information to know how a business affects the
    economy.
    DIRECT USERS
    vs.
    INDIRECT USERS

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