Q:

Who are the typical users of accounting information?

A:

Almost anyone could be considered a typical user of accounting information. In businesses, the finance department and executives are privy to this information, as it informs them how the business is performing financially and what the costs are in a company.

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Consumers and the public in general can also be users of accounting information. Consumers and businesses can use accounting information to determine who to do business with. Creditors may also review accounting information before granting approval for a company's loan or credit card application. Investors are also interested in accounting information, as it tells them whether a company is a safe investment.

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  • Q:

    Why is accounting information important?

    A:

    Accounting information is important for decision making, record keeping, and discovery and prevention of theft. The information is also useful when applying for a grant or loan. Availability of accounting information creates a good reputation for an organization and enhances an individual's credit score.

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    Who are the internal users of accounting data?

    A:

    Accounting information is helpful to any internal users, such as owners, managers and other employees, who want to understand a company's performance, according to Accounting-Simplified.com. Financial statements prepared for external users contain historical data that can be helpful in forecasting and evaluating products, departments and the company as a whole.

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    What is the full disclosure principle in accounting?

    A:

    The full disclosure principle states that financial records should include all of the information necessary for readers to understand those records. This is a largely subjective principle, but full disclosure doesn't mean that records should include irrelevant information.

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  • Q:

    How do you write a receipt of payment?

    A:

    A receipt of payment must include information regarding the product being sold, the seller, the buyer and the means of payment. Receipts can be written by hand, or computer software can be used to create standardized receipts.

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