Q:

Who are the typical users of accounting information?

A:

Quick Answer

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.

Know More

Full Answer

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.

Learn more about Accounting

Related Questions

  • 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.

    Full Answer >
    Filed Under:
  • Q:

    What are external users of accounting information?

    A:

    External users of accounting information are parties outside the operation of a business who use its accounting and financial information in making important decisions. Examples include customers, investors, tax authorities, creditors and regulatory authorities. Since these users do not have direct access to accounting information, they are given access to records by the business in the form of financial statements.

    Full Answer >
    Filed Under:
  • Q:

    What is the advantage of an accounting information system?

    A:

    The main advantages of an accounting information system are the increased speed of processing the numbers, efficient organization, and classification and safety of inputted data. This contrasts the manual evaluation of information, which involves writing out the data by hand and doing time consuming calculations.

    Full Answer >
    Filed Under:
  • Q:

    What information is found on a flexible budget report?

    A:

    The information found in a flexible budget report includes expenditure levels for variable costs and tools for comparing actual to budgeted performance. This budget is dependent upon changes in revenue and activity levels experienced.

    Full Answer >
    Filed Under:

Explore