Presentation 2 (1).pdf beautiful happy birthday message

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1. AN ASSIGNMENT
ON
USERS OF ACCOUNTING INFORMATION
BACHELOR OF HOTEL MANAGEMENT,
4THSEMESTER
SUBMITTED BY:
SANYAKHAN
TAMANNAGAURWAL
TEHREENANAM
SUBMITTED TO:
DR. MOHD WASIF
JAMIA MILLLIA
ISLAMIA,
DEPARTMENT OF
TOURISM AND
HOSPITALITY
MANAGEMENT

2. INTRODUCTION
Users of Accounting
Information
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Accounting Information is needed by stakeholders of the firm,
including the employees, owners, creditors, banks, and other
lenders, regulatory agencies, and tax authorities, among others,
so that they can make use of the accounting information.

3. TYPES OF ACCOUNTING INFORMATION
USERS OF ACCOUNTING
INFORMATION
1.Financial Accounting: Financial accounting is historical in character, I.e., it documents transactions that
have already happened. It includes creation, analysis, and presentation of financial statements. The
creation of the Profit and Loss Account and the Balance Sheet is the final step in financial accounting.
2.Management Accounting: Management Accounting is concerned with the process of accumulating
accounting information for internal operational reporting. It consists of many information regarding the
planning, controlling, decision-making, etc., related to the firm.
3.Cost Accounting: The process of accounting for cost begins with recordingincome and expenditure or the
bases on which they are calculated and ends with the preparation for ascertaining and controlling costs.
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Majorly thereare 3 types of accounting Information:

4. USERS OF
ACCOUNTING
INFORMATION
Users of Accounting
Information
•Public: The public is impacted by business in a number of
different ways. For instance, business may have a significant
positive impact on the community's economy through their
employment of locals and the use of their suppliers. Financial
statements can helpthe public by informing them of recent
changes and trends that have affected the enterprise's
success and the scope of its activities.
•Government and their Agencies: The allocationof resources
and consequently, business activities are of interest to the
governmentand itsagencies. They also need
theinformationtoset tax policy,control business activityand
calculatevariousindicators, likeGDP and National Income.
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5. Users of Accounting
Information
•Management: In order to assess the firm's short-term and long-term solvency,
management needs information regarding the firm's activity. Management needs
accounting information to make several decisions, like determination of selling
price and other strategies. It is also needed for comparison of performance with
similar enterprises in the industry and to make plans for the future regarding
expansion, reduction, etc.
•Employees: The stability and profitability of the employers are topics that
interest both the workforce and the groups that serve as its
representatives. Additionally, they are looking for facts that will help them
judge whether the company can afford to pay salaries, offer retirement
benefits, and create job prospects.
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6. Users of Accounting
Information
•Creditors & Lenders: In order to decide
whether to prolong, sustain, or restrict
the flow of credit to a specific firm, short
and long term creditors need to know if
the amount owed to them will be paid
when due. To ascertain if their principle
amounts and interest accrued will be
paid when due and whether to prolong,
maintain, or restrict the flow of credit to a
firm, short and long-term creditors need
information. Such information helps them
to understand the paying ability of the
enterprise.
•Present Investors: Inorderto assess
thepros and consof their investment,
and decide whetherto buy, hold, or sell
the shares, current investors
requireaccountinginformation.
•Potential Investors: To evaluate an
enterprises strengths and decide
whether to purchase shares, prospective
investors also requires accounting
information.
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7. Users of Accounting
Information
•Auditor: Auditors examine
financial statements and
underlying accounting records to
form an audit opinion. Investors
and other interested parties rely on
external auditors independent
assessment of the correctness of
financial records.
•Customers: Customers are curious aboutb an organisation's
future, especially if they depend on it or have a long-standing
relationship with it. Accounting information increases or decreases
a firm's goodwill amongst its customers.
•Tax Authorities: To determineanenterprisestac liabilities,
taxauthorities need information. In orderto comparethe
informationon tax returnswith
thesupportingaccountingrecords,tax authorities occassionally
auditthe returns filed byfirms. The accountingrecords
ofsuppliersand customers are alsocross-checked by tax
authorities tospotsuspectedtaxevasion.
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8. Users of Accounting
Information
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IMPORTANCE OF ACCOUNTING INFORMATION
TOUSERS
•It helps users understand how a business is performing.
•It helpsusers comparecurrentfinancial information to historical data.
•It helpsusers make informed decisionsabouta company's future.
•It helpsusersevaluatethe riskof lendingmoney to a business.
•It helpsusers allocateresourcesefficientlyand set goals.

9. THANK
YOU