users of accounting.pdf

accounting

1. Users of
accounting

2. Users of
financial
information
1. Internal users
• are those individuals inside a company
who
plan, organize, and run the business.
• These users are directly involved in
managing
and operating the business
✓ marketing managers
✓ production supervisors
✓ finance directors
✓ owners
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3. 2. External users
• are individuals and organizations outside a
company who want financial information about the
company.
• These users are not directly involved in managing
and operating the business.
common types of external users
1. potential investors
• use accounting information to make decisions to
buy shares of a company
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4. 2. creditors
• use accounting information to evaluate the
risks of
granting credit or lending money.
✓ Local Government Units (LGUs
✓ Securities and Exchange Commission (SEC)
✓ Department of Labor and Employment
(DOLE)
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5. 5
Creditors: for determining the credit worthiness of an
organization
Tax Authorities (BIR): for determining the credibility of the tax
returns filed on behalf of a company
Investors: for analyzing the feasibility of investing in a company.
Investors want to make sure they can earn a reasonable return on
their investment before they commit any financial resources to a
company.
Customers: for assessing the financial position of its suppliers
which is necessary for them to maintain a stable source of supply
in the long term.

6. Regulatory Authorities (SEC, DOLE): for ensuring that a
company's disclosure of accounting information is in accordance
with the rules and regulations set
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users of accounting.pdf
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