Accounting Information; User and Uses

1701 Words7 Pages
Running head: ACCT101 - USERS OF ACCOUNTING INFORMATION AND THEIR NEEDS
ACCT101 [Assignment 1] - Accounting Information, Users and Uses
Abdul Samad Mustafa [1283]
Course: ACCT101 [Dr. Naim Hassan El-Sayed]
NYIT – Abu Dhabi, U.A.E.

CONTENTS
Abstract 3
Users of Accounting Information and their needs 4
Introduction 4
Users of accounting Information and responsibilities of accountant 4
External Users 6
Internal Users 7
The needs of accounting information 7
Conclusion 8
References 9

Abstract
External users of accounting information (especially investors) use accounting information like annual and quarterly reports to base their investing decisions on, and to compare different companies with one another. Internal users of accounting (mostly
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5-6).
Then, we have internal users of accounting information, such as employees and the various types of managers (i.e., purchasing managers and marketing managers). Accurate accounting is extremely crucial to these individuals who make important financial and business decisions within an organization that directly affect the business itself (Wild, Larson & Chiapetta, 2007, p. 6). A company, "aims to sell goods and services to customers at prices that will provide an adequate return to its owners" (Kanter & Pressley, n.d., Slide 1-13). A business must maintain an adequate level of profitability and liquidity to continue operating (Kanter & Pressley, n.d., Slide 1-14). However, without accounting information, this is not possible. A firm's management needs this information to properly conduct daily activities within the business, such as finance the company, invest its resources, produce its goods and/or services, market those goods and/or services, and manage the employees (Kanter & Pressley, n.d., Slide 1-29). However, accounting information is just as critical for internal users when they make decisions that will affect the
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