Class: - PGDRM (2012-14)
ASSIGNMENT: - BRIEFLY STATE THE USERS OF ACCOUNTING INFORMATION.
Accounting Information provides quantitative and qualitative information about the various transactions and events of an accounting entity. The Accounting Information system of the accounting entity captures quantitative data and processes the pecuniary transactions related to the functioning of the same. Contemporary systems like ERP also encompasses in its scope the traditional quantitative Accounting Information besides some qualitative or non-financial information like customer satisfaction quotients, employee satisfaction quotients and product or service quality. Accounting Information is utilized for “predicting”, “comparing” and “evaluating” the earning power and financial health of the said entity by a set of users. Today, all types of organizations, from manufacturing behemoths like Tata Steel, Reliance Industries Limited etc. to Small & Medium Enterprises have need for Accounting Information. Every sector of the economy, from Manufacturing to Service to Retail and even Non-Profit organizations like NGOs, require such Accounting Information. The users of Accounting Information for any accounting entity are broadly classified into Internal and External categories.
A) Internal Users – This category of users are associated with the management of the concern for which the Accounting Information is sought to be collected and provided. They include the individual and collective decision making bodies in the concern such as the Owners on one hand and the team, departmental, regional and top Managers of the entity. All Officers, Managers and the Directors/Partners come in this group of users. Occasionally, the internal Auditors would have to refer to past financial information statements of the entity and thereby become an internal user of Accounting Information. The internal users generally rely on any...