Accounting Information; User and Uses

Better Essays
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 managers) use internal accounting information in order to plan for the future. Therefore accounting information is not only vital to the one's individual business or investments but is also of great benefit to the wider society and the world at large. In addition to which this will allow each country to organize their funds in a more systematic approach as such making room for development of one's country and the upward social mobility of the people of that specific country. In all simplicity, accounting information prepares us for the future

Users of Accounting Information and their needs
Introduction
The product of accounting is accounting information. Accounting information is used in deciding between different courses of action and results in informed decision making. It serves to reduce the uncertainty inherent in the business environment where decisions are made about the future. It further reduces entropy based on the assumption that chaos exists where there is no information. This implies that the greater the uncertainty or entropy, the more accounting and other information are required.
At first glance, accounting can appear extremely complicated and confusing. The untrained eye may struggle to grasp the entire nature of



References: Department of Accounting & Finance. (n.d.). Unit 1: Financial statements. Retrieved May 26, 2008, from University of Strathclyde Web site: http://accfinweb.account.strath. ac.uk/ammsc/p101.html Kanter, H. A., & Pressley, M. M. (n.d.). Multimedia slides of chapter 1: Uses of accounting information and the financial statements (In Financial accounting by Belverd E. Needles, Jr. & Marian Powers). Retrieved May 25, 2008, from Houghton Mifflin College Web site: http://www.college.hmco.com/accounting/needles/fa/instr/ppt/ch01/sld001.htm Wild, J. J., Larson, K. D., & Chiapetta, B. (2007). Fundamental accounting principles (18th edition). Boston: McGraw-Hill/Irwin.

You May Also Find These Documents Helpful

  • Better Essays

    TITLE: FOUNDATIONS OF ACCOUNTING COURCE CODE: MAC101 DUE DATE: 12th September LECTURER: Ms.Chirima ASSIGMENT Nr. 1 - Accounting Information Date, 10th September, 2014 Introduction “The users of the accounting information”. According to the author Horngren,C .Introduction to management accounting, the list of the people who use the accounting information is infinite. But even…

    • 1702 Words
    • 7 Pages
    Better Essays
  • Good Essays

    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…

    • 870 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    inAccounting information helps users to make better financial decisions. Users of financial information may be both internal and external to the organization. Internal Users of accounting information are those individuals directly involved in managing and operating an organization and users within the company. They include managers, internal auditors, sales staff, budget officers, controllers, officers, directors, and other important internal decision makers. Internal users make the strategic and…

    • 1672 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    ON ACCOUNTING AND ACCOUNTING INFORMATION FOR, INTERNAL AND EXTERNAL USERS PRESENTED BY Mr. EMMANUEL FONGEH IN PARTIAL FULFILLMENT OF AN EXECUTIVE MASTERS DEGREE IN BUSINESS ADMINISTRATION. CHAPTER 1 1.1 INTRODUCTION. At a glance, accounting can appear extremely complicated and confusing. The untrained eye may struggle to grasp the entire nature of accounting and…

    • 11297 Words
    • 46 Pages
    Powerful Essays
  • Powerful Essays

    C H A P T E R O N E INTRODUCTION 1.1 BACKGROUND OF THE STUDY Accounting as a profession or discipline, has always been seen as an information-generating one, which fittingly makes the job of the Accountant to be that of observing economic activities, recording the observations in the prescribed books, analysing the recordings, interpreting his analysis and preparing reports to all users of Accounting Information. The prepared reports are generally referred to as financial statements, which clearly…

    • 6117 Words
    • 25 Pages
    Powerful Essays
  • Satisfactory Essays

    The purpose of users of accounting information is helps userd to make better financial decisions. Users of financial information is separate to internal and external users . Internal users is also primary users . It include managerial accountant from inside of the business , example : management , employee and owners. Management is decision making , planning and analyzing the organization's performance and position and taking appropriate measures to improve the company results of business…

    • 253 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Primary users Financial accounting : the primary users of financial accounting are the external users, shareholders, investors , creditors, lenders and government. Share holders are using financial information to know about their investment e.g how the investment is running, what is the organization profit and what is the value of the organization. Investors use financial information to know in which organization they should invest and to look how was the organsation performance in the past so…

    • 690 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Accounting information

    • 330 Words
    • 2 Pages

    Dr Fang (to be used in the workshop in week 1) Month-end balance sheet amounts for the dental practice of Dr Fang, a local dentist, for three consecutive months are presented below. The information is complete except for the balance in the owners’ equity account. Cash Accounts receivable Prepaid insurance Surgery equipment Building Land Accounts payable Wages payable Mortgage payable Owners’ Equity 31 October $ 9 100 16 100 700 29 800 81 000 33 000 10 100 5 100 34 700…

    • 330 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Information Use

    • 726 Words
    • 3 Pages

    It is very important to protect the information of organizations today due to the high levels of fraud that is being committed out there. Imagine going to a bank and someone left their computer unlocked for others to gain information to. If your personal information was on that screen and someone else took down or noted your social security number or date of birth, it would make you feel really leery about doing business with that bank. At my employer we are forced to lock our computers before…

    • 726 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Accounting: A User Perspective Assignment 2 April 2014 Prepared by Marcelo De la cruz Plejo Student ID, z3479895 Master of Business and Technology GBAT9120 Accounting: A User Perspective – Semester 1 - 2014 Facilitator, Ken Trottman 1. Question 1 [14 marks] Ratio 2014 Calculations Results 2013 Calculations Results 1. Return on Equity (2425 / 78018)x100 3.10% 3752/50319 7.46% 2. Alternative Return on Assets (6985 / 216899)x100 3.22% (9150…

    • 928 Words
    • 4 Pages
    Powerful Essays