Need help in preparing a report answering the following questions:
Who are the users of accounting information in businesses? Describe each user group.
What are the responsibilities of accountants to each user group?
Please list references and do not copy word for word. The paper will go through Turnitin.© BrainMass Inc. brainmass.com June 3, 2020, 10:36 pm ad1c9bdddf
Accounting information is useful to numerous users in business. Let us discuss each one of them one by one.
Management: Accounting information is of utmost importance to the owners and top management of an organization. Major strategic decisions are based on the historical performance of an organization, as reflected in the financial statements as well as on the financial forecasts or pro forma accounts of the organization. Accounting information is reviewed by the top management on regular basis to evaluate the effectiveness of the strategy and the progress of the organization as per strategic plans. Accounting information acts as a control mechanism for the management in the sense that it provides clear warning about problems or issues as well as highlights areas that needs improvement.
The responsibility of accountants towards this user group is to provide timely, accurate accounting information, so that management can take accurate decisions in a timely manner.
Shareholders/Investors: Investors and shareholders of an organization rely on accounting information to make investment decisions in the organization, i.e., whether to make fresh investments in the company or not and whether or not to exit the existing investments. Accounting information provides a good overview of the performance of the company in a specific period and provides good indication about the future prospects of the company. Investors and shareholders evaluate the performance of the company with other peers on the ...
Who are users of accounting information; responsibilities of accountants to users