Explain any three internal users of Accounting Information.
Explain any three internal users of Accounting Information.
Internal users of Accounting Information:
(i) Proprietors: The proprietors or owners of the business need accounting information to Estimate the trading results of the business, its financial position towards the end of the accounting period and future prospects of the business.
(ii) Management: Management requires accounting information for planning and controlling Purposes. By proper use of this information, management can help to improve efficiency and thereby increase profits of the enterprise.
(iii) Employees: Good results of the business provide a great satisfaction to employees as their bread and butter depend on these results. In those business concerns in which profit-sharing schemes are introduced, employees become very much interested in knowing how the profit has been ascertained.
Internal users of Accounting Information:
(i) Proprietors: The proprietors or owners of the business need accounting information to Estimate the trading results of the business, its financial position towards the end of the accounting period and future prospects of the business.
(ii) Management: Management requires accounting information for planning and controlling Purposes. By proper use of this information, management can help to improve efficiency and thereby increase profits of the enterprise.
(iii) Employees: Good results of the business provide a great satisfaction to employees as their bread and butter depend on these results. In those business concerns in which profit-sharing schemes are introduced, employees become very much interested in knowing how the profit has been ascertained.
