Question

What are the informational needs of internal users?

Answer 1

(i) Owners: These are interested in knowing about the profit earned or loss suffered by the business, besides the safety of their capital.

(ii) Management: The management requires accounting information for making various decisions such as determination of selling price, cost controls and reduction, investments, etc.

(iii) Employees and Workers: The employees and workers are interested in knowing about the profit earned by an enterprise so that they can demand bonus or wage hike. Also, whether the firm has deposited its share into the provident fund and employees state insurance, etc.