Parties interested in accounting:
Accounting is actually the business language used by the accountant to furnish financial
information of a concern to different parties who are interested in such information.These are following:
1:Owner(s):
The own provide funds for the operations of a business and their interest is to know weather their capital is being properly utilized or not.Due to Curiosity of the owners the financial position of the concern before providing loans or credits Facilities.The current and previous financial statements(Income Summary and balance sheet) will guide them in judging such position.
2:Investores:
Prospective investors,Who desire to invest money in a firm,would like to make an analysis of the financial statements of that firm to know not only the Safety of the proposed investment but also the regular earning.
3:Managers:
Accounting is the "Eyes and ears for management" All accounting is management accounting".
In this modern age o automatic and electronic process,businessmen can maximize his profit due to efficences of his staff.Management is the art of getting things done through subordinates. Accounting is to measure of performance of the subordinates and provide information to take remedial action for the same.
4:Employees:
labour union and employees keenly interested in the financial position of the concern they serve particularly when payment of labour depends upon the profit earned.They would like to collect the information of the correctness of the income statement and would like to know that bonus being paid to them in correct or not.
5:Government:
Central and provisional governments are interested in the Financial statements because they reflect the earning for a purpose of taxation .More ever,these financial statements are used for the Compilation statistics concerning business which,in turn help in compiling national accounts.
6:Research Scholars:
The income statement and Balance sheet Being a mirror of the financial position of a firm/Business,are of immense value to the research scholar who wants to make a study into financial operation of a firm/Business.
Accounting is actually the business language used by the accountant to furnish financial
information of a concern to different parties who are interested in such information.These are following:
1:Owner(s):
The own provide funds for the operations of a business and their interest is to know weather their capital is being properly utilized or not.Due to Curiosity of the owners the financial position of the concern before providing loans or credits Facilities.The current and previous financial statements(Income Summary and balance sheet) will guide them in judging such position.
2:Investores:
Prospective investors,Who desire to invest money in a firm,would like to make an analysis of the financial statements of that firm to know not only the Safety of the proposed investment but also the regular earning.
3:Managers:
Accounting is the "Eyes and ears for management" All accounting is management accounting".
In this modern age o automatic and electronic process,businessmen can maximize his profit due to efficences of his staff.Management is the art of getting things done through subordinates. Accounting is to measure of performance of the subordinates and provide information to take remedial action for the same.
4:Employees:
labour union and employees keenly interested in the financial position of the concern they serve particularly when payment of labour depends upon the profit earned.They would like to collect the information of the correctness of the income statement and would like to know that bonus being paid to them in correct or not.
5:Government:
Central and provisional governments are interested in the Financial statements because they reflect the earning for a purpose of taxation .More ever,these financial statements are used for the Compilation statistics concerning business which,in turn help in compiling national accounts.
6:Research Scholars:
The income statement and Balance sheet Being a mirror of the financial position of a firm/Business,are of immense value to the research scholar who wants to make a study into financial operation of a firm/Business.
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