users of accounting information 2

A major aim of financial information is to provide inputs for decision‐making. Accounting can be described as the information system which identifies, records, and communicates the financial activity of an entity to others. The users of accounting information are easily separated into two groups: internal users and external users.

Respond to one or more of the following in a minimum of 175 words:

  • Discuss who are the internal users and external users of accounting information.
  • Discuss what the primary concerns are to both groups.
  • Describe the four financial statements. Which one is most useful to users? Explain.
  • Working capital is used to measure a company’s ability to meet it’s current financial obligations and is calculated by subtracting current liabilities from current assets. It can be an indicator of how much the company can grow/function without securing funding from outside sources. What can be done to ensure working capital is managed efficiently to maximize net income?


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