Theory question 103
Introduction to AccountingList five users of accounting information and state their respective interest in the accounting information.
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Any five, each with its interest:
- Owners/shareholders: profitability, safety of investment, dividends.
- Management: planning, control and decision making; progress against targets.
- Banks/lenders: ability to repay loans and interest (creditworthiness).
- Suppliers/creditors: ability to pay debts on time.
- Customers: continuity of supply and credit terms.
- Employees/trade unions: job security, ability to pay wages, basis for bargaining.
- Government/tax authorities: tax assessment and regulation.
- Potential investors: whether to invest.
- Competitors/analysts/public: performance comparison and research.
One user and one clear interest per line.