Discuss five users of accounting information clearly indicating their information needs

Discuss five users of accounting information clearly indicating their information needs

i. Suppliers
Suppliers would like to have information on the financial performance and position so as to
assess whether the business would be able to pay up for the goods and services provided as
and when the payments fall due.
ii. Government and its agencies
The government is interested in the financial performance of the business to be able to assess
the tax to be collected in case there are any profits made by the business.
The other agencies are interested with the financial position and performance of the business
to be able to come up with national statistics. This statistics measure the average
performances of the economy.
iii. Customers
They would like to know how the business is performing and its financial position. This
information would enable them to asses whether they can rely on the firm for future supplies.
iv. The lenders
They would like to have information on the financial / performance of the business to assess
whether the business is profitable enough to pay the interest and loans and whether it has
resources to pay back the principal amount when it is due such lenders include banks and
other financial institutions
v. Employees
They would like to have information on the financial position and performance so as to make
decision on their terms of employment. This will help them to negotiate for better terms
including salaries training and other benefits

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Kavungya answered the question on May 15, 2019 at 12:32

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