My Hometown CPAs

  • Best CPA Firms
  • CPA Blog
  • North CPAs
  • South CPAs
  • CPA 78664
  • West CPAs
  • East CPAs
  • Add Your CPA Firm
  • CPA Resources
  • Best CPA Firms
  • CPA Blog
  • North CPAs
  • South CPAs
  • CPA 78664
  • West CPAs
  • East CPAs
  • Add Your CPA Firm
  • CPA Resources

Users of Accounting Information Defined

8/1/2013

 
Overview: Accounting information is most commonly used by individuals and groups who must make decisions concerning the operations of a business.

Management: In order to maintain a profitable enterprise, management must maintain sufficient funds to meet the entity's liabilities as they become due. Virtually all businesses publish financial statements, which show the financial condition of the company and also indicate whether or not the company is making a profit. 

  • Investors use these statements to ascertain the strengths and weaknesses of the company
  • Potential creditors study these statements to determine whether the company has sufficient liquid assets, such as cash, with which to repay loans and other types of liabilities. 


Society: Several groups in society, including the IRS, labor unions, and financial analysts, are the stock exchanges are interested in the profitability and operations of the entity. 

Comments are closed.

    My Hometown CPAs - Blog

    Read advice submitted by local firms and find CPAs and accountants by metro area and US region.


    Blogroll
    FASB
    Accounting Glossary
    A Taxing Matter Blog
    Anthony G Adams
    Kay Bell Texas
    Grumpy Old Accountants

    Blossom Street SAAS Venture Capital Blog
    ​
    Dallas IP Lawyers
    u.s. tree care logo
    dallas chimney and wildlife experts logo

    Archives

    August 2022
    August 2021
    October 2020
    August 2020
    May 2014
    November 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013

    Categories

    All

    RSS Feed

Powered by Create your own unique website with customizable templates.