THE USERS OF ACCOUNTING INFORMATION

THE USERS OF ACCOUNTING INFORMATION

There are several users of accounting information in typical business, organization or parastatals.

i. The proprietor: business owners se it for business and profit forecast and for knowledge on drawing limit from the business without affecting it.

ii. Prospective investors;- it provide enough basis of assessing the organization for decision making in whether or not to invest into the form.

iii. Creditor/supplier:- the creditor will went to know whether the amount owing to them will be paid when due. Trade creditors are likely to be interested in an enterprise over a shorter period than lenders unless, they are dependent upon the continuation of the enterprise as a major customer.

iv. Customers: customers have an interest about the accounting information about the continuance of an enterprise, especially when they have a long-term involvement with, or are dependent on, the enterprise.

v. Government and their agencies: government and their agencies are interested in the allocation of resources and, thereof, the activities of enterprisers. They also require information in order to require the activities of enterprises, determine taxation policies and as the basis to national income and similar statistics.

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