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List four important users of financial accounting and describe the use that each user would make...

List four important users of financial accounting and describe the use that each user would make of the information..

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Answer #1

USERS OF FINANCIAL ACCOUNTING -

1) Owners - Stockholders need financial accounting information to help them in taking decisions on where to invest their money to get good returns

2) Lenders - Lenders like banks and financial institutions are interested in knowing about the ability of company of paying their liabilities on maturity.

3) Government - Government is interested for the purpose of taxation. Taxes are computed on the basis of the accounting books made by an entity.

4) Employees - Company's profitability and stability is important for employees to get good salaries and employee benefits. They may be interested in company's accounting to estimate the chances of their career development opportunities.

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