Introduction to Acccounting
Introduction to Accounting
Accounting entails recording, classifying and summarizing of business transactions.
Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business and other organisations.
The primary purpose of accounting is to provide the information that is needed for sound decision making.
The process of identify, classify, recording and communicating business transaction is called as book-keeping.
Book keeping is mainly concerned with
USERS OF ACCOUNTING INFORMATION
The accounting process provides financial data for a broad range of individuals whose reason for studying the data varies.
The two primary users of accounting information are internal users and External users.
Each group uses accounting information differently, and requires the information to be presented differently.
Internal users are people within a business organization who use financial information.
External users are people outside the business entity (organization) who use accounting information.
Creditors or Suppliers
Banks and Other Lenders
Which of the following is the example of internal users
Users of accounting information include
Owners of business firms are the only people who need accounting information.