Internal: An internal user refers to people working inside the organization that have interest in accounting information for better decision-making. Some of the internal users are:Owners: An owner would like to use accounting information to know the amount of profit as compared to the previous accounting period and also, the financial position of assets and liabilities of the business.Manager: A manager would like to use accounting information in form of financial statements in order to evaluate information about profits and financial position of the business.External: An external user refers to people outside the organization who are interested in accounting information of the company.
Some of the external users are:Government: The government would like to use accounting information as they are concerned about the rights of stakeholders.Investor: A investor wants to make investments in a business and thus is interested in information about past years profits and financial position.Bank: Banks are concerned whether repayment of interest and principal payments will be on time. Banks are also concerned whether more assets are in cash or near cash form.
Stakeholders with similar interests, claims, or rights can be classified into different categories according to their roles (e.g., employees, shareholders, customers, suppliers, regulators, or nongovernmental organizations). In corporate governance, stakeholders are often classified into primary or secondary groups.
Answers & Comments
Answer:
Internal: An internal user refers to people working inside the organization that have interest in accounting information for better decision-making. Some of the internal users are:Owners: An owner would like to use accounting information to know the amount of profit as compared to the previous accounting period and also, the financial position of assets and liabilities of the business.Manager: A manager would like to use accounting information in form of financial statements in order to evaluate information about profits and financial position of the business.External: An external user refers to people outside the organization who are interested in accounting information of the company.
Some of the external users are:Government: The government would like to use accounting information as they are concerned about the rights of stakeholders.Investor: A investor wants to make investments in a business and thus is interested in information about past years profits and financial position.Bank: Banks are concerned whether repayment of interest and principal payments will be on time. Banks are also concerned whether more assets are in cash or near cash form.
Explanation:
Stakeholders with similar interests, claims, or rights can be classified into different categories according to their roles (e.g., employees, shareholders, customers, suppliers, regulators, or nongovernmental organizations). In corporate governance, stakeholders are often classified into primary or secondary groups.