Topic 3

Users of Accounting
Information

RIZAMEL VILLANUEVA
Learning Objectives:
Define external and internal
users and give example
Identify the type of decisions
made by each group of users
Describe the type of
information needed by each
group of users
Users of Accounting Information
stakeholders
internal and external users
Internal Users
1. Managers
2. Employees or Labor Unions
3. Owners
* Management Reports, Budgets, and Financial Statements
Do we have enough cash to pay bills?
How much is the cost of producing each unit of product?
Can the company afford to give salary increase?
Which product line is more profitable?
How much is the companys sales growth for the month?
How much is the tax payable to the government?
External Users
1. Potential Investors
2. Creditors and Potential Creditors
3. Customers
4. Suppliers
5. Tax Authorities
6. Regulatory Bodies
7. Public