Week 4 paper 07012008 Essay Example | Topics and Well Written Essays - 500 words

Week 4 paper 07012008 - Essay Examplehe users of fiscal and managerial training like balance sheets, income and expenditure accounts, cash flows and other accounting system information rouse therefore be divided into two groups, internal users of accounting information and external users of accounting information.managerial accounting information is historical or forecasted information that is collected to supporter in managing and planning trade strategies. (Warren, C., Reeve, J. & Fess, P., 2004) This information is employ by a companys managers and employees etc. Accounting information is used by every member within an organization for many reasons. These users can be from higher or the lower levels of management. Internal users of accounting information could use accounting information for a variety of reasons. Firstly, this information can be used to analyze previous years performance. This performance would help them in business conclusivenesss in future. A company could also use this information to calculate various ratios that allow for help it determine is profitability and liquidity. Employees could use this information before demanding for wage increase. Largely, all business decision making is based upon such information. Owners of the company can use this information to see whether their retained lucre are enough to cover up for a planned investment in future.Financial accounting information is information that is collected for groups who are not a part of the organization. These groups include shareholders, investors, government agencies, creditors, customers, suppliers and of course, the world(a) public. (Warren, C., Reeve, J. & Fess, P., 2004) Shareholders will use a firms accounting information to determine their current or future share values. Investors would use accounting information to help decide whether or not they command to invest in particular company. They would use accounting information to calculate different ratios that will help them in deciding where to invest. Government