(a) Who are internal users of accounting data? (b) How does accounting provide relevant data to these users?

(a) Who are internal users of accounting data?

(b) How does accounting provide relevant data to these users?

Solutions

Expert Solution

(a)

Internal users are those who plan, organize, and run the business and therefore are officers and other decision makers.

(b)

To assist management, accounting provides internal reports. Examples include financial comparisons of operating alternatives, projections of income from new sales campaigns, and forecasts of cash needs for the next year.

Junaid answered 2 months ago

Next > < Previous

Related Solutions

The ultimate goal of accounting is to provide both internal and external users with information that...

The ultimate goal of accounting is to provide both internal and external users with information that is relevant and reliable for their decision making purposes. US companies are subject to various reporting requirements, as mandated by the Securities Exchange Commission. Go to the U.S. Securities & Exchange Commission site Use Edgar to find the 12-31-2017 Annual Report (10K) for Southwest Airlines and respond to the following questions. 1.) What amounts did Southwest report for the following items for the year...

1. Discuss internal and external users of accounting information. What areas of accounting provide them with...

1. Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use. 2. Explain the meaning of the business entity concept. 3. What is the major difference between the objective of financial accounting and the objective of managerial accounting?

1. What is the accounting equation? 2. Who are the internal users of a company’s financial...

1. What is the accounting equation? 2. Who are the internal users of a company’s financial information? What kind of decisions do they need to make using financial information? 3. What are the four major financial statements of a corporation? 4. GAAP principles and concepts 5. What are the requirements of the Sarbanes-Oxley Act? 6. What is IASB? 7. What are assets? What are prepaid expenses? Examples? 8. What is a liability? What is an unearned revenue? Examples? 9. What...

1. Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give...

1. Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use.' 2.Companies like Enron, HealthSouth, and Xerox Corporation have been caught in the midst of ethical lapses that led to fines, firings, and criminal and/or civil prosecution. List and briefly describe two factors that are responsible for what went wrong in these companies. 3. What is the major difference between the objective...

3) Internal users of accounting information include all of the following except A. Company officers. B....

3) Internal users of accounting information include all of the following except A. Company officers. B. Investors. C. Marketing managers. D. Production supervisors.

Identify the following users as either external users (E) or internal users (I). a) Customers b)...

Identify the following users as either external users (E) or internal users (I). a) Customers b) Suppliers c) Brokers d) Business press e) Managers f) District attorney g) Shareholders h) Lenders i) Sales clerks j) FBI and IRS k) Consumer group

Differentiate between internal users and external users and explain the examples of the accounting information required.

There are external and internal users of accounting information. Which of the following will be considered...

There are external and internal users of accounting information. Which of the following will be considered as an external user of accounting information for Gizmo Traders? (a) Employees, investors and lenders of Gizmo Traders (b) Investors and lenders of Gizmo Traders as well as government and their agencies. (c) Management, employees and customers of Gizmo Traders. (d) The general public, customers of Gizmo Traders and Gizmo Traders suppliers and other trade creditors. (e) Employees and lenders of Gizmo Traders as...

How does managerial accounting differ from financial accounting? Discuss key differences in the users of the...

How does managerial accounting differ from financial accounting? Discuss key differences in the users of the information and what the information is used for. Why is it important that one of these use GAAP and the other is not required to, and in fact may be less useful if it tries to stick to GAAP requirements – like full absorption vs. variable costing?

With more internal and external data available, what new accounting techniques and systems emerge? How does...

With more internal and external data available, what new accounting techniques and systems emerge? How does that shift the focus from forecasting to “nowcasting”? what is the effect on the downstream value chain decisions? Discuss. at least 300 words.

Subjects