Question

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?

Answer 1

ANSWER:

Inner Users of bookkeeping data are Managers, representatives, directorate and proprietors of the business and outside clients are government, charge specialists, speculators, loan bosses, money related foundations.

Regions of bookkeeping which give them data are productivity, liquidity, dissolvability, effectiveness of the association. salary articulation, position proclamation, income explanation, explanation of proprietors value are the components of budget summaries which gives the bookkeeping data. For instance financial specialists are intrigued into explanation of proprietors value while charge specialists are intrigued into pay articulation to know the measure of benefits and expenses to be paid. lenders are keen on monetary record to realize the liquidity position of the organization.

2-Business element idea says that business is a legitimate separate element from its proprietors. as indicated by his idea proprietors are not liable for the demonstrations of the substance. As indicated by idea Investor who have given capital is discrete from the legitimate element.

3-Major contrast between administrative bookkeeping and money related bookkeeping is that administration bookkeeping is utilized for dynamic while monetary bookkeeping is worried about chronicle of budgetary exchange and readiness of fiscal report.