Briefly describe few of the key users of a firm's accounting information.

Question

What will be an ideal response?

Answer 1

Answers will vary. Everyone wants to make good decisions. Thus, a variety of business stakeholders rely so heavily on accounting information that it's sometimes called the language of business.Key users of accounting information include:Managers: Marketing managers need information about sales in various regions and for various product lines. Financial managers need up-to-date facts about debt, cash, inventory, and capital.Stockholders: As owners of a company, most stockholders have a keen interest in its financial performance, especially as indicated by the firm's financial statements.Employees: Strong financial performance would help employees make their case for nice pay raises and hefty bonuses. But if earnings drop-especially multiple times-layoffs might be in the offing, many employees might decide to polish their résumésGovernment agencies: Accurate accounting information is critical for meeting the reporting requirements of the Internal Revenue Service (IRS), the Securities and Exchange Commission (SEC), and other federal and state agencies.