Identify four internal and external users of accounting information. Provide a specific example of how accounting information might be used by each


Examples of internal users and the manner in which they use accounting information could include:

· Production manager: assess the efficiency of the production process.
· Marketing manager: help set a proper sales price for an item.
· Regional manager: decide whether to maintain or close individual divisions.
· Finance personnel: plan capital expenditures.

Examples of external users and the manner in which they use accounting information could include:

· Stockholders or potential investors: help analyze the profitability of an organization.
· Donors of non-profit organizations: help determine the future donations, identify use of prior donations.
· Bank officials or creditors: decide whether to lend money to an organization.
· Government agencies: assess compliance with laws and regulations (e.g. taxes).

Business

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What will be an ideal response?

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