Internal and external users

Question 1

Government

Answer 1

To carry out financial business of government in a timely, effective and reliable manner.

Question 2

Suppliers

Answer 2

Suppliers need accounting information to assess the credit worthiness of it’s customers before offering goods and services on credit.

Question 3

Customer

Answer 3

Customer want to know that they can depend on them and if they are going to shut down the customers will know.

Question 4

Financial institution

Answer 4

Banks are lending institution may use accounting information to guide decisions such as whether to lend or how much to lend a business.

Question 5

Employees

Answer 5

Use the accounting information to find out the financial health, amount of sales and profitability of business to determine their job security.

Question 6

Manager

Answer 6

Mangera use pass experience to give insights to the prevalling situation of the company, and that help to plan for future activities for the company.

Question 7

Potential investers

Answer 7

Investers use accounting information to help investers determine an assets value understand company’s financing score, calculate profitable and estimate risks embedded in a companies balance sheet.

Question 8

Shareholders

Answer 8

A shareholder need financial statement to evaluate their equity investments and help make informed dicisions as to how to vote on corporate matters