What is Accounting Information?| Users of Accounting Information| Sources of Accounting Information.

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Welcome back to our YouTube channel “Everything about Accounting.”

In this video, we are going to learn.
1. What is Accounting Information?
2. Sources of Accounting Information.
3. Who are the Users of accounting information?

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So let’s get started.

What is Accounting Information?
Accounting is known as an information system. Accounting provides the necessary information to interested users.
Thinking about the internal and external users, accounting records transactions, and publishes reports.
“Accounting information is the consolidated statement of all financial information of a business organization.”
The company’s accounting department prepares and publishes reports of the company’s financial operations.
Different individuals and organizations use accounting information to suit their needs.

Sources of Accounting Information:

The following statements could be referred to as the source of accounting information.

1. Comprehensive Income Statement
2. Balance Sheet or Financial Position Statement
3. Owner’s Equity Statement
4. Cash Flow Statement
5. Notes and Explanation

Who are the Users of accounting information?
Accounting provides valuable information about the financial condition of a firm. Stakeholders take an important decision based on this information.
So we can divide the users of accounting information into two groups-

1. Internal Users
2. External Users

1. Internal users:
Internal users of accounting information are those who plan, organize, and run the business.
Internal users include:

• Owners
• Manager
• Internal Auditors
• Production Supervisor
• Finance Directors
• Company officers
• Line manager
• Board of Directors
• Top-Level Officers
• Treasurer
• Company Officers
• Marketing Manager

2. External Users:
External users are individuals and organizations or institutions outside a company that wants financial information about the company.
External users Include:

• Suppliers
• Banks
• Customers
• Investors
• Potential investors
• General Public
• External Auditors
• Tax Authorities
• Regulatory Agencies
• Labor union
• Researchers
• Economic Planner
• Financial Institutions
• Securities Exchange Commission
• A prospective Buyer

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