Answer to Question #148201 in Accounting for divesh

Question

joseph is a Pune based startup that works with 800 families across India. The startup is in the business of handloom saris. They converted the pandemic period in to an opportunity. The business owners realized that accounting is essential to permit informed judgements and decisions by the user of accounts. In the light of given definition of accounting, discuss about users and uses of accounting information

Answer 1

Accounting information of a business enterprise is used by many stakeholders. Different parties use this information for different purposes depending on their needs. Therefore, the accounting information system of a business enterprise must be designed in a way that it should generate the reports to satisfy the information needs of every interested party.