Answer to Question #140808 in Finance for sneha

Question

Karagiri 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

Users of accounting information are internal and external.

External users are creditors, investors, government, trading partners, regulatory agencies, international standardization agencies, journalists and internal users are owners, directors, managers, employees of the company.

A common use of accounting information is measuring the performance of various business operations. While financial statements are the classic accounting information tool used to assess business operations, business owners may conduct a more thorough analysis of this information when reviewing business operations.