Can You Name The Different Parties Interested In Accounting Information And Explain Why Do They Need It?


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Saurav Mandal answered
The various parties interested in the Accounting Information are:    The  Mnagement-helps them in planning, decision making and controlling.    The owners-helps them to know the profitability and financial soundness of the business and also the increase or decrease in profitability.    The Investors-they also want to know about the profitability and financial soundness of the business so that they can ensure safety of their investment.  The Creditors-to determine if the amount owing to them will be paid when due.  The Bank-before proving loan to a business, banks want to judge the profit earning capacity and financial soundness of the business.    The Employees- Employees need information about the profits of the business to asses the ability of the business to pay higher wages and bonuses.  The Government-helps the government in assessment of income tax, sales tax, excise duty etc.

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