WHAT
IS ACCOUNTING?
Why is accounting is popular? What Consistently
ranks as one of the top career opportunities in business? What frequently rates
among the most popular major in campus? Accounting.
Why did these people choose accounting?
And the answer is “They wanted to acquire the skills
needed to understand what was happening financially inside a company.
Accounting
is the financial information system that provides these insight. In
short, to understand an organization of any type, you have to know the numbers.
Accounting consists of three basic activities :
- Indentifiying
- Recording
- And Communicating the economic events of an organization to interested users.
WHO
USES ACCOUNTING DATA?
The information that a user of financial information
needs depends upon the kinds of decisions the user makes. There are two broad
groups of users of financial information: Internal
users and external users.
Internal
Users of accounting information are those individuals
inside a company who plan, organize, and run business. These includes marketing
managers, production supervisor, finance directors, and company officers.
External
Users are individuals and organizations outside a company
who want financial information about the company. The two common types of
external users are investor and creditors.
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