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The Standardized Accounting System




Creditors

Organization and then summarize your findings in the spaces below.

Discuss why you think the following interested parties need financial information on an

People who need financial information

People who have an interest in an organization are called "interested parties".

Accounting provides information for the following purpose:

v Information that helps businesses make decisions

v Information that helps to determine responsibility

v Information that helps to control a company

v Information that helps all interested parties make their decisions

Managers____________________________________________________________

____________________________________________________________

____________________________________________________________



___________________________________________________

___________________________________________________



Potential investors__________________________________________________

__________________________________________________________________

Government _________________________________________________

_____________________________________________________________________________________

 

Interested parties can be within the organization (internal) or outside the organization (external). Make a list below of internal and external interested parties.

Internal _______________________________________________________________

External _______________________________________________________________

 

Creditor A creditor is someone an individual or a company owes money to. Potential investors Potential investors are people who might put their money into an organization in the future

Accounting practices are used for individuals and organizations all over the world. In an international society it is very necessary that there are common practices used so that financial information can be understood anywhere. This is especially true in our globalized economy where people are free to invest in companies in most other countries. To do this potential investors need accurate and reliable information that they can understand and trust. Accounting practices are therefore standardized. The same principles and rules are used everywhere

 





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