BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -These people use accounting information to determine the credit-worthiness of the customers. Based on this assessment, they decide whether they should offer goods and services on credit to its customers.

Detailed explanation-2: -These financial statements are then used by company managers, investors, analysts, lenders, and other stakeholders to make informed decisions.

Detailed explanation-3: -Accounting Information is needed by stakeholders of the firm, including the employees, owners, creditors, banks and other lenders, regulatory agencies, and tax authorities, among others, so that they can make use of the accounting information.

Detailed explanation-4: -The two most common types of external users are potential investors and creditors. Potential Investors use accounting information to make decisions to buy shares of a company. Creditors (such as suppliers and bankers) use accounting information to evaluate the risks of granting credit or lending money.

Detailed explanation-5: -Creditors – Creditors are interested in accounting information, because it enables them to determine the credit worthiness of the business. The credit terms and standards are set on the basis of the financial health of a business, so, it helps them to analyze by using the accurate information accordingly.