BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Financial accounting is also a key for creditors, from banks to bondholders. Because financial statements outline all its assets as well as the short-and long-term debt, lenders get a better sense of a company’s creditworthiness.

Detailed explanation-2: -Creditors use financial information to predict whether companies can generate enough cash in the future to cover debt payments. Future cash flows are at the heart of a company’s true value, which is of interest to both investors and creditors.

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: -In utilizing the data presentation to them by customers for purpose of lending, the banks are interested in financial accounting information which enables them to reach an initial loan decision and also helps them to monitor progress after the advance has been made.

Detailed explanation-5: -Internal users refer to managers who use accounting information in making decisions related to the company’s operations.