Q.Who are the parties interested in accounting information ?

The parties interested in accounting information are internal users (owners, management, employees) and external users (investors, lenders, creditors, government, customers, public).

In the Tamil Nadu HSC Class-11 Accountancy syllabus, the users of accounting information are grouped as internal and external parties:

Internal users (within the business):

• Owners/proprietors — to know the profit earned and the safety of their capital.
• Management — to plan, control and take decisions.
• Employees — to judge job security, bonus and better remuneration.

External users (outside the business):

• Investors/potential investors — to decide whether to invest.
• Creditors, lenders and banks/financial institutions — to assess the ability to repay loans.
• Suppliers — to judge creditworthiness before giving goods on credit. …