RSM100Y1 Chapter 14: chapter 14
23 Jan 2012
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business managers use accounting information to set goals, develop plans, set budgets, and evaluate future prospects. employees and unions use accounting information to get paid and to plan for and receive such benefits as health care, insurance, vacation time, and retirement pay. Investors and creditors use accounting information to estimate returns to stockholders, to determine a company s growth prospective, and to decide if they should invest or not. tax authorities use it to plan for tax inflows, to determine the tax liabilities of individuals and businesses, and to ensure that correct amounts are paid in a timely fashion. government regulatory agencies use it to fulfill their duties. Financial and managerial accounting: y they serve different users in and outside the company: financial accounting y financial accounting system: the products whereby interested groups are kept informed about the financial condition of a firm y.
