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What are the users of accounting information ? Explain

Answer» \tResearchers:\xa0Researchers are interested in interpreting the financial statements of the concern for a given objective.\xa0Accounting information helps research scholars who wants to make a study into the financial operation of a particular firm.\tGovernment:- Government has to collect sales tax, income tax, excise duty, and other taxes from the business. For this, it is necessary that proper accounts are made available to the government.Government wants to know earnings or sales for a particular period for the purpose of taxation. Income tax returns are examples of financial reports which are prepared with information taken from accounting.Government ensures that a company\'s disclosure of accounting information is in accordance with the regulations that are in place to protect the interest of various stakeholders who rely on such information in forming their decisions\tCreditors:- Creditors are those parties that provide a firm with raw material, goods, services and financial resources by either extending credit or making loans. They are interested in knowing whether an enterprise can settle its obligations on a scheduled date in time. As a result, the existing cash position, outstanding debts, present and future earnings of an enterprise are of utmost concern.\tPotential Investors:\xa0The prospective investors are in need of detailed information about the progress of the concern because on the basis of the information revealed by the accounting statements they make decisions regarding the investment to be made in that particular business. They would like to know the data relating to the past and present performance of the business and details of the decisions taken for future programmes.


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