Learning Objective $01-$C$1$: Explain the importance of accounting and identify its users.

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Accounting is an information and measurement system that aims to identify, record, and communicate information about business activities. It helps assess opportunities, products, investments, and social and community responsibilities.

Users of accounting are both internal and external. Some users and uses of accounting include

$($a$)$ managers in controlling, monitoring, and planning;

$($b$)$ lenders for measuring the risk and return of loans;

$($c$)$ shareholders for assessing the return and risk of stock; and

$($d$)$ employees for judging employment opportunities. Opportunities in accounting include financial, managerial, and tax accounting.