This category is made up of the senior employees who run the organization on a day- to- day basis. They are interested in information such as:

• Finance of the organization (working capital)
• The growth prospects (value of shares and dividends)

Employees: This is the group of workers in the organization made up of existing potential and past employees. The members of this group are concerned with job security and future prospects. Therefore, they need information to assess the company’s profitability, liquidity and growth prospects. Employees need information about

• The financial state of the organization ( for their salaries)
• The growth and stability of the organization (new investments) to ensure continuity of employment.
• Profitability.

Customers: Those who buy from the organization either for cash or on credit are interested in;

• The profitability
• The growth and stability ( new product lines)
• Customers will also need information or price so they can assess whether the company is overcharging them or not.

Suppliers: These are the parties responsible for providing the organizations and institutions with the products or services necessary for operation and sustenance. These supplies may range from raw materials for manufacture, sundry provisions such as stationery, outsourced services and transportation services among others. Usually, suppliers are compensated either in cash or in credit basis. They need for

• Accounting information comes from the intention to determine whether the organization is capable of meeting its obligations to pay for the supplies it receives either on the short or long run.
• Similarly, the information that confirms this to the suppliers is the capacity of the organizations or institutions to continue operations as a going concern

The Lenders: They are the parties that provide alternative capital sources to the organizations. While the owners provide equity capital, lenders usually provide the organization with debt capital and usually get a return in the form of interest. Examples of lenders include debenture holders in companies, banks and other financial institutions that grant loans. They need to have

• Real-time accounting information on the economic performance and financial position of organizations is in order to assess whether the entities are sufficiently profitable to pay the interest on loans and whether the organizations possess enough resources to pay back the principal amount when the amount becomes due

REQUIRED: 

Please explain how the five users needs are met or not by the financial information and how these needs are met or not met.

Answer rating: 100% (QA)

Answer Following are the five users needs are met or not by the financial information as follow Management i For working capital finance of the busine... View the full answer