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Accounting Igcse Cie

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  1. The-Purpose-Of-Accounting Igcse Cie
    3 主题
  2. Business-Documents Igcse Cie
    3 主题
  3. Books-Of-Prime-Entry Igcse Cie
    2 主题
  4. Double-Entry-Book-Keeping-With-Ledger-Accounts Igcse Cie
    8 主题
  5. The-Cash-And-Petty-Cash-Books Igcse Cie
    2 主题
  6. The-Trial-Balance-And-Correction-Of-Errors Igcse Cie
    4 主题
  7. Bank-Reconciliation Igcse Cie
    2 主题
  8. Control-Accounts Igcse Cie
    3 主题
  9. Capital-And-Revenue-Expenditure-And-Receipts Igcse Cie
    2 主题
  10. Depreciation-And-Disposal-Of-Non-Current-Assets Igcse Cie
    3 主题
  11. Other-Payables-And-Other-Receivables Igcse Cie
    2 主题
  12. Irrecoverable-Debts-And-Provision-For-Doubtful-Debts Igcse Cie
    2 主题
  13. Valuation-Of-Inventory Igcse Cie
    2 主题
  14. Financial-Statements-For-Sole-Traders Igcse Cie
    8 主题
  15. Financial-Statements-For-Partnerships Igcse Cie
    5 主题
  16. Financial-Statements-For-Limited-Companies Igcse Cie
    4 主题
  17. Financial-Statements-For-Clubs-And-Societies Igcse Cie
    5 主题
  18. Financial-Statements-For-Manufacturing-Businesses Igcse Cie
    3 主题
  19. Incomplete-Records Igcse Cie
    4 主题
  20. Accounting-Ratios Igcse Cie
    6 主题
  21. Accounting-Principles-And-Policies Igcse Cie
    2 主题
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Exam code:0452 & 0985

Who are the interested parties for accounting information?

  • The interested parties are the people or organisations that use the accounting information for decision-making

  • There are internal and external interested parties

  • The accounting information might not always be available to all interested parties

    • Sole traders and partnerships can keep their financial statements private

    • Whereas public limited companies publish their financial statements to the public

      • Private limited companies have to publish some financial information

Internal parties

Why might internal parties of a business be interested in the accounting information?

Interested party

Reason for their interest in accounting information

Owners

  • To compare the performance with previous years

  • To plan for the future

  • To make decisions about which areas need action

Managers

  • To check on the efficiency of the business

  • To check on the progress of the business compared to previous years

Employees

  • To check that the business is profitable and likely to continue to trade so that they have job security

External parties

Why might external parties of a business be interested in the accounting information?

Interested party

Reason for their interest in accounting information

Trade receivables (and customers)

  • To check on the probability that their goods will continue to be supplied by the business

Trade payables (and suppliers)

  • To check whether the business can pay for its supplied goods as agreed

  • To examine the trade payables turnover to identify how long, on average, it takes the business to pay for its goods

  • To look at the trade receivables to assess whether there is still a demand for the supplied goods

Banks

  • To assess whether the business is suitable for an overdraft or a bank loan

  • To assess the value of the assets owned by the business so that they can be used as security against loans

Investors

  • To assess the profitability of the business

  • To assess the likelihood of the investors making money if they invested in the business

Competitors

  • To compare the profitability of the business against their own business

  • To identify gaps in the market

Club members

  • To assess whether the club is likely to continue to operate so that they can continue to use the facilities available

Government and tax authorities

  • To calculate how much tax is owed

  • To gather data for the government statistics

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