The accounting process provides financial data for a broad range of individuals whose objectives in studying thedata vary widely. Three primary usersof accounting information were previously identified, Internal users, External users, and Government/ IRS. Each group uses accounting information differently, and requires the information to be presented differently.

Accounting supplies managers and owners with significant financial data that is useful for decision making. This type of accounting in generally referred to as managerial accounting.

Some of the ways internal users employaccounting informationinclude the following:

Assessing how management has discharged its responsibility for protecting and managing the company’s resources

Shapingdecisions about when to borrow or invest company resources

Shaping decisions about expansion or downsizing

Accounting conceptrefers to the basic assumptions and rules and principles which work as the basis of recording of business transactions and preparingaccounts. Thisconceptassumes that, foraccountingpurposes, the business enterprise and its owners are two separate independent entities.