Santos, Laisan Shayne T.

ABM-1A

1. Why is accounting considered as the language of business?

- Accounting is considered as the language of business because it is used by the
managers to communicate in economic and financial information about the
companies to external parties which are the shareholders and the creditors.
2. What is the role of accounting in business?
- The role of accounting in business is to provide information to managers in
operating the business. Accounting provides information that is used by other
users to assess the economic performance and condition of the business.
3. Give at least five (5) users of financial information and describe each.
 Managers
- They are in charge in of the business’s planning, organization, and
management.
 Employees
- Assess the company’s profitability and stability, as well as the impact
on their future salary and job security.
 Investors
- Financial information will assist them in determining whether to invest
or not to invest in the business.
 Customers
- They are interested in information about the survival of a business,
especially if they have a long-term involvement with or rely on it.
 Suppliers
- They use financial information to determine whether debts owed to
them will be paid on time, or whether the customer has sufficient funds
or resources to pay for goods to be delivered or services to be rendered.
4. In your perspective, what is the relevance of the history of accounting in
today's business environment?
- I think, they are same in their role in the business.