Fundamentals of

Accountancy,
Business and
Management 1
 Lesson 3:
Users of Accounting
Information
 Learning Objectives:

• Define and give examples of external

and internal users of accounting
• Explain the decision made by the
users
 Users of Accounting Information
INTERNAL USERS EXTERNAL USERS
Those who are inside the Those who are outside the
company. They are company. They are not
curious with the stability connected with business and
their financial interest would
of the company. either be present or
potential.
INTERNAL USERS
OF
ACCOUNTING
INFORMATION
They provide capital to the business and they
assess if they needs funding.
They need financial information because they
plan and organize of the firm.
EXTERNAL USERS
OF
ACCOUNTING
INFORMATION
 The provider of risk capital and their advisers
are concerned with risk inherent in, and return
provided by, their investllments.
Are interested in information that will enable
them to determine whether their loans, and the
interest attached to them, will be paid when
due.
 Have an interest in information about the
continuance of the entity, especially when they
have long-term involvement with, or are
dependent on that entity.
Employees

They are interested in the information about

stability and profitability of their employers.
 Interested in the information that will enable
them to determine whether the amounts owing
to them will be paid when due.
 Interested in the information to determine
whether the business pays the right amount of
these taxes.
They need the information in order to regulate
the activities of the entities.
PUBLIC

Someone who are curious in about the business

firm.
Fundamentals of
Accountancy,
Business and
Management 1
 Lesson 4:
Types of Business
according to its form
and activities.
 Learning Objectives:

• Define and give examples of the

different type of business according to
its forms.
• Differentiate the different type of
business according to its activities.
 Forms of business Organization

Sole Corporation
Proprietorship
Partnersip Cooperative
Business owned by one person. Easy to establish
and dismantle, due to a lack of government
involvement, making the popular with small
business owners.
 Two or more person bind themselves to
contribute money, property or industry to a
common fund, with an intention of dividing
profit among themselves.
Is an artificial being created by operation of law,
having the right of succession and the powers,
attributes and properties are expressly
authorized by law or incidental to its existence.
(Revised corporation code of the Philippines)
Cooperative

An association of person with common bond

and interest, who have voluntarily joined
together to achieve lawful common social or
economic end.
Types business Organization according
to activities
Business sells services to customer. Generates
income by providing services.
E
X
A
M
P
L
E
S
 Business engaged in buying and selling of
products or goods. The business does not
change or alter the form of the product
purchased.

Merchandising
E
X
A
M
P
L
E
S
 Producer of goods or product. It is engaged in
buying raw materials and supplies for processing
into finished produce.

Manufacturing