THE KEY ACCOUNTING INFORMATION

FOR AN INVESTOR IS THEREFORE:

 Information about growth – sales, volumes
 human behavior growth through virtue information
 same with investor needs information if they need to develop or maintain
their investment.
 Profitability (profit margins, overall level of profit)
 Investment (amounts invested, assets owned)
 Business value (share price)
 Comparative information of competitors
 I’M SCRAMBLED! MOVE
QUICKLY
By pair, arrange the jumbled letters to form word/s related to users of accounting
information. Put those terms in their respective group of users and answer the questions
that follow.

1. PUPLISER – 6. TESMOCRUS –
2. BUILPC – 7. AXT TIROAHISTUE –
3. GAMESARN – 8. LEMEEYPOS –
4. TOTNPALEAI VOSSINTRE – 9. GROTEARLUY IBSODE –
5. WEOSRN – 10. DROTICSER –
 INTERNAL USERS EXTERNAL USERS

Questions
1. Who are the internal users and external users of accounting information?
2. What is your basis in determining where the given users belong?
3. Why do you think these users need accounting information?
 Activity: INTERNAL VS. EXTERNAL USERS
Identify if the user of financial statement mentioned below are external or internal.

_______________1. Customers
_______________2. Bureau of Internal Revenue
_______________3. Labor Unions
_______________4. Factory Manager
_______________5. Vice-president of Finance
_______________6. Securities and Exchange Commission
_______________7. Investors
_______________8. Suppliers
_______________9. Factory workers
_______________10. Bank
 EMPLOYEES WILL, THEREFORE
LOOK FOR INFORMATION ON:
 Revenue and Profit growth
 How do we compute a profit or Revenue to give us better information as Employees? Assumed that
the company sales amounted to P1.5 M, but according to matching principle of accounting
counterpart of sales are expenses. Expenses of company amounted to P 800K. What is the Profit?
 Read First then compute

 Levels of investment in the Business

 Overall employment data (numbers employed, wage and salary costs)
 Status and valuation of company pension schemes /levels of company
pension contributions.