Читать книгу Financial Accounting For Dummies - Maire Loughran - Страница 59

Your financial accounting course goes into great detail about classification, interpretation and decision-making. Classification deals with how to properly enter an accounting transaction. Interpretation addresses the assumptions that can be made by viewing that accounting transaction. Decision-making flows from the classification and interpretation.

This chapter discusses how this information is relevant to the internal user of the financial statements, particularly management and owners. It supports the decision to change vendors, add product lines, increase advertising and a myriad number of other forward and backwards actions. The object is usually to increase or maintain steady profits.

If you are hungry for more information about internal users, check out Chapter 6. The flip side of this coin are the external users of the financial statements, a topic covered in Chapter 2. In a nutshell, external users are those not privy to the day-to-day operations of the business.