Page 7 - MAZOO EBOOK 1_Neat

Once this financial information has been stored in the accounting records, it is usually compiled

into financial statements, which include the following documents:

 Income statement

 Balance sheet

 Statement of cash flows

 Statement of retained earnings

 Disclosures that accompany the financial statements .

Objectives of accounting

The following are the main objectives of accounting:-

 To keep Systematic Records

 To Protect Business Properties

 Ascertain Profit

 Ascertain the Financial Position

 Facilitate Decision Making

 Information System .

Users of accounting information and their respective needs

The followings are the Users of accounting information and their respective needs:-

Owners - These are the investors in the business. Examples of owners include sole traders in

single owned entities, partners in partnerships and shareholders in companies. Their main need

to have on time accounting information regarding the organization is in order to keep track of

the financial performance, economic position and changes in financial position of their

organization.

6