Name: BENJAMIN G.

CORPUZ Subject: OLBPACTG01

Student No: CA202100494 Section: BSA-OL22N17

B P A C T G 0 1 - A C T I V I T Y 3

WHO ARE THE USERS OF ACCOUNTING INFORMATION?

The accounting process provides financial data for a broad range
of individuals whose objectives in studying the data vary widely.
Three primary users of accounting information were previously
identified, Internal users, External users, and Government/ IRS.
Each group uses accounting information differently, and requires
the information to be presented differently.
Internal Users
Accounting supplies managers and owners with significant
financial data that is useful for decision making. This type of
accounting in generally referred to as managerial accounting.
Some of the ways internal users employ accounting information
include the following:
Assessing how management has discharged its responsibility
for protecting and managing the company’s resources
Shaping decisions about when to borrow or invest company
resources
Shaping decisions about expansion or downsizing

External Users
Typically called financial accounting, the record of a business’
financial history for use by external entities is used for many
purposes. The external users of accounting information fall into six
groups; each has different interests in the company and wants
answers to unique questions. The groups and some of their
possible questions are:
Owners and prospective owners
Creditors and lenders
Employees and their unions
Customers
Governmental units
General public
 DEFINE PARTNERSHIP
A partnership is a formal arrangement by two or more parties to
manage and operate a business and share its profits.
There are several types of partnership arrangements. In particular,
in a partnership business, all partners share liabilities and profits
equally, while in others, partners may have limited liability. There
also is the so-called "silent partner," in which one party is not
involved in the day-to-day operations of the business.
A partnership is an arrangement between two or more people
to oversee business operations and share its profits and
liabilities.
In a general partnership company, all members share both
profits and liabilities.
Professionals like doctors and lawyers often form a limited
liability partnership.
There may be tax benefits to a partnership compared to a
corporation.

DEFINE COOPERATIVE
A financial cooperative (co-op) is a type of financial institution that
is owned and operated by its members. The goal of a financial
cooperative is to act on behalf of a unified group to offer
traditional banking services. These institutions attempt to
differentiate themselves by offering above-average services along
with competitive rates in the areas of insurance, lending, and
investment dealings.
A financial cooperative is a way to structure a financial
institution so that it is owned and operated by its members
(e.g., a credit union).
Control of the cooperative is often democratic, with each
member having one vote.
These co-ops tend to offer quality service along with
competitive rates. Unlike banks, they may be focused on the
financial wellness of their members instead of maximizing
profits.
Co-ops range in size and form and can vary based on
competition from for-profit firms as well as local regulatory
frameworks.