Users of Accounting Information
External users
- lenders
- Creditors
- Shareholders
- Governments
- External auditors
- Customer
Internal user
- owner
- Managers
- General managers
- Controllers
- Internal auditors
- Sales staff
- Supervisors
Objectivity principle
There has to be Proof of transaction
Time period principle
Augments a business can be swapped or divided into equal time periods
These times periods are known as accounting periods (income statement)
Financial statements are created based on time periods
How long is an accounting period
● Weekly, monthly, quart key, six months, a year
● A fiscal tear = 12 month consecutive months (does not need to begin in January)
Why is the time period principle important?
External users
- lenders
- Creditors
- Shareholders
- Governments
- External auditors
- Customer
Internal user
- owner
- Managers
- General managers
- Controllers
- Internal auditors
- Sales staff
- Supervisors
Objectivity principle
There has to be Proof of transaction
Time period principle
Augments a business can be swapped or divided into equal time periods
These times periods are known as accounting periods (income statement)
Financial statements are created based on time periods
How long is an accounting period
● Weekly, monthly, quart key, six months, a year
● A fiscal tear = 12 month consecutive months (does not need to begin in January)
Why is the time period principle important?
