Bangladesh

Essay text:

The users are divided into two types – a) Internal Users b) External Users Role of Accounting Information Internal Users Management & Employees Mgt. needs to know current financial status, background and future prospects for - - Planning - Operating - Controlling - Evaluating and Measuring Performance External Users Shareholders, Investors, Government Bodies (both statutory and public bodies), Creditors, Suppliers, Competitors etc. They use financial statements to get their required information. Basic Financial Statements Balance Sheet, P & L Account, Cash-flow Statement (& Statement of Changes in Equity) Type of Business ? Service Business ? Merchandising (Trading) ? Manufacturing Business Organizations (Entities) Sole Trader Single owner of the business < No separate legal entity < No specific obligation to provide accounting data to others (Excluding Government) < Difficult to expand < Risky for the owner Partnership < Business owns by more than one person < No specific obligation to provide accounting data to others (Excluding Government) No separate legal entity < Risky for the owners Corporation or Limited Liability Company (LLC) < Separate legal entity Easy to generate funds < Low cost of funds < Companies must provide accounting information to others < LLC must follow a widely/generally accepted accounting standard to publish their accounts...