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Showing posts with the label Accounting Is A Means And Not An End

Is Accounting A Means And Not An End? Explain

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Accounting Is A Means Rather Than An End Accounting is the means rather than an end as it provides a way in the form of accounting information to the Users of Financial Statements such as managers, investors, employers, employees, suppliers, customers, etc so that the interested parties make a decision based on accounting information in order to choose the best decision for the possible opportunity. For example, a sales manager analyzed profitability ratio in order to make sales strategies to increase sales for future 3 years. Investors are interested in the liquidity ratio of the business in order to make decision whether to invest in the company or not. Internal management are interested in managing and planning of accounting information and cost information i.e. which staff is the best for the financial performance of the business and which workers are well efficient in producing quality products at the best optimum cost. So, we can say that accounting is a means and