Explain your voting choice using the concepts from the book and video
I need Initial Post and Two replies on the other students post. I already attached the other students posts in word file. I need strictly No Plagiarism, and i need Plagiarism report too otherwise i won’t accept it. I need in 5 hours
Instruction:Now that you have voted on the use of accounting information to external decision makers, describe the use of accounting information to internal decision makers as well as how it differs from the information that external decision makers need.
Explain your voting choice using the concepts from the book and video. Provide an argument justifying your voting choice utilizing at least two pieces of evidence or concepts from the video and/or book.
What are at least three questions that business owners might be able to answer by looking at accounting information? What type of accounting information is useful to external decision makers? Why?
Reply 1
I can justify my decision based on the book directly. Especially when the Author say’s ” Regardless of whether they are external or internal to the company, all decision makers need information to male the best choices” (p.3) This is very important especially when you have someone that is interested in being a funding source for your business. If you provide them with an honest vision, and bottom line, the decision makers must make a decision that is comfortable for them,and best for them in the long run.
As is further stated through our required reading that, this field of accounting has a direct focus on make sure factual information is given to external decision makers. Usually, when decision makers are from the outside, they are a bit more critical,and can usually see flaws in a plan, before you ever can.
For sure, there are 3 maybe even 4 questions, that may be answered, and they are:
Should I invest in the business? Through this business the interested party, has actually done a SWOT analysis and immediately saw what the strengths and weaknesses were.
Is the business prosperous? No one likes to waste their time, and this is intensified as it relates to possible investors, they will not take part in a business that struggling, and that has no revenue stream, no plan in place, they for sure are a liability.
Lastly, a question that I know they would ask would be is can the business pay them back? Thios is a valid concern, because if money is loaned out, there has to be a guarantee that the funds can be paid back, based on the time frame and the terms that were agreed to.
Miller-Nobles, T. L., Mattison, B. L., & Matsumura, E. M. (2016). Horngren’s Accounting (11 ed.). Pearson Education.
I have chosen financial account for the external decision makers. As our book states “financial account provides information for external decision makers such as outside investors, lenders, customers, and the federal government (Miller-Nobles, Mattison, & Matsumura, 2016).” The managerial accounting concentrates more on the data for internal decision makers, for example the managers and employees. The difference in information that these two types of accounting is the different questions that are asked (Miller-Nobles, Mattison, & Matsumura, 2016). The financial accounting for people outside the company either looking to invest in the company or lend to the company. The managerial accounting is the owners or managers of the company trying to make the best financial decisions for the company (Miller-Nobles, Mattison, & Matsumura, 2016). External decision makers need to know if the business if profitable. If it is not, they are most like not going to invest in the company. For lenders, they need to know if the company will be able to pay them back if they were to lend money to them (Miller-Nobles, Mattison, & Matsumura, 2016). On the side of things, the business owners would be the internal decision makers. Some questions that they would ask would be how much money should the business budget for production, should the business expand to a new location, and how do the actual cost compare to the budgeted cost (Miller-Nobles, Mattison, & Matsumura, 2016).
Miller-Nobles, T. L., Mattison, B. L., & Matsumura, E. M. (2016). Horngren’s Accounting (11 ed.). Pearson Education.