Types of Accounting Information

Accounting information is the base all important decisions which are taken by owners, management, potential investors, creditors, lenders, employees, government , researchers and public. They are the interested parties in accounting information. Different people need different accounting information. So, it is necessary to classify the accounting information in different types.

Following are the main types of accounting information which are generated from accounting records for providing the benefits to interested parties.

1. Accounting Information of Financial Performance and Financial Position 

This is the main type and common accounting information. Every user need the information of net profit or net loss of company. At the end of year, what is amount of net profit or net loss of company. If net profit's value is very high, every user will take benefit from this data. Employees can demand more salary. Shareholders may demand more dividend. Investors can invest their money in the company because it is the good chance that they will receive more return on their investment. For getting this information, it is necessary business has to make the profit and loss account. This accounting information is also called the information of financial performance. Next common information is financial position. We can find the financial position by seeing the balance sheet. Balance sheet's understanding is helpful for telling whether financial position is strong or weak. Financial Accounting provides such accounting information.

2. Accounting Information of Total Cost and Per Unit Cost 

Second type of accounting information is of value of total cost and per unit  cost. If you have to sell your product in the market, you need to know what is your total cost and per unit cost. All cost accounting records will be helpful for providing such accounting information. When businessman gets this information, it will be very easy for him for fixing his estimated sale price by adding profit margin in it. For example, My Cost of per unit is $  100 as per my cost account records. Now, I want to get 50% profit on my sale. So, I use following simple formula

Profit = Cost X Profit / ( 100 - Profit) = 100 X 50/ (100-50) = 100

Sale Price = Cost + Profit = 100 +100 = $ 200

3. Accounting Information for  Planning and Control of Business

There are lots of accounting information which are need for planning and control over the business. Such information is added in the third type. For example, we are interested to paying fastly to our creditor. For this planning, we have to check creditor turnover ratio and average conversion period. Like this, there are lots of ratios which are helpful for different planning. Through budget, we get different accounting information for controlling the business. Cash flow statement is provide the information of source and application of cash. Such information is helpful to control of cash which is used in operation activities, investing activities and financial activities. All these accounting information, we can get from management accounting.

4. Accounting Information for Tax Management 

This is the important type of accounting information. In this type, we collected information which are only need for tax management. For example, for calculating income tax on the profit, we need profit before tax and dividend distribution. For VAT Input, we need information of purchase of different products which are bought in day from one party. For VAT Output, we need the information of sale of different product which are sold in a day to one party. For getting this accounting information, it is very need to study tax accounting of business.

5. Accounting Information for Social Responsibility 

Through social accounting, we collect the accounting information for social responsibility. In big corporate, a social account is made which provide the information of benefits to society and cost of natural resources which are taken by corporate. Future benefits like product safety, financial support to manpower, customer satisfaction and pollution control can be given on these accounting information. 



access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
Accounting Education: Types of Accounting Information
Types of Accounting Information
Accounting Education
Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock