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The word Accounting and Accountancy are usually used interchangeably by the students and general
public but there is a quite significant difference between these two terms. Accounting refers to the work
done by an accountant on the other hand the word accountancy is used for the profession of accountants.
Generally user of accounts are classify into two categories (a) internal management and (b) Outsiders
External users of accounting information are of seven categories.
(1) Investors : They provides risk capital to the business. They need information to assess whether
to buy, hold or sell their investment
(2) Employees: Employees are interested to know the stability, continuity, growth and the ability of
the business to pay remuneration and retirement benefits.
(3) Lenders : They are interested to know whether their loan – principle and interest will be paid
when due
(4) Suppliers : They are also interested to know the ability of the enterprise to pay their dues.
(5) Customers: Customers are also concern with the stability and profitability of the business their
functioning is also depend on suppliers business.
(6) Government: They regulate the functioning of business enterprises for public interest. For
transaction and other purposes they need accounting information.
(7) Public : The General public at large is also interested in accounting information for
employment and supply purposes etc.