F U N A C C O
CHAPTER 1

DEFINITION AND NATURE OF ACCOUNTING
Accounting – its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions.
Stakeholders – all parties who have interest in an entity, whether indirect or direct.

Stakeholders are grouped into two, namely: * External Users – groups or individuals who are not directly concerned with the day-to-day operations of the entity. * They make decisions that affect their relationship to the entity. * Internal Users – management personnel in all levels within an entity who are responsible for the planning and control of the operations and therefore, they have access to the day-to-day operations of the entity. Some of the users of financial information: * Investors – concerned with the risk inherit in, and return provided by, their investments. - need information to help them determine whether they should make additional, hold or sell their investments. * Lenders – interested in information that enable them to determine whether their loans, and the interest attaching to them, will be paid when due. * Suppliers and other Trade Creditors – interested in information that enable them to determine whether amount owing to them will be paid when due. * Employees – interested in the information about the stability and profitability of their employers. - interested in the information that will enable them to assess the ability of their employers to provide remuneration, retirement benefits and employment opportunities. * Customers – interested in the information about the continuance of an entity, especially when they have a long-term involvement with, or are dependent on, the entity. * Governments