1) Accounting provide important data to external users through....

2.It is difficult to visualize a business entity without external users because...

3.Who are the internal users of accounting information?

4.How does accounting information help internal users arrive at certain business decisions?

5.Managers are interested in accounting financial informatuon because.....

6.Owners need accountung information because.....

1. Accounting provide important data to external users through financial statements. These external users are the investors, vendors, suppliers  government agencies and the like. Investors are the common external users of financial data of the company, both credit and equity investors. They make  and assess their investment decisions by using relevant financial information .Vendors rely on financial data to sustain their relationship of the business, they want to know if the business is still credible to pay its debt etc. With regards to government agencies, including regulatory bodies and taxing authority, also use financial statements to monitor the financial conditions of the companies they have jurisdictions over.

2.It is difficult to visualize a business entity without external users because businesses exist due to this external users. Once business commenced, external users of their information are already part  of it like government agencies and other regulatory bodies and taxing authority. Businesses operations involve external users in trading or external exchange of goods or services and financing activities. In accounting, going-concern principle in business entity is considered because of the presence of external users. It is like a chain, one thing cannot go to the other without the help of the other.

3. Who are the internal users of accounting information?

Internal users of accounting information include all individuals within the company who utilize financial information in making decisions for the business. Internal users include all levels of management.

Top level managers: includes executive officers such as CEO, CFO, COO, etc. They are in charge of the overall plans and policies of the organization. Officers are elected from the board of directors to run and oversee the company. Officers represent the board of directors and ultimately, all investors (stockholders) of the business.
Middle level managers: departmental heads, branch managers, junior executives. They are in charge of executing the plans of the top management and oversee the performance of the division or department they are handling.
Lower level managers: supervisors and foremen. They are the first-line managers who supervise the day-to-day operations of the business and directs workers and employees.
In small businesses, especially in sole proprietorships and small partnerships, the owner/s participate in the operations of the business. These owners are considered as internal users since they have the role of managing the business.

4.How does accounting information help internal users arrive at certain business decisions?

Accounting information help internal users like all the level management.  For top management, they need information about the company's past performance to be able to make decisions about the future of the company. They need information to evaluate the result of their past decisions. The financial statements will show the company's performance and financial position and will guide them in coming up with decisions for the future. In the perspective of middle management, they  need accounting information in managing their department, division, or branch. For example, a branch manager may find that his branch has been on constant losses for the past months. Accounting is able to provide the facts and figures to determine the cause of such losses and ultimately, find a solution for them. The branch could decide on cutting down certain expenses, increasing selling prices, or whatever would be best based on given information.

And for lower management who oversee the day-to-day operations of the business. They make daily decisions. How many should the factory produce for the day? How many raw materials will be needed for the next day? Do we have enough inventory? These are some of the decisions that require accounting information.

5. Managers are interested in accounting financial information because as I explained on the previous question, they are in need of financial or accounting information in order to monitor and control the overall financial health of the business. They also seeks for a regular reporting period in order to assess critical financial activities as well as significant deviations from financial plan. They are basing their decision making from the analysis and performance of the company thru financial data. They can also create a budget or estimates with the help of the current or actual accounting information. For that reason, managers are knowledgeable enough to handle financial problems and confidently come up with a solution.

6. Owners need accounting information because the want to know and analyze the viability and profitability of their investments. Accounting information enables them to assess the ability of the business to acquires assets, to expand in the near future and also, it leads them to determine any courses of action in the future. In other side, owners need this accounting information in order to evaluate the performance of the business for a given period. To assess the over-all financial health, through this, the owners can identify what might be the business needs, and how it is need to be done to be profitable in the long run as well all know, profit the main purpose why business exist.  Accounting information helps owners in assessing the level of stability in business over the years and to what extent have changes in economic factors affected the bottom line of the business.

Step-by-step explanation

External users do not participate in the operations of the company. They do not make decisions for the business, however, they are interested in the company's financial information for some other purposes. External users include: banks and financial institutions, suppliers, customers, tax authorities and other government institutions, investors, and the general public.

Internal users refer to the members of a company's management and other individuals who use financial information in running and managing the business. They work within the company and make decisions for the business.

Management relies on accounting information for decision-making. For example, decisions to invest in a new product, or building a new production facility, or shutting down a product line, are all preceded by careful financial analysis that is grounded in accounting information. Without reliable accounting data, management cannot accurately estimate the relevant cost and benefit of business decisions.

Management requires accounting information to monitor the performance of business by comparison against past performance, competitor analysis, key performance indicators and industry benchmarks.

Accounting  information helps owners to decide if they should invest any further in the business or if they should use their financial resources elsewhere in more promising business ventures.

Source:

https://www.accountingverse.com/dictionary/i/internal-users.html

https://accountingo.org/financial/introduction/why-do-managers-and-employees-need-accounting/#:~:text=Managers%20need%20up%20to%20date%20accounting%20information%20to,as%20any%20significant%20deviations%20from%20the%20financial%20plan.