What Is Accounting and who uses Accounting Information

Accounting: is a comprehensive system for collecting, analyzing, and communicating financial information to a firm's owners and employees, to the public, and to various regulatory agencies. 

bookkeeping: recording of accounting transaction. 

Users of accounting information are numerous: 

1. Business managers: use it to develop goals and plans, set budgets, and evaluate future prospects. 

2. Employees and unions: use it to plan for and receive compensation and such benefits as health care, vacation time, and retirement pay.

3. Investors and creditors: use it to estimate returns to stockholders, determine growth prospects, and deside whether a firm is a good credit risk.