To provide information about:

• Financial position – what is owned and owed
• Performance – what was earned and spent
• To make decisions that impact the future of the business

Information must be USEFUL to users to make economic decisions

Question: What types of information do you think would be useful to other people in a company, outside of accounting department?

Answer: Typical items:

• How much money the company has spent – to figure out if you are on budget
• How many sales you have made – to figure out if you are on budget
• -What profits are – to determine if the company is making money