How is Accounting information useful
–A prospective buyer: Most buyers don’t care about the financial information of its suppliers.
Industrial buyers however need accounting information about its suppliers in order to assess whether they have the required resources that are necessary for a steady supply of goods or services in the future. Continuity in supply of quality inputs is essential for any business.
–A prospective Investor: Investors: Investors use accounting information to determine whether an investment is a good fit for their portfolio and whether they should hold, increase or decrease their investment.