How is accounting information useful for …

(i) Creditors: for determining the credit worthiness of the organization. 

(ii) Tax Authourities: for determining the credibility of the tax returns filed on behalf of the company.

(iii) Investors: for analyzing the feasibility of investing in the company. Investors want to make sure they can earn a reasonable return on their investment before they commit any financial resources to the company.

(iv) Customers: for knowing the financial position of its suppliers which is necessary for them to maintain a stable source of supply in the long term.

(v) Regulatory Authorities: for ensuring that the company's disclosure of accounting information is in accordance with the rules and regulations set in order to protect the interests of the stakeholders who rely on such information in forming their decisions.