'Accounting information in the form of financial statements is like their report card and they are interested in information about both profits and financial position.'

Which of the following user need is highlighted in the above statement?

Manager

The correct answer is option 3- Manager.

Manger are the internal user. They essentially act as the agent of owners (their employers). Accounting information in the form of financial statements is like their report card and they are interested in information about both profits and financial position.

OTHER OPTIONS-

* Prospective owners- He is interested in information about past profits and financial position as indicative of likely future performance

* Current owners- They likes to know extent of profit in the last accounting period, current position of the assets/liabilities of the business.

* Bank- Bank is interested in adequacy of profits only as an assurance of the return of principal and interest back in time. Bank is equally concerned about the form in which the assets are held by the business.