0
predictive and feedback and timing
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
In order to be relevant accounting information must be?
Timely and accurate.
Characteristics of accounting?
Accounting provides businesses with useful and relevant information. The more accurate the information, the more the business can base business decisions on the information.
Two common areas of accounting that respectively provide information to internal and external users are?
Internal users with information are managerial accounting is to provide relevant and timely information for managers' and employees' decision-making needs. (private accounting) External users of accounting information include customers, creditors, and the government. These users are not directly involved in managing and operating the business are call financial accounting. Their job is to provide relevant and timely information for decision-making needs of users outside of the business. 1. managerial accounting and financial accounting
Why is managerial accounting relevant to accounting majors and their future careers?
Managerial accounting mostly concerns the use of accounting information to business managers so they can make better informed financial decisions about the company. This is relevant to all accounting majors and their future careers, because even if they do not intend to enter a management position, they need to know how to relay this information to various management positions.
What is the role of accounting in the information age?
Accounting has a great value in information age. It is a system that identifies, records and deliver financial information that is relevant, reliable and comparable in order to help users to make better and accurate decisions.
Describe the components and interrelationships of different categories of accounting?
The main categories of accounting include financial accounting, management accounting, and cost accounting. Financial accounting focuses on recording and reporting financial information for external users. Management accounting provides financial information to internal decision-makers and helps in budgeting, planning, and decision-making processes. Cost accounting analyzes the cost of manufacturing a product or providing a service. These categories are interrelated as the information produced in financial accounting is used by management accounting for decision-making, and cost accounting employs the techniques and information provided by both financial and management accounting.
Objectives of Financial Reporting?
-Relevance - Accounting information is relevant if it is capable of making a difference in a decision.Relevant information has:(a) Predictive value(b) Feedback value(c) Timeliness- Reliability - Accounting information is reliable to the extent that users can depend on it to represent the economic conditions or events that it purports to represent.Reliable information has:(a) Verifiability(b) Representational faithfulness(c) Neutrality2) Secondary qualities of useful accounting information:Comparability - Accounting information that has been measured and reported in a similar manner for different enterprises is considered comparable.Consistency - Accounting information is consistent when an entity applies the same accounting treatment to similar accountable events from period to period.Accounting Qualities and Useful Information for AnalystsHere is how these qualities provide analysts with useful information:Relevance- Relevant information is crucial in making the correct investment decision.Reliability - If the information is not reliable, then no investor can rely on it to make an investment decision.Comparability - Comparability is a pervasive problem in financial analysis even though there have been great strides made over the years to bridge the gap.Consistency - Accounting changes hinder the comparison of operation results between periods as the accounting used to measure those results differ.
What did you mean accouting?
Accounting is basically a service based profession that provides reliable and relevant financial information useful in making decisions.
Is depreciation a relevant cost?
Relevant to what? Depreciation is an accounting contrivance to diminish taxable income.
What is the relation of accounting and record keeping?
When referring to accounting it is an information and measurement system that identifies Records and communicates relevant, reliable, and comparable information about the businesses activities and recordkeeping pr bookkeeping is recording the specific transactions and events in chronological order electronically or manually the relation is is that this is part of the accounting process of analysis and interpretation
What is the criteria for effective accounting system?
In order for an accounting system to be considered effective it must meet 3 criteria. It must provide accurate information, have useful information, and be presented in a timely manner.
The accounting principle that requires financial statements to report all relevant information about the operations and financial condition of a company is called?
Full Disclosure Principle
