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Two primary qualities that make accounting information useful for decision making are?
Wiki User
∙ 9y ago
One quality that makes accounting good for decision making is the fact that it is reliable. Another reason accounting is good for decision making is the fact that the numbers have to be consistent, so it is easy to interpret.
Wiki User
∙ 9y ago
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What is the primary purpose of financial accounting?
Accounting is a system of maintaining records of a companies operations and communicating that information to decision makers.
Who are the primary users of financial accounting information?
creditors
Who are the primary users of management accounting information?
Management
What are the primary objectives of the accounting function in an organization?
The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period.
Is it true that primary users of accounting information are accountants?
It depends whether or not you differentiate between 'users' and 'preparers' of accounting information.Normally accountants are the preparers of accounting information. The users are people that use the information (for investment decisions, evaluating management effort). The main group of users of accounting information for listed companies are investors.Stating that accountants are the primary users of accounting information is similar to stating that bakers eat most of their bread.
What is the primary purpose of financial accounting?
Accounting is a system of maintaining records of a companies operations and communicating that information to decision makers.
Who are the primary users of financial accounting information?
creditors
Who are the primary users of management accounting information?
Management
What are the primary objectives of the accounting function in an organization?
The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period.
Is it true that primary users of accounting information are accountants?
It depends whether or not you differentiate between 'users' and 'preparers' of accounting information.Normally accountants are the preparers of accounting information. The users are people that use the information (for investment decisions, evaluating management effort). The main group of users of accounting information for listed companies are investors.Stating that accountants are the primary users of accounting information is similar to stating that bakers eat most of their bread.
The primary internal users of accounting information are?
what is marketing? and what is basic factions?
What is the purpose of producing accounting information?
The primary purpose of accounting information is to provide useful information to help people make decisions.Stakeholders of a company are interested in the financial performance of that company, and therefore require accounting information in order to assess the company's well-being.In order for accounting information to be useful, it must be:UnderstandableRelevant/TimelyReliable/VerifiableComparable
What are the two primary organizations in the US that are responsible for setting standards related to the preparation of accounting information?
Financial Accounting Standards Board (FASB) and Public Company Accounting Oversight Board (PCAOB)
What are the qualities of a good cost account information?
Financial Statements - Accounting Qualities1) Primary qualities of useful accounting information:- 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. The following key SEC filings must be reported:• S-1: Filed prior to sale of new securities• 10-K: Annual filing similar to annual report; 40-F for Canadians; 20-F for other foreign issuers• 10-Q: Quarterly unaudited statements• 8-k: Disclose material events such as asset acquisition and disposition, changes in management or corporate governance• DEF-14: Proxy statement• 144: Issue of unregistered securities• Beneficial and insider ownership of securities by company's officers and directors
What is the Saint Louis University's accounting office vision-mission?
"Accounting is the language of business decision-making and is a primary means of communicating in organizations. As organizations become more complex, accountants constantly improve the processing, reporting and interpreting of information about organizational activities. Accounting is a career that involves people, with accountants interacting with others in decision-making and problem-solving." -http://www.slu.edu/x12828.xml That is from there website and you can read more if you go to the link above. Nick
What is the primary accounting setting body in the US?
The FASBis the primary accounting setting body in the US
Who is primary user of management accounting information are?
Management and directors will use them to determine how well the company is doing and where to go from there.
