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To keep Accountants away from normal people. it's not useful at all.
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Why are ethics crucial to accounting?
Accounting aims to provide useful information for decision-making. For information to be useful, it must be trusted. Trustworthiness of information demands ethics in accounting.
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
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.
Explain the concept of social responsibility accounting?
social responsibility accounting is concern with modern approach of accounting which include to make accounting information useful to the society
A planned proces for providing financial information that will be useful to management?
accounting system
How are cost accounting and financial accounting similar?
Simple answer: They both provide useful information to users. Thus is the true goal of accounting. Cost accounting users= managers Financial accounting user= shareholders
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.
Does managerial accounting provide useful information to managers om product costs?
True
Why do auditors need accounting information?
Auditors need accounting information because their job is to compile the information and make sure it is accurate. Auditors make sure the numbers add up which is extremely useful information to know.
How computer useful in accounting?
The computer can help do mathematical equations, store infinite information, and gather information that you may not know.
Managerial accounting is directed at gathering useful information about costs for planning and control decisions?
True
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.
