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What group of people are more interested in the earnings per share information managers or investors?
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Importance of accounting information to government?
shareholders,creditors,suppliers,managers,investors,public and customers need accounting information for?
User of accounting information?
these are daily or day to day people dealing with accounting information these includes -the managers -prospective buyer -investors -Business Owners etc.
Is it true that the sole purpose of accounting is to help managers evaluate the financial condition of the firm so that they may make better decisions?
No. Accounting information is used by managers to make decisions and plans; but it is also commonly used by investors to make investment decisions and creditors (such as banks) to make lending decisions.
What is the purpose of an income statement?
To show managers and investors whether the company made or lost money during the period being reported
Why do you think oil company managers express severe reservations about RRA?
low reliability frequent changes in estimates investors may ignore legal liability
Importance of accounting information to government?
shareholders,creditors,suppliers,managers,investors,public and customers need accounting information for?
Why managers wants to manage earnings?
Managers smooth earnings in an attempt to just reach wall street expectations. If they soar beyond expectations the managers are only raising the bar that much higher for themselves in the next fiscal quarter/year. In addition, a company that can show constant steady earnings is going to increase shareholder value in that investors will see the corporation as a safe choice. It also looks smarter on the companies behalf if they are able to maintain constant success.
Who has access to a global marketplace and its benefits?
Access to a global marketplace benefits managers, consumers and investors. For investors, the business will make more money, so they will see greater returns. Nations interested in improving their economies participate in in the global markets.
Why do business managers prefer stable earnings trends?
Reduces the likelyhood of reporting low earnings
User of accounting information?
these are daily or day to day people dealing with accounting information these includes -the managers -prospective buyer -investors -Business Owners etc.
Why are managers interested in manpower planning?
Managers interested in manpower planning so that they know who will be available to be allocated to which tasks at what time.
Why is earning profit considered as only one of the objectives of business?
Managers have a duty to their investors to make money. When they fail at this, they could be sued by their investors.
What are some of the pitfalls of a company basing a managers or CEOs compensation on the companys earnings?
The biggest pitfall is the temptation to fraudulently inflate earnings in order to 'earn' more compensation. Another is that it encourages managers to focus on short-term profits rather than long-term growth
Investors and financial analysts wanting to evaluate the operating efficiency of a firm's managers would probably look primarily at the firm's?
Investors and financial analysts wanting to evaluate the operating efficiency of a firm's managers would probably look primarily at the firm's Asset Utilization Ratios.
What are the importance of processing?
Data processing helps information work through the organization. If data isn't processed, then managers wouldn't know what their customers were interested in for products and service.
Is it true that the sole purpose of accounting is to help managers evaluate the financial condition of the firm so that they may make better decisions?
No. Accounting information is used by managers to make decisions and plans; but it is also commonly used by investors to make investment decisions and creditors (such as banks) to make lending decisions.
What has the author Richard E Cornwell written?
Richard E. Cornwell has written: 'The miniwarehouse, a guide for investors and managers'
