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Where is the information needed to determine whether a company is using accounting methods similar to those of its competitors?
auditor's report
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.
Why do investors need accounting information?
Investors need the accounting information to see that how company is performing to decide whether to invest or not in company.
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
Why debtors need accounting information?
Debtors need accounting information to assess the financial health and creditworthiness of a business before extending credit or making lending decisions. This information helps them understand the company's ability to meet its obligations, manage cash flow, and sustain operations. Additionally, detailed accounting records provide insights into revenue trends, expenses, and profitability, which are crucial for evaluating the risk associated with lending. Accurate accounting information ultimately fosters trust and transparency in debtor-creditor relationships.
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.
Where is the information needed to determine whether a company is using accounting methods similar to those of its competitors?
auditor's report
Why do investors need accounting information?
Investors need the accounting information to see that how company is performing to decide whether to invest or not in company.
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
Can you explain what liabilities mean in terms of financial accounting?
Liabilities in financial accounting refer to the obligations or debts that a company owes to external parties. These can include loans, accounts payable, and other financial obligations that the company is required to fulfill. Liabilities are recorded on the balance sheet and represent the company's financial responsibilities that must be settled in the future.
What is the meaning of external party that interested in accounting information?
When an external party is interested in accounting information they could be interested in investing in the company. They want to make sure that the company is financially secure.
important of accounting information to shareholders?
Financial statements are important to investors because they can provide enormous information about a company's revenue, expenses, profitability, debt load, and the ability to meet its short-term and long-term financial obligations. There are three major financial statements.
What are the 3 factors that determine a company's price-earnings ratio?
the accounting method used
Define management accounting system?
The definition of management accounting system is a system that was designed for a company that provides the information that is necessary for the company to make projections and decisions. It provides accurate and current information.
Briefly describe concept of accounting information system?
Generally accounting information systems are a computer-based system of tracking financial activity in a company, and presenting that transactions in a organized financial statement. Currently, accounting software can be purchased off the shelf, which is much cheaper than when it had to developed by the company.
What are the major objectives of a cost accounting system in a manufacturing company?
A) To determine unit manufacturing costs and B) to provide managers with useful information for planning and cost control functions
List three groups that use accounting information and briefly explain why each has an interest in this information?
how to explain an accounting system used for our company to auditor
