ACCT 453 Lecture Notes - Lecture 1: Going Concern, Accounting, Historical Cost
16 Oct 2016
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Document Summary
Secondary- taking of raw material and turn it in to something else (hershey) Tertiary- services, selling end product (taxi driver, medical researcher, lawn care company, Internal stakeholders- information that is required to work. External stakeholders- information that is out to the public. If a private company you still should release information to public so you can get a loan, even though you are not required. External stakeholders need more information than just the financials. Quantitative: faithful- honest, free of error, free of bias, that it is true, honest. Relevant/material- the people must know the relevant information. Comparable- that data must be comparable year-to-year, consistency, must be able to compare across industries (not for profit have different rules) Verifiable- prove what you have is correct because you have third party resources to verify the information. Timely- have information on time so you can make decisions. Understandable- use terminology that is suitable for the audience.
