ACTG 2P31 Study Guide - Midterm Guide: Trial Balance, Income Statement, Disclose
4 Apr 2016
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Document Summary
Preparaion of inancial reports that cover all of the enterprise"s business aciviies and are used by both internal and external paries. Process of idenifying, measuring, analyzing, and communicaing inancial info to internal decision makers. Anyone who prepares, relies on, reviews, audits, or monitors inancial informaion. Access to capital markets and meeing inancial analyst expectaions. Exists when one stakeholder has more or diferent informaion than another. Adverse selecion: info about type of player is unknown. Moral hazard: info about eforts/choices of players is unknown. Due process: system that allows interested persons to have opportunity to express their views. Challenges: oversight in capital market, ethics, poliical environment, principle vs rules, technology. Stakeholders lobby standard seters to promote own interests. Coherent system of objecives and fundamentals that can lead to consistent standards and f/s. Communicate info that is useful to investors, creditors, and other users. Make decisions about how to allocate resources. Expenses: decrease in net assets due to revenue earning aciviies.
