ACC 100 Study Guide - Comprehensive Final Exam Guide - Accident Compensation Corporation, Retained Earnings, Financial Statement
20 Nov 2018
School
Department
Course
Professor
Document Summary
Purchasing after the secondary sector (bank, airlines, stores, hair salon) A stakeholder is someone affected by how the company does. Internal (work for company), external (outside company) Need to know financial information in order to make decisions about what they want to do. Depend on financial statements that the company provides to help make their decision. Faithful- truthful, meaning it is complete, free of error, and neutral (unbiased). Comparable- company to company or same company different time periods. Verifiable- anyone who looks at the information will see the same thing. Timely- information is provided quickly (as old information is less useful). Understandable- understandable so that they cannot hide how bad they are doing. If i(cid:374)fo(cid:396)(cid:373)atio(cid:374) does(cid:374)"t ha(cid:448)e these (cid:395)ualitati(cid:448)e (cid:272)ha(cid:396)a(cid:272)te(cid:396)isti(cid:272)s the(cid:374) it (cid:373)ay (cid:271)e (cid:373)isleadi(cid:374)g the stakeholders causing them to make the wrong decisions. Separate entity- information is separated between personal/work 1/work 2. Helps you predict the future and/or confirm decisions you made in the past.
