MGAC01H3 Study Guide - Midterm Guide: Efficient-Market Hypothesis, Human Behavior, Credit Rating Agency
Document Summary
Through an efficient use of resources, our standard of living increases. Markets, free enterprise, and competition determine whether a business will succeed. Accountants must measure company performance accurately and fairly on a timely basis. In canada, the primary exchange mechanisms for allocating resources are debt and equity. Markets (public stock markets/exchanges and private sources) as well as financial institutions (banks) Stakeholders: parties who have something at risk in the financial reporting environment, such as their salary, job, investment, or reputation. Key stakeholders: traditional users of financial information who rely directly on the financial information for resource allocation (investors, creditors) but also others who help in the efficient allocation of resources (analysts, regulators) Users: anyone who prepares, relies on, reviews, audits, or monitors financial information (investors, creditors, analysts, managers, employees, customers, suppliers, industry groups, unions, government departments and ministers, lawyers, standard setters, auditors, the public in general, and others).
