33:010:272 Study Guide - Spring 2019, Comprehensive Final Exam Notes - Trial Balance, Time, The Ledger
30 Mar 2019
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What price should company charge to maximize net. Net income is representation of how profitable a company was in a given year. Accounting consists of three basic activities (in regards to economic events of an organization) Can company afford to give employees raises. Which product is the most profitable and which product should be eliminated. How does one company compare in size and profitability to another. Will company be able to pay its debts. Recent financial scandals include enron, worldcom, healthsouth, Regulators and lawmakers concerned that economy would suffer if investors lost confidence in corporate accounting. Dictates that companies record assets at their cost. Written by financial accounting standards board (fasb), States that assets and liabilities should be reported at fair value (the price received to sell an asset or settle a liability) Selection of which principle to follow generally relates to trade-offs between relevance and faithful representation.
