ACCT20100 Chapter Notes - Chapter 2: Dont, Issued Shares, Accounts Payable
Document Summary
Chapter 2: investing and financing decision and the balance sheet. Relevancy: predictive value, feedback value, and timeliness can influence a decision. Capable of influencing decisions by allowing users to assess. Information should also be faithful, which means that it should be complete, neutral, and free from error. Reliability: verifiability, representational, faithfulness, and neutrality hire bigger firms to assess our finance and determine reliability: secondary characteristics of accounting information: Comparability: across companies different because every company is different. Consistency: over time how similar statements are compared to last year. Historical cost: cash equivalent value on the date of the transaction is the basis for the initial recording recording of elements does not account for the opinions or how much someone thinks an asset is currently worth. The conceptual framework: materiality: account for small amounts in the most cost effective way, even if not technically correct don"t sweat it.
