What does the statement "Financial Accounting: Intended for those "on the outside looking in" mean? Explain how this statement ties to ethics in accounting.
Outsider to financial accounting : The outsider to financial accounting of an organisation includes :
The use of financial accounting to the outsiders are :
Most of the outsiders are concerned about the performance of the organisation, which would keep the firm profitable and solvent. Most of the users of financial accounting tries to find the clues to the future performance.
Financial statements and ethics
The outsiders are not involved in day to day activities of an organisation so they are not aware about the actual performance of the entity in terms of performance. And the decisions about the investments and credit terms are therefore taken only after the study of financial statements of the organisation.
These financial decisions by outsiders will only be correct when the financial statements are 'true and fair'.
Therefore, it will be ethically and legally incorrect to present financial accounting information with "material misstatement " or to do "window dressing" which will lead to losses to outsiders and their trust in the organisation will be lost and they will hesitate in investing.
What does the statement "Financial Accounting: Intended for those "on the outside looking in" mean? Explain how this sta...
Accounting statements of cash flows: Looking at the accounting statement of cash flows, what does the bottom line number mean? How useful is this number for analyzing a company?
- What does the financial term ‘liquidity’ mean in the accounting sense of the term? What other financial term is typically used alongside of it? How is it defined? Caution: do not use an accounting textbook’s definition of these terms. - Discuss the two factors causing many if not most American corporations to be illiquid and possibly insolvent today?
What does the financial term ‘liquidity’ mean in the accounting sense of the term? What other financial term is typically used alongside of it? How is it defined? Caution: do not use an accounting textbook’s definition of these terms. Discuss the two factors causing many if not most American corporations to be illiquid and possibly insolvent today?
Which one of the following statement(s) are true? A. Financial accounting is geared toward outside users of information who are concerned w planning, control and how daily business decisions are made by the company. B. Management accounting is geared toward internal users who are responsible for making daily business decisions while financial accounting is geared toward outside users and must conform to Generally Accepted Accounting Principles (GAAP) rules when preparing general purpose financial statements such as the balance sheet and...
What does this statement mean Those who ordered the meal were not there when the waiter brought the check?
Looking at the accounting statement of cashflows, what does the bottom line number mean? How useful is this number for analyzing a company?
How does accrual accounting complicate the use of corporate financial statements in estimating corporate value (by investors) or managing and maximizing corporate value (by management)? 1. 2. Explain how management and investors can effectively determine a company's financial condition using financial statement ratio analysis? 3. Explain the underlying ideas behind time value of money. Explain when one would use Present Value to make a financial decision and when one would use Future Value. How does accrual accounting complicate the use...
1:How did accrual accounting improve the financial information provided by the GL and financial statements? What have accrual entries made possible in the accounting discipline? 2:A BS must balance (meaning assets=liabs+shareholder's equity) or it is not to be trusted and not relevant. The word "balance" in a BS is very meaningful. What does it mean to the user of a BS if the financial statement is not in balance? Why would a CFO, Controller or Treasurer reject any BS that...
What information does the Income Statement provide and how does it benefit? What information does the “Balance Sheet” provide and why is it useful? What information does the “Statement of Cash Flows” provide and why is it important? What information does the “Statement of Retained Earnings” provide? What financial statement, as studied, provides better information to investors? Explain. What financial statement, as studied, provides better information to creditors? Explain. Explain what each of the following classifications of financial reasons consist...
simple answers are fine! What is the difference between managerial and financial accounting? 2. What are the three types of business organizations? What does the term limited liability mean? What is a Benefit (B) Corporation? 5. What is the general purpose of financial statements? What are the four types of financial statements? 6. What is the purpose of an income statement? a balance sheet? How do they interrelate? Define the terms "revenue" and "expense" What is net income? What information...