Category Archive for: Accounting Information for Deacision Making

The Concept of Materiality

Another generally accepted accounting principle also plays a major role in the making_entries-the concept of materiallty. The term materiality refers to the relative importance of an item or an event. An item is considered material if kuowledge of the item might reasonably influence the decisions of users of financial statements. Accountants must be sure that all material…

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Income Must Be Related to a Specified Period of Time

Notice that our sample income statement covers a period of time-namely, the month of December. A balance sheet shows the financial position of a business at a particular date. An income statement. on the other hand, shows the results of business operations over a span of time. We cannot evaluate net income unless it is associated with a specific…

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American Accounting Association (AAA)

Membership in the American Accounting Association is mude up primarily of accounting educators. although many practicing accountants arc members a:-; well, The mission of the AAA includes advancing accounting education and research.’ as well us influencing accounting practice. The focus of many of the AAA\ activities is Oil improving accounting education by hettcr preparing accounting professors and on advancing knowledge…

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Cash Effects

Reporting information about the cash activities of an enterprise is a particularly important aspect of providing information to both external and internal decision makers. Cash is ultimately what business activity is all about. Despite the importance of cash and information about an enterprise’S cash activities, flancialreporting is much more than simply displaying the increase and decreases in an…

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Determining Informatlon Needs

The types of accounting information that a company must develop vary with such factors as the size of the organization, whether-it is publicly owned, and the philosophy of management. The needfor some types of accounting information may be prescribed by law. For example,incomc tax regulations require every business to have an accounting system that can measure the company’s taxable…

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Accounting Information for Deacision Making

HIGH TECH THERE’S SOMETHING WRONG OUT THERE What is bugging high tech? FrClmevery corner of the industry’ modemsto microchips to database software- companie~ ha~e stunried Wali Street In’receni weeks with warnings of d’,sapPOlntlngearnings most cases, companies·have cited sp’cial circumstance mishaps or production snafus- and assured. invest.ors that the high-tech engine behind, so many capital gains is not slowing  Buts~me…

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