Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
3 Cards in this Set
- Front
- Back
|
Explain the nature and general purpose of financial statements |
Financial statements are presentations of information in financial times about and enterprise that are believed to be be fair and accurate. They describe the the attributes of the enterprise that are important for decision makers particularly investors, owners and creditors |
|
|
Explain accounting principles that are important for an understanding of financial statements and how professional judgment by accountants may affect the application of those principles |
1. Accountants prepare financial statement for applying a set of standards or rules referred to as general accepted accounting principles 2. Consistent application of these standards permits comparisons between companies and between years of a single company. 3. Generally accepted accounting principle allow for significant latitude範圍 in how certain transactions will be accounted for, meaning that professional judgement is particularly important |
|
|
Discuss the importance of financial statements to a company and its investors and creditors and why management may take steps to improve the appearance of the company its financial statements |
|
