FINANCIAL ACCOUNTING AND 13th Edition REPORTING
Accountants are communicators. Accountancy is the art of communicating financial information about a business entity to users such as shareholders and managers. The com communication is generally in the form of financial statements that show in money terms the economic resources under the control of the management. The art lies in selecting the information that is relevant to the user and is reliable. Shareholders require periodic information that the managers are accounting properly for the resources under their control. This information helps the shareholders to evaluate the performance of the managers. The performance measured by the accountant shows the extent to which the economic resources of the business have grown or diminished during the year. The shareholders also require information to predict future performance. At present companies are not required to publish forecast financial statements on a regular basis and the shareholders use the report of past performance when making their predictions. Managers require information in order to control the business and make investment decisions.
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- Uploaded on
- June 1, 2024
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- 961
- Written in
- 2022/2023
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- Other
- Person
- Unknown
