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Reliable information is essential before decision makers can make a sound decision involving the allocation of scarce resources. Accounting information is precious because decision makers are able to use it to evaluate the financial consequences of various alternatives. Accountants eliminate the requirements for a crystal ball to estimate the future. They are able to reduce uncertainty by using professional judgment to quantify the future financial impact of taking action or delaying action.
Even though accounting information plays a significant role in reducing uncertainty within the organization it as well provides financial data for persons outside the company. This information notifies how management has discharged its responsibility for protecting and managing the company's resources. Stockholders comprise the right to know how a company is managing its investments. In fulfilling these compulsion accountants prepare financial statements such like a statement of retained earnings, an income statement, a balance sheet, and a statement of cash flows. Additionally they prepare tax returns for federal and state governments and fulfil other governmental filing requirements.
Q. Need for adjusting entries? The income statement of business information all revenues earned and all expenses incurred to generate those revenues during a given period. An i
A lobster catcher spends $12 500 per month to maintain a lobster boat. He plans to catch an average of 20 days per month during lobster season. For each day, he must allow approx
How does contribution margin work?
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Illustrate the cases of financial accounting ?Enron, an energy-trading business which is based in Texas, and was accused of entering into complicated financial arrangements in
what is the contributed capital and how do you figure it out?
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