ACCT 305 Lecture Notes - Lecture 24: Financial Statement, Cash Flow, Water Purification
Document Summary
Full disclosure principle calls for financial reporting of any financial facts significant enough to influence the judgement of an informed reader. Increase in reporting requirements: reasons, complexity of business environment, necessity for timely information, accounting as a control and monitoring device. Notes are the means of amplifying or explaining the items presented in the main body of the statements: accounting policies, companies should present a statement identifying the accounting policies adopted and followed, should present the disclosure as: Investors and investment analysts want income statement, balance sheet, and cash flow information on the individual segments that compose the total income figure. Revenue test: 10% x ,150 = ; c, d, and e meet this test. Operating profit (loss) test: 10% x = (note that the loss is ignored because the test is based on non-loss segments); a, c, d, and e meet this test.
