ACCT 361 Study Guide - Comprehensive Final Exam Guide - New Zealand Labour Party, Accounting, Time
Document Summary
Chapter 1: the accountant"s vital role in decision making. Measures and reports financial and non-financial information related to the cost of acquiring or utilizing resources in an organization. Provides information on the accumulation and recovery of costs. Focuses on reporting to external parties - investors, regulators, and others. Goal is to present fairly to external parties the economic health of a company. Uses standardized reports such as balance sheets, income statements, and statements of cash flow. Disclosure to third parties is controlled to protect: Advantages from combining business lines (cross selling & knowledge transfers) Amount of disclosure will depend on significant users. Private companies will tend towards minimum disclosure. Public companies release and provide additional disclosure. Disclosure in the financial statements and notes is subject to audit by an external firm. Additional information can also be disclosed through. Management discussion and analysis - auditor"s responsibility is limited reading and reasonableness.
