ACCT 3330 Chapter Notes - Chapter 1: Capital Market, Credit Rating Agency, Financial Statement
9 Feb 2017
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Document Summary
Since resources are limited people try to converse them, use them effectively, and identify and encourage those who can make efficient use of them. Through an efficient use of resources, our standard of living increases. Markets, free enterprise, and competition determine whether a business will succeed and thrive. The accounting profession has the important responsibility of measuring company performance accurately and fairly on a timely basis. In canada, the primary exchange mechanisms for allocating resources are debit and equity markets, as well as financial institutions, such as banks: the debit and equity marketplace includes both public stock exchange, and private stock exchange. Providing an effective system to facilitate capital allocation is critical to a healthy economy. Unreliable and irrelevant information leads to poor capital allocation which hurts the securities markets and economic growth. Credit rating agencies: use accounting and other information to rate company"s" financial stability. This gives investors and creditors additional independent information to use when making decisions.
