BU127 Chapter Notes - Chapter 2: Repeated Measures Design, Financial Statement, Cing
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BU127 Full Course Notes
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Document Summary
Chapter 2: investing and financing decisions and the statement of financial position. Financial statements communicate the economic facts measured in monetary units in standardized and formal way. Applying accounting principles consistently -> accountants communicate comparable estimates represent economic. To understand amounts appearing on statement of financial position: How do companies keep track of the amounts in the statement of financial position? facts o o o. To provide useful economic information to external users for decision making and for assessing future cash flows. Fundamental (to be useful) : o o o o o o o o. Relevancy: makes a difference in decision, predictive value, feedback / confirmatory value. Predictive value : info helps users make predictions about ultimate outcome of past, present, future events. Feedback value : info helps users confirm/correct prior expectations. Timeliness : available before it loses capacity to influence their decisions.
