Test Bank for Intermediate Accounting, Twelfth Canadian Edition

Test Bank for Intermediate Accounting, Twelfth Canadian Edition THE CANADIAN FINANCIAL REPORTING ENVIRONMENT CHAPTER STUDY OBJECTIVES 1. Understand the financial reporting environment. Accounting provides reliable, relevant, and timely information to managers, investors, and creditors so that resources are allocated to the most efficient enterprises. Accounting also provides measurements of efficiency (profitability) and financial soundness. Investors, creditors, management, securities commissions, stock exchanges, analysts, credit rating agencies, auditors, and standard setters are some of the major stakeholders. Illustration 1-4 explains what is at stake for each one. The objective of financial reporting is to communicate information that is useful to key decision makers such as investors and creditors in making resource allocation decisions (including assessing management stewardship) about the resources and claims to resources of an entity and how these are changing. Ideally, all stakeholders should have access to the same information in order to ensure that good decisions are made in the capital marketplace. (This is known as information symmetry.) However, this is not the case—there is often information asymmetry. Of necessity, management has access to more information so that it can run the company. It must also make sure that it does not give away information that might harm the company, such as in a lawsuit where disclosure might cause the company to lose. Aside from this, information asymmetry exists because of management bias whereby management acts in its own self-interest, such as wanting to maximize management bonuses. This is known as moral hazard in accounting theory. Information asymmetry causes markets to be less efficient. It may cause stock prices to be discounted or costs of capital to increase. In addition, it might detract good companies from raising capital in the particular market where relevant information is not available (referred to as adverse selection in accounting theory). The efficient markets hypothesis is felt to exist only in a semi-strong form, meaning that only publicly available information is assimilated into stock prices

read more

Latest Reviews

This Document does not have reviews, purchase to review

$10.00

  1. 100% Money Back Guarantee
  2. Immediately available after payment
  3. Both online and in PDF format
  4. Secure Payment Gateway

visibility
4
download
0
Details
  • Pages 35
  • Category Exam Elaboration
  • School / University Harvard University
  • Course Nursing
  • Course Level University level
  • Year 2022
  • Keywords Test Bank for Intermediate Accounting, Twelfth Canadian Edition Test Bank for Intermediate Accounting, Twelfth Canadian Edition Test Bank for Intermediate Accounting, Twelfth Canadian Edition Test Bank for Intermediate Accounting, Twelfth Canadian Edition
profile
DrMoraa
279 Documents uploaded.
3 Documents sold.
  •  4 Review(s)

The benefits of buying summaries with Barmerit:


Image

Guaranteed quality through customer reviews

Barmerit customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Image

Quick and easy check-out

You can quickly pay through credit card or Barmerit-credit for the summaries. There is no membership needed.

Image

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently Asked Questions

+
After you’ve finished your payment, your purchased document will be available in ‘Purchased document’ in your Docmerit account. The documents will also be sent via e-mail. Can’t find your document there right away? Be patient, because sometimes it can take a couple minutes for the document to be processed. If the document isn’t there after five minutes, you can send us a message.
+
Send us a message to support@barmerit.com and try to explain as detailed as possible what the issue is. Hopefully, we can help you out right away and you’ll have the document in no time. If you see an error, please attach a screenshot of the error to the email, so if needed our IT department can have a look at it.
+
If you would like to see the entire document, you first have to buy it. Otherwise, you will only see a couple of selected preview pages.   unanswered

Price $10.00