Test Bank for Intermediate Accounting, Volume 1 & 2, 12th Canadian Edition, Donald E. Kieso.

Test Bank for Intermediate Accounting, Volume 1 & 2, 12th Canadian Edition, Donald E. Kieso. Test Bank for Intermediate Accounting, Volume 1 & 2, 12th Canadian Edition, Donald E. Kieso. Test Bank for Intermediate Accounting, Volume 1 & 2, 12th Canadian Edition, Donald E. Kieso. Test Bank for Intermediate Accounting, Volume 1 & 2, 12th Canadian Edition, Donald E. Kieso. 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

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  • Pages 36
  • Category Exam Elaboration
  • School / University University of Pennsylvania
  • Course Nursing
  • Course Level University level
  • Year 2022
  • Keywords Test Bank for Intermediate Accounting, Volume 1 & 2, 12th Canadian Edition, Donald E. Kieso.
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