1. Are financial accounting statements useful to investors? 2. Describe and discuss the historical cost convention 3. Critically evaluate marginal and absorption costing

1. Are fiscal be reports personaful to investors? 1.1 Introduction fiscal accounting statements atomic number 18 summaries of monetary selective cultivation about an enterprise and are employ in an attack to help make informed decisions in the present and future. monetary statements portray the effects of transactions and other events by sort out them into broad classes (or elements) according to their economic characteristics. The three raw substantial monetary statements are the balance sheet, the income statement and the money prevail statement. There are many different entities that utilise financial statements. Financial statements may be drawn up for cabalistic individuals, non-profit organisations, manufacturers and service industries. Three major groups that take advantage of the usual utility company of financial statements are large corporations, investors and the organisation. Financial statements play a determinative role in apiece of these entit ies financial decisions. Corporations decide how more than assurance to extend to customers and how much(prenominal) should be distributed to investors in dividends. Investors use a companys financial statements to decide whether or non it would rise up advantageous to invest their money, and if so, how much. The government uses financial statements to determine how much an entity is required to pay in taxes. Each decision as tell above does not always require the same financial statement, however.

A balance sheet would be used in the decision-making process for assessing a competing firm and determine a custom ers credit limit. It provides the user with ! selective information about available resources as wellspring as the claims to those resources. An income statement would prove utilitarian in determining credit generation to customers, distribution of dividends, taxes and investment opportunities. It provides the user with data about the profitableness of the enterprise detailing sources of revenue and the expenses which minify profit. A cash flow statement would be a useful bill in each instance because it... If you want to happen a full essay, order it on our website: BestEssayCheap.com

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