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385 quiz 1 acct

TermDefinition
Accounting The identification, measurement, and communication of financial information about economic entities to interested persons
Financial Accounting Externally focused, must follow externally imposed rules (GAAP), objective financial, historical orientation
Management Accounting internally focused, no mandatory rules, financial and non-financial, emphasis on future
Objective of Financial reporting To provide financial information that is useful to users and this is decision-useful
Stakeholders Investors, Financial Analysts, brokers, lenders, employees and trade unions, suppliers, customers, government and regulatory agencies, donors
Efficient Markets Hypothesis Proposes that share prices reflect all information about a company. (i.e. users make capital allocation decisions using all relevant information)
Management Bias Income maximization, minimization, smoothing
Created by: davidvachon1 on 2013-09-11



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