Acc 201 Chapter 5 final exam

Acc 201 Chapter 5 final exam - businesses because similar...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5: Definitions p. 239, 243 Cost-Benefit Constraint : Suggests that the benefits of accounting for and reporting of information should outweigh the costs. Relevant Information : Information that can influence a decision; it is timely and has predictive and/or feedback value. Reliable Information: Information that is accurate, unbiased, and verifiable. Consistent Information: Information that can be compared over time because similar accounting methods have been applied. Comparable Information : Information that can be compared across
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: businesses because similar accounting methods have been applied. Conservatism : Suggests that care should be taken not to overstate assets and revenues or understate liabilities and expenses. Material Amounts Amounts that are large enough to influence a user's decision. Classified Income Statement p. 245-247 Net Sales Cost of Good Sold = Gross profit Operating Expenses = Income Tax Exp. Return on Equity, bottom 253-254 Return on Equity = Net Income / Average Stockholder Equity...
View Full Document

This note was uploaded on 03/19/2008 for the course ACCT 201 taught by Professor Anothony during the Fall '07 term at Michigan State University.

Ask a homework question - tutors are online