ACC 240 Chapter 5 Notes

ACC 240 Chapter 5 Notes - Accounting Chapter 5 Notes Board...

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Accounting Chapter 5 Notes Board of directors: elected by the shareholders to represent their interests, I sresponsible for maintaining the integrity of the company’s financial reports Unqualified (clean) audit opinion : auditors’ statement that the financial statements are fair presentations in all material respects in conformity with GAAP Exhibit 5.2 Earnings forecasts: are predictions of earnings for future accounting periods Market efficiency: a quick, unbiased reaction to information Institutional investors: are managers of pension, mutual, endowment, and other funds that invest on the behalf of others Private investors: include individuals who purchase shares in companies Lenders (Creditors): include suppliers and financial institutions that lend money to companies Cost-benefit constraint: suggests that the benefits of accounting for and reporting information should outweigh the costs Relevant Information: can influence a decision; it is timely and has predictive and/or feedback value
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This note was uploaded on 04/02/2008 for the course ACC 240 taught by Professor Lewis during the Winter '08 term at Eastern Michigan University.

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ACC 240 Chapter 5 Notes - Accounting Chapter 5 Notes Board...

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