midterm review - Midterm Review Basic objective of the 1st...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Midterm Review Basic objective of the 1 st half of Comm353 Answering questions like: Why do we have accounting? What is the objective of accounting information? How do we make accounting information more useful? Why are we interested in these questions: To understand the meaning of the job as accountants To understand the rationale, pros and cons, of rules Critical to the professional judgment To understand management incentives To better use accounting information Midterm Review 2
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 Information asymmetry No accounting if there is no information asymmetry Information asymmetry Adverse selection Moral hazard To reduce information asymmetry Users’ demand for information Firms’ supply of information Æ Accounting information Midterm Review 3 How to reduce information asymmetry? To provide the “true” income? D i i f l f k Decision usefulness framework Users need information in making decisions Æ
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern