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Unformatted text preview: t – EXP t HEP ER ___________________________________________ Chapter 2: Accounting Concepts, Identities, and Mechanics 2.3: Characteristics of useful accounting information According to SIAC #2, useful accounting information is… 1.) Relevant (…we already knew this) 2.) Reliable consider example of realizable accounts receivable (AR net ); Accountants don’t “know” what this value is, so it has to be estimated: Neg. Skewed Probability Density BIAS AR net AR Gross mean mode median Also…AR net should represent estimated realizable receivables, NOT something else 3.) Consistency: Measurements (estimates) are consistent across time EST...
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This note was uploaded on 04/18/2011 for the course BUS 311 taught by Professor Palmer during the Winter '11 term at Indiana.
- Winter '11