This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
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...
View Full Document
- Winter '11
- Impairment, useful accounting information, EXPt HEP ER, AR Collections AUAend, AR Collect.