Scribd
Upload
32 views3 pages

Nature of Financial Accounting Information

Financial accounting information is useful for investment and credit decisions by present and potential investors and creditors. It provides information about a company's economic resources, claims to those resources, and changes in them. This helps users assess the amount, timing, and uncertainty of a company's future cash flows. The information aims to be helpful for investors, creditors, and other users in evaluating a company.

Uploaded by

ajeng.saraswati
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
32 views3 pages

Nature of Financial Accounting Information

Financial accounting information is useful for investment and credit decisions by present and potential investors and creditors. It provides information about a company's economic resources, claims to those resources, and changes in them. This helps users assess the amount, timing, and uncertainty of a company's future cash flows. The information aims to be helpful for investors, creditors, and other users in evaluating a company.

Uploaded by

ajeng.saraswati
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Nature of Financial Accounting

Information
 Useful to those making investment and credit decisions, who
have a reasonable understanding of business and economic
activities.
 Helpful to
 present and potential investors
 creditors
 other users
 in assessing the amount, timing, and uncertainty of future cash
flows.
 Provides information about economic resources, the
claims to those resources, and the changes in them.

10
How important is this information?
The Reaction of Walmart Stock to Announcement of 3rd Quarter Earnings
59.5

59

58.5

58

57.5
ST O C K PR

57
IC E

56.5

56

55.5

55

54.5

54 11
1-Nov- 3-Nov- 5-Nov- 7-Nov- 9-Nov- 11-Nov- 13-Nov- 15-Nov- 17-Nov- 19-Nov- 21-Nov- 23-Nov-
03 03 03 03 03 03 03 03 03 03 03 03
DAT
Financial Accounting
Introduction
Discussion of Accounting
 Why is accounting interesting?
 Why do we need accounting?
Course objective
 Sophisticated financial
statement user
An overview of financial
information 12

You might also like