Advantages and Disadvantages of Financial Accounting
Benefits or Advantages of Financial Accounting
- To provide information useful for the making economic decision .
- To serve primarily those users who have limited authority ability or resource to obtain information and who rely on financial statement as their principal source of information about the economic activities of an enterprises.
- To provide information useful to investors and creditors for predicting comparing and evaluating cash flow in terms of amount timing and related uncertainty.
- To provide users with information for predicting comparing and evaluating the earning power of the enterprise.
- To supply useful information in judgment the management ‘s ability to utilize enterprise resources effectively for achieving the primary enterprise goals.
- To provide factual and interpretive information about the transaction that are useful for predicting comparing and evaluating the earning power of an enterprise.
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