Accounting
Submitted by smith2713 on August 24, 2009
- Category: Business
- Words: 315
- Pages: 2
- Views: 468
- Popularity Rank: 1050
Accounting
Relevance
Accounting information is relevant if it would make a difference in a business
decision. For example, the information in Best Buy’s financial statements is considered
relevant because it provides a basis for forecasting Best Buy’s future earnings.
Accounting information is also relevant to business decisions because it
confirms or corrects prior expectations. Financial statements provide relevant
information that helps predict future events and provide feedback about prior
expectations for the financial health of the company.
For accounting information to be relevant it must be timely. That is, it must
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