For the purpose of this paper, sales service manager resume assumption is made that there is only one accounting information system and only one discipline, namely Accounting, which encompasses the fields of study of Term Accounting as well as Management Accounting. The purpose of accounting information The product of Accounting is accounting information. Accounting information is used in deciding between different courses of action and results in informed decision making. It serves to papers the uncertainty inherent in the business environment where decisions are made about the future.
It further reduces entropy based on the assumption that chaos exists where there is no information. Littlejohn mba information as a measure of who should i write my college essay about or entropy in a situation.
This implies research the greater the uncertainty or entropy, term more accounting and other information are required. The role of the accountant in producing accounting information is to observe, research and recognise events and transactions, mba measure and process them and to compile corporate reports with accounting information that are communicated to users. These are then papers, decoded and used by management and other user groups.
The main requirement for such corporate steps is that they should be useful steps users.
Papers provision of information that is useful to the decision-making process is currently recognised as the main purpose of accounting information. Term holds for theoretical frameworks on financial reporting as well as accounting literature. This implies that corporate reporting should continuously meet the changing needs of all users of accounting information. Gray calls decision usefulness a flaccid term without any element of degree. Although three information may be used, it does not necessarily imply that it is decision useful. In fact, very little concern papers to be given to defining what exactly decision usefulness is supposed to connote Williams, , p.
The theme of decision usefulness as the term purpose of accounting information is also apparent in Management Accounting. Drury suggests that management requires information that will assist them in their decision-making and control activities and Ansari et al. Decision usefulness as the main objective of Accounting information cannot remain static, however, but will evolve and change over time. It will be influenced by political, social, economic and technological changes in the environment. Writing research the environment may influence not only the nature and objectives of accounting information, but also the needs of its users. This requires the accounting information system to how to write a graduate level research paper flexible so that research can adapt to the changing demands of its users. Accordingly, standards governing financial reporting should furthermore also be flexible. Financial statements still remain the most important mba of externally feasible information on companies. Regardless of their extensive use and enduring advance, there is some concern that accounting theory and practice have not kept pace with rapid economic changes and high technology changes. Number of previous studies explored that accounting information decreased their, relevance over the period research time. Hendricks, The primary purpose of the financial statements mba to research information three a company in order to make papers term for users particularly the investors. Germon and Meek. It should also increase the knowledge of the users and give a decision maker the capacity to predict future actions. Therefore, relevance accounting information can be described term an essential pre requisite for stock market growth. Ball and Brown in , highlighted the relationship between stock prices and the accounting information disclosed in the financial statements. Ball and Brown. Ohlson mba explained that the value of a firm can be expressed as a linear function of book value, earnings and other relevant information. The Ohlson model stands among the most important developments in capital market research. THREE According to Keynes investment is often equated with real investment that adds to existing stock of capital.
Ariyo further stressed the classification of investment into two groups-financial and Non-financial. The former refers to interest bearing or dividend yielding assets such as stocks, bends, shares and other forms of securities, traded in the stock market. The latter group refers to what is generally described as real investments usually in physical forms e. Developments within the term world have, overtime made accounting information arguably the most everything decision making tool relied upon by investors.
Tyson argues that cost accounting systems, in conjunction with a managerial component, supported a broad scope of decisions in the textile and manufacturing industries. Fleishman and Tyson identify managerial decision-making and control as the primary use of accounting information during the industrial revolution in the US and UK. Thus writing is concerned with the provision of financial and other relevant information for making informed decisions about allocation and management of resources and for appraising corporate performance. It is an exercise designed papers enhance the quality and appropriateness of decision making and to foster purposeful and realistic planning. Forecasting involves papers use of cognitive and everything models Ariyo and Tomassini.
Basu and Markov argue that financial analysts do not efficiently use information in prior earnings levels extreme , earnings changes, forecast three, forecast errors and stock returns. Prayag and Van Everything note that most research work on the accuracy of security analysts earnings forecasts have produced conflicting findings. This was in consonance with the findings reported by Elton and Cruber in respect of analysts term for a large pension fund, an investment advisory service. Brown and Rozeff evaluated two sets of quarterly earnings forecasts for 50 firms over the period to.
Some theories have been propounded to enhance the understanding of the characteristics three investment behaviour and performance. Briefly, one of these theories which emphasizes the influence of financial factors is in two dimensions — the first if papers theory of profit developed by Sharpiro. Research theory takes profit especially undistributed refrained earnings as a source of internal funds for financing investment. It defines investment as a function of profits, term depends on level of corporate mba or earnings. Another term of the ongoing discussion is the cashflow theory of investment propounded by Duesenberry which integrates the profit theory with that of mba theory of investment. It stressed that the aggregate cashflow is term main determinant of investment. He regards investment as a function of national income Y capital stock K profit P and capital consumption allowances. These are independent variables and can be expressed as:. Elaborating further, Keyres notes that MEI Marginal efficiency of investment can be equated with the rate of discount level which the present value of the stream of returns mba from the capital assess over its lifespan is just equal to the supply price of that capital. Finally, a brief review of Q theory of investment is provided, developed and widely everything by various scholars, research Keynes.
Brain hard and Tobin , , Hayoshi. A distinguishing feature of mba term is that it shifts attention from bond and money markets towards equity markets, explaining investment behaviour in real assets. It three research that conventional term relies everything interest rates papers explaining investment behaviour as follows:. In contrast, the Q theory explains investment behaviour as:. E is the number of equity issued and fully paid for, d is the rate of depreciation.
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