ACC 220 Week 3: Analysis of Financial Reporting and Its Impact on Business Decision-Making
A detailed analysis of how financial reporting influences business decision-making and its impact on financial management.
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ACC 220 Week 3: Analysis of Financial Reporting and Its Impact on Business
Decision-Making
ACC 220 Week 3 DQ 1 and DQ 2 Help Needed
Discussion Questions
Q1. - When reviewing a financial report, why must information be reliable, relevant,
consistent, and comparable? Why are these accounting characteristics important? What
kinds of problems might result if a financial report is not reliable, relevant, consistent, or
comparable?
Answer – The financial reports must be reliable, relevant, consistent and comparable because
these reports play very important role in interpretations and framework for the preparation and
presentation of financial statements and the objective of financial statement is to provide
information about the financial position, performance and changes in the financial position of an
entity. It should also provide the current financial status of the entity to all the users of financial
information.
Reliable :- For reporting to be reliable, the stated information should be verifiable, free from
bias, and comprehensive, ensuring that nothing material relative to underlying events and
conditions has been intentionally omitted or that nothing has been included that would likely
cause the information to be misleading to the user.
Relevant: - For reporting to be relevant, a logical relationship must exist between the
information provided and its intended use. Information is relevant if it impacts a user’s
Decision-Making
ACC 220 Week 3 DQ 1 and DQ 2 Help Needed
Discussion Questions
Q1. - When reviewing a financial report, why must information be reliable, relevant,
consistent, and comparable? Why are these accounting characteristics important? What
kinds of problems might result if a financial report is not reliable, relevant, consistent, or
comparable?
Answer – The financial reports must be reliable, relevant, consistent and comparable because
these reports play very important role in interpretations and framework for the preparation and
presentation of financial statements and the objective of financial statement is to provide
information about the financial position, performance and changes in the financial position of an
entity. It should also provide the current financial status of the entity to all the users of financial
information.
Reliable :- For reporting to be reliable, the stated information should be verifiable, free from
bias, and comprehensive, ensuring that nothing material relative to underlying events and
conditions has been intentionally omitted or that nothing has been included that would likely
cause the information to be misleading to the user.
Relevant: - For reporting to be relevant, a logical relationship must exist between the
information provided and its intended use. Information is relevant if it impacts a user’s
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Document Details
University
Hult International Business School
Subject
Accounting