Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 2 - Conceptual Framework for Financial Reporting - Review and Practice - Questions - Page 61: 2


Financial reporting is a rather imperative practice in the financial accounting field that is charged with a responsibility of reporting all finances of the company, adhering to a certain set of rules, guidelines and policies adopted by the organization as a whole as well as statutory regulations given by the accounting regulatory board.

Work Step by Step

Importantly, the financial information prepared by the accounting practitioners of the reporting company are usually useful to present and potential equity investors, lenders as well creditors as they use these information to make decisions regarding providing resources to the entity.
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