I am looking for various input and perspectives on the topic:
Using accounting information and its principles in decision making.
For example: why is it important, how can it be used, what are some examples of accounting information that helps organizations make better decisions, etc.© BrainMass Inc. brainmass.com June 4, 2020, 1:04 am ad1c9bdddf
There are so many ways to answer this!
First, external parties can use the published GAAP financial statements to evaluate performance (to decide whether to keep or sell their stock or do business with them) or to make credit decisions (whether to loan to them). The evaluation often includes looking at profits, cash flows and the results of ratios that measure ...
This solution provides a detailed explanation of the given accounting question.