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How to get it right, single most useful piece of information

Analyze the various aspect of accounting and determine which is the most difficult to get right. Explain your rationale.

Evaluate the components of a financial statement and the outputs of financial ratio analysis, and determine the single most useful piece of information on which to base future business decisions. Explain your rationale.

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Analyze the various aspect of accounting and determine which is the most difficult to get right. Explain your rationale.

Of the basic accounting assumptions, principles and constraints, the most difficult to get right in my view is the matching principle. It states that: 'A fundamental concept of accrual basis accounting that offsets revenue against expenses on the basis of their cause-and-effect relationship. It states that, in measuring net income for an accounting period, the costs incurred in that period should be matched against the revenue generated in the same period.'
http://www.businessdictionary.com/definition/matching-principle.html

The reason that 'matching' is not easy is that businesses don't conclude transactions at the end of an accounting cycle. If all sales and related ...

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In a 512 word solution, the questions are answered with thoughtful insights.

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