Internal And Internal Stakeholder Divisions

Decent Essays

Chapter 1 explains the most common principles in accounting or finance in which all financial reports occur. Through the process of GAAP and the financial reporting criteria it will help the students have a better understanding of all the statements and will provide with a correct process to conduct an analysis. A substantial review and statements of international accounting is also included in this chapter. Many of the users that are included in the financial statements of a company are the general public, regulatory authorities, labor unions, employees, lending institutions, suppliers, security analysis, stock holders, bondholders, and managers. We can conclude that all of these complete the external and internal stakeholder divisions in a company. They will use the data from the financial reports to conduct decisions. These kinds of reports are so important for a company due to the fact that it will help stakeholders in their decision making. What this chapter is about is the proper way to in utilizing financial reporting information. It is all a really easy from of understanding of the traditional assumption and accounting principles in the accounting criteria. The GAAP refers to the generally accepted accounting principles and what it means is the principles that have the desired authoritative support. The correct and most formal process of conducting the principles that are known today in our country started with Securities Acts of 1933 and 1934. There are 10 elements

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