True or false Determine if each statement is true or false.An effective process of capital allocation promotes productivity andprovides an efficient market for buying and selling securities andobtaining and granting credit.Financial accounting is the process of identifying, measuring,analyzing, and communicating financial information needed bymanagement to plan, evaluate, and control an organization'soperations.Users of the financial information provided by a company use thatinformation to make capital allocation decisions.Financial statements are the principal means through whichfinancial information is communicated to those outside anenterprise.Some generally accepted accounting principles have simply beenaccepted as appropriate because of their universal applicationrather than due to the action of an authoritative accounting rule-making body.Financial reports in the early 21st century did not provide anyinformation about a company's soft assets.Accounting standards are now less likely to require the recording ordisclosure of fair value information due to its inherent subjectivity.Users of financial accounting statements have both coinciding andconflicting needs for information of various types.

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Answered: An effective process of capital…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 4C

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An effective process of capital allocation promotes productivity and provides an efficient market for buying and selling securities and obtaining and granting credit.