Investors and creditors are interested in a company's "cash flow prospects" What two specific concerns of investors and creditors are summarized by the term "cash flow prospects?"
List three financial statements that are used to communicate financial accounting information to interested external parties.
Provide a brief example to illustrate that externally reported financial accounting information must be based in part on estimates, judgments, and assumptions.
Briefly explain how generally accepted accounting principles enhance the integrity of financial accounting information.

Question

Quizplus · Accepted Answer

The Answer of Investors and creditors are interested in a company's "cash flow prospects" What two specific concerns of investors and creditors are summarized by the term "cash flow prospects?"
List three financial statements that are used to communicate financial accounting information to interested external parties.
Provide a brief example to illustrate that externally reported financial accounting information must be based in part on estimates, judgments, and assumptions.
Briefly explain how generally accepted accounting principles enhance the integrity of financial accounting information.

Investors and Creditors Are Interested in a Company's "Cash Flow