Identify the Potential External Users of Accounting Information

question 193

Essay

Identify the potential external users of accounting information.

Apply FASB concepts concerning expected cash flows to calculate present value of uncertain cash flows.

Explain the concept of time value of money and its relationship with the interest concept.

Understand the lower of cost or market (LCM) principle and its applications.

Comprehend the constraints on market value: ceiling, floor, and net realizable value.

---

Definitions:

Accounting Oversight Board

An organization responsible for supervising and regulating accounting practices to ensure accuracy and fairness in financial reporting.

Sarbanes-Oxley Act

A United States federal law enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.

Accounting Scandals

Incidents that involve deliberate manipulation of financial statements and records for the purpose of misleading investors and stakeholders.

Values

Deeply held beliefs and ideals that guide an individual's or society's actions and judgments.