In Its Statement of Financial Accounting Concepts #4, the FASB

question 92

Essay

In its Statement of Financial Accounting Concepts #4, the FASB identifies the information needs of the users of non-business financial statements. These include providing information that is useful to present and potential resource providers in which four evaluation areas?

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Definitions:

Evaluate

To assess or examine something in order to understand its value, importance, or condition, often leading to a judgment.

Error Management Theory

The idea that both men and women seek to minimize the most costly type of error, but that men’s and women’s goals, and hence worst errors, differ.

Certainty Effect

In decision making, the greater weight given to definite outcomes than to probabilities.

Reactance Theory

A psychological theory suggesting that people have a negative reaction to restrictions on their personal freedoms, often resulting in a motivation to regain those freedoms.