Can someone help me how to do this accounting question? (10 points for the best answer).?

Question

The objectives of general purpose financial reporting are to provide information useful to users for making and evaluating decisions about the allocation of scarce resources and to assist management in discharging their accountability.

Briefly discuss the notions of "Information for decision making" and "accountability".

Answer 1

Basically, the "information for decision making" comes down to the accounting reports you print to diagnose if a company is on a healthy track or not. Usually, a profit and loss statement is used to determine if a profit or a loss was made for a specific time period. It is one of the most useful reports a business owner can use.

There are also reports for money a business owes, money that is owed to a business, and how much the business is worth. All of these documents come in handy when filing taxes or selling a business (which falls under the accountability question). These are all examples of "general purpose financial reporting."

Hope this helps.

Answer 2

Information for decision making means facts about the financial status of the business. Is it doing well or poorly? How well or how poorly? The information allows comparisons to other businesses and time periods. Measurement allows control.

Accountability means responsibility for management. Are good decisions being made. Is the company successful?