Comment on the statement that what a company’s income statement reveals is interesting, but what it conceals is vital.

Why are internal accounting controls important to a business? What are advantages vs. the disadvantages? Is there a cost to the business for these internal controls? Who requires the controls?

6 Explain why financial statement information has characteristics of a public good. Include a definition of a public goods in your answer. What does this imply about using the extent of security market reaction to accounting information to guide accountants?

Financial accounting is a branch of accounting refers to the communication of information within an organization so that internal decisions can be made in an appropriate manner. True False