Accounting Information and Decision Making Assignment - 1

Accounting Information and Decision Making - Assignment ExampleIf I were an trustor, I would turn to an income statement first when looking to invest in accompany. This is because this statement will show me the operations undertaken within a certain period of time and the income and expenses. This shows whether the entity is doing well and expanding or whether it is performing poorly and whitethorn not do well in the coming months or years. I have ever reviewed the financial statements for a company I have worked for.My schoolmate is correct on the dual notion statement. This is because for every transaction, one account will increase while another decreases. This is due to the double entry effect in accounting whereby an amount is removed from one account and put into another. This leaves one account with less and the other with an increased amount. An example is in the slipperiness of purchasing goods. When purchasing goods with cash, the cash account will be less the amount u sed for the purchases while the purchases account will increase with the monetary apprize of the goods purchased (Collier,