Understanding confirmatory value

In accounting, information has confirmatory value when it helps users to confirm or adjust prior expectations. But why is confirmatory value an important attribute for accounting information to have? People read accounting financial statements in order to create predictions about the future. They want to predict future dividends and that the company will be able to make

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Relevance in accounting

Accounting information is relevant when it is capable of making a difference in a decision. Suppose that you’re trying to decide what to eat for dinner: A hamburger? Or a salad? What information is relevant to your decision? The price of each meal, perhaps. And consider the number of calories, too. Do you have the

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When does accounting information have “predictive value?”

In accounting, information has “predictive value” when it can be used to help investors to form expectations about the future. Let me give you some background. The whole point of accounting information to help investors to make decisions about loaning a company money or buying its stock. How are investors supposed to make these decisions? When you

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What is the economic entity assumption?

The economic entity assumption is one of four assumptions underlying financial statements. It says that you can identify economic activity with a particular unit of accountability. Put another way, the economic entity assumptions says that certain transactions are “inside” a business, while other transactions are “outside” of the business. Suppose that you run a candy

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Improve your Excel Skills Now with these 5 Tips

Microsoft’s Excel program has been an integral part of the regular office-goer’s life. One part of Microsoft’s Office Suite – Excel – is an extremely feature-rich software program that has proven itself to be indispensable time and again. Whether it is for drawing up a quick report, chalking up some financial sheets, or even running

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A printable Excel Cheat Sheet

Here’s a fantastic Excel Cheat Sheet. If you’re interested in learning more about Excel, check it out: An infographic by the team at Graduate Degree Programs

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Introduction to Excel Part 4 (YouTube): Formatting your Excel Spreadsheet

I’m excited to introduce the fourth video in my series explaining how to use to Excel. Learn to format your cells with different fonts. How to get your cell widths and heights right. And how to format numbers and dates. In 10 minutes you can learn all this, and more. Did I mention it’s free?

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Introduction to Excel Part 3 (YouTube)

This video explains how to use references, operators and formulas in Excel. Look out Francis Ford Coppola: Here’s the whole series, so far: Part 1: http://youtu.be/HPLuvEL3fNw Part 2: http://youtu.be/ckoxo6xCvik Part 3: http://youtu.be/DjOuAO1GDy8

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Introduction to Excel Part 2: Finding Your Way Around (YouTube)

With great multimedia fanfare comes Part 2 of my new Excel series: Here are all the videos available so far: Part 1: http://youtu.be/HPLuvEL3fNw Part 2: http://youtu.be/ckoxo6xCvik Part 3: http://youtu.be/DjOuAO1GDy8

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My new Introduction to Excel (YouTube)

I’m proud to announce the first video of my Introduction to Excel series. This series is designed to give you the basic tools you need to get up and running in Microsoft Excel. Here are the videos released so far: Part 1: http://youtu.be/HPLuvEL3fNw Part 2: http://youtu.be/ckoxo6xCvik Part 3: http://youtu.be/DjOuAO1GDy8 Subscribe to my YouTube channel to received new videos

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