The Role of Financial Accounting Information in an Entity

Luminiţa Meda Decebal (), Ionela Milutin () and Gheorghe Pribeanu ()
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Luminiţa Meda Decebal: “1st of December 1918†University of Alba Iulia
Ionela Milutin: Western University of Timisoara
Gheorghe Pribeanu: "Vasile GoldiÅŸ" Western University of Arad

Ovidius University Annals, Economic Sciences Series, 2020, vol. XX, issue 2, 891-896

Abstract: The paper aims to present ways to streamline and remedy the quality of financial accounting communication offered to managers. Management decisions on quantity, quality and timing of information depends on the cost and benefits of producing and disseminating accounting information. All differences in the reporting of financial and non-financial information would be generated by the gaps between the benefits and costs of the voluntary provision of information. It is often the case that entities provide more information than required by their managers, being convinced that the benefits outweigh the costs of production and financial accounting reporting. The efficiency of the decisionmaking process is directly proportional to the nature, quality, periodicity and volume of information that the decision-maker has at his disposal. The financial statements in particular and the financial accounting reports in general are documents that underlie a diagnosis of the financial position and profitability of the entity, they allow the determination to confirm and refute the strengths and weaknesses in the performance of all functions of the entity.

Keywords: creation; expertise; inventions; opinions; evolutions (search for similar items in EconPapers)
JEL-codes: M14 M21 M54 M55 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xx:y:2020:i:2:p:891-896

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