Question

Accounting data is not influenced by______

Answer 1

Answer:

Harvard Business Review

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BRUCE PETERSON

FINANCE & ACCOUNTING

Where Financial Reporting Still Falls Short

H. David ShermanS. David Young

FROM THE JULY–AUGUST 2016 ISSUE

Save Share 8.95

In a perfect world, investors, board members, and executives would have full confidence in companies’ financial statements. They could rely on the numbers to make intelligent estimates of the magnitude, timing, and uncertainty of future cash flows and to judge whether the resulting estimate of value was fairly represented in the current stock price. And they could make wise decisions about whether to invest in or acquire a company, thus promoting the efficient allocation of capital.