Accounting standards allow management to express their professional judgement to communicate their insight knowledge of the...

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"Accounting standards allow management to express their professional judgement to communicate their insight knowledge of the businesses. Accounting numbers reflect management's choice of accounting policies and estimates. Thus, financial ratios are heavily influenced bỷ management judgement." Discuss and give specific examples of how management's choice in accounting policies and estimates influences the interpretations of financial ratios. "Accounting standards allow management to express their professional judgement to communicate their insight knowledge of the businesses. Accounting numbers reflect management's choice of accounting policies and estimates. Thus, financial ratios are heavily influenced bỷ management judgement." Discuss and give specific examples of how management's choice in accounting policies and estimates influences the interpretations of financial ratios.

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Financial ratios offer entrepreneurs a way to evaluate their companys performance and compare it oth... View the full answer