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[solution]: List the reasons why external users use information about a company’s (a) economic resources and...


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List the reasons why external users use information about a company’s (a) economic resources and claims to these resources, (b) comprehensive income and its compo- nents, and (c) cash flows. Define (a) return on investment, (b) risk, (c) finan- cial flexibility, (d) liquidity, and (e) operating capability. What is the overall qualitative characteristic of useful accounting information and what are its two primary qualities?  

 


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