tailieunhanh - Fundamental Accounting Principles

A desirable characteristic of a performance measure is that it be timely, ., measure the effect of the manager's actions on firm value at the time those actions are taken (Holmstrom, 1982). This suggests earnings should incorporate the future cash flow effects of managers' actions. Ifthis was all there were to the determination of earnings, we could understand the robust result from thirty years of evidence that, for shorter horizons, average annual earnings is relatively well-described by a random walk (see Watts and Zimmerman, 1986, chapter 6). 3 Except for discounting, earnings would, like the stock price, capitalize future cash. | Fundamental Gravu Barbara Chiappetta Nassau Community College Kermit D. Larson University of Texas at Austin John J. Wild University of Wisconsin at Madison 18 edition Accounting Principles ggn McGraw-Hill i Irwin Boston Burr Ridge IL Dubuque IA Madison WI New York San Francisco St. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto The McGraw-Hill Companies To my wife Gail and children Kimberly Jonathan Stephanie and Trevor. To my wife Nancy. To my husband Bob my sons Michael and David and my mother. gn McGraw-Hill Irwin iGraw FUNDAMENTAL ACCOUNTING PRINCIPLES Published by McGraw-Hill Irwin a business unit of The McGraw-Hill Companies Inc. 1221 Avenue of the Americas New York NY 10020. Copyright 2007 by The McGraw-Hill Companies Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means or stored in a database or retrieval system without the prior written consent of The McGraw-Hill Companies Inc. including but not limited to in any network or other electronic storage or transmission or broadcast for distance learning. Some ancillaries including electronic and print components may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOW DOW 0 9 8 7 6 ISBN-13 978-0-07-299653-1 combined edition ISBN-10 0-07-299653-6 combined edition ISBN-13 978-0-07-299656-2 volume 1 chapters 1-12 ISBN-10 0-07-299656-0 volume 1 chapters 1-12 ISBN-13 978-0-07-299655-5 volume 2 chapters 12-25 ISBN-10 0-07-299655-2 volume 2 chapters 12-25 ISBN-13 978-0-07-326631-2 with working papers volume 1 chapters 1-12 ISBN-10 0-07-326631-0 with working papers volume 1 chapters 1-12 ISBN-13 978-0-07-326632-9 with working papers volume 2 chapters 12-25 ISBN-10 0-07-326632-9 with working papers volume 2 chapters 12-25 ISBN-13 978-0-07-299654-8 principles chapters 1-17 ISBN-10 .