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Is sound accounting information necessitate sound investment decision making?

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Question added by Sami Mustafa,Msc,CMA , FINANCE MANAGER , Toys R uS - Saudia Arabia
Date Posted: 2013/12/15
irfan rauf
by irfan rauf , Chief Accountant , Al Gurg Office Furniture LLC

Yes sound accounting information is very important for investment decision making as it give insights about the financial helth of the company interms of return of capital employed its cash position and its ability to fulfill its financial comitments.

Aziz ur Rehman ur Rehman
by Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

Yes of Course,

your decesions weither operating or investing are based on the availablity information  i.e accounting information.

Now investing decesion cover the major decesions by the management of the company so need to be care in this area as much as possible. It is only possible some one well aware about the accounting information and also applicability of these information on a partuicular sanerio i.e investment in this case.

In short decesion making Directly based on accounting information.   

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