Provide Insight or Face Extinction

That's the new accounting equation for financial professionals' survival. IF YOU THINK providing data to your company is enough, think again. Here's an eye-opening look at a new accounting equation that sends the message to financial professionals that they must transform data into information--the critical element in decision making. The traditional accounting equation (assets = liabilities owners' equity) has served business well for over five centuries, but it produces data--nothing more. This fundamental equation historically has focused on accumulating, processing, and reporting the results of economic activity. Its standardized, rather mechanical nature and output were very appropriate for the data processing systems of the times. But it isn't enough today. Technological advances, heightened competition, and global forces have dramatically increased the demand for timely and relevant information--not just straight data--to support decision making.

Main Author: Barsky, Noah
Other Authors: Catanach, Anthony
Format: Villanova Faculty Authorship
Language: English
Published: 2001
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