Folks,
I am trying to understand what does 'Intent" & "Expectation" mean in accounting world. I am taking a accounting course this fall and in my last class the Professor made a statement that "Accountants make decisions based on expectations and intent". I am trying to understand what he actually meant. Can somebody throw some light on this and possibly provide some examples that would help me understand this.
Thanks in advance.
PR
"PR" wrote
I'm not sure what he means by intent, but expectations are based on that client's history, industry standards, and a host of other factors. If sales were to increase by 30%, the expectation is that - cost of sales went up also, commissions to the sales force went up, sales supplies also increased, maybe shipping went up.....and a host of other related expenses should, one would expect, move in concert.
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