- 2 - Accounting profits or returns... u Timeliness— measured in short time periods. u Precision— accounting rules (FASB). u Objectivity— independent auditors. u Congruence »In for-profit firms, accounting profits or returns are relatively congruent with the true firm goal of maximizing shareholder value. »Positive correlations between accounting profits and changes in stock prices. u Understandable u Inexpensive— financial reporting requirements.