Financial Accounting: An Integrated Statements Approach, 2nd Edition
Business Stakeholders A company’s business emphasis, often termed a strategy, directly affects its economic performance. For exa ...
Chapter 1 The Role of Accounting in Business 9 Owners and stockholders want to maximize the economic value of their investments. ...
BUSINESS ACTIVITIES Regardless of whether the company is MicrosoftorGeneral Electric, all businesses are engaged in the activiti ...
Chapter 1 The Role of Accounting in Business 11 When a business borrows money, it incurs a liability. A liabilityis a legal obli ...
The claims of creditors and stockholders on the corporation’s resources are differ- ent. The resources owned by a business (corp ...
Chapter 1 The Role of Accounting in Business 13 selling expenses include such costs as sales salaries, sales commissions, freigh ...
the second objective as a moving picture (video) of the business. The first objective mea- sures the financial status of a busin ...
Chapter 1 The Role of Accounting in Business 15 Retained earnings statement—A summary of the changes in the earnings retained i ...
by the revenues coming into the business exceeded the assets used in generating the revenues. The objective of most businesses i ...
Chapter 1 The Role of Accounting in Business 17 of a point in time is measured by its total assets and claims or rights to those ...
As of December 31, 2004, Hershey had total assets of $3.8 billion, of which creditors had claims of $2.7 billion and stockholder ...
Chapter 1 The Role of Accounting in Business 19 as startup companies, will normally report negative net cash flows from investin ...
The balance sheet and statement of cash flows are integrated. Thecash on the bal- ance sheet also appears as the end-of-the-per ...
Chapter 1 The Role of Accounting in Business 21 As shown above, GAAP supports and determines the content of the financial state- ...
Cost Concept Thecost conceptdetermines the amount initially entered into the accounting records for purchases. For example, assu ...
Chapter 1 The Role of Accounting in Business 23 and other subjective factors may have to be used in preparing financial statemen ...
The companies listed in Exhibit 9 were caught in the midst of ethical lapses that lead to fines, firings, and criminal or civil ...
Chapter 1 The Role of Accounting in Business 25 What went wrong for these companies and executives? The answer to this ques- tio ...
HORIZONTAL ANALYSIS The basic financial statements illustrated in this chapter are a primary source of in- formation that financ ...
Chapter 1 The Role of Accounting in Business 27 SUMMARY OF LEARNING GOALS 11 Additional financial statement analyses will be dis ...
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