Transcription of FINANCIAL ACCOUNTING
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FINANCIAL ACCOUNTING
The McGraw-Hill Companies, Inc., 2001 Irwin/McGraw-HillFINANCIAL ACCOUNTINGR obert LibbyPatricia A. LibbyDaniel G. Short The McGraw-Hill Companies, Inc., 2001 Irwin/McGraw-HillChapter 1 FINANCIAL Statements and Business Decisions The McGraw-Hill Companies, Inc., 2001 Irwin/McGraw-HillThe Objectives of FINANCIAL AccountingFinancial statements are the primary means of communicating FINANCIAL information to parties outside the business SheetIncome StatementStakeholders The McGraw-Hill Companies, Inc., 2001 Irwin/McGraw-HillBusiness BackgroundBusiness owners (called investorsor stockholders) look for two sources of possible gain:Sellownershipinterest in thefuture for morethan they aportion of thecompany s earnings in cash(dividends). The McGraw-Hill Companies, Inc., 2001 Irwin/McGraw-HillBusiness BackgroundCreditorslend money to a company for a specific length of time and gain by charging intereston the money sDinerLoanInterest The McGraw-Hill Companies, Inc.
information about the financial condition of a company. Three types . . . Describe accounting rules applied. Present additional detail about an item on the financial statements. Provide additional information about an item not on the financial statements.
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