Transcription of FINANCIAL ACCOUNTING - csus.edu
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FINANCIAL ACCOUNTING - csus.edu
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).
financial statements). Managerial Accounting System (preparation of detailed plans, forecasts and reports). External Decision Makers (investors, creditors,
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