TEST vbBANK vb
Financial vbAccounting vbTools vbFor vbBusiness
vbDecision vbMaking, vb10th vbEdition, vbPaul vbD.
vbKimmel, vb
vbChapters vb1 vb– vb13, vbComplete
Copyright vb© vb2022 vbJohn vbWiley vb& vbSons, vbInc. vb(For
vbInstructor vbUse vbOnly)
,TABLE VBOF VBCONTENTS
1 vbIntroduction vbto vbFinancial vbStatements vb
2 vbA vbFurther vbLook vbat vbFinancial vbStatements vb
3 vbThe vbAccounting vbInformation vbSystem vb
4 vbAccrual vbAccounting vbConcepts vb
5 vbMerchandising vbOperations vband vbthe vbMultiple-Step
vbIncome vbStatement vb
6 vbReporting vband vbAnalyzing vbInventory vb
7 vbFraud, vbInternal vbControl, vband vbCash vb
8 vbReporting vband vbAnalyzing vbReceivables vb
9 vbReporting vband vbAnalyzing vbLong-Lived vbAssets vb
10 vbReporting vband vbAnalyzing vbLiabilities vb
11 vbReporting vband vbAnalyzing vbStockholders’ vbEquity vb
12 vbStatement vbof vbCash vbFlows vb
13 vbFinancial vbAnalysis: vbThe vbBig vbPicture vb
Copyright vb© vb2022 vbJohn vbWiley vb& vbSons, vbInc. vb(For
vbInstructor vbUse vbOnly)
,CHAPTER vb1
INTRODUCTION vbTO vbFINANCIAL vbSTATEMENTS
CHAPTER vbLEARNING vbOBJECTIVES
1. Identify vbthe vbforms vbof vbbusiness vborganization vband vbthe vbuses vbof vbaccounting
vbinformation. vbA vbsole vbproprietorship vbis vba vbbusiness vbowned vbby vbone vbperson. vbA
vbpartnership vbis vba vbbusiness vbowned vbby vbtwo vbor vbmore vbpeople vbassociated vbas
vbpartners. vbA vbcorporation vbis vba vbseparate vblegal vbentity vbfor vbwhich vbevidence vbof
vbownership vbis vbprovided vbby vbshares vbof vbstock. vbInternal vbusers vbare vbmanagers
vbwho vbneed vbaccounting vbinformation vbto vbplan, vborganize, vband vbrun vbbusiness
vboperations. vbThe vbprimary vbexternal vbusers vbare vbinvestors vband vbcreditors. vbInvestors
vb(stockholders) vbuse vbaccounting vbinformation vbto vbdecide vbwhether vbto vbbuy, vbhold,
vbor vbsell vbshares vbof vba vbcompany‘s vbstock. vbCreditors vb(suppliers vband vbbankers) vbuse
vbaccounting vbinformation vbto vbassess vbthe vbrisk vbof vbgranting vbcredit vbor vbloaning
vbmoney vbto vba vbbusiness. vbOther vbgroups vbwho vbhave vban vbindirect vbinterest vbin vba
vbbusiness vbare vbtaxing vbauthorities, vbcustomers, vblabor vbunions, vband vbregulatory
vbagencies.
2. Explain vbthe vbthree vbprincipal vbtypes vbof vbbusiness vbactivity. vbFinancing vbactivities
v b involve vbcollecting vbthe vbnecessary vbfunds vbto vbsupport vbthe vbbusiness. vbInvesting
vbactivities vbinvolve vbacquiring vbthe vbresources vbnecessary vbto vbrun vbthe vbbusiness.
vbOperating vbactivities vbinvolve vbputting v b the vbresources vbof vbthe vbbusiness vbinto
vbaction vbto vbgenerate vba vbprofit.
3. Describe vbthe vbfour vbfinancial vbstatements vband vbhow vbthey vbare vbprepared. vbAn
vbincome vbstatement vbpresents vbthe vbrevenues vband vbexpenses vbof vba vbcompany vbfor
vba vbspecific vbperiod vbof vbtime. vbA vbretained vbearnings vbstatement vbsummarizes vbthe
vbchanges vbin vbretained vbearnings vbthat vbhave vboccurred vbfor vba vbspecific vbperiod vbof
vbtime. vbA vbbalance vbsheet vbreports vbthe vbassets, vbliabilities, vband vbstockholders‘ vbequity
vbof vba vbbusiness vbat vba vbspecific vbdate. vbA vbstatement vbof vbcash vbflows
v b summarizes v b information vbconcerning vbthe vbcash vbinflows vb(receipts) vband vboutflows
vb(payments) vbfor vba vbspecific vbperiod vbof vbtime. vbAssets vbare vbresources vbowned vbby
vba vbbusiness. vbLiabilities vbare vbthe vbdebts vband vbobligations vbof vbthe vbbusiness.
vbLiabilities vbrepresent vbclaims vbof vbcreditors vbon vbthe vbassets vbof vbthe vbbusiness.
vbStockholders‘ vbequity vbrepresents vbthe vbclaims vbof vbowners vbon vbthe vbassets vbof vbthe
vbbusiness. vbStockholders‘ vbequity vbis vbsubdivided vbinto vbtwo vbparts: vbcommon vbstock
vband vbretained vbearnings. vbThe vbbasic vbaccounting vbequation vbis vbAssets vb= vbLiabilities
vb+ vbStockholders‘ vbEquity. vbWithin vbthe vbannual vbreport, vbthe vbmanagement vbdiscussion
vband vbanalysis vbprovides vbmanagement‘s vbinterpretation vbof vbthe vbcompany‘s vbresults
vband vbfinancial vbposition vbas vbwell vbas vba vbdiscussion vbof vbplans vbfor vbthe vbfuture.
vbNotes vbto vbthe vbfinancial vbstatements vbprovide vbadditional vbexplanation vbor vbdetail
vbto vbmake vbthe vbfinancial vbstatements vbmore vbinformative. vbThe vbauditor‘s vbreport
vbexpresses vban vbopinion vbas vbto vbwhether vbthe vbfinancial vbstatements vbpresent vbfairly
Copyright vb© vb2022 vbJohn vbWiley vb& vbSons, vbInc. vb(For
vbInstructor vbUse vbOnly)
, vbthe vbcompany‘s vbresults vbof vboperations vband vbfinancial vbposition.
*4. vbExplain vbthe vbcareer vbopportunities vbin vbaccounting. vbAccounting vboffers vbmany
vbdifferent vbjobs vbin vbfields vbsuch vbas vbpublic vband vbprivate vbaccounting, vbgovernmental,
vband vbforensic vbaccounting. vbAccounting vbis vba vbpopular vbmajor vbbecause vbthere vbare
vbmany vbdifferent vbtypes vbof vbjobs, vbwith vbunlimited vbpotential vbfor vbcareer
vbadvancement
Copyright vb© vb2022 vbJohn vbWiley vb& vbSons, vbInc. vb(For
vbInstructor vbUse vbOnly)
Financial vbAccounting vbTools vbFor vbBusiness
vbDecision vbMaking, vb10th vbEdition, vbPaul vbD.
vbKimmel, vb
vbChapters vb1 vb– vb13, vbComplete
Copyright vb© vb2022 vbJohn vbWiley vb& vbSons, vbInc. vb(For
vbInstructor vbUse vbOnly)
,TABLE VBOF VBCONTENTS
1 vbIntroduction vbto vbFinancial vbStatements vb
2 vbA vbFurther vbLook vbat vbFinancial vbStatements vb
3 vbThe vbAccounting vbInformation vbSystem vb
4 vbAccrual vbAccounting vbConcepts vb
5 vbMerchandising vbOperations vband vbthe vbMultiple-Step
vbIncome vbStatement vb
6 vbReporting vband vbAnalyzing vbInventory vb
7 vbFraud, vbInternal vbControl, vband vbCash vb
8 vbReporting vband vbAnalyzing vbReceivables vb
9 vbReporting vband vbAnalyzing vbLong-Lived vbAssets vb
10 vbReporting vband vbAnalyzing vbLiabilities vb
11 vbReporting vband vbAnalyzing vbStockholders’ vbEquity vb
12 vbStatement vbof vbCash vbFlows vb
13 vbFinancial vbAnalysis: vbThe vbBig vbPicture vb
Copyright vb© vb2022 vbJohn vbWiley vb& vbSons, vbInc. vb(For
vbInstructor vbUse vbOnly)
,CHAPTER vb1
INTRODUCTION vbTO vbFINANCIAL vbSTATEMENTS
CHAPTER vbLEARNING vbOBJECTIVES
1. Identify vbthe vbforms vbof vbbusiness vborganization vband vbthe vbuses vbof vbaccounting
vbinformation. vbA vbsole vbproprietorship vbis vba vbbusiness vbowned vbby vbone vbperson. vbA
vbpartnership vbis vba vbbusiness vbowned vbby vbtwo vbor vbmore vbpeople vbassociated vbas
vbpartners. vbA vbcorporation vbis vba vbseparate vblegal vbentity vbfor vbwhich vbevidence vbof
vbownership vbis vbprovided vbby vbshares vbof vbstock. vbInternal vbusers vbare vbmanagers
vbwho vbneed vbaccounting vbinformation vbto vbplan, vborganize, vband vbrun vbbusiness
vboperations. vbThe vbprimary vbexternal vbusers vbare vbinvestors vband vbcreditors. vbInvestors
vb(stockholders) vbuse vbaccounting vbinformation vbto vbdecide vbwhether vbto vbbuy, vbhold,
vbor vbsell vbshares vbof vba vbcompany‘s vbstock. vbCreditors vb(suppliers vband vbbankers) vbuse
vbaccounting vbinformation vbto vbassess vbthe vbrisk vbof vbgranting vbcredit vbor vbloaning
vbmoney vbto vba vbbusiness. vbOther vbgroups vbwho vbhave vban vbindirect vbinterest vbin vba
vbbusiness vbare vbtaxing vbauthorities, vbcustomers, vblabor vbunions, vband vbregulatory
vbagencies.
2. Explain vbthe vbthree vbprincipal vbtypes vbof vbbusiness vbactivity. vbFinancing vbactivities
v b involve vbcollecting vbthe vbnecessary vbfunds vbto vbsupport vbthe vbbusiness. vbInvesting
vbactivities vbinvolve vbacquiring vbthe vbresources vbnecessary vbto vbrun vbthe vbbusiness.
vbOperating vbactivities vbinvolve vbputting v b the vbresources vbof vbthe vbbusiness vbinto
vbaction vbto vbgenerate vba vbprofit.
3. Describe vbthe vbfour vbfinancial vbstatements vband vbhow vbthey vbare vbprepared. vbAn
vbincome vbstatement vbpresents vbthe vbrevenues vband vbexpenses vbof vba vbcompany vbfor
vba vbspecific vbperiod vbof vbtime. vbA vbretained vbearnings vbstatement vbsummarizes vbthe
vbchanges vbin vbretained vbearnings vbthat vbhave vboccurred vbfor vba vbspecific vbperiod vbof
vbtime. vbA vbbalance vbsheet vbreports vbthe vbassets, vbliabilities, vband vbstockholders‘ vbequity
vbof vba vbbusiness vbat vba vbspecific vbdate. vbA vbstatement vbof vbcash vbflows
v b summarizes v b information vbconcerning vbthe vbcash vbinflows vb(receipts) vband vboutflows
vb(payments) vbfor vba vbspecific vbperiod vbof vbtime. vbAssets vbare vbresources vbowned vbby
vba vbbusiness. vbLiabilities vbare vbthe vbdebts vband vbobligations vbof vbthe vbbusiness.
vbLiabilities vbrepresent vbclaims vbof vbcreditors vbon vbthe vbassets vbof vbthe vbbusiness.
vbStockholders‘ vbequity vbrepresents vbthe vbclaims vbof vbowners vbon vbthe vbassets vbof vbthe
vbbusiness. vbStockholders‘ vbequity vbis vbsubdivided vbinto vbtwo vbparts: vbcommon vbstock
vband vbretained vbearnings. vbThe vbbasic vbaccounting vbequation vbis vbAssets vb= vbLiabilities
vb+ vbStockholders‘ vbEquity. vbWithin vbthe vbannual vbreport, vbthe vbmanagement vbdiscussion
vband vbanalysis vbprovides vbmanagement‘s vbinterpretation vbof vbthe vbcompany‘s vbresults
vband vbfinancial vbposition vbas vbwell vbas vba vbdiscussion vbof vbplans vbfor vbthe vbfuture.
vbNotes vbto vbthe vbfinancial vbstatements vbprovide vbadditional vbexplanation vbor vbdetail
vbto vbmake vbthe vbfinancial vbstatements vbmore vbinformative. vbThe vbauditor‘s vbreport
vbexpresses vban vbopinion vbas vbto vbwhether vbthe vbfinancial vbstatements vbpresent vbfairly
Copyright vb© vb2022 vbJohn vbWiley vb& vbSons, vbInc. vb(For
vbInstructor vbUse vbOnly)
, vbthe vbcompany‘s vbresults vbof vboperations vband vbfinancial vbposition.
*4. vbExplain vbthe vbcareer vbopportunities vbin vbaccounting. vbAccounting vboffers vbmany
vbdifferent vbjobs vbin vbfields vbsuch vbas vbpublic vband vbprivate vbaccounting, vbgovernmental,
vband vbforensic vbaccounting. vbAccounting vbis vba vbpopular vbmajor vbbecause vbthere vbare
vbmany vbdifferent vbtypes vbof vbjobs, vbwith vbunlimited vbpotential vbfor vbcareer
vbadvancement
Copyright vb© vb2022 vbJohn vbWiley vb& vbSons, vbInc. vb(For
vbInstructor vbUse vbOnly)
