《financial Accouning, 9e财务会计 Warren》ch01.pptVIP

The Process of Providing Information The Process of Providing Information Financial Statements Income statement—A summary of the revenue and expenses for a specific period of time. Statement of owner’s equity—A summary of the changes in the owner’s equity that have occurred during a specific period of time. Balance sheet—A list of the assets, liabilities, and owner’s equity as of a specific date. Statement of cash flows—A summary of the cash receipts and disbursements for a specific period of time. * * Chapter 1 Introduction to Accounting and Business Accounting, 21st Edition Warren Reeve Fess Manufacturing Business Product General Motors Cars, trucks, vans Intel Computer chips Boeing Jet aircraft Nike Athletic shoes and apparel Coca-Cola Beverages Sony Stereos and television Types of Businesses Merchandising Business Product Wal-Mart General merchandise Toys “R” Us Toys Circuit City Consumer electronics Lands’ End Apparel A Internet books, music, video retailer Types of Businesses Service Business Product Disney Entertainment Delta Air Lines Transportation Marriott Hotels Hospitality and lodging Merrill Lynch Financial advice Sprint Telecommunication Types of Businesses There are three types of business organizations Proprietorship Partnership Corporation Business Strategies A business strategy is an integrated set of plans and actions designed to enable the business to gain an advantage over its competitors, and in doing so, to maximize its profits. Business Strategies Under a low-cost strategy, a business designs and produces products or services of acceptable quality at a cost lower than that of its competitors. Wal-Mart Southwest Airlines Business Strategies Under a differential strategy, a business designs and produces products or services that possess unique attributes or characteristics which customers are willing to pay a premium price. Maytag Tommy Hilfiger Value Chain of a Business A value