FINANCIAL ACCOUNTING - Sacramento State（财务会计-萨克拉门托的状态）.pdf

FINANCIAL ACCOUNTING Robert Libby Patricia A. Libby Daniel G. Short Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2001 Chapter 1 Financial Statements and Business Decisions Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2001 The Objectives of Financial Accounting Financial statements are the primary means of communicating financial information to parties outside the business organization. Balance Sheet Income Statement Stakeholders Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2001 Business Background Business owners (called investors or stockholders) look for two sources of possible gain: Sell Receive a ownership portion of the interest in the company’s future for more earnings in cash than they (dividends). paid. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2001 Business Background Creditors lend money to a company for a specific length of time and gain by charging interest on the money loaned. Loan