Review of Accounting参考.pptVIP

Review of Accounting 2 Chapter 2 - Outline What is Accounting? The Income Statement (I/S) The Price/Earnings Ratio The Balance Sheet (B/S) Comparison of Market Value to Book Value Limitations of Financial Statements The Statement of Cash Flows (CFs) Comparison of Accounting and Cash Flows Income Tax Considerations Summary and Conclusions What is Accounting? Accounting provides financial information about a business Of interest to stakeholders in business: shareholders managers creditors governments Information is used to make decisions about a business Financial statements sum