Using Financial Information and Accounting
Learning Objectives
- Why are financial reports and accounting information important, and who uses them?
- What are the differences between public and private accountants, and how has federal legislation affected their work?
- What are the six steps in the accounting cycle?
- In what terms does the balance sheet describe the financial condition of an organization?
- How does the income statement report a firm’s profitability?
- Why is the statement of cash flows an important source of information?
- How can ratio analysis be used to identify a firm’s financial strengths and weaknesses?
- What major trends affect the accounting industry today?
