O'Reilly logo

Financial Accounting: Tools for Business Decision Making, 7th Edition by Donald E. Kieso, Jerry J. Weygandt, Paul D. Kimmel

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 2

image

A FURTHER LOOK AT FINANCIAL STATEMENTS

image

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

  1. Identify the sections of a classified balance sheet.
  2. Identify tools for analyzing financial statements and ratios for computing a company's profitability.
  3. Explain the relationship between a retained earnings statement and a statement of stockholders’ equity.
  4. Identify and compute ratios for analyzing a company's liquidity and solvency using a balance sheet.
  5. Use the statement of cash flows to evaluate solvency.
  6. Explain the meaning of generally accepted accounting principles.
  7. Discuss financial reporting concepts.

image

Feature Story

image

JUST FOOLING AROUND?

Few people could have predicted how dramatically the Internet would change the investment world. One of the most interesting results is how it has changed the way ordinary people invest their savings. More and more people are striking out on their own, making their own investment decisions.

Two early pioneers in providing investment information to the masses were Tom and David Gardner, brothers who created an online ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required