“Success is usually judged by value: Shareholders are made better off by any decision which increases the value of their stake in the firm.”
Brealey and Myers (1988)
After studying this chapter, you should be able to:
Understand the objectives and rationale of financial reporting.
Discuss the elements of financial statements.
Understand how to recognize and measure financial information.
Look at accounting statement preparation and presentation.
Understand the concepts of income and wealth.
Discuss the concepts of capital and revenue.
Define the T account and the trial balance.
Understand the company's annual report.
Xerox Corporation is a well-known photocopy ...