Page 433 - Introduction to Business

12

Financial Reporting

Introduction Learning Objectives
The Purpose of Financial Reporting After studying this chapter, you should be able to
The Four Financial Statements 1 Explain the role of financial reporting.
Income Statement
2 Define the components of the four
Statement of Retained Earnings financial statements.
Balance Sheet
3 Describe the contribution of auditing
Statement of Cash Flows to the usefulness of financial reporting.
Relationships Among Financial Statements
4 Explain the steps in foreign currency
Auditing the Financial Statements translation, a necessary element in
External or Financial Statement Audit financial reporting of multinational
business firms.
Audit Steps
Audit Evidence 5 Discuss the impact of technology, par-
Impact of Computerization ticularly resources on the Web, on
accounting.
Foreign Currency Translation
Current Rate Method
Temporal Rate Method

The Impact of Technology
American Institute of CPAs Top Ten
Technologies
Accounting and Auditing Resources
on the Web

Careers in Accounting

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