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【正文】 al Financial Reports – A letter from corporate management – Management’s discussion and analysis of past and possible future transactions, events, circumstances – Financial statements – Footnotes explaining many elements of the financial statements in more detail – Independent auditor’s report – A statement of management’s responsibility for preparation of the financial statements – Other corporate information 169。 2020 Pearson Education Introduction to Financial Accounting, 10/e 6 of 35 LO 1 Accounting and DecisionMaking ? Sequence of Events Leading to Financial Statements Found in Those Reports 1. Measurable economic event occurs 2. Private (work for the reporting entity) bookkeepers/accountants analyze event to determine what elements/accounts are affected, then record the event into records 3. Records are summarized into financial statements 4. Financial reports that include the statements are provided to users who make decisions 169。 2020 Pearson Education Introduction to Financial Accounting, 10/e 7 of 35 LO 1 Accounting and DecisionMaking ? Characteristics of Financial Reports – Prepared by management – Provided to outsiders quarterly and annually – Primarily about past transactions and events – Tell very little about future transactions, events, or circumstances ? Financial Statements (part of those reports) – Balance Sheet – Ine Statement – Statement of Cash Flows – Statement of Stockholders’ Equity 169。 2020 Pearson Education Introduction to Financial Accounting, 10/e 8 of 35 LO 1 Accounting and DecisionMaking ? Accessing Financial Reports and Statements – Available to all via the Inter from pany’s website – Formally sent or made available to owners by preparer – Formally filed with the . Government (
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