By W. Steve Albrecht, Earl K. Stice, James D. Stice
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Extra resources for Financial Accounting Eleventh Edition
Reports the resources of a company (the assets), the company’s obligations (the liabilities), and the owners’ equity, which represents the difference between what is owned (assets) and what is owed (liabilities). The income statement. Reports the amount of net income earned by a company during a period. The statement of cash ﬂows. Reports the amount of cash collected and paid out by a company in the following three types of activities: operating, investing, and ﬁnancing. ﬁnancial statements Reports such as the balance sheet, income statement, and statement of cash ﬂows, which summarize the ﬁnancial status and results of operations of a business entity.
He won the Phi Beta Kappa teaching award at Rice University, was twice selected as one of the ten best lecturers on campus at HKUST, and has won the Marriott School Teaching Award at BYU. Dr. Stice also has taught in a variety of executive education and corporate training programs in the United States, Hong Kong, China, Malaysia, and South Africa, and he has been on the executive MBA faculty of the China Europe International Business School in Shanghai, HKUST, the University of Illinois, and INSEAD (in Singapore).
Wal-Mart, for example, uses the earnings from its operations to open new stores and purchase inventory for those new stores. Once the new stores are opened, they produce more funds that can then be used to open more stores. Wal-Mart also distributes many of its resources back to its owners. Owners also receive a return on their investment through increases in the value of the stock. Accountants play two roles with regard to these activities. • accounting cycle The procedure for analyzing, recording, classifying, summarizing, and reporting the transactions of a business.