Professional Documents
Culture Documents
Business Decision-Making
Kimmel Weygandt Kieso Trenholm Irvine Burnley
Chapter 1
The Purpose and Use of Financial
Statements
Copyright ©2020 John Wiley & Sons, Inc.
Learning Objectives
LO 1: Identify the uses and users of accounting.
LO 2: Describe the primary forms of business
organization.
LO 3: Explain the three main types of business activity.
LO 4: Describe the purpose and content of each of the
financial statements.
What are some ethical issues that might exist for financial
information in a local hospital?
• Forms of debt
o Bank indebtedness, bank loans, long-term debt such as
mortgages, bonds, finance leases
• Expenses
o Costs of assets consumed or services used to generate
revenues
• Net Income (loss) = Revenues − Expenses