Chapter: Introduction

Outsider Perspective: What Do I See?

• Things to look for on all financial statements
• Top-down perspective of balance sheets

Insider Perspective:  What’s Behind the Numbers?

• Framing record keeping and reporting
• Recording entries using the balance-sheet equation
• Recording entries using journal entries
• Accounting judgment: Basics

Outsider Perspective: How Do I Use the Numbers?

• Analyzing financial condition: Basics
• Connecting preparers' and users' decisions
• Factors driving dispersion of measures