2
Chapter
2
Investing
and
financing
decisions
and
the
Accounting
System
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
McGraw­Hill/Irwin
Copyright © 2014 by The McGraw­Hill Companies, Inc. All rights reserved.-1
Understanding
the
Business
To
understand
amounts
appearing
on
a
company’s
balance
sheet
we
need
to
answer
these
questions:
What
business
activities cause
changes in
the balance
sheet?
How do
specific
activities
affect each
balance?
How do
companies
keep track of
balance sheet
amounts?
2-2
The
Conceptual
Framework
2-3