Understanding Financial Statements

A supplementary text for a variety of Business courses, including Financial Statement Analysis, Investments, Personal ¿Finance, and Financial Planning and Analysis

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An Analytical Approach to Understanding and Interpreting Business Financial Statements

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Understanding Financial Statements improves the student’s ability to translate a financial statement into a meaningful map for business decisions. The material covered in each chapter helps students approach financial statements with enhanced confidence and understanding of a firm’s historical, current, and prospective financial condition and performance. The Eleventh Edition includes new case studies based on existing companies and enhanced learning tools to help students quickly grasp and apply the materials. Fraser and Ormiston presents material in an engaging fashion that helps readers make sense of complex financial information, leading to intelligent (and profitable!) decision-making.

Lyn M. Fraser has taught undergraduate and graduate classes in financial statement analysis at Texas A&M University and has conducted numerous seminars on the subject for executive development and continuing education courses. A Certified Public Accountant, she is the co-author with Aileen Ormiston of Understanding the Corporate Annual Report: Nuts, Bolts, and a Few Loose Screws (Prentice Hall, 2003) and has published articles in the Journal of Accountancy, the Journal of Commercial Bank Lending, the Magazine of Bank Administration, and the Journal of Business Strategies. She has been recognized for Distinguished Achievement in Teaching by the Former Students Association at Texas A&M University and is a member of Phi Beta Kappa. Lyn’s most recent publication is a new mystery novel, “Debits and Credits”, published by Mainly Murder Press in 2014.

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Aileen Ormiston teaches in the Accounting Department in the W.P. Carey School of Business at Arizona State University and has taught in the MBA, honors, and online programs. She received her bachelor’s degree in accounting from Michigan State University and a master’s degree in finance from Texas A&M University. Prior to embarking on her teaching career, Aileen worked in cost accounting and also as an auditor in public accounting. She taught accounting and general business courses for 30 years at Mesa Community College, one of 13 universities and colleges that received a grant from the Accounting Education Change Commission. As a result of her pioneering work in changing accounting education, she was the recipient of the “Innovator of the Year” award from the League for Innovation in the Community College. For her service to honors students, Aileen has been named a Phi Theta Kappa mentor.

Preface to the Eleventh Edition

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Organization of the Eleventh Edition

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Uses for the Eleventh Edition

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Acknowledgments

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About the Authors

1. Financial Statements: An Overview
2. The Balance Sheet
3. Income Statement and Statement of Stockholders’ Equity
4. Statement of Cash Flows
5. The Analysis of Financial Statements

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Appendixes

A.¿¿¿¿Summary of Financial Ratios

B.¿¿¿¿Solutions to Self-Tests

C.¿¿¿¿Glossary

Index

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