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一、accounting is the summary and analysis of a firm's financial condition. The accounting process generates financial statements,which provide detailed information about a firm's recent performance and its financial condition. Managers of all types of firms use financial statements to assess their performance and to make business decisions. Consider the situation of Surf Clothing Company, which produces clothing that it sells in its retail stores. Surf Clothing wants to monitor its business performance so that it can detect any deficiencies that need to be corrected. It also wants to determine whether its financial condition is adequate to support the expansion of its business in the near future. Surf Clothing Company must decide.
How can it measure its recent performance?
How can it ensure that its finacial statements are accurate?
How can it assess its present financial condition?
How can it apply ratio analysis?
Surf Clothing Company can assess its fi

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