Why are finacial statements usefuI?Becaase they help investor and creditors make better economic decisions．The goal of this book is to enhance financial statement users' understanding of financlal reporting in order to facilitate improved decision making．We will examine the impact of the difierential application of accounting methods and estimates on financial statements．with particular emphasis on the effect of'accounting choices on reported earmngs，stockholders’equity，cash flow，and various measures of corporate performance(including．but not limited to，financiaI ratios)．We wilI also stress the use of cash flow analysis to evaluate the finaneiaI health of an enterprise．