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| Acknowledgments | |
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| Basic Concepts | |
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| Elements of the Balance Sheet | |
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| Assets | |
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| Liabilities and Equity | |
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| Dual-Aspect Concept | |
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| Money-Measurement Concept | |
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| Entity Concept | |
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| Going-Concern Concept | |
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| Asset-Measurement Concept | |
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| Balance Sheet Items | |
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| Assets | |
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| Liabilities | |
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| Current Ratio | |
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| Equity | |
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| Key Points to Remember | |
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| Balance Sheet Changes; Income Measurement | |
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| Current Assets | |
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| Noncurrent Assets | |
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| Current Liabilities | |
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| Noncurrent Liabilities | |
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| Equity | |
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| Balance Sheet Changes | |
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| Income Measurement | |
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| Key Points to Remember | |
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| Accounting Records and Systems | |
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| The Account | |
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| Rules for Increases and Decreases | |
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| Debit and Credit | |
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| Income Statement Accounts | |
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| The Ledger and the Journal | |
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| The Closing Process | |
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| A Note on Computers | |
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| Key Points to Remember | |
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| Revenues and Monetary Assets | |
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| Fiscal Year | |
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| Accrual Accounting | |
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| Conservatism Concept | |
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| Materiality Concept | |
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| Realization Concept | |
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| Service Revenue | |
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| Amount of Revenue | |
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| Monetary Assets | |
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| Days' Sales Uncollected | |
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| Key Points to Remember | |
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| Expense Measurement; The Income Statement | |
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| Expense and Expenditure | |
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| Unexpired and Expired Costs | |
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| Matching Concept | |
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| Other Assets that Will Become Expenses | |
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| Expenses that Create Liabilities | |
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| Fringe Benefits | |
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| Rent Expense | |
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| Losses | |
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| Summary of Matching Concept | |
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| An Example of Matching | |
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| The Income Statement | |
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| A Package of Accounting Reports | |
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| Income Statement Percentages | |
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| Review of Basic Concepts | |
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| Key Points to Remember | |
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| Inventories and Cost of Sales | |
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| Finding Cost of Sales | |
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| Inventory Valuation: Assumptions | |
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| First-In, First-Out (Fifo) Method | |
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| Last-In, First-Out (Lifo) Method | |
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| Average-Cost Method | |
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| Comparison of Inventory Methods | |
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| Inventory Valuation: Adjustment to Market | |
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| Inventory in a Manufacturing Company | |
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| Product Costs and Period Costs | |
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| Overhead Rates | |
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| Inventory Turnover | |
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| Key Points to Remember | |
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| Noncurrent Assets and Depreciation | |
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| Noncurrent Assets | |
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| Accounting for Acquisitions | |
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| Capital Leases | |
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| Depreciation | |
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| Depreciation Methods | |
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| Units-of-Production Depreciation | |
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| Straight-Line Depreciation | |
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| Accelerated Depreciation | |
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| Accounting for Depreciation | |
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| Sale of a PPE Asset | |
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| Significance of Depreciation | |
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| Depletion | |
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| Intangible Assets | |
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| Key Points to Remember | |
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| Liabilities and Equity | |
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| Working Capital | |
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| Sources of Capital | |
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| Debt Capital | |
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| Types of Equity Capital | |
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| Common Stock | |
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| Preferred Stock | |
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| Retained Earnings and Dividends | |
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| Distributions to Shareholders | |
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| Balance Between Debt and Equity Capital | |
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| Debt Ratio | |
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| Consolidated Financial Statements | |
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| Key Points to Remember | |
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| Statement of Cash Flows | |
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| Cash Flow from Operating Activities-Indirect Method | |
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| Adjustment for Depreciation Expense | |
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| Adjustments for Changes in Working Capital Accounts | |
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| Adjustments for Changes in Current Assets | |
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| No Change in Balance | |
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| Current Asset Balance Decreased | |
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| Current Asset Balance Increases | |
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| Analysis with Diagrams | |
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| Adjustments for Changes in Current Liabilities | |
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| Net Effect of Working Capital Changes | |
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| Summary of Operating Adjustments | |
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| Cash Flow from Investing and Financing Activities | |
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| Investing Activities | |
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| Financing Activities | |
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| Completing the Statement of Cash Flows | |
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| Uses of the Statement of Cash Flows | |
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| Key Points to Remember | |
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| Analysis of Financial Statements | |
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| Limitations of Financial Statement Analysis | |
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| Auditing | |
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| Overall Financial Measures of Performance | |
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| Factors Affecting Return on Equity | |
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| Tests of Capital Utilization | |
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| Other Measures of Performance | |
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| Comments on Profitability Measurement | |
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| Tests of Financial Condition | |
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| Dupont Analysis | |
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| Quality of Earnings | |
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| The Sarbanes-Oxley Act of 2002 | |
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| Key Points to Remember | |
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| Nonprofit Financial Statements | |
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| Nonprofit Organizations | |
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| Different Missions and Goals | |
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| Net Assets | |
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| Revenues, Expenses, and Investments | |
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| Transfers | |
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| Similarities to Financial Statement of Corporations | |
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| Limitations of Ratio Analysis | |
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| Key Points to Remember | |
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| International Financial Reporting Standards (IFRS) | |
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| Gaap and IFRS: Similarities and Differences | |
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| Revenue Recognition | |
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| Inventory | |
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| Non-Current Assets and Depreciation (Property, Plant, and Equipment) | |
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| Financial Statement Presentation | |
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| Consolidated Financial Statements | |
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| Key Points to Remember | |
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| Concluding Note | |
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| Glossary | |