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| Introduction: Getting Started in Business | |
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| The Finish Line, Inc.: Making Business Decisions | |
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| What Is Business? | |
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| Forms of Organization | |
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| Business Entities | |
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| Nonbusiness Entities | |
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| Organizations and Social Responsibility | |
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| The Nature of Business Activity | |
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| Financing Activities | |
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| Investing Activities | |
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| Operating Activities | |
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| Starting Your Study of Accounting | |
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| Accounting as a Form of Communication | |
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| The Finish Line, Inc.: Making Business Decisions | |
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| What Is Accounting? | |
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| Users of Accounting Information and Their Needs | |
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| Internal Users | |
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| External Users | |
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| Using Financial Accounting Information | |
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| Using the Ratio Decision Model: A Financial Decision Framework | |
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| Financial Statements: How Accountants Communicate | |
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| The Accounting Equation | |
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| The Balance Sheet | |
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| The Income Statement | |
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| The Statement of Retained Earnings | |
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| The Statement of Cash Flows | |
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| Relationships Among the Financial Statements | |
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| Looking at Financial Statements for a Real Company: Finish Line | |
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| Finish Line's Balance Sheet | |
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| Finish Line's Income Statement | |
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| The Conceptual Framework: Foundation for Financial Statements | |
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| Conceptual Framework for Accounting | |
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| Economic Entity Concept | |
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| Cost Principle | |
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| Going Concern | |
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| Time Period Assumption | |
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| Generally Accepted Accounting Principles | |
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| Accounting as a Social Science | |
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| Who Determines the Rules of the Game? | |
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| Introduction to Ethics in Accounting | |
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| Accountants and Ethical Judgments | |
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| The Changing Face of the Accounting Profession | |
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| The Accounting Profession | |
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| Employment by Private Business | |
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| Employment by Nonbusiness Entities | |
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| Employment in Public Accounting | |
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| Accountants in Education | |
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| Accounting as a Career | |
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| Each chapter contains some or all of the following end-of-chapter material | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Financial Statements and the Annual Report | |
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| The Finish Line, Inc.: Making Business Decisions | |
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| What Financial Statements Tell about a Business | |
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| Objectives of Financial Reporting | |
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| The Primary Objective of Financial Reporting | |
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| Secondary Objectives of Financial Reporting | |
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| What Makes Accounting Information Useful? Qualitative Characteristics | |
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| Understandability | |
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| Relevance | |
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| Reliability | |
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| Comparability and Consistency | |
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| Materiality | |
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| Conservatism | |
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| Financial Reporting: An International Perspective | |
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| Looking at Financial Statements | |
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| What Are the Parts of the Balance Sheet? Understanding the Operating Cycle | |
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| The Classified Balance Sheet | |
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| Current Assets | |
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| Noncurrent Assets | |
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| Current Liabilities | |
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| Long-Term Liabilities | |
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| Stockholders' Equity | |
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| Using a Classified Balance Sheet: Introduction to Ratios | |
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| Working Capital | |
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| Current Ratio | |
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| The Income Statement | |
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| What Appears on the Income Statement? | |
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| Format of the Income Statement | |
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| Using an Income Statement | |
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| The Statement of Retained Earnings | |
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| The Statement of Cash Flows | |
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| Looking at Financial Statements for a Real Company: The Finish Line, Inc. | |
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| Finish Line's Condensed Balance Sheet | |
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| Using the Ratio Decision Model: Analyzing the Current Ratio | |
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| Finish Line's Income Statement | |
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| Using the Ratio Decision Model: Analyzing the Profit Margin | |
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| Other Elements of an Annual Report | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Processing Accounting Information | |
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| Foot Locker, Inc.: Making Business Decisions | |
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| Economic Events: The Basis for Recording Transactions | |
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| External and Internal Events | |
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| The Role of Source Documents in Recording Transactions | |
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| Analyzing the Effects of Transactions on the Accounting Equation | |
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| Balance Sheet and Income Statement for Glengarry Health Club | |
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| What Is an Account? | |
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| Chart of Accounts | |
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| The General Ledger | |
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| Processing Accounting Information | |
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| Accounting Tools: The Double-Entry System | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Income Measurement and Accrual Accounting | |
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| Foot Locker, Inc.: Making Business Decisions | |
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| Recognition and Measurement in Financial Statements | |
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| Recognition | |
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| Measurement | |
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| Summary of Recognition and Measurement in Financial Statements | |
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| The Accrual Basis of Accounting | |
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| Comparing the Cash and Accrual Bases of Accounting | |
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| What the Income Statement and the Statement of Cash Flows Reveal | |
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| Accrual Accounting and Time Periods | |
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| The Revenue Recognition Principle | |
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| Expense Recognition and the Matching Principle | |
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| Accrual Accounting and Adjustments | |
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| Types of Adjustments | |
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| Accruals and Deferrals | |
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| Summary of Adjustments | |
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| Comprehensive Example of Adjustments | |
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| Adjustments at the End of January | |
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| Income Statement and Balance Sheet for Duffy Transit | |
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| Ethical Considerations for a Company on the Accrual Basis | |
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| The Accounting Cycle | |
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| The Use of a Work Sheet | |
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| The Closing Process | |
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| Interim Financial Statements | |
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| Integrative Problem | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Inventories and Cost of Goods Sold | |
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| The Finish Line, Inc.: Making Business Decisions | |
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| The Nature of Inventory | |
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| Three Types of Inventory Cost and Three Forms of Inventory | |
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| The Income Statement for a Merchandiser | |
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| Net Sales of Merchandise | |
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| Sales Returns and Allowances | |
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| Credit Terms and Sales Discounts | |
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| The Cost of Goods Sold | |
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| The Cost of Goods Sold Model | |
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| Inventory Systems: Perpetual and Periodic | |
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| Beginning and Ending Inventories in a Periodic System | |
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| The Cost of Goods Purchased | |
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| The Gross Profit Ratio | |
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| Using the Ratio Decision Model: Analyzing the Gross Profit Ratio | |
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| Inventory Valuation and the Measurement of Income | |
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| Inventory Costs: What Should Be Included? | |
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| Inventory Costing Methods with a Periodic System | |
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| Specific Identification Method | |
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| Weighted Average Cost Method | |
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| First-in, First-out Method (FIFO) | |
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| Last-in, First-out Method (LIFO) | |
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| Selecting an Inventory Costing Method | |
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| Costing Methods and Cash Flow | |
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| LIFO Liquidation | |
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| The LIFO Conformity Rule | |
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| The LIFO Reserve: Estimating LIFO's Effect on Income and on Taxes Paid | |
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| Costing Methods and Inventory Profits | |
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| Changing Inventory Methods | |
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| Inventory Valuation in Other Countries | |
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| Inventory Errors | |
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| Valuing Inventory at Lower of Cost or Market | |
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| Why Replacement Cost Is Used as a Measure of Market | |
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| Conservatism Is the Basis for the Lower-of-Cost-or-Market Rule | |
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| Application of the LCM Rule | |
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| Methods for Estimating Inventory Value | |
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| Gross Profit Method | |
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| Retail Inventory Method | |
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| Analyzing the Management of Inventory | |
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| Using the Ratio Decision Model: Analyzing the Management of Inventory | |
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| How Inventories Affect the Cash Flows Statement | |
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| Accounting Tools: Inventory Costing Methods with the Use of a Perpetual Inventory System | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Cash and Internal Control | |
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| The Finish Line, Inc.: Making Business Decisions | |
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| What Constitutes Cash? | |
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| Cash Equivalents and the Statement of Cash Flows | |
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| Control over Cash | |
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| Cash Management | |
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| Reading a Bank Statement | |
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| The Bank Reconciliation | |
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| The Bank Reconciliation and the Need for Adjustments to the Records | |
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| Establishing a Petty Cash Fund | |
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| An Introduction to Internal Control | |
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| The Sarbanes-Oxley Act of 2002 | |
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| The Control Environment | |
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| The Accounting System | |
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| Internal Control Procedures | |
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| Limitations on Internal Control | |
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| Computerized Business Documents and Internal Control | |
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| Control over Cash Receipts | |
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| The Role of Computerized Business Documents in Controlling Cash Disbursements | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Investments and Receivables | |
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| Apple Computer Company: Making Business Decisions | |
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| Accounting for Investments | |
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| Investments in Highly Liquid Financial Instruments | |
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| Investing Idle Cash | |
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| Accounting for an Investment in a Certificate of Deposit (CD) | |
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| Investments in Stocks and Bonds | |
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| Accounts Receivable | |
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| The Use of a Subsidiary Ledger | |
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| The Valuation of Accounts Receivable | |
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| Two Methods to Account for Bad Debts | |
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| Write-Offs of Uncollectible Accounts with the Allowance Method | |
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| Two Approaches to the Allowance Method of Accounting for Bad Debts | |
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| The Accounts Receivable Turnover Ratio | |
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| Using the Ratio Decision Model: Analyzing the Accounts Receivable Rate of Collection | |
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| Notes Receivable | |
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| Important Terms Connected with Promissory Notes | |
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| Accelerating the Inflow of Cash from Sales | |
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| Credit Card Sales | |
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| Discounting Notes Receivable | |
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| How Liquid Assets Affect the Statement of Cash Flows | |
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| Accounting for Investments in Stocks and Bonds | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Operating Assets: Property, Plant, and Equipment, Natural Resources, and Intangibles | |
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| Nike: Making Business Decisions | |
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| Operating Assets: Property, Plant, and Equipment | |
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| Balance Sheet Presentation | |
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| Acquisition of Property, Plant, and Equipment | |
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| Use and Depreciation of Property, Plant, and Equipment | |
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| Capital versus Revenue Expenditures | |
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| Environmental Aspects of Operating Assets | |
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| Disposal of Property, Plant, and Equipment | |
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| Operating Assets: Natural Resources | |
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| Balance Sheet Presentation | |
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| Depletion of Natural Resources | |
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| Operating Assets: Intangible Assets | |
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| Balance Sheet Presentation | |
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| Acquisition Cost of Intangible Assets | |
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| Amortization of Intangibles | |
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| How Long-Term Assets Affect the Statement of Cash Flows | |
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| Analyzing Long-Term Assets for Average Life and Asset Turnover | |
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| Using the Ratio Decision Model: Analyzing Average Life and Asset Turnover | |
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| Integrative Problem | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Current Liabilities, Contingencies, and the Time Value of Money | |
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| Jacuzzi: Making Business Decisions | |
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| Current Liabilities | |
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| Accounts Payable | |
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| Notes Payable | |
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| Current Maturities of Long-Term Debt | |
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| Taxes Payable | |
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| Other Accrued Liabilities | |
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| Reading the Statement of Cash Flows for Changes in Current Liabilities | |
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| Contingent Liabilities | |
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| Contingent Liabilities That Are Recorded | |
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| Contingent Liabilities That Are Disclosed | |
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| Contingent Liabilities versus Contingent Assets | |
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| Time Value of Money Concepts | |
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| Simple Interest | |
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| Compound Interest | |
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| Interest Compounding | |
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| Future Value of a Single Amount | |
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| Present Value of a Single Amount | |
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| Future Value of an Annuity | |
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| Present Value of an Annuity | |
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| Solving for Unknowns | |
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| Accounting Tools: Payroll Accounting | |
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| Accounting Tools: Using Excel for Problems Involving Interest Calculations | |
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| |
| Study Highlights | |
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| |
| Ratio Review | |
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| |
| Accounts Highlighted | |
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| |
| Key Terms Quiz | |
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| |
| Alternate Terms | |
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| |
| Warmup Exercises & Solutions | |
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| |
| Review Problem & Solution | |
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| |
| Questions | |
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| |
| Exercises | |
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| Multi-Concept Exercises | |
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| |
| Problems | |
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| |
| Multi-Concept Problems | |
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| |
| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| |
| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Long-Term Liabilities | |
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| Coca-Cola: Making Business Decisions | |
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| Balance Sheet Presentation | |
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| Bonds Payable | |
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| Characteristics of Bonds | |
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| Issuance of Bonds | |
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| Factors Affecting Bond Price | |
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| Premium or Discount on Bonds | |
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| Bond Amortization | |
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| Redemption of Bonds | |
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| Liability for Leases | |
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| Leases | |
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| Analyzing Debt to Assess a Firm's Ability to Pay Its Liabilities | |
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| How Long-Term Liabilities Affect the Statement of Cash Flows | |
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| Using the Ratio Decision Model: Analyzing the Debt-to-Equity and Times Interest Earned Ratios | |
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| |
| Accounting Tools: Other Liabilities | |
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| |
| Study Highlights | |
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| |
| Ratio Review | |
| |
| |
| Accounts Highlighted | |
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| |
| Key Terms Quiz | |
| |
| |
| Alternate Terms | |
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| |
| Warmup Exercises & Solutions | |
| |
| |
| Review Problem & Solution | |
| |
| |
| Questions | |
| |
| |
| Exercises | |
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| |
| Multi-Concept Exercises | |
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| |
| Problems | |
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| |
| Multi-Concept Problems | |
| |
| |
| Alternate Problems | |
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| |
| Alternate Multi-Concept Problems | |
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| |
| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Stockholders' Equity | |
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| Jacuzzi: Making Business Decisions | |
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| An Overview of Stockholders' Equity | |
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| Equity as a Source of Financing | |
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| Stockholders' Equity on the Balance Sheet | |
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| How Income and Dividends Affect Retained Earnings | |
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| Identifying the Components of the Stockholders' Equity Section of the Balance Sheet | |
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| What Is Preferred Stock? | |
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| Issuance of Stock | |
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| Stock Issued for Cash | |
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| Stock Issued for Noncash Consideration | |
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| What Is Treasury Stock? | |
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| Retirement of Stock | |
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| Dividends: Distribution of Income to Shareholders | |
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| Cash Dividends | |
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| Cash Dividends for Preferred and Common Stock | |
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| Stock Dividends | |
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| Stock Splits | |
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| Statement of Stockholders' Equity | |
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| What Is Comprehensive Income? | |
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| What Analyzing Stockholders' Equity Reveals About a Firm's Value | |
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| Book Value per Share | |
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| Using the Ratio Decision Model: Analyzing Book Value per Share | |
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| Calculating Book Value When Preferred Stock Is Present | |
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| Market Value per Share | |
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| How Changes in Stockholders' Equity Affect the Statement of Cash Flows | |
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| Accounting Tools: Unincorporated Businesses | |
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| Integrative Problem | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| The Statement of Cash Flows | |
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| Best Buy: Making Business Decisions | |
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| Cash Flows and Accrual Accounting | |
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| Purpose of the Statement of Cash Flows | |
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| An Example | |
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| Reporting Requirements for a Statement of Cash Flows | |
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| The Definition of Cash: Cash and Cash Equivalents | |
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| Classification of Cash Flows | |
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| Two Methods of Reporting Cash Flow from Operating Activities | |
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| Noncash Investing and Financing Activities | |
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| How the Statement of Cash Flows Is Put Together | |
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| The Accounting Equation and the Statement of Cash Flows | |
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| An Approach to Preparing the Statement of Cash Flows: Direct Method | |
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| An Approach to Preparing the Statement of Cash Flows: Indirect Method | |
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| Comparison of the Indirect and Direct Methods | |
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| The Use of Cash Flow Information | |
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| Creditors and Cash Flow Adequacy | |
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| Using the Ratio Decision Model: Analyzing Cash Flow Adequacy | |
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| Stockholders and Cash Flow per Share | |
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| Accounting Tools: A Work-Sheet Approach to the Statement of Cash Flows | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Financial Statement Analysis | |
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| Wm. Wrigley Jr. Company: Making Business Decisions | |
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| Precautions in Statement Analysis | |
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| Watch for Alternative Accounting Principles | |
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| Take Care When Making Comparisons | |
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| Understand the Possible Effects of Inflation | |
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| Analysis of Comparative and Common-Size Statements | |
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| Horizontal Analysis | |
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| Vertical Analysis | |
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| Liquidity Analysis and the Management of Working Capital | |
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| Working Capital | |
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| Current Ratio | |
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| Acid-Test Ratio | |
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| Cash Flow from Operations to Current Liabilities | |
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| Accounts Receivable Analysis | |
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| Inventory Analysis | |
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| Cash Operating Cycle | |
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| Solvency Analysis | |
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| Debt-to-Equity Ratio | |
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| Times Interest Earned | |
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| Debt Service Coverage | |
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| Cash Flow from Operations to Capital Expenditures Ratio | |
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| Profitability Analysis | |
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| Rate of Return on Assets | |
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| Components of Return on Assets | |
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| Return on Common Stockholders' Equity | |
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| Return on Assets, Return on Equity, and Leverage | |
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| Earnings per Share | |
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| Price/Earnings Ratio | |
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| Dividend Ratios | |
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| Summary of Selected Financial Ratios | |
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| Accounting Tools: Reporting and Analyzing Other Income Statement Items | |
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| Integrative Problem | |
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| Study Highlights | |
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| Ratio Review | |
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| Accounts Highlighted | |
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| Key Terms Quiz | |
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| Alternate Terms | |
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| Warmup Exercises & Solutions | |
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| Review Problem & Solution | |
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| Questions | |
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| Exercises | |
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| Multi-Concept Exercises | |
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| Problems | |
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| Multi-Concept Problems | |
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| Alternate Problems | |
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| Alternate Multi-Concept Problems | |
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| Decision Cases | |
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| Solutions to Key Terms Quiz | |
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| Excerpts from the Finish Line, Inc., Form 10-K for 2006 | |
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| Excerpts from Foot Locker, Inc., Form 10-K for 2005 | |
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| Glossary | |
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| Comprehensive Index | |