| |
| |
| |
| Introduction: Why Keep Score? | |
| |
| |
| Users of this Book | |
| |
| |
| Scorekeeping | |
| |
| |
| Definition of Accounting | |
| |
| |
| Limitations of Accounting Information | |
| |
| |
| Audiences for Accounting Information | |
| |
| |
| Different Messages for Different Audiences | |
| |
| |
| Accounting in the World of Business | |
| |
| |
| Accounting in Nonprofit and Governmental Organizations | |
| |
| |
| Useful Nonaccounting Information | |
| |
| |
| Importance of Personal Motivations | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| Accounting Framework: The Concept of Value | |
| |
| |
| Accounting Equation | |
| |
| |
| How Is Owners' Equity Created? | |
| |
| |
| Valuation Methods | |
| |
| |
| Valuing a Loan or Note | |
| |
| |
| Valuing Common Stock Securities | |
| |
| |
| Calculating Time-Adjusted Values | |
| |
| |
| Valuing Personal and Company Assets | |
| |
| |
| Choosing Among Valuation Methods | |
| |
| |
| Challenge of Alternative Valuation Methods | |
| |
| |
| Dominance of the Cost Value Method | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| |
| Interest Tables for Calculating Time-Adjusted Values (Present Worth) | |
| |
| |
| Exercises | |
| |
| |
| |
| Financial Position: The Balance Sheet | |
| |
| |
| Key Accounting Reports | |
| |
| |
| Features of the Balance Sheet | |
| |
| |
| More Accounting Definitions and Conventions | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| Financial Performance: The Income Statement | |
| |
| |
| Definition of Revenue, Sales, and Expenses | |
| |
| |
| Statement Format | |
| |
| |
| Recording Sales Transactions | |
| |
| |
| Operating Expenses | |
| |
| |
| Accounting Period | |
| |
| |
| When Is Income Earned and When Are Expenses Incurred?Accrual Concept | |
| |
| |
| Example: Accounting for a Full Period | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| Cash Flow Statement | |
| |
| |
| Why a Cash Flow Statement? | |
| |
| |
| Sources and Uses of Cash | |
| |
| |
| Example: Metcalfe Company | |
| |
| |
| Interpretation | |
| |
| |
| Other Examples | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| Principles, Rules, and Mechanics of Financial Accounting | |
| |
| |
| A Brief Review | |
| |
| |
| Principles | |
| |
| |
| Specific Rules | |
| |
| |
| Role of the CPA Auditor | |
| |
| |
| How Good Are These Principles and Rules?Income Taxes and Accounting Rules | |
| |
| |
| Accounting Mechanics | |
| |
| |
| Chart of Accounts | |
| |
| |
| Three Key Elements of Accounting Systems | |
| |
| |
| Accounting Cycle | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| Further Refinements in Valuation | |
| |
| |
| Prepaids and Accruals | |
| |
| |
| Reminder: Principle of Materiality | |
| |
| |
| Liabilities Created by Today's Operations | |
| |
| |
| Accounting for Accounts Receivable | |
| |
| |
| Accounting for Inventory | |
| |
| |
| Accounting for Price-Level Changes | |
| |
| |
| Accounting for Currency Fluctuations | |
| |
| |
| Exceptions to the Accrual Concept and the Realization Principle | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| Accounting for Long-Term Assets | |
| |
| |
| Valuing Fixed Assets | |
| |
| |
| Income Tax Considerations | |
| |
| |
| Accounting for Other Long-Term Assets | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| What Can Financial Statements Tell Us?Ratio Analysis | |
| |
| |
| Categories of Ratios | |
| |
| |
| Interpreting Ratios | |
| |
| |
| Linkage Among Operating Ratios | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| Accounting and Financial Markets | |
| |
| |
| Types of Securities | |
| |
| |
| Markets | |
| |
| |
| Investment Ratios | |
| |
| |
| Interpreting Investment Ratios | |
| |
| |
| Designing a Capital Structure | |
| |
| |
| Upside and Downside of Debt Leverage | |
| |
| |
| Introduction to the Cost of Capital | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| Digging Deeper | |
| |
| |
| Framework for Financial Statement Analysis | |
| |
| |
| ''Cooking the Books'' | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| Financial Markets and Capital Investment Decisions | |
| |
| |
| Concept of a ''Hurdle Rate'' | |
| |
| |
| Weighted-Average Cost of Capital | |
| |
| |
| Calculating Returns | |
| |
| |
| Decision Criteria | |
| |
| |
| Some Everyday Applications of These Techniques | |
| |
| |
| Adjusting for Risk | |
| |
| |
| Adjusting for Inflation | |
| |
| |
| Summary | |
| |
| |
| New Terms | |
| |
| |
| Exercises | |
| |
| |
| |
| Analyzing Manufacturing Costs: Introduction to Cost Accounting | |
| |
| |
| What Questions? Why? For Whom? | |
| |
| |
| Reminder | |