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| Preface | |
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| List of Excel Templates | |
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| An Introduction to Financial Management | |
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| What Is Financial Management? | |
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| The Goals of Financial Management | |
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| Key Terms | |
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| Questions for Review | |
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| Excel Basics | |
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| Spreadsheets | |
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| What Are the Reasons We Use Electronic Spreadsheets | |
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| Getting Started with Excel | |
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| Alternative Ways to Do Computations | |
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| Setting up the Spreadsheet | |
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| Automatic Computation Updates | |
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| Copying Cells | |
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| Summary | |
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| Key Terms | |
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| Questions for Review | |
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| Additional Resources | |
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| Accounting Concepts | |
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| Basics | |
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| Assets | |
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| Liabilities | |
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| Owners' Equity | |
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| The Accounting Equation | |
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| Key Terms | |
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| Questions for Review | |
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| An Introduction to the Key Financial Statements | |
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| The Balance Sheet | |
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| The Income Statement | |
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| The Statement of Cash Flows | |
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| Cash Versus Accrual Accounting | |
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| Key Terms | |
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| Questions for Review | |
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| Where Does the Organization's Money Come From? Capital Structure | |
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| Proprietorships and Partnerships | |
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| Not-for-Profit Organizations | |
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| For-Profit Corporations | |
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| Getting Capital | |
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| Key Terms | |
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| Questions for Review | |
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| Strategic Planning and Budgeting | |
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| Definition and Role of Budgets | |
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| Strategic Plan | |
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| Long-Range Plan | |
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| Annual Budgets | |
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| Budget Preparation | |
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| Flexible Budgeting | |
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| The Cash Budget | |
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| Zero-Based Budgeting | |
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| Key Terms | |
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| Questions for Review | |
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| Business Plans | |
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| Why Develop a Business Plan? | |
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| Questions that Drive a Business Plan | |
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| The Planning Process | |
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| The Elements of a Business Plan | |
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| How a Business Plan Is Read | |
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| A Successful Business Plan | |
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| Key Terms | |
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| Questions for Review | |
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| Cost Accounting | |
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| Average vs. Marginal Costs | |
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| Cost vs. Expense: The Inventory Process | |
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| Period Costs vs. Product Costs | |
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| Cost Systems: Process, Job-Order, and Standard Costs | |
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| Cost Allocation | |
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| Key Terms | |
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| Questions for Review | |
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| Leverage | |
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| Financial Leverage | |
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| Operating Leverage | |
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| Key Terms | |
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| Questions for Review | |
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| Dealing with Uncertainty | |
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| The Expected Value Technique | |
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| Network Cost Budgeting | |
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| Key Terms | |
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| Questions for Review | |
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| Capital Budgeting | |
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| Investment Opportunities | |
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| Data Generation | |
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| The Payback Method | |
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| The Time Value of Money | |
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| The Net Present Value (NPV) Method | |
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| The Internal Rate of Return Method (ERR) | |
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| Project Ranking | |
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| Summary | |
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| Key Terms | |
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| Questions for Review | |
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| Earned Value Management | |
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| Quantifying Planned Value (PV) and Earned Value (EV) | |
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| The Method | |
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| Limitation of EVM | |
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| Benefits of EVM | |
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| Key Terms | |
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| Questions for Review | |
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| Depreciation: Having Your Cake and Eating It Too! | |
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| Amortization | |
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| Asset Valuation for Depreciation | |
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| Straight-Line vs. Accelerated Depreciation | |
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| Comparison of the Depreciation Methods | |
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| Modified Accelerated Cost Recovery System (MACRS) | |
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| Depreciation and Deferred Taxes: Accounting Magic | |
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| Key Terms | |
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| Questions for Review | |
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| Long-Term Financing | |
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| Long-Term Notes | |
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| Mortgages | |
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| Bonds | |
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| Leases | |
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| Key Terms | |
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| Questions for Review | |
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| Working Capital Management and Banking Relationships | |
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| Working Capital Management | |
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| Short-Term Resources | |
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| Short-Term Obligations | |
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| Banking Relationships | |
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| Key Terms | |
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| Questions for Review | |
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| Inventory Costing: The Accountant's World of Make Believe | |
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| The Inventory Equation | |
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| Periodic vs. Perpetual Inventory Methods | |
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| The Problem of Inflation | |
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| Cash-Flow Assumptions | |
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| Comparisons of the LIFO and FIFO Cost-Flow Assumptions | |
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| LIFO and IFRS | |
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| Key Terms | |
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| Questions for Review | |
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| Variance Analysis: Using Budgets for Control | |
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| Understanding Why Variances Occurred | |
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| Static Budgets | |
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| Flexible Budgeting | |
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| Key Terms | |
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| Questions for Review | |
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| APPENDIX-Computing Variances | |
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| Fraud | |
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| What is Fraud? | |
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| Business Fraud | |
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| Why Does Fraud Happen? | |
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| Preventing Fraud by Focusing on Ethics | |
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| Preventing Fraud through Legislation | |
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| Using Control Systems to Prevent Fraud | |
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| Key Terms | |
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| Questions for Review | |
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| The Role of the Outside Auditor | |
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| Generally Accepted Accounting Principles (GAAP) | |
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| International Financial Reporting Standards (IFRS) | |
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| The Audit | |
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| Key Terms | |
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| Questions for Review | |
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| Recording and Reporting Financial Information | |
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| Double Entry and the Accounting Equation | |
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| Debits and Credits | |
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| Ledgers | |
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| Chart of Accounts | |
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| Key Terms | |
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| Questions for Review | |
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| APPENDIX-Recording and Reporting Financial Information | |
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| Valuation of Assets, Liabilities and Stockholders' Equity | |
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| Asset Valuation | |
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| Valuation of Liabilities | |
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| Valuation of Stockholders' Equity | |
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| Key Terms | |
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| Questions for Review | |
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| A Closer Look at Financial Statements | |
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| The Balance Sheet | |
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| The Income Statement | |
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| The Statement of Cash Flows | |
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| Key Terms | |
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| Questions for Review | |
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| Notes to the Financial Statements | |
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| Significant Accounting Policies | |
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| Other Notes | |
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| Summary | |
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| Key Terms | |
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| Questions for Review | |
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| Ratio Analysis | |
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| Benchmarks for Comparison | |
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| Common Size Ratios | |
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| Liquidity Ratios | |
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| Efficiency Ratios | |
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| Solvency Ratios | |
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| Profitability Ratios | |
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| Key Terms | |
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| Questions for Review | |
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| A Primer on Taxes | |
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| How Much Do You Need to Know? | |
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| Personal vs. Corporate Taxes | |
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| The Tax Rate and the Tax Base | |
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| Progressive, Proportional, and Regressive Tax Rates | |
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| Marginal, Average, and Effective Tax Rates | |
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| Calculating Federal Income Tax | |
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| Other Concerns for Corporations | |
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| Conclusion | |
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| Key Terms | |
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| Q�estions for Review | |
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| Summary and Conclusion | |
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| Glossary | |
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| Annotated List of Web Sites Related to Finance and Accounting | |
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| Index | |