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Preface | |
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The Accounting Equation | |
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The Art of Accounting | |
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What Is Accounting? | |
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Who Uses Accounting Information? | |
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What Information Does an Accountant Gather? | |
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What Are Assets? | |
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Keeping Track of Assets | |
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Types of Assets | |
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A Common Way to Express Assets | |
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Determining the Money Value of Assets | |
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Basic Business Organization Forms | |
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How Is the Proprietor's Ownership Expressed? | |
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Proprietor's Contributions | |
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Assets = Capital | |
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How Are Borrowed Assets Expressed? | |
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Expressing Borrowed Assets | |
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The Accounting Equation | |
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What Are Revenue, Expenses, and Profit? | |
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Recording Revenue | |
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Recording Expenses | |
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How Revenue and Expenses Affect Capital | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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Financial Statements | |
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What Are Financial Statements? | |
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The Income Statement | |
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The Statement of Capital | |
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The Balance Sheet | |
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The Report and Account Forms | |
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The Classified Balance Sheet | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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Recording Business Transactions | |
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What Are Business Transactions? | |
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Information to Keep Track Of | |
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Changes Resulting from a Business Transaction | |
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Where to Record Business Transactions | |
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The Account | |
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The Standard Form of the Ledger Account | |
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Making Entries in Ledger Accounts | |
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Recording Asset Changes | |
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Recording Changes in Liability and Permanent Capital Accounts | |
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Analyzing Business Transactions | |
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Recording Transactions in Temporary Capital Accounts | |
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The Rule of Double-Entry Accounting | |
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Standard Form for the Ledger Account | |
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Other Forms of the Ledger Account | |
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Proving the Accuracy of Recorded Transactions | |
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The Journal | |
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The Purpose and Form of the Journal | |
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Recording Business Transactions in the Journal | |
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Recording Transactions in Both Journal and Ledger | |
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Transferring Transactions from the Journal to the Ledger | |
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Verifying Ledger Balances | |
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Know the Conceits | |
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Practical Application | |
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Answers | |
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Recording Adjusting, Closing, and Reversing Entries | |
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Adjusting Entries | |
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Types of Adjusting Entries | |
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Accruals | |
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Accrued Expenses | |
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Accrued Revenue | |
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Deferrals | |
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Deferred Expenses | |
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Deferred Revenue | |
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Adjusting Noncurrent Assets | |
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What Is Depreciation? | |
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Preparing the Worksheet | |
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How to Record Adjustments on the Worksheet | |
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Using the Completed Worksheet | |
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Closing Entries | |
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Eliminating the Temporary Account Balances | |
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Using the Income Summary Account | |
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Post-Closing Trial Balance | |
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Verifying the Ledger After Closing | |
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Steps in the Accounting Cycle | |
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Reversing Entries | |
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The Need for Reversing Entries | |
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When to Use Reversing Entries | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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A Trading Business | |
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How Service and Trading Businesses Differ | |
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Special Accounts for a Trading Business | |
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Methods of Determining Income | |
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Determining Net Sales | |
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Recording Sales, and Sales Returns and Allowances | |
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Recording Sales Discounts | |
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Determining the Cost of Goods Available for Sale | |
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Determining Net Purchases | |
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Determining the Merchandise Inventory | |
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Determining the Cost of Merchandise Sold | |
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Recording Daily Business Transactions | |
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Adjusting and Closing Entries | |
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Converting Beginning Inventory to an Expense | |
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Establishing Ending Inventory | |
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Preparing a Worksheet | |
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Reversing Entries | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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Special Journals and Controls | |
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What Are Special Journals? | |
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Kinds of Special Journals | |
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Sales Journal | |
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Cash Receipts Journal | |
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Purchases Journal | |
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Cash Payments Journal | |
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Bracket Entries | |
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Other Special Journals | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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Safeguarding Cash-Special Controls | |
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Internal Control | |
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Special Controls to Safeguard Cash | |
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Bank Reconciliation Statement | |
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Recording Adjusting Entries | |
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Petty Cash Fund | |
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Voucher System | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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Receivables and Payables | |
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Selling Goods and Services | |
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Recognizing Bad Debts | |
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Direct Write-off Method | |
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Net Sales Method | |
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Aging of Accounts Receivable Method | |
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Extending Credit | |
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Promissory Notes | |
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Interest-Bearing Promissory Notes | |
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Transferring Notes | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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Long-Life and Intangible Assets | |
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Long-life Assets | |
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Using Long-life Assets | |
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Determining Plant and Equipment Costs | |
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Allocating Plant and Equipment Costs | |
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Depreciation | |
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Recording Depreciation for Federal Income Tax Purposes | |
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Disposal of Plant Assets | |
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Depletion | |
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Intangible Assets | |
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Amortization | |
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Capital Improvements | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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Inventories | |
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What Is Merchandise Inventory? | |
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Inventories and the Trading Business | |
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Errors in Valuing Merchandise Inventories | |
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Types of Inventory Systems | |
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Determining the Cost of Inventories | |
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The FIFO Method | |
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The UFO Method | |
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The Weighted Average Method | |
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Recognizing Significant Changes in Inventory Value | |
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Estimating Inventory Value | |
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The Gross Profit Method | |
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The Retail Method | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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Payroll | |
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What Is Payroll? | |
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Payroll Deductions | |
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Social Security Tax | |
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Federal Income Tax | |
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State and Local Taxes | |
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Disability Insurance Taxes | |
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The Payroll Register | |
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The Employee Earnings Record | |
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Payroll and Government Regulations | |
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Unemployment Compensation Taxes | |
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Calculating Employee Earnings | |
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The W-2 Form | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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Financial Statements for Partnership and Corporate Forms of Business Organizations | |
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Forms of Business Organizations | |
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The Partnership | |
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Characteristics of the Partnership | |
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Advantages and Disadvantages of the Partnership | |
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The Partnership Capital and Drawing Accounts | |
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Financial Statements of a Partnership | |
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The Corporation | |
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Characteristics of the Corporation | |
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Advantages and Disadvantages of the Corporation | |
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Corporate Capital | |
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Types of Stock | |
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Recording Stock Transactions | |
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Financial Statements for a Corporation | |
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Know the Concepts | |
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Practical Application | |
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Answers | |
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Statement of Cash Flows | |
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Accounting and the Microcomputer | |
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Electronic Spreadsheet | |
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Data Base | |
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Word Processor | |
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Graphics | |
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Networking and the Internet (World Wide Web) | |
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Glossary | |
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Index | |