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Preface | |
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About the Author | |
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Part I | |
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An Introduction to the Role of Accounting in the Business World | |
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Learning Objectives | |
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Introduction | |
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Major Types Of Business Entities | |
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Common Forms of Business Organizations | |
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Internal Functions of Business Organizations | |
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The Nature And Role Of Accounting In Business | |
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Internal Decision Makers | |
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External Decision Makers | |
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Financial Statement Definitions | |
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Balance Sheet | |
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Income Statement | |
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Statement of Cash Flows | |
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Statement of Stockholders' Equity | |
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Financial Statement Footnotes | |
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An Overview Of The Accounting Profession | |
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Private Accounting | |
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Public Accounting | |
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Certifications | |
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Regulation of the Accounting Profession | |
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Challenges Facing the Accounting Profession | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Concepts and Elements Underlying Accounting | |
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Learning Objectives | |
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Introduction | |
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Survey Of Accounting | |
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Composition Of Financial Statements | |
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Balance Sheet | |
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Assets | |
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Liabilities | |
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Stockholders' Equity | |
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Income Statement | |
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Revenues | |
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Expenses | |
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Gross Profit | |
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Operating Income | |
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Net Income | |
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Earnings per Share | |
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Objectives Of Financial Reporting | |
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Key Attributes Of Accounting Information | |
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Understandability | |
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Relevance | |
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Reliability | |
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Fundamental Accounting Concepts | |
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Accounting Period Concept | |
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Historical Cost Principle | |
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Unit of Measurement Concept | |
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Going Concern Assumption | |
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Entity Concept | |
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Revenue Recognition Rules | |
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Expense Recognition Rules | |
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Full Disclosure Principle | |
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An Introduction To The Accounting System | |
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Accounts | |
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The General Journal and General Ledger | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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The Mechanics of Double-Entry Accounting | |
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Learning Objectives | |
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Introduction | |
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Capturing Accounting Data | |
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Recording Transactions: Double-Entry Bookkeeping | |
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Debits and Credits | |
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Using Debits and Credits | |
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Contra-Accounts | |
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The Accounting Cycle | |
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Collect, Examine, and Process Transactions | |
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Record Transactions in the General Journal | |
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Post Transactions to the General Ledger | |
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Prepare a Trial Balance | |
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Adjust Account Balances as Necessary | |
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Record Adjustments in the General Journal | |
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Post Adjustments to the General Ledger | |
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Prepare an Adjusted Trial Balance | |
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Prepare Financial Statements | |
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Close Temporary Accounts | |
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Record Closing Entries in the General Journal | |
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Post Closing Entries to the General Ledger | |
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Prepare a Post-Closing Trial Balance | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Accounting For Assets 93 | |
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Cash, Short-Term Investments, and Accounts Receivable 94 | |
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Learning Objectives | |
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Introduction | |
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Cash And Cash Equivalents | |
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Petty Cash | |
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Bank Reconciliations | |
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Short-Term Investments | |
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Accounts Receivable | |
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Accounting for Accounts Receivable | |
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Sales Discounts | |
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Sales Returns and Allowances | |
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Uncollectible Accounts | |
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Credit Card Receivables | |
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Notes Receivable | |
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Accounting Information For Decision Making | |
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Quick Ratio | |
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Age of Accounts Receivable | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Inventory | |
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Learning Objectives | |
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Introduction | |
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Perpetual And Periodic Inventory Systems | |
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Accounting For Common Inventory Transactions | |
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Purchasing Inventory from a Supplier | |
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Paying for Freight-In on Purchases | |
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Returning Inventory to a Supplier | |
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Selling Inventory to a Customer | |
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Accepting Returns of Inventory from a Customer | |
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Paying on Account for Purchases of Inventory | |
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Inventory Costing Methods | |
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Specific Identification Method | |
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FIFO (first-in, first-out) Method | |
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LIFO (last-in, first-out) Method | |
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Moving-Average Method | |
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Comparison of Income Statement Effects of Inventory Costing Methods | |
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Balance Sheet Valuation versus Income Determination | |
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FIFO versus LIFO: Tax Consequences | |
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Valuing Inventory At Other Than Cost | |
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Retail Inventory | |
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Lower-of-Cost-or-Market | |
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Inventory Errors | |
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Accounting Information For Decision Making | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Long-Term Assets: Property, Plant & Equipment and Intangibles | |
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Learning Objectives | |
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Introduction | |
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Property, Plant & Equipment | |
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Acquisition of PP&E | |
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Depreciation of PP&E | |
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Straight-Line Method | |
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Units-of-Production Method | |
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Double-Declining-Balance Method | |
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Disposal of PP&E | |
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At a Loss | |
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At a Gain | |
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Natural Resources | |
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Intangible Assets | |
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Identifiable Intangibles | |
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Goodwill | |
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Disposal of Intangibles | |
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Accounting Information For Decision Making | |
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Valuation | |
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Capitalization versus Expensing | |
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Disclosures | |
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Ratio Analysis | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Part III | |
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Liabilities | |
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Learning Objectives | |
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Introduction | |
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Current Liabilities | |
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Accounts Payable | |
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Notes Payable | |
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Installment Notes Payable | |
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Accrued Liabilities | |
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Product Warranty Liability | |
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Vacation Pay Liability | |
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Accrued Payroll Liabilities | |
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Deferred Liabilities | |
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Contingent Liabilities | |
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Long-Term Liabilities | |
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Bonds Payable | |
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Bond Trading | |
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Determining the Issue Price of Bonds | |
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Long-term Liabilities Other Than Bonds | |
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Long-term Mortgages Payable | |
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Long-term Lease Obligations | |
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Postretirement Benefit Liabilities | |
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Accounting Information For Decision Making | |
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Completeness | |
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Valuation Methods | |
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Unusual Circumstances | |
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Analyzing Liabilities | |
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Summary | |
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Appendix: Accounting For Bonds | |
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Accounting for Bonds Issued at a Discount | |
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Accounting for Bonds Issued at a Premium | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Stockholders' Equity | |
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Learning Objectives | |
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Introduction | |
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The Corporation | |
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Key Advantages of the Corporation | |
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Key Disadvantages of the Corporation | |
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Corporate Stock | |
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Rights and Privileges of Common Stockholders | |
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Rights and Privileges of Preferred Stockholders | |
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Par Value and No-Par Value Stock | |
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Stock Issuances | |
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Treasury Stock | |
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Dividends | |
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Cash Dividends | |
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Stock Dividends | |
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Stock Splits | |
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Retained Earnings | |
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Accounting Information For Decision Making | |
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Dividend Payouts | |
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Ratios | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Analysis Of Accounting Data 249 | |
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The Corporate Income Statement and Financial Statement Analysis | |
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Learning Objectives | |
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Introduction | |
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Income Statement | |
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Earnings from Investments | |
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Investments in Stocks | |
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Investments in Bonds | |
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Corporate Income Taxes | |
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Nonrecurring Items | |
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Discontinued Operations | |
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Extraordinary Items | |
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Earnings per Share | |
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Making Informed Economic Decisions | |
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Objectives of Financial Statement Analysis | |
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Information Sources for Financial Statement Analysis | |
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Analytical Techniques | |
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Trend Analysis | |
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Common-Sized Financial Statements | |
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Ratio Analysis | |
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Assessing Earnings Quality | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Statement of Cash Flows | |
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Learning Objectives | |
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Introduction | |
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Three Primary Types Of Business Activities And Cash Flows | |
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Direct Versus Indirect Method Of Preparing A Statement Of Cash Flows | |
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Preparing A Statement Of Cash Flows: Indirect Method | |
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Analyzing Transactions for a SCF-Operating Activities | |
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Noncash Items | |
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Gains and Losses | |
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Current Assets | |
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Current Liabilities | |
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Analyzing Transactions for a SCF-Investing and Financing Activities | |
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Investing Activities | |
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Financing Activities | |
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Completing the Analysis | |
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Noncash Investing and Financing Activities | |
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Accounting Information For Decision Making | |
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Cash Flow Ratios | |
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Cash Flow per Share | |
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Free Cash Flow | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Managerial Accounting | |
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Fundamental Managerial Accounting Concepts | |
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Learning Objectives | |
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Introduction | |
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Comparison Of Financial And Managerial Accounting | |
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Types Of Costs | |
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Product and Period Costs | |
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Direct and Indirect Costs | |
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Controllable and Noncontrollable Costs | |
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Variable and Fixed Costs 3 | |
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Components Of Product Cost For Manufacturing Companies | |
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Direct Material Cost | |
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Direct Labor Cost | |
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Overhead Cost | |
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Inventory Costing Systems | |
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Job Order Costing | |
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Processing Costing and Equivalent Units of Production | |
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Valuing Inventory | |
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Inventory Valuation Methods | |
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Predetermined Overhead Rate | |
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Flow Of Product Costs | |
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Cost Of Goods Manufactured And Sold | |
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Costs In Service Companies | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Cost-Volume-Profit Analysis | |
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Learning Objectives | |
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Introduction | |
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Assumptions Of Break-Even And CVP Analysis | |
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Break-Even Point | |
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CVP Analysis | |
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Before-Tax Profit | |
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After-Tax Profit | |
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Other Considerations | |
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Using Incremental Analysis | |
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Increase in Fixed Cost | |
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Decrease in Selling Price | |
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Increase in Sales Volume and Costs (1) | |
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Increase in Sales Volume and Costs (2) | |
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CVP Analysis In A Multiproduct Environment | |
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Graphic Approaches To BEP And CVP Problems | |
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Break-Even Graph | |
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Profit-Volume Graph | |
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Operating Above Break-Even | |
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Margin of Safety | |
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Degree of Operating Leverage | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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The Master Budget and Standard Costing | |
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Learning Objectives | |
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Introduction | |
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The Budgeting Process | |
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The Master Budget | |
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Preparing a Master Budget | |
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Sales Budget | |
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Production Budget | |
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Purchases Budget | |
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Direct Labor Budget | |
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Overhead Budget | |
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Capital Budget | |
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Cash Budget | |
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Schedule of Cash Collections from Sales | |
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Schedule of Cash Payments for Purchases | |
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Comprehensive Cash Budget | |
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Budgeted Financial Statements | |
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Cost of Goods Manufactured Schedule | |
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Income Statement | |
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Balance Sheet | |
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Statement of Cash Flows | |
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The Rolling Budget | |
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Standard Costs | |
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Material Variances | |
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Labor Variances | |
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Understanding Variances | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Activity-Based Management and Performance Measurement | |
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Learning Objectives | |
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Introduction | |
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Activity-Based Management | |
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Analyzing Activities | |
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Value-Added and Non-Value-Added Activities | |
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Cost Drivers | |
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Levels Of Cost Incurrence | |
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Activity-Based Costing | |
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Measuring Short-Run Performance | |
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Cost Center | |
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Profit Center | |
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Investment Center | |
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Measuring Long-Run Performance | |
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Balanced Scorecard | |
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Benchmarking | |
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Deciding On Performance Measures | |
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Rewarding Performance | |
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Summary | |
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Key Terms | |
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Questions | |
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Exercises | |
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Problems | |
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Cases | |
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Supplemental Problems | |
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Appendix | |
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Glossary | |
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Index | |