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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 | |