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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 | |