Financial Reporting and the Accounting Cycle p. 1
Accounting Information: Users and Uses p. 2
What's the Purpose of Accounting? p. 5
Who Uses Accounting Information? p. 9
Within what Kind of Environment Does Accounting Operate? p. 13
So, Why Should I Study Accounting? p. 21
End-of-Chapter Materials p. 21
Financial Statements: an Overview p. 30
The Financial Statements p. 32
Notes to the Financial Statements p. 47
The External Audit p. 49
Financial Statement Analysis p. 50
Fundamental Concepts and Assumptions p. 54
End-of-Chapter Materials p. 56
The Mechanics of Accounting p. 78
How Can We Collect all this Information? p. 80
How Do Transactions Affect the Accounting Equation? p. 82
How Do we Record the Effects of Transactions? p. 90
Posting Journal Entries and Preparing a Trial Balance p. 102
Where Do Computers Fit in all this? p. 108
End-of-Chapter Materials p. 110
Completing the Accounting Cycle p. 130
Accrual Accounting p. 132
Adjusting Entries p. 136
Preparing Financial Statements p. 143
Analyzing Financial Statements p. 148
Closing the Books p. 151
A Summary of the Accounting Cycle p. 154
Adjusting Entries: Original Entries to Expense or Revenue p. 155
Using a Work Sheet p. 157
Special Journals p. 162
End-of-Chapter Materials p. 168
Ensuring the Integrity of Financial Information p. 204
The Types of Problems that Can Occur p. 206
Safeguards Designed to Minimize Problems p. 208
The Need for Monitoring p. 215
The Role of Auditors in the Accounting Process p. 218
The Securities and Exchange Commission p. 222
End-of-Chapter Materials p. 223
Comprehensive Problem 1-5 p. 233
Operating Activities p. 235
Selling a Product or a Service p. 236
Major Activities of a Business p. 239
Recognizing Revenue p. 241
Cash Collection p. 246
Accounting for Credit Customers Who Don't Pay p. 249
Assessing How Well Companies Manage Their Receivables p. 255
Recording Warranty and Service Costs Associated with a Sale p. 251
Reconciling the Bank Account p. 258
Using Receivables to Get Cash Immediately p. 261
Foreign Currency Transactions p. 264
End-of-Chapter Materials p. 266
Inventory p. 292
Inventory and Cost of Goods Sold p. 295
Accounting for Inventory Purchases and Sales p. 299
Counting Inventory and Calculating Cost of Goods Sold p. 304
Inventory Cost Flow Assumptions p. 308
Assessing How Well Companies Manage Their Inventories p. 313
Further Coverage of Inventory Errors p. 317
Complications of the Perpetual Method with Lifo and Average Cost p. 319
Reporting Inventory at Amounts Below Cost p. 321
Method of Estimating Inventories p. 324
End-of-Chapter Materials p. 325
Completing the Operating Cycle p. 350
Employee Compensation p. 353
Taxes p. 361
Contingencies p. 365
Capitalize Versus Expense p. 368
Summarizing Operations on an Income Statement p. 370
End-of-Chapter Materials p. 372
Comprehensive Problem 6-8 p. 391
Investing and Financing Activities p. 393
Investments in Property, Plant, and Equipment and in Intangible Assets p. 394
Nature of Long-Term Operating Assets p. 396
Deciding Whether to Acquire a Long-Term Operating Asset p. 397
Accounting for Acquisition of Property, Plant, and Equipment p. 398
Calculating and Recording Depreciation Expense p. 405
Repairing and Improving Property, Plant, and Equipment p. 410
Recording Impairments of Asset Value p. 412
Disposal of Property, Plant, and Equipment p. 414
Accounting for Intangible Assets p. 416
Measuring Property, Plant, and Equipment Efficiency p. 420
Accelerated Depreciation Methods p. 421
Changes in Depreciation Estimates p. 426
End-of-Chapter Materials p. 427
Long-Term Debt Financing p. 454
Measuring Long-Term Liabilities p. 455
Accounting for Long-Term Liabilities p. 462
Accounting for Lease Obligations p. 466
The Nature of Bonds p. 469
Using Debt-Related Financial Ratios p. 476
Bonds Issued at a Discount or at a Premium p. 477
The Present Value of $1 Due In n Periods p. 483
The Present Value of an Annuity of $1 Per Number of Payments p. 484
Amount of $1 Due in n Periods p. 485
Amount of an Annuity of $1 Per Number of Payments p. 486
End-of-Chapter Materials p. 487
Equity Financing p. 510
Raising Equity Financing p. 513
Corporations and Corporate Stock p. 515
Accounting for Stock p. 519
Retained Earnings p. 524
Other Equity Items p. 529
Accounting for Stock Dividends p. 532
Prior-Period Adjustments p. 534
Proprietorship and Partnership Accounting p. 535
End-of-Chapter Materials p. 539
Investments in Debt and Equity Securities p. 568
Why Companies Invest in Other Companies p. 570
Classifying a Security p. 572
Accounting for Trading and Available-for-Sale Securities p. 577
Accounting for Changes in the Value of Securities p. 581
Accounting for Held-to-Maturity Securities p. 584
Accounting for Equity Investments Using the Equity Method p. 590
End-of-Chapter Materials p. 592
Comprehensive Problem 9-12 p. 613
Other Dimensions of Financial Reporting p. 615
The Statement of Cash Flows p. 616
What's the Purpose of a Statement of Cash Flows? p. 618
What Information is Reported in the Statement of Cash Flows? p. 619
Preparing a Statement of Cash Flows--a Simple Example p. 624
Analyzing the Other Primary Financial Statements to Prepare a Statement of Cash Flows p. 628
Using Information From the Statement of Cash Flows to Make Decisions p. 640
End-of-Chapter Materials p. 642
Appendices
Microsoft Annual Report p. 1
Glossary p. 1
Check Figures p. 1
Financial Accounting Indexes
Subject p. 1
Real World Company p. 1
Internet p. 1