Financial Accounting with MyAccountingLab, Global Edition

Series
Pearson
Author
Robert Kemp / Jeffrey Waybright  
Publisher
Pearson
Cover
Softcover
Edition
3
Language
English
Pub.-date
November 2014
ISBN13
9781292074863
ISBN
1292074868
Related Titles


Product detail

Title no longer available

Description

For courses in Introduction to Financial Accounting.
This package includes MyAccountingLab®.

 

Understanding financial accounting as the language of business

Once students see that accounting is the language of business, they are on their way to academic and professional success. Financial Accounting, Third Edition translates the essentials of accounting to students so they understand why and when financially sound decisions are made in business today.

This program will provide a better teaching and learning experience—for you and your students. It will help:

  • Create a clear learning path with strong pedagogy: Students are able to acquire, understand, and retain important information by completing exercises, learning key terms, participating in discussion questions, following critical thinking activities and more.
  • Present fundamental accounting principles by using current real-world examples: Up-to-date information prepares students for working in their field.
  • Illustrate tough concepts using visuals: The text presents the connection between accounting equations and big picture concepts by using striking visuals.
  • Personalize learning: MyAccountingLab provides instructors with a rich and flexible set of course materials, along with course-management tools that make it easy to deliver all or a portion of your course online.

 This package includes MyAccountingLab, an online homework, tutorial, and assessment program designed to work with this text to personalize learning and improve results. With a wide range of interactive, engaging, and assignable activities, students are encouraged to actively learn and retain tough course concepts.

MyAccountingLab is not a self-paced technology and should only be purchased when required by an instructor. Please be sure you have the correct ISBN and Course ID.  Instructors, contact your Pearson representative for more information.

Features

This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content that is especially relevant to students outside the United States.

Create a clear learning path with strong pedagogy

•   Waybright has crafted a text that’s written with both clarity and purpose.

•   Question and Answer format provide detailed information. Some of the best teachable moments happen when a student asks a key question that gets straight to the heart of the discussed topic. This text mirrors that approach by providing a format with key questions in the A and B headers, followed by a clear, direct, and detailed explanation.

•   Actual Decision Model summarizes the concepts and computations throughout the material. These models show each decision and how to evaluate the health of it, so that students can readily see its value in/for a business. The models in each chapter are then summed up in the Decision Guidelines in the end-of-chapter material.

•   Accounting and You feature, found in every chapter, personalizes accounting challenges, issues, and ethical situations for students to evaluate from their own perspective.

•   Concept Checks, appearing at the end of each section, allow students to review their understanding and interpretation of the materials. By showing “what it is” and “why and when it matters” together, these checks give students a place to pause and interpret what they’ve just learned.

•   Focus on Decision Making, beginning with Chapter 1, places a tremendous emphasis on making financially sound business decisions, how much risk is involved and how to evaluate the impact of it to a company. Ethics and ratio coverage are woven throughout the text to continue this emphasis.

•   Demo Docs in every chapter consist of worked through problems, representative of the chapter material, which navigate students through the computations and concepts together in a step-by-step format for overall comprehension. Additional Demo Docs are available in the study guide and on MyAccountingLab®.

•   Decision Guidelines, summarizing the chapter's key terms, concepts, and formulas in the context of business decisions, can be found at the midpoint and end of each chapter. They reinforce how the accounting information students are learning is used to make decisions in business.

•   Progressive, expansive, and challenging end-of-chapter material help students retain the material. Waybright understands that the key to students’ accounting success is in the practice and work completed in the end-of-chapter content. With this in mind, this text presents the material so that students progress from simple calculative short exercises to a mixture of calculative/conceptual exercises and on to the more complex conceptual analysis problems and cases. This progression allows students to build confidence and achieve mastery of the material.

·    Self Checks quickly audit the students’ understanding of the chapter concepts by presenting them with a series of multiple-choice questions.

·    Discussion Questions help students make the connections between the “how” and the “why” of financial accounting information through a guided series of in-class discussion questions.

·    “A” and “B” Set of Exercises and Problems provide students and instructors with two sets of problems and exercises in the text. Three sets (“C”, “D”, and “E”) of alternative exercises and problems are available in MyAccountingLab to give students more practice opportunities.

·    The Continuing Exercise highlights the same small business from chapter to chapter, allowing students to apply their understanding of chapter concepts in a business context. As students move through the text, they complete additional steps in this comprehensive exercise. Students, again, see the big picture and learn how the topics build off one another. The Continuing Exercise can be assigned and completed within MyAccountingLab.

·    The Continuing Problem is exactly like the Continuing Exercise but slightly more comprehensive. Once again, students can apply the key accounting principles learned from several chapters, increasing the interrelationships of the principles.

•   Critical Thinking Activities help prepare students for their field. One of the best qualities a student can bring to their future career is the ability to think critically. This text cultivates this skill by including the following critical thinking activities:

   Financial Statement Analysis

   Ethics in Action Case

   Team Projects

   Know Your Business: includes a case problem that shows students the importance of cash flows for small business

   Written Comm Activity

 

Present fundamental accounting principles by using current real-world examples

 

•   A perfect balance of small business perspective and corporate coverage is relatable to a broader range of students. Not every student will graduate and become part of a large corporation, which is why it’s important for students to understand how financial accounting applies in small business scenarios as well as corporate ones. This text presents a straightforward look at the way ALL businesses use accounting to ensure students are equipped with the knowledge they need.

•   The Importance of Cash feature compares and contrasts large and small businesses so that students can understand the significance of cash flows to the financial health of a company.

•   The Application in Practice feature found in the end-of-chapter material takes the importance of cash one step further by allowing students the opportunity to work case problems and see the Importance of Cash flows for small business.

•   IFRS Coverage is found throughout the text. The most important potential shift in the future of financial accounting is introduced at a basic level and focused on capturing student awareness. First presented in Chapter 1, IFRS coverage is carried throughout each chapter as needed, with an icon or footnote indicating a potential shift in reporting requirements.

•   Focus on Decision Making sections place an emphasis on making financially sound business decisions, showing students how much risk is involved and how to evaluate the impact those decisions will make on a company.

•   UPDATED! Continuing Financial Statement Analysis Problem. Uses Target's 2012 annual report to familiarize students with reading and interpreting financial statements in each chapter. By the end of the text, they have completely analyzed the financial statements.

•   NEW! EXCEL® in MyAccountingLab.

o   Now students can get real-world Excel practice in their classes.

o   Instructors have the option to assign students selected end-of-chapter questions that can be completed in an Excel-simulated environment.

o   Questions will be auto-graded and reported to and visible in the grade book.

o   Excel remediation will be available to students.

 

Illustrate tough concepts using visuals

•   Waybright introduces a slight twist on the visuals found in this text to effectively illustrate the connection between accounting equations and big picture concepts.

•   Instead of presenting the details of the journal entries, general ledger, and t-accounts in isolation, Financial Accounting shows these details within the context of financial statements. This approach helps students appreciate the steps involved in preparing and interpreting financial statements, which is critical to their understanding of the material and success in the course.

•   NEW! Real Business Videos. Real Business Videos bring accounting to life in the business world. Denoted by an icon in the chapter openers and developed by the author, interviews with CFOs, financial analysts, investment bankers, and small business owners highlight chapter concepts and help students understand that accounting is the language of business. Self-check questions, two in each chapter, assess student understanding of the real business videos and the concepts illustrated.

•   NEW! Hybrid Approach Animations. The authors introduce unique hybrid visuals to illustrate the connection between the accounting equation and journalizing transactions. In Chapters 2 and 3 of the eText, students can journalize transactions, create T-Accounts, and test their understanding of the relationship between journal entries and the accounting equation. Eighteen animations will allow students to practice over and over again until they comprehend these critical accounting concepts.

 

This package includes MyAccountingLab, an online homework, tutorial, and assessment program designed to work with this text to personalize learning and improve results. With a wide range of interactive, engaging, and assignable activities, students are encouraged to actively learn and retain tough course concepts.

Personalize learning with MyAccountingLab®

•   One place for all of your courses. Improved registration experience and a single point of access for instructors and students who are teaching and learning multiple MyLab/Mastering courses.

•   A simplified user interface. The new user interface offers quick and easy access to Assignments, Study Plan, eText & Results, as well as additional option for course customization.

•   Enhanced eText. Available within the online course materials and offline via an iPad app, the enhanced eText allows instructors and students to highlight, bookmark, take notes, and share with one another. 

•   EXCEL® in MyAccountingLab include:

•   Students can get real-world Excel practice in their classes.

•   Instructors have the option to assign students End-of-Chapter questions that can be completed in an Excel-simulated environment 

•   Questions will be auto-graded, reported to, and visible in the grade book.

•   Excel remediation will be available to students.

 

 

 

New to this Edition

Overview of Changes

  • NEW! Real Business Videos. Real Business Videos bring accounting to life in the business world. Denoted by an icon in the chapter openers and developed by the author, interviews with CFOs, financial analysts, investment bankers, and small business owners highlight chapter concepts and help students understand that accounting is the language of business. Self-check questions, two in each chapter, assess student understanding of the real business videos and the concepts illustrated.
  • NEW! Hybrid Approach Animations. The authors introduce unique hybrid visuals to illustrate the connection between the accounting equation and journalizing transactions. In Chapters 2 and 3 of the eText, students can journalize transactions, create T-Accounts, and test their understanding of the relationship between journal entries and the accounting equation. Eighteen animations will allow students to practice over and over again until they comprehend these critical accounting concepts.
  • UPDATED! Continuing Financial Statement Analysis Problem. Uses Target's 2012 annual report to familiarize students with reading and interpreting financial statements in each chapter. By the end of the text, they have completely analyzed the financial statements.
  • NEW! EXCEL® in MyAccountingLab:
  • Now students can get real-world Excel practice in their classes.
  • Instructors have the option to assign students selected end-of-chapter questions that can be completed in an Excel-simulated environment.
  • Questions will be auto-graded and reported to and visible in the grade book.
  • Excel remediation will be available to students.

 

Chapter-by-Chapter Changes

 

Chapter 1  Business, Accounting, and You

  • Added Real World Accounting Video summary of David Hitchner, owner and manager of ABC Wine, to set the chapter content in a real world business context for students.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • EXCEL is now in MyAccountingLab. For every chapter, instructors have the option to assign students 2 end-of-chapter problems that can be completed in an Excel-simulated environment, auto graded and visible in the grade book. Excel remediation will be available to students.

Chapter 2  Analyzing and Recording Business Transactions

  • Changed chapter introduction company from Best Buy to Target.
  • Added Real World Accounting Video of Julie Gaines, owner and manager of Fishs Eddy, to set the chapter content in a real world business context for students.
  • Animated each hybrid equation example so that students can drill themselves as many times as needed on the interrelationship of the journal entries, t-accounts, and general ledger when posting transactions. Available in the eText only, located in MyAccountingLab®.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  •  Designated two Excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.

 Chapter 3  Adjusting and Closing Entries

  • Changed chapter introduction company from Best Buy to Disney.
  • Added Real World Accounting Video of Jeanette Cebollero, the chief financial officer (CFO) of Rosa Mexicano Restaurants, to set the chapter content in a real-world business context for students.
  • Animated each hybrid equation example so that students can drill themselves as many times as needed on the interrelationship of the journal entries, t-accounts, and general ledger when posting transactions. Available in the etext only, located in MyAccountingLab.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  • Designated two Excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.

Chapter 4  Accounting for a Merchandising Business

  •  Changed chapter introduction company from Best Buy to Toys R Us.
  • Added Real World Accounting Video of Noah Lenovitz, a partner and chief operating officer of Fishs Eddy, to set the chapter content in a real world business context for students.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  • Designated two Excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.

 Chapter 5  Inventory

  • Changed chapter introduction company from Best Buy to Toys R Us.
  • Added Real World Accounting Video of Keith Beavers, owner and operator of ABC Wines, to set the chapter content in a real world business context for students.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  • Designated two Excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.

 Chapter 6  The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

  • Added Real World Accounting Video of Vince Molinari, CEO and founder of Gate Technologies, to set the chapter content in a real world business context for students.
  • • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  • • Designated two Excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.

 

Chapter 7  Cash and Receivables

  • Changed chapter introduction company from Best Buy to Hershey.
  • Added Real World Accounting Video of Zachary Mack, owner and founder of Alphabet City Beer Company, to set the chapter content in a real world business context for students.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  • Designated two Excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.

 

Chapter 8     Long-Term and Other Assets

  • Changed chapter introduction company from Best Buy to AT&T.
  • Added Real World Accounting Video of Jason Berry of Rosa Mexicano Restaurants to set the chapter content in a real world business
  • context for students.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  • Designated two Excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.

 

Chapter 9  Current Liabilities and Long-Term Debt

  • Changed chapter introduction company from Best Buy to Ford.
  • Added Real World Accounting Video of Bill Mercer, Controller of Sheffield Pharmaceuticals, to set the chapter content in a real world business context for students.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  • Designated two excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.

 

Chapter 10  Corporations: Paid-In Capital and Retained Earnings

  • Changed chapter introduction company from Best Buy to Apple.
  • Added Real World Accounting Video of Howard Greenstone, President and CEO of Rosa Mexicano Restaurants, to set the chapter content in a real world business context for students.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  • Designated two Excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.

 

Chapter 11  The Statement of Cash Flows

  • Changed chapter introduction company from Best Buy to Delta Airlines.
  • Added Real World Accounting Video of Peter Kranes, managing director of Fishs Eddy, to set the chapter content in a real world business context for students.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  • Designated two Excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.
  • Added an all new comprehensive problem that would make an excellent capstone problem for the course.

 

Chapter 12  Financial Statement Analysis

  • Added Real World Accounting Video of David Drake of LDJ Capital to set the chapter content in a real world business context for students.
  • Changed 50% of the exercises and problems to provide diverse practice and teaching opportunities for students and teachers.
  • Added two questions to the Self Checks that assess student understanding of the Real World Accounting Videos.
  • Updated Continuing Financial Statement Analysis featuring Target using the 2012 annual report.
  • Designated two Excel problems and exercises that can be automatically graded in MyAccountingLab. These materials are designated by a “Try It In Excel” icon.
  • Updated the end of chapter material related to Under Armour and Columbia Sportswear using the 2012 annual reports.

This package includes MyAccountingLab, an online homework, tutorial, and assessment program designed to work with this text to personalize learning and improve results. With a wide range of interactive, engaging, and assignable activities, students are encouraged to actively learn and retain tough course concepts.

 

Personalize learning with MyAccountingLab®

  • One place for all of your courses. Improved registration experience and a single point of access for instructors and students who are teaching and learning multiple MyLab/Mastering courses.
  • A simplified user interface. The new user interface offers quick and easy access to Assignments, Study Plan, eText & Results, as well as additional option for course customization.
  • Enhanced eText. Available within the online course materials and offline via an iPad app, the enhanced eText allows instructors and students to highlight, bookmark, take notes, and share with one another. 

•   EXCEL® in MyAccountingLab include:

  • Students can get real-world Excel practice in their classes.
  • Instructors have the option to assign students End-of-Chapter questions that can be completed in an Excel-simulated environment 
  • Questions will be auto-graded, reported to, and visible in the grade book.
  • Excel remediation will be available to students.

 

Table of Contents

 

Chapter 1 Business, Accounting, and You

Business, Accounting, and You

What Is a Business, and Why Study Accounting?

The Definition of a Business 2
The General Concept of Value

Business Owners and Other Stakeholders

The Goal of a Business

How Does a Business Operate?

Resources Needed to Start and Operate a Business

Operating the Business

The Cost of Money

How Are Businesses Organized?

The Types of Businesses

The Legal Forms of Businesses

What Is Accounting, and What Are the Key Accounting
Principles and Concepts?

Generally Accepted Accounting Principles

International Financial Reporting Standards

The Business Entity Principle

The Reliability (Objectivity) Principle

The Cost Principle

Accounting Ethics: A Matter of Trust

What Is the Role of Accounting in a Business?

How Do You Recognize a Business Transaction?

Cash Accounting

Accrual Accounting

How Do You Measure a Business Transaction?

How Do You Record Business Transactions Using the Accounting Equation?

Transaction Analysis

Stockholders’ Equity

How Do You Report Business Transactions Using Financial Statements?

The Income Statement

The Statement of Retained Earnings

The Balance Sheet

The Statement of Cash Flows

Relationships Among the Financial Statements

Accounting, Business, and You—Putting It All Together

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

 

 

Chapter 2 Analyzing and Recording Business Transactions Business, Accounting, and You

How Are Accounts Used to Keep Business Transactions Organized?

Organizing Accounts

Assets

Liabilities

Stockholders Equity

What Is Double-Entry Accounting?

Normal Balance

How Are the General Journal and General Ledger Used to Keep Track of Business Transactions?

Transaction Analysis

Applying Transaction Analysis

Balancing the T-Accounts

How Is a Trial Balance Prepared, and What Is It Used For?

Correcting Errors

Preparation of Financial Statements

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

 

Chapter 3 Adjusting and Closing Entries

Business, Accounting, and You

How Does a Company Accurately Report Its Income?

Revenue Recognition and Matching Principles

What Is the Role of Adjusting Entries, and When Are They Prepared?

Accruing Revenues

Accruing Expenses

Adjusting Deferred Revenues

Adjusting Deferred Expenses

How Are Financial Statements Prepared from an Adjusted Trial Balance?

The Adjusted Trial Balance

Preparing the Financial Statements

How Does a Company Prepare for a New Accounting Period?

Completing the Accounting Cycle

The Three Closing Entries: Revenues, Expenses, and Dividends

Post-Closing Trial Balance 120

Summary of the Adjusting and Closing Processes

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

Comprehensive Problem

 

 

Chapter 4 Accounting for a Merchandising Business

Business, Accounting, and You

What Are the Relationships Among Manufacturers, Wholesalers, Retailers, and Customers?

How Do Periodic and Perpetual Inventory Systems Differ?

How Do You Account for the Purchase of Inventory?

Cash and Credit Purchases

Purchase Returns and Allowances

Purchase Discounts

How Do You Account for the Sale of Inventory?

Cash Sales

Credit Sales

Sales Returns and Allowances

Sales Returns

Sales Allowances

Sales Discounts

How Do You Account for Freight Charges and Other Selling Expenses?

Costs Related to the Receipt of Goods from Suppliers

Costs Related to Delivering Goods to Customers

Other Selling Costs

How Do You Prepare a Merchandisers Financial Statements?

The Income Statement

The Statement of Retained Earnings

The Balance Sheet

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

 

 

Chapter 5 Inventory

Business, Accounting, and You

What Inventory Costing Methods Are Allowed?

Cost Flow Versus Physical Flow of Inventory

How Are the Four Inventory Costing Methods Applied?

Inventory Cost Flows

Specific-Identification Method

First-In, First-Out (FIFO) Method

Last-In, First-Out (LIFO) Method

Average Cost Method

Journalizing Inventory Transactions

What Effect Do the Different Costing Methods Have on Net Income?

What Else Determines How Inventory Is Valued?

How Is Inventory Reported on the Balance Sheet?

Inventory Shrinkage

How Do Inventory Errors Affect the Financial Statements?

Is It Possible to Estimate the Value of Inventory If the Inventory Is Accidentally Destroyed?

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

Comprehensive Problem

 

 

Chapter 6 The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics 256

 

Business, Accounting, and You

What Are the Rules that Govern Accounting?

Understandable

Relevant

Reliable

Generally Accepted Accounting Principles (GAAP) in the United States

Generally Accepted Accounting Principles Around the World: IFRS

Differences Between FASB and IFRS

What Is Internal Control?

Elements of an Internal Control System

What Is Fraud, and Who Commits It?

Management Fraud

Employee Embezzlement

The Factors Usually Present When Fraud Is Committed

What Is a Certified Public Accountant (CPA)?

Audits 268Audit Opinions

What Are the Legal and Ethical Responsibilities of Accountants?

The Legal Responsibilities of Accountants

Ethical Responsibilities of Accountants

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

 

 

Chapter 7 Cash and Receivables

Business, Accounting, and You

What Are the Different Types of Sales?

Cash Sales

Credit Card Sales

Debit Card Sales

Credit/Debit Card Processing

Sales on Account

What Internal Control Procedures Should Be Used for Cash?

Internal Controls over Cash Receipts

Internal Control over Cash Payments

Purchase and Payment Process

The Bank Reconciliation

Preparing the Bank Reconciliation

Book Side of the Reconciliation

Online Banking

How Is Cash Reported on the Balance Sheet?

How Do You Account for Receivables?

Types of Receivables

Internal Control over Accounts Receivable

Accounting for Uncollectible Accounts Receivable

How Do You Account for Uncollectible Accounts?

The Direct Write-Off Method

Direct Write-Off Method: Recovery of Accounts Previously Written Off

The Allowance Method

Estimating the Amount of Uncollectible Accounts

Writing Off Uncollectible Accounts Under the Allowance Method

Allowance Method: Recovery of Accounts Previously Written Off

How Are Accounts Receivable Reported on the Balance Sheet?

How Do You Account for Notes Receivable?

Identifying the Maturity Date

Origination of Notes Receivable

Computing Interest on a Note

Accruing Interest Revenue

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

Appendix 7A

What Is a Petty Cash Fund?

Setting Up the Petty Cash Fund

Replenishing the Petty Cash Fund

Changing the Petty Cash Fund

Accounting Practice

 

 

Chapter 8 Long-Term and Other Assets

Business, Accounting, and You

What Are the Different Types of Long-Term Assets?

How Is the Cost of a Fixed Asset Calculated?

Land and Land Improvements

Buildings

Machinery and Equipment

Furniture and Fixtures

Lump-Sum (Basket) Purchase of Assets

How Are Fixed Assets Depreciated?

Measuring Depreciation

Depreciation Methods

Comparing Depreciation Methods

Partial Year Depreciation

Changing the Useful Life of a Depreciable Asset

Using Fully Depreciated Assets

How Are Costs of Repairing Fixed Assets Recorded?

Ordinary Repairs

Extraordinary Repairs

Betterments

What Happens When a Fixed Asset Is Disposed?

How Do You Account for Intangible Assets?

Specific Intangibles

Accounting for Research and Development Costs

How Are Natural Resources Accounted For?

What Are Other Assets?

How Are Long-Term Assets Reported on the Balance Sheet?

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

 

 

Chapter 9 Current Liabilities and Long-Term Debt

Business, Accounting, and You

What Are the Differences Among Known, Estimated, and Contingent Liabilities?

How Do You Account for Current Liabilities of a Known Amount?

Accounts Payable

Notes Payable

Sales Tax Payable

Accrued Expenses (Accrued Liabilities)

Unearned Revenues

Current Portion of Long-Term Debt

How Do You Account for Current Liabilities of an Uncertain Amount?

Estimated Warranty Liability

How Do You Account for a Contingent Liability?

How Do You Account for Long-Term Debt?

Notes Payable

Bonds Payable

Lease Liabilities

How Are Liabilities Reported on the Balance Sheet?

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

Appendix 9A: Payroll.com (Located online at www.pearsonhighered/kemp) 9A-1

 

 

Chapter 10 Corporations: Paid-In Capital and Retained Earnings

Business, Accounting, and You

How Are Corporations Organized?

What Makes Up the Stockholders Equity of a Corporation?

Stockholders Rights

Classes of Stock

Par Value, Stated Value, and No-Par Stock

How Is the Issuance of Stock Recorded?

Issuing Common Stock

Issuing Preferred Stock

How Are Cash Dividends Accounted For?

Dividend Dates

Declaring and Paying Dividends

Dividing Dividends Between Preferred and Common Shareholders

Dividends on Cumulative and Noncumulative Preferred Stock

How Are Stock Dividends and Stock Splits Accounted For?

Stock Dividends

Recording Stock Dividends

Stock Splits

Stock Dividends and Stock Splits Compared

How Is Treasury Stock Accounted For?

Treasury Stock Basics

Purchase of Treasury Stock

Sale of Treasury Stock

How Is Stockholders Equity Reported on the Balance Sheet?

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

 

Chapter 11 The Statement of Cash Flows

 

Business, Accounting, and You

What Is the Statement of Cash Flows?

How Does a Business Create a Statement of Cash Flows?

The Logic of How the Statement of Cash Flows Is Prepared

Sources and Uses of Cash: Categorizing Changes as Operating, Investing, or Financing

Statement of Cash Flows: Two Formats

How Is the Statement of Cash Flows Prepared Using the Indirect Method?

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

Net Change in Cash and Cash Balances

Noncash Investing and Financing Activities

How Is the Statement of Cash Flows Prepared Using the Direct Method?

Cash Flows from Operating Activities

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

Comprehensive Problem

 

 

Chapter 12 Financial Statement Analysis

Business, Accounting, and You

What Is Financial Analysis?

Step One: Understand a Businesss Model and Strategy

Step Two: Understand the Environment in Which a Business Operates

Step Three: Analyze the Content of the Financial Statements and Other Information, Making Adjustments If Desired

Step Four: Analyze the Businesss Operations

Step Five: Use the Financial Analysis to Make Decisions

What Measures Does Someone Use to Analyze the Performance of a Business?

The Techniques of Financial Analysis

Vertical Analysis

Horizontal Analysis

Trend Percentages

Question 1: Is the Business a Going Concern?

An Example: Tucker Enterprises, Inc.

Question 2: How Is the Business Earning a Net Income or Loss?

An Example: Tucker Enterprises, Inc.

Question 3: Where Is the Business Getting Its Money, and Can It Pay ItsDebt Obligations?

An Example: Tucker Enterprises, Inc.

Question 4: How Is the Business Investing Its Money, and Is It Using ItsAssets Efficiently?

An Example: Tucker Enterprises, Inc.

Question 5: Is the Business Generating Enough Net Income to Reward theStockholders for the Use of Their Money?

An Example: Tucker Enterprises, Inc.

How Do You Put Everything Together to Make Decisions?

Seeing the Impact of Decisions

What Are Red Flags in Financial Statement Analysis?

 

Summary

Accounting Practice

Apply Your Knowledge

Know Your Business

 

Appendix A Columbia Sportswear Company 2012 Annual Report to Shareholders

Appendix B Time Value of MoneyFuture and Present Value Concepts

Future Value

Future-Value Tables

Future Value of an Annuity

Present Value

Present-Value Tables

Present Value of an Annuity

Accounting Practice

Company Index

Gl index

Credits