Cornerstones of financial accounting

Title Page
Copyright Page
Brief contents
New to this edition
Superior supplements
Acknowledgments and Thanks
Contents
About the Authors
Chapter 1: Accounting and the Financial Statements
	What Is Accounting?
	Businesses: Forms and Activities
	Communication of Accounting Information
	The Classified Balance Sheet
	The Income Statement
	Retained Earnings Statement
	Statement of Cash Flows
	Relationships Among the Statements
	Other Items in the Annual Report and Professional Ethics
Chapter 2: The Accounting Information System
	Fundamental Accounting Concepts
	Measuring Business Activities: The Accounting Cycle
	Step 1: Analyze Transactions
	Double-Entry Accounting
	Step 2: Journalize Transactions
	Step 3: Post to the Ledger
	Step 4: Prepare a Trial Balance
Chapter 3: Accrual Accounting
	Completing the Accounting Cycle
	Key Elements of Accrual Accounting
	Accrual Accounting and Adjusting Entries
	Step 5: Adjusting the Accounts
	Step 6: Preparing the Financial Statements
	Step 7: Closing the Accounts
	Summary of the Accounting Cycle
	Appendix 3A: Using a Worksheet to Prepare Financial Statements
	MAKING THE CONNECTION
Chapter 4: Internal Control and Cash
	Role of Internal Control
	Components of Internal Control
	Accounting and Reporting Cash
	Cash Controls
	Operating Cycle
Chapter 5: Sales and Receivables
	Timing of Revenue Recognition
	Amount of Revenue Recognized
	Types of Receivables
	Accounting for Bad Debts
	Cash Management Principles Related to Accounts
Receivable
	Notes Receivable
	Internal Control for Sales
	Analyzing Sales and Receivables
	Appendix 5A: Recording Receivables Using the
Gross Method
Chapter 6: Cost of Goods Sold and Inventory
	Nature of Inventory and Cost of Goods Sold
	Recording Inventory Transactions—Perpetual System
	Costing Inventory
	Analysis of Inventory Costing Methods
	Lower of Cost or Market Rule
	Analyzing Inventory
	Effects of Inventory Errors
	Appendix 6A: Periodic Inventory System
	Appendix 6B: Inventory Costing Methods and the
Periodic Inventory System
Chapter 7: Operating Assets
	Understanding Operating Assets
	Acquisition of Property, Plant, and Equipment
	Depreciation
	Depreciation Methods
	Expenditures After Acquisition
	Revision of Depreciation
	Disposal of Fixed Assets
	Analyzing Fixed Assets
	Intangible Assets
	Natural Resources
	Appendix 7A: Impairment of Property, Plant, and
Equipment
	MAKING THE CONNECTION
Chapter 8: Current and Contingent Liabilities
	Current and Contingent Liabilities
	Recognition and Measurement of Liabilities
	Current Liabilities
	Contingent Liabilities
	Warranties
	Analyzing Current Liabilities
Chapter 9: Long-Term Liabilities
	Bonds Payable and Notes Payable
	Accounting for Long-Term Debt
	Recognizing Interest Expense and Repayment of
Principal
	The Straight-Line Method
	The Effective Interest Rate Method: Recognizing
Interest Expense and Repayment of Principal
	Pros and Cons of Debt Financing
	Leases
	Ratio Analysis
	Appendix 9A: Pricing Long-Term Debt
Chapter 10: Stockholders’ Equity
	Raising Capital within a Corporation
	Accounting for Issuance of Common and Preferred
Stock
	Accounting for Distributions to Stockholders
	Accounting for Retained Earnings and Accumulated
Other Comprehensive Income
	Equity Analysis
	MAKING THE CONNECTION
Chapter 11: The Statement of Cash Flows
	Role of the Statement of Cash Flows
	Cash Flow Classifications
	Analyzing the Accounts for Cash Flow Data
	Preparing a Statement of Cash Flows
	Preparing Cash Flows from Operating Activities
	Preparing Cash Flows from Investing Activities
	Preparing Cash Flows from Financing Activities
	Using the Statement of Cash Flows
	Appendix 11A: The Direct Method
	Appendix 11B: Using a Spreadsheet to Prepare the
Statement of Cash Flows
Chpater 12: Financial Statement Analysis
	Use of Financial Statements in Decisions
	SEC Filings
	Analyzing Financial Statements with Cross Sectional
and Time Series Analysis
	Analyzing the Financial Statements with Horizontal
and Vertical Analysis
	Analyzing the Financial Statements with Ratio
Analysis
Appendix 1: International Financial Reporting Standards
	International Financial Reporting
	Key Differences between IFRS and U.S. GAAP
Appendix 2: Investments
	Overview of Accounting for Investments
	Consolidated Financial Statements
	Business Combinations
Appendix 3: Time Value of Money
	Compound Interest Calculations
	Present Value of Future Cash Flows
	Four Basic Compound Interest Problems
Appendix 4: Financial Statement Information:
Under Armour
Appendix 5: Financial Statement Information:
Columbia Sportswear
Glossary
Check Figures
Index