Financial Accounting Weygandt Kimmel Kieso

Cover
Title Page
Copyright
Dedication
Brief Contents
From the Authors
Table of Contents
Acknowledgments
1 Accounting in Action
	Knowing the Numbers: Columbia Sportswear Company
	LO 1: Identify the activities and users associated with accounting
		Three Activities
		Who Uses Accounting Data
	LO 2: Explain the building blocks of accounting: ethics, principles, and assumptions
		Ethics in Financial Reporting
		Generally Accepted Accounting Principles
		Measurement Principles
		Assumptions
	LO 3: State the accounting equation, and define its components
		Assets
		Liabilities
		Stockholders’ Equity
	LO 4: Analyze the effects of business transactions on the accounting equation
		Accounting Transactions
		Transaction Analysis
		Summary of Transactions
	LO 5: Describe the four financial statements and how they are prepared
		Income Statement
		Retained Earnings Statement
		Balance Sheet
		Statement of Cash Flows
	LO *6: APPENDIX 1A: Explain the career opportunities in accounting
		Public Accounting
		Private Accounting
		Governmental Accounting
		Forensic Accounting
		“Show Me the Money”
	A Look at IFRS
2 The Recording Process
	Accidents Happen: MF Global Holdings
	LO 1: Describe how accounts, debits, and credits are used to record business transactions
		Debits and Credits
		Stockholders’ Equity Relationships
		Summary of Debit/Credit Rules
	LO 2: Indicate how a journal is used in the recording process
		The Recording Process
		The Journal
	LO 3: Explain how a ledger and posting help in the recording process
		The Ledger
		Posting
		Chart of Accounts
		The Recording Process Illustrated
		Summary Illustration of Journalizing and Posting
	LO 4: Prepare a trial balance
		Limitations of a Trial Balance
			Locating Errors
			Dollar Signs and Underlining
	A Look at IFRS
3 Adjusting the Accounts
	Keeping Track of Groupons: Groupon
	LO 1: Explain the accrual basis of accounting and the reasons for adjusting entries
		Fiscal and Calendar Years
		Accrual- versus Cash-Basis Accounting
		Recognizing Revenues and Expenses
		The Need for Adjusting Entries
		Types of Adjusting Entries
	LO 2: Prepare adjusting entries for deferrals
		Prepaid Expenses
		Unearned Revenues
	LO 3: Prepare adjusting entries for accruals
		Accrued Revenues
		Accrued Expenses
		Summary of Basic Relationships
	LO 4: Describe the nature and purpose of an adjusted trial balance
		Preparing the Adjusted Trial Balance
		Preparing Financial Statements
	LO *5: APPENDIX 3A: Prepare adjusting entries for the alternative treatment of deferrals
		Prepaid Expenses
		Unearned Revenues
		Summary of Additional Adjustment Relationships
	LO *6: APPENDIX 3B: Discuss financial reporting concepts
		Qualities of Useful Information
		Assumptions in Financial Reporting
		Principles in Financial Reporting
		Cost Constraint
	A Look at IFRS
4 Completing the Accounting Cycle
	Everyone Likes to Win: Rhino Foods
	LO 1: Prepare a worksheet
		Steps in Preparing a Worksheet
		Preparing Financial Statements from a Worksheet
		Preparing Adjusting Entries from a Worksheet
	LO 2: Prepare closing entries and a post-closing trial balance
		Preparing Closing Entries
		Posting Closing Entries
		Preparing a Post-Closing Trial Balance
	LO 3: Explain the steps in the accounting cycle and how to prepare correcting entries
		Summary of the Accounting Cycle
		Reversing Entries—An Optional Step
		Correcting Entries—An Avoidable Step
	LO 4: Identify the sections of a classified balance sheet
		Current Assets
		Long-Term Investments
		Property, Plant, and Equipment
		Intangible Assets
		Current Liabilities
		Long-Term Liabilities
		Stockholders’ (Owners’) Equity
	LO *5: APPENDIX 4A: Prepare reversing entries
		Reversing Entries Example
	A Look at IFRS
5 Accounting for Merchandising Operations
	Buy Now, Vote Later: REI
	LO 1: Describe merchandising operations and inventory systems
		Operating Cycles
		Flow of Costs
	LO 2: Record purchases under a perpetual inventory system
		Freight Costs
		Purchase Returns and Allowances
		Purchase Discounts
		Summary of Purchasing Transactions
	LO 3: Record sales under a perpetual inventory system
		Sales Returns and Allowances
		Sales Discounts
	LO 4: Apply the steps in the accounting cycle to a merchandising company
		Adjusting Entries
		Closing Entries
		Summary of Merchandising Entries
	LO 5: Prepare a multiple-step income statement and a comprehensive income statement
		Multiple-Step Income Statement
		Single-Step Income Statement
		Comprehensive Income Statement
		Classified Balance Sheet
	LO *6: APPENDIX 5A: Prepare a worksheet for a merchandising company
		Using a Worksheet
	LO *7: APPENDIX 5B: Record purchases and sales under a periodic inventory system
		Determining Cost of Goods Sold Under a Periodic System
		Recording Merchandise Transactions
		Recording Purchases of Merchandise
		Recording Sales of Merchandise
		Journalizing and Posting Closing Entries
		Using a Worksheet
	A Look at IFRS
6 Inventories
	“Where Is That Spare Bulldozer Blade?”: Caterpillar
	LO 1: Discuss how to classify and determine inventory
		Classifying Inventory
		Determining Inventory Quantities
	LO 2: Apply inventory cost flow methods and discuss their financial effects
		Specific Identification
		Cost Flow Assumptions
		Financial Statement and Tax Effects of Cost Flow Methods
		Using Inventory Cost Flow Methods Consistently
	LO 3: Indicate the effects of inventory errors on the financial statements
		Income Statement Effects
		Balance Sheet Effects
	LO 4: Explain the statement presentation and analysis of inventory
		Presentation
		Lower-of-Cost-or-Net Realizable Value
		Analysis
	LO *5: APPENDIX 6A: Apply the inventory cost flow methods to perpetual inventory records
		First-In, First-Out (FIFO)
		Last-In, First-Out (LIFO)
		Average-Cost
	LO *6: APPENDIX 6B: Describe the two methods of estimating inventories
		Gross Profit Method
		Retail Inventory Method
	A Look at IFRS
7 Fraud, Internal Control, 	and Cash
	Minding the Money in Madison: Barriques
	LO 1: Define fraud and the principles of internal control
		Fraud
		The Sarbanes-Oxley Act
		Internal Control
		Principles of Internal Control Activities
		Limitations of Internal Control
	LO 2: Apply internal control principles to cash
		Cash Receipts Controls
		Cash Disbursements Controls
		Petty Cash Fund
	LO 3: Identify the control features of a bank account
		Making Bank Deposits
		Writing Checks
		Electronic Funds Transfer (EFT) System
		Bank Statements
		Reconciling the Bank Account
	LO 4: Explain the reporting of cash
		Cash Equivalents
		Restricted Cash
	A Look at IFRS
8 Accounting for Receivables
	LO 1: Explain how companies recognize accounts receivable
		Types of Receivables
		Recognizing Accounts Receivable
	LO 2: Describe how companies value accounts receivable and record their disposition
		Valuing Accounts Receivable
		Disposing of Accounts Receivable
	LO 3: Explain how companies recognize, value, and dispose of notes receivable
		Determining the Maturity Date
		Computing Interest
		Recognizing Notes Receivable
		Valuing Notes Receivable
		Disposing of Notes Receivable
	LO 4: Describe the statement presentation and analysis of receivables
		Presentation
		Analysis
	A Look at IFRS
	A Dose of Careful Management Keeps Receivables Healthy: Whitehall-Robins
9 Plant Assets, Natural Resources, and Intangible Assets
	How Much for a Ride to the Beach?: Rent-A-Wreck
	LO 1: Explain the accounting for plant asset expenditures
		Determining the Cost of Plant Assets
		Expenditures During Useful Life
	LO 2: Apply depreciation methods to plant assets
		Factors in Computing Depreciation
		Depreciation Methods
		Depreciation and Income Taxes
		Revising Periodic Depreciation
		Impairments
	LO 3: Explain how to account for the disposal of plant assets
		Retirement of Plant Assets
		Sale of Plant Assets
	LO 4: Describe how to account for natural resources and intangible assets
		Natural Resources
		Depletion
		Intangible Assets
		Accounting for Intangible Assets
		Research and Development Costs
	LO 5: Discuss how plant assets, natural resources, and intangible assets are reported and analyzed
		Presentation
		Analysis
	LO *6: APPENDIX 9A: Explain how to account for the exchange of plant assets
		Loss Treatment
		Gain Treatment
	A Look at IFRS
10 Liabilities
	Financing His Dreams: Wilbert Murdock
	LO 1: Explain how to account for current liabilities
		What Is a Current Liability?
		Notes Payable
		Sales Taxes Payable
		Unearned Revenues
		Current Maturities of Long-Term Debt
		Payroll and Payroll Taxes Payable
	LO 2: Describe the major characteristics of bonds
		Types of Bonds
		Issuing Procedures
		Bond Trading
		Determining the Market Price of a Bond
	LO 3: Explain how to account for bond transactions
		Issuing Bonds at Face Value
		Discount or Premium on Bonds
		Issuing Bonds at a Discount
		Issuing Bonds at a Premium
		Redeeming Bonds at Maturity
		Redeeming Bonds Before Maturity
	LO 4: Explain how to account for long-term notes payable
	LO 5: Discuss how liabilities are reported and analyzed
		Presentation
		Analysis
		Debt and Equity Financing
	LO *6: APPENDIX 10A: Apply the straight-line method of amortizing bond discount and bond premium
		Amortizing Bond Discount
		Amortizing Bond Premium
	LO *7: APPENDIX 10B: Apply the effective-interest method of amortizing bond discount and bond premium
		Amortizing Bond Discount
		Amortizing Bond Premium
	A Look at IFRS
11 Corporations: Organization, Stock Transactions, and Stockholders’ Equity
	Oh Well, I Guess I’ll Get Rich: Facebook
	LO 1: Discuss the major characteristics of a corporation
		Characteristics of a Corporation
		Forming a Corporation
		Stockholder Rights
		Stock Issue Considerations
		Corporate Capital
	LO 2: Explain how to account for the issuance of common, preferred, and treasury stock
		Accounting for Common Stock
		Accounting for Preferred Stock
		Accounting for Treasury Stock
	LO 3: Explain how to account for cash dividends, stock dividends, and stock splits
		Cash Dividends
		Dividend Preferences
		Stock Dividends
		Stock Splits
	LO 4: Discuss how stockholders’ equity is reported and analyzed
		Reporting Stockholders’ Equity
		Retained Earnings Restrictions
		Balance Sheet Presentation of Stockholders’ Equity
		Analysis of Stockholders’ Equity
	LO *5: APPENDIX 11A: Describe the use and content of the stockholders’ equity statement
	LO *6: APPENDIX 11B: Compute book value per share
		Book Value per Share
		Book Value versus Market Price
	A Look at IFRS
12 Statement of Cash Flows
	Got Cash?: Microsoft
	LO 1: Discuss the usefulness and format of the statement of cash flows
		Usefulness of the Statement of Cash Flows
		Classification of Cash Flows
		Significant Noncash Activities
		Format of the Statement of Cash Flows
	LO 2: Prepare a statement of cash flows using the indirect method
		Indirect and Direct Methods
		Indirect Method—Computer Services Company
		Step 1: Operating Activities
		Summary of Conversion to Net Cash Provided by Operating Activities—Indirect Method
		Step 2: Investing and Financing Activities
		Step 3: Net Change in Cash
	LO 3: Analyze the statement of cash flows
		Free Cash Flow
	LO *4: APPENDIX 12A: Prepare a statement of cash flows using the direct method
		Step 1: Operating Activities
		Step 2: Investing and Financing Activities
		Step 3: Net Change in Cash
	LO *5: APPENDIX 12B: Use a worksheet to prepare the statement of cash flows using the indirect method
		Preparing the Worksheet
	LO *6: APPENDIX 12C: Use the T-account approach to prepare a statement of cash flows
	A Look at IFRS
13 Financial Statement Analysis: The Big Picture
	It Pays to Be Patient: Warren Buffett
	LO 1: Apply the concepts of sustainable income and quality of earnings
		Sustainable Income
		Quality of Earnings
	LO 2: Apply horizontal and vertical analysis
		Horizontal Analysis
		Vertical Analysis
	LO 3: Analyze a company’s performance using ratio analysis
		Earnings per Share
		Price-Earnings Ratio
		Liquidity Ratios
		Solvency Ratios
		Profitability Ratios
	LO *4: APPENDIX 13A: Evaluate a company comprehensively using ratio analysis
		Liquidity Ratios
		Solvency Ratios
		Profitability Ratios
	A Look at IFRS
A Specimen Financial Statements: Apple Inc
B Specimen Financial Statements: PepsiCo, Inc
C Specimen Financial Statements: The Coca-Cola Company
D Specimen Financial Statements: Amazon.com, Inc
E Specimen Financial Statements: Wal-Mart Stores, Inc
F Specimen Financial Statements: Louis Vuitton
G Time Value of Money
	LO 1: Compute interest and future values
		Nature of Interest
		Future Value of a Single Amount
		Future Value of an Annuity
	LO 2: Compute present values.
		Present Value Variables
		Present Value of a Single Amount
		Present Value of an Annuity
		Time Periods and Discounting
		Present Value of a Long-Term Note or Bond
	LO 3: Use a financial calculator to solve time value of money problems
		Present Value of a Single Sum
		Present Value of an Annuity
		Useful Applications of the Financial Calculator
H Reporting and Analyzing Investments
	LO 1: Explain how to account for debt investments
		Why Corporations Invest
		Accounting for Debt Investments
	LO 2: Explain how to account for stock investments
		Holdings of Less than 20%
		Holdings Between 20% and 50%
		Holdings of More than 50%
	LO 3: Discuss how debt and stock investments are reported in financial statements.
		Debt Securities
		Equity Securities
		Balance Sheet Presentation
		Presentation of Realized and Unrealized Gain or Loss
Company Index
Subject Index
EULA