Financial and Managerial Accounting

Cover
Preface
Acknowledgements
About the Authors
Brief Contents
Contents
Chapter 1: Introduction to Accounting and Business
	Nature of Business and Accounting
	Generally Accepted Accounting Principles (GAAP)
	The Accounting Equation
	Business Transactions and the Accounting Equation
	Financial Statements
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 2: Analyzing Transactions
	Using Accounts to Record Transactions
	Double-Entry Accounting System
	Posting Journal Entries to Accounts
	Trial Balance
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 3: The Adjusting Process
	Nature of the Adjusting Process
	Adjusting Entries for Accruals
	Adjusting Entries for Deferrals
	Adjusting Entries for Depreciation
	Summary of Adjusting Process
	Adjusted Trial Balance
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 4: The Accounting Cycle
	Flow of Accounting Information
	Financial Statements
	Closing Entries
	Accounting Cycle
	Illustration of the Accounting Cycle
	Analysis for Decision Making
	Appendix 1 End-of-Period Spreadsheet
	Appendix 2 Reversing Entries
	Comprehensive Problem 1
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 5: Accounting for Retail Businesses
	Nature of Retail Businesses
	Merchandise Transactions
	The Adjusting Process
	Financial Statements and Closing Entries for a Retail Business
	Analysis for Decision Making
	Appendix 1 Gross Method of Recording Sales Discounts
	Appendix 2 The Periodic Inventory System
	Comprehensive Problem 2
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 6: Inventories
	Control of Inventory
	Inventory Cost Flow Assumptions
	Inventory Costing Methods Under a Perpetual Inventory System
	Inventory Costing Methods Under a Periodic Inventory System
	Comparing Inventory Costing Methods
	Analysis for Decision Making
	Appendix Estimating Inventory Cost
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 7: Internal Control and Cash
	Sarbanes-Oxley Act
	Internal Control
	Cash Controls over Receipts and Payments
	Bank Accounts
	Bank Statement
	Using the Bank Statement as a Control over Cash
	Bank Reconciliation
	Special-Purpose Cash Funds
	Financial Statement Reporting of Cash
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 8: Receivables
	Classification of Receivables
	Uncollectible Receivables
	Direct Write-Off Method for Uncollectible Accounts
	Allowance Method for Uncollectible Accounts
	Comparing Direct Write-Off and Allowance Methods
	Notes Receivable
	Reporting Receivables on the Balance Sheet
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 9: Long-Term Assets:Fixed and Intangible
	Nature of Fixed Assets
	Accounting for Depreciation
	Disposal of Fixed Assets
	Natural Resources
	Intangible Assets
	Financial Reporting for Long-Term Assets: Fixed and Intangible
	Analysis for Decision Making
	Appendix Exchanging Similar Fixed Assets
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 10: Liabilities: Current, Installment Notes, and Contingencies
	Current Liabilities
	Payroll Liabilities
	Employees' Fringe Benefits
	Installment Notes
	Contingent Liabilities
	Reporting Liabilities
	Analysis for Decision Making
	Comprehensive Problem 3
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 11: Liabilities: Bonds Payable
	Nature of Bonds Payable
	Accounting for Bonds Payable
	Reporting Bonds Payable
	Analysis for Decision Making
	Appendix 1 Present Value Concepts and Pricing Bonds Payable
	Computing Present Values
	Appendix 2 Effective Interest Rate Method of Amortization
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 12: Corporations: Organization, Stock Transactions, and Dividends
	Nature of a Corporation
	Paid-In Capital from Stock
	Accounting for Dividends
	Stock Splits
	Treasury Stock Transactions
	Reporting Stockholders' Equity
	Analysis for Decision Making
	Comprehensive Problem 4
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 13: Statement of Cash Flows
	Reporting Cash Flows
	Cash Flows from Operating Activities - The Indirect Method
	Cash Flows from Investing Activities
	Cash Flows from Financing Activities
	Analysis for Decision Making
	Appendix 1 Spreadsheet (Work Sheet) for Statement of Cash Flows - The Indirect Method
	Appendix 2 Preparing the Statement of Cash Flows - The Direct Method
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 14: Financial Statement Analysis
	Analyzing and Interpreting Financial Statements
	Analytical Methods
	Analyzing Liquidity
	Analyzing Solvency
	Analyzing Profitability
	Corporate Annual Reports
	Appendix 1 Unusual Items on the Income Statement
	Appendix 2 Fair Value and Comprehensive Income
	Make a Decision
	Take It Further
	Pathways Challenge
Chapter 15: Introduction to Managerial Accounting
	Managerial Accounting
	Manufacturing Operations
	Financial Statements for a Manufacturing Business
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 16: Job Order Costing
	Cost Accounting Systems Overview
	Job Order Cost Systems for Manufacturing Businesses
	Job Order Cost Systems for Service Businesses
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 17: Process Cost Systems
	Process Manufacturers
	Cost of Production Report
	Journal Entries for a Process Cost System
	Using the Cost of Production Report
	Analysis for Decision Making
	Appendix Weighted Average Method
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 18: Activity-Based Costing
	Product Costing Allocation Methods
	Single Plantwide Factory Overhead Rate Method
	Multiple Production Department Factory Overhead Rate Method
	Activity-Based Costing Method
	Activity-Based Costing for Selling and Administrative Expenses
	Activity-Based Costing in Service Businesses
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 19: Support Department and Joint Cost Allocation
	Support Departments
	Support Department Cost Allocation
	Allocating Support Department Costs to Production Departments
	Joint Costs
	Joint Cost Allocation
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 20: Cost-Volume-Profit Analysis
	Cost Behavior
	Cost-Volume-Profit Relationships
	Mathematical Approach to Cost-Volume-Profit Analysis
	Graphic Approach to Cost-Volume-Profit Analysis
	Special Cost-Volume-Profit Relationships
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 21: Variable Costing for Management Analysis
	Operating Income: Absorption and Variable Costing
	Analyzing Operating Income Using Absorption and Variable Costing
	Using Absorption and Variable Costing
	Analyzing Market Segments
	Variable Costing for Service Businesses
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 22: Budgeting
	Nature and Objectives of Budgeting
	Budgeting Systems
	Master Budget
	Operating Budgets
	Financial Budgets
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 23: Evaluating Variances from Standard Costs
	Standards
	Budgetary Performance Evaluation
	Direct Materials and
 Direct Labor Variances
	Factory Overhead Variances
	Recording and Reporting Variances from Standards
	Analysis for Decision Making
	Appendix Revenue Variances
	Comprehensive Problem 5
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 24: Evaluating Decentralized Operations
	Centralized and Decentralized Operations
	Responsibility Accounting for Cost Centers
	Responsibility Accounting for Profit Centers
	Responsibility Accounting for Investment Centers
	Transfer Pricing
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 25: Differential Analysis and Product Pricing
	Differential Analysis
	Setting Normal Product Selling Prices
	Production Bottlenecks
	Analysis for Decision Making
	Appendix Total and Variable Cost Methods to Setting Normal Price
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 26: Capital Investment Analysis
	Nature of Capital Investment Analysis
	Methods Not Using Present Values
	Methods Using Present Values
	Factors That Complicate Capital Investment Analysis
	Capital Rationing
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 27: Lean Manufacturing and Activity Analysis
	Lean Principles
	Lean Accounting
	Activity Analysis
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Chapter 28: The Balanced Scorecard and Corporate Social Responsibility
	Performance Measurement Systems
	The Balanced Scorecard
	Using the Balanced Scorecard
	Corporate Social Responsibility
	Analysis for Decision Making
	Make a Decision
	Take It Further
	Certified Management Accountant (CMA) Examination Questions (Adapted)
	Pathways Challenge
Appendix A: Interest Tables
Appendix B: Revenue Recognition
Appendix C: International Financial Reporting Standards (IFRS)
Appendix D: Investments
Appendix E: Nike Inc., Form 10-K for the Fiscal Year Ended May 31, 2017 Selected Excerpts
Glossary
Index