Fundamentals of Financial Accounting (ISE HED IRWIN ACCOUNTING)

Cover
Fundamentals of Financial Accounting
Dedication
Meet the Authors
Acknowledgments
Brief Contents
Contents
Chapter 1: Business Decisions and Financial Accounting
	NOODLECAKE STUDIOS, INC.
	Understand the Business
		Organizational Forms
		Accounting for Business Decisions
	Study the Accounting Methods
		The Basic Accounting Equation
		Financial Statements
	Evaluate the Results
		Using Financial Statements
		Useful Financial Information
	Supplement: 1A Careers That Depend on Accounting Knowledge
	Supplement: 1B Public Companies
	Review the Chapter
	Practice Material
Chapter 2: The Balance Sheet
	NOODLECAKE STUDIOS, INC.
	Understand the Business
		Building a Balance Sheet from Business Activities
		Transactions and Other Activities
	The Accounting Cycle
		Step 1: Analyze Transactions
		Steps 2 and 3: Record and Summarize
		The Debit/Credit Framework
		Preparing a Trial Balance and Balance Sheet
	Evaluate the Results
		Assessing the Ability to Pay
		Balance Sheet Concepts and Values
	Supplement: 2 Accounting Careers
	Review the Chapter
	Practice Material
Chapter 3: The Income Statement
	NOODLECAKE STUDIOS, INC.
	Understand the Business
		Operating Activities
		Income Statement Accounts
	Study the Accounting Methods
		Cash Basis Accounting
		Accrual Basis Accounting
		The Expanded Accounting Equation
		Unadjusted Trial Balance
		Review of Revenues and Expenses
	Evaluate the Results
		Net Profit Margin
		Income Statement Limitations
	Review the Chapter
	Practice Material
Chapter 4: Adjustments, Financial Statements, and Financial Results
	NOODLECAKE STUDIOS, INC.
	Understand the Business
		Why Adjustments Are Needed
	Study the Accounting Methods
		Making Required Adjustments
		Preparing an Adjusted Trial Balance and the Financial Statements
		Closing Temporary Accounts
	Evaluate the Results
		Adjusted Financial Results
	Review the Chapter
	Practice Material
Chapter 5: Fraud, Internal Control, and Cash
	KOSS CORPORATION
	Fraud and Internal Control
		Fraud
		The Sarbanes-Oxley Act (SOX)
		Internal Control
	Internal Control for Cash
		Controls for Cash Receipts
		Controls for Cash Payments
		Controls from Bank Procedures
	Cash Reporting
		Bank Statement
		Bank Reconciliation
		Reporting Cash
		Restricted Cash
	Supplement: 5A Petty Cash Systems
	Review the Chapter
	Practice Material
Chapter 6: Merchandising Operations and the Multistep Income Statement
	WALMART
	Understand the Business
		Operating Cycles
		Inventory Systems
	Study the Accounting Methods
		Recording Inventory Purchases
		Recording Inventory Sales
	Evaluate the Results
		Multistep Income Statement
		Gross Profit Analysis
	Supplement: 6A Recording Early Payment (“Cash”) Discounts on Purchases and Sales
	Supplement: 6B Recording Inventory Transactions in a Periodic System
	Review the Chapter
	Practice Material
Chapter 7: Inventory and Cost of Goods Sold
	AMERICAN EAGLE OUTFITTERS
	Understand the Business
		Types of Inventory
		Inventory Management Decisions
	Study the Accounting Methods
		Balance Sheet and Income Statement Reporting
		Inventory Costing Methods
		Lower of Cost or Market/Net Realizable Value
	Evaluate Inventory Management
		Inventory Turnover Analysis
	Supplement: 7A FIFO, LIFO, and Weighted Average in a Perpetual Inventory System
	Supplement: 7B The Effects of Errors in Ending Inventory
	Review the Chapter
	Practice Material
Chapter 8: Receivables, Bad Debt Expense, and Interest Revenue
	VF CORPORATION (VFC)
	Understand the Business
		Pros and Cons of Extending Credit
	Accounting for Accounts Receivable
		Accounts Receivable and Bad Debts
		Methods for Estimating Bad Debts
	Accounting for Notes Receivable
		Notes Receivable and Interest Revenue
		Recording Notes Receivable and Interest Revenue
	Evaluate Receivables Management
		Receivables Turnover Analysis
	Supplement: 8A Direct Write-Off Method
	Review the Chapter
	Practice Material
Chapter 9: Long-Lived Tangible and Intangible Assets
	CEDAR FAIR
	Understand the Business
		Definition and Classification
	Study the Accounting Methods
		Tangible Assets
		Intangible Assets
	Evaluate the Results
		Turnover Analysis
		Impact of Depreciation Differences
	Supplement: 9A Natural Resources
	Supplement: 9B Changes in Depreciation
	Review the Chapter
	Practice Material
Chapter 10: Liabilities
	GENERAL MILLS
	Understand the Business
		The Role of Liabilities
	Study the Accounting Methods
		Measuring Liabilities
		Current Liabilities
		Long-Term Liabilities
		Contingent Liabilities
	Evaluate the Results
		Debt-to-Assets Ratio
		Times Interest Earned Ratio
	Supplement: 10A Straight-Line Method of Amortization
	Supplement: 10B Effective-Interest Method of Amortization
	Supplement: 10C Simplified Effective-Interest Amortization
	Supplement: 10D Installment Notes Payable
	Review the Chapter
	Practice Material
Chapter 11: Stockholders’ Equity
	NATIONAL BEVERAGE CORP.
	Understand the Business
		Corporate Ownership
		Equity versus Debt Financing
	Study the Accounting Methods
		Common Stock Transactions
		Stock Dividends and Stock Splits
		Preferred Stock
		Retained Earnings
		Statement of Stockholders’ Equity
	Evaluate the Results
		Earnings per Share (EPS)
		Return on Equity (ROE)
		Price/Earnings (P/E) Ratio
	Supplement: 11A Owners’ Equity for OtherForms of Business
	Supplement: 11B Recording Stock Dividends
	Review the Chapter
	Practice Material
Chapter 12: Statement of Cash Flows
	DAVE & BUSTER’S ENTERTAINMENT, INC.
	Understand the Business
		Business Activities and Cash Flows
		Classifying Cash Flows
	Study the Accounting Methods
		Relationship to Other Financial Statements
		Preparing the Statement of Cash Flows
	Evaluate the Results
		Evaluating Cash Flows
		Operating Cash Flows Revisited (Direct Method)
	Supplement: 12 Reporting Disposals of Property, Plant, and Equipment (Indirect Method)
	Supplement: 12 T-Account Approach (Indirect Method)
	Review the Chapter
	Practice Material
Chapter 13: Measuring and Evaluating Financial Performance
	LOWE’S
	Understand the Business
		Horizontal, Vertical, and Ratio Analyses
	Study the Accounting Methods
		Horizontal (Trend) Computations
		Vertical (Common Size) Computations
		Ratio Computations
	Evaluate the Results
		Interpreting Horizontal and Vertical Analyses
		Interpreting Ratio Analyses
		Underlying Accounting Decisions and Concepts
	Supplement: 13A Discontinued Operations and Comprehensive Income
	Supplement: 13B Reviewing and Contrasting IFRS and GAAP
	Review the Chapter
	Practice Material
Appendix A
	Excerpts from the Fiscal 2019 10-K Annual Report of The Home Depot, Inc.
		Management’s Report on Internal Control Over Financial Reporting
		Report of Independent Registered Public Accounting Firm
		Report of Independent Registered Public Accounting Firm
		The Home Depot, Inc. Notes to Consolidated Financial Statements
Appendix B
	Excerpts from the Fiscal 2019 10-K Annual Report of Lowe’s Companies, Inc.
		Management’s Report on Internal Control Over Financial Reporting
		Report of Independent Registered Public Accounting Firm
		Report of Independent Registered Public Accounting Firm
		Notes to Consolidated Financial Statements
Appendix C
	Present and Future Value Concepts
	Future Value of a Single Amount
		Arithmetic Calculations
		Using Tables
		Using Excel
		Using a Financial Calculator App
	Present Value of a Single Amount
		Using Tables
		Using Excel
		Using a Financial Calculator App
	Future Value of an Annuity
		Using Tables
		Using Excel
		Using a Financial Calculator App
		The Power of Compounding and Regular Saving
	Present Value of an Annuity
		Using Tables
		Using Excel
		Using a Financial Calculator App
		Interest Rates and Interest Periods
	Accounting Applications of Present Values
		Case A—Present Value of a Single Amount
		Case B—Present Value of an Annuity
		Case C—Present Value of a Single Amount and an Annuity (Bond Pricing)
	Practice Material
Appendix D
	Investments in Other Corporations
Solutions to Multiple-Choice Questions
Chart of Accounts
Glossary
Company Index
Subject Index