Table of Contents
Chapter 1 Overview of Corporate Financial Reporting
Development of Accounting Standards
Qualitative Characteristics and Constraints of Accounting Information
Management Discussion and Analysis
Board of Directors and Management
Chapter 2 Analyzing Transactions and Their Effects on Financial Statements
Transaction Analysis and the Basic Accounting Equation
Statement of Financial Position
Variations in Statement of Financial Position Presentation
Using Ratios to Analyze Financial Statements
Chapter 3 Processing Data Through the Accounting System
Double-Entry Accounting Systems
Statement of Financial Position
Understanding the Accounting Cycle
Recording Transactions in a Journal
Recording in Journal, Ledger, and Trial Balance
Preparing an Adjusted Trial Balance
Preparing Financial Statements and Closing Entries
Preparing the Financial Statements
Chapter 4 Revenue Recognition and Statement of Earnings
Summary of the Cash-to-Cash Cycle
Applications of Revenue Recognition
Revenue Recognized from Multiple Lines of Business
Earnings from Non-Operating Sources
Earnings from Unusual or Infrequent Events
Variations in Statement of Earnings Formats
Examples of Actual Statements of Earnings
The Return on Investment (ROI) Ratio as a Measure of Performance
Net Earnings as a Measure of Performance
Chapter 5 The Statement of Cash Flows
Performance Evaluation Using the Statement of Earnings and Statement of Cash Flows
Solutions to the Cash Flow Problem
Understanding the Statement of Cash Flows
Definition of Cash and Cash Equivalents
Preparing the Statement of Cash Flows
An Intuitive Approach to the Preparation of a Statement of Cash Flows
Determining the Cash Flows from Operating Activities
Determining the Cash Flows from Financing and Investing Activities
Interpreting Cash Flow Information
An Analysis of Le Château's Statement of Cash Flows
Reading and Interpreting Published Financial Statements
Integrative Questions on Chapters 1–5
Chapter 6 Cash, Short-Term Investments, and Accounts and Notes Receivable
Internal Control and Cash Management
Statement Analysis Considerations
Dividend and Interest Recognition
Recognition of Gains and Losses
Accounts Receivable Valuation Methods
The Allowance Method of Accounting for Bad Debts
Estimating Bad Debts under the Allowance Method
The Direct Write-Off Method of Accounting for Bad Debts
Statement Analysis Considerations
Accounts Receivable Turnover Ratio
Inventory Recognition and Cost of Goods Sold
Lower of Cost and Net Realizable Value
Cost and Benefits of System Choice
Inventory Issues for Management
Statement Analysis Considerations
Appendix—Cost Flow Assumptions Under the Periodic Inventory System
Chapter 8 Capital Assets—Tangible and Intangible
How Are Capital Assets Valued?
Units-of-Activity or Production Method
Accelerated or Declining-Balance Method
Recording Depreciation Expense
Changes in Depreciation Estimates and Methods
Additional Expenditures on Capital Assets During Their Lives
Writedowns and Disposals of Property, Plant, and Equipment
Patents, Trademarks, and Copyrights
Comprehensive Example of Capital Asset Disclosures
Statement Analysis Considerations
Using the Return on Assets (ROA) Ratio
Chapter 9 Current Liabilities, Contingencies, and Commitments
Recognition Criteria and Liabilities
Valuation Methods for Liabilities
Current Liabilities Related to Operating Activities
Current Liabilities Related to Financing Activities
Statement Analysis Considerations
Chapter 10 Long-Term Debt and Other Non-Current Liabilities
Long-Term Loans with Equal Blended Monthly Payments
Long-Term Loans with Monthly Payments of Interest Only
Bond Pricing in the Marketplace
Calculating Bond Interest Expense and Liability Balances
Repayment of Bonds at Maturity
Long-Term Notes or Bonds with No Explicit Interest
Defined Contribution Pension Plans
Other Post-Employment Benefits
Statement Analysis Considerations
Appendix—Using Excel to Calculate Present Value
Chapter 11 Shareholders' Equity
Limited Liability Differences in the Different Forms of Organization
Taxation Differences in the Different Forms of Organization
Other Advantages and Disadvantages of the Different Forms of Organization
Accounting for the Issuance of Common Shares
Dividends, Stock Splits, and Employee Stock Options
Statement of Retained Earnings and Statement of Changes in Equity
Statement of Retained Earnings
Statement of Changes in Equity
Return on Shareholders' Equity Ratio
Appendix—Repurchase of Shares and Treasury Shares
Applying Your Knowledge and a User Perspective
The Impact of Accounting Policy Choices on Financial Statements—An Integrative Project
Chapter 12 Financial Statement Analysis
Overview of Financial Statement Analysis
Reading the Financial Statements
Retrospective versus Prospective Analysis
Time-Series versus Cross-Sectional Analysis
Non-Manufacturing or Non-Retail Company Analysis