INDEX

A

A. C. Nielsen Company, 721n. 17

Abbott Laboratories, 219–220, 967

Abdel-khalik, A. Rashad, 1283n. 9

Abnormal shortages, 493

Absences, compensated, 712–714

Accelerated Cost Recovery System (ACRS), 614

Accountability, 54

Accounting:

ethics in, 21

principles of, 56–61

Accounting changes, see Change(s) in accounting entries

Accounting cycle, 89–114

adjusted trial balance, 108

adjusting entries, 96–108

closing, 110–113

journalizing, 91–92

post-closing trial balance, 113

posting, 92–96

preparing financial statements, 108–110

reversing entries, 113

steps of, 114

transactions and other events, identifying/recording, 89–91

trial balance, 96

Accounting information system, 84–89

Accounting policies:

accounting for changes in, 1404–1406

on balance sheets, 236, 237

disclosure of, 1491

MD&A of, 1511–1512

Accounting principle, changes in, see Change(s) in accounting principle

Accounting Principles Board (APB), 9, 27. See also Opinions of the Accounting Principles Board

Accounting Research Bulletins, 9

Accounting Research Study No. 13 (“The Accounting Basis of Inventories”), 481n. 5

Accounting standards:

economic consequences of, 17

need for development of, 7

politicization of, 26–27

Accounting Standards Executive Committee (AcSEC), 10, 541n. 2, 557n. 6, 559n. 12

Accounting Standards Updates, 11, 12, 57n. 16

Accounting theory, cash basis accounting and, 118–120

Accounts payable(s), 703

decrease in, 1425

increase in, 1422

indirect method of analyzing, 1418–1419

Accounts receivable(s), 349–358

days to collect, 374

decrease in, 1421

disposition of, 365–370

increase in, 1424

indirect method of analyzing, 1418

net, accounts receivable, 1438–1440, 1447

recognition of, 351–352

trade, 363

uncollectible, 353–358

valuation of, 352–358

Accounts receivable turnover, 372

Accruals:

adjusting entries for, 102–108

as class of adjusting entries, 97

in reversing entries illustration, 124–125

Accrual basis accounting, 6–7

cash basis accounting vs., 118–123

conversion to cash basis accounting, 120–123

for warranties, 719–720

Accrued expenses:

adjusting entries for, 104–108

as class of adjusting entries, 97

Accrued interest, adjusting entries for, 105

Accrued revenue(s):

adjusting entries for, 103–104

as class of adjusting entries, 97

overstatement of, 1369

Accrued salaries, adjusting entries for, 106–107

Accrued wages, failure to record, 1368

Accumulated benefit obligation, 1187

Accumulated depreciation, 1422, 1425, 1448–1449

Accumulated other comprehensive income, 280

Accumulated other comprehensive loss, 847n. 21

Accumulated postretirement benefit obligation (APBO), 1220

Accumulated rights, 713

Acid-test ratio, 730

Acquisition costs, 556–560, 605

ACRS (Accelerated Cost Recovery System), 614

AcSEC, see Accounting Standards Executive Committee

Activision Blizzard, 1411

Activity method for depreciation, 593

Activity ratios, 245, 1523, 1524

Actually refinancing, 706

Actual return on plan assets, 1191–1192, 1221, 1254–1255

Actuarial present value, 1188n. 7

Actuaries, 1187

Adaptec, 911

ADC Telecommunications, 347

Additions, 558

Additional paid-in capital, 826

Adecco, 83

Adelphia Communications, 54, 783, 1518

Adjunct account, 774

Adjustable-rate mortgage, 782

Adjusted subsequent events, 1551

Adjusted trial balance, 85, 108, 113, 129

Adjustments, 96–108

for accruals, 102–108

for bad debts, 107–108

for deferrals, 97–102

defined, 85

for depreciation, 100–101

for insurance, 99–100

prior period, 181

for statement presentation, 101–102

types of, 97

for unearned revenues, 102

on worksheet, 127–129

Adjustments columns, 127

Administrative expenses, on income statement, 164

Adverse opinion, 1511

Advertising costs, 669, 1504

AES, 176

After-closing trial balance, 85

Aging schedule, 357

Agricultural inventory, 530–532

Agricultural produce, 530

Ahold NV, 1109, 1176

AICPA, see American Institute of Certified Public Accountants

AICPA Task Force on LIFO Inventory Problems, 479n. 3

AIG, 2, 31, 48, 364, 984

Airbus, 1553

Air France, 1332–1335

Airline industry, 215, 591n. 2

Air Products & Chemicals, 979n. 14

Airtran, 215

Alaska Airlines, 1307

Alberto-Culver Company, 240

Alcatel-Lucent, 1111, 1219

Allied Products Corporation, 835

Allowance accounts:

for multiple periods, 480

and net realizable value adjustments, 529

use of, 479–480

Allowance method, 353–358

Alltel Corp., 707

Almost Family, Inc., 107

Altera International, 965

Alternative minimum tax (AMT), 1140

Alterra Healthcare Corp., 217–218

Altman, E. I., 226

Amazon.com, 158, 159, 214, 224, 276, 427, 657, 821, 885, 899, 933–934, 955, 965–966

Ameren, 611

American Airlines, 102, 215, 708, 822, 1231, 1273, 1308–1309

American Bar Association, 822

American Express, 366

American Home Mortgage Investment Corp., 1041

American Institute of Certified Public Accountants (AICPA), 9–10, 597n. 6

and APB, 9

and big GAAP/little GAAP issue, 1550n. 29

changing role of, 10

and Committee on Accounting Procedure, 9, 26, 27

and GAAP standards development, 9

and government intervention, 29

and SEC, 7

Task Force on LIFO Inventory Problems, 479n. 3

American Maize-Products Company, 433

America Online, 650

Amgen, 831

AM International, 425

Amortization:

adjustment to net income for, 1434–1435

of bonds, 314–315, 769–770

corridor, 1199–1200, 1210–1211, 1223

defined, 590

effective-interest method, 314–315

of intangible assets, 651–653

on postretirement benefit plans, 1223

of prior service costs, 1194–1195, 1221

straight-line, 1195

of trademark, 1448–1449

on units-of-production basis, 657n. 3

years-of-service, 1194–1195

Amortization policies, 55

Amortized cost, 953, 1028–1029

Ampco-Pittsburgh Corporation, 596, 1358

AMR Corporation, 1231

AMT (alternative minimum tax), 1140

Anadarko Petroleum Corporation, 546, 999

Anheuser-Busch, 1525

Anixter Bros., Inc., 425

Annual interest rate, in compound interest tables, 292–293

Annualized approach, 1505

Annual reports:

content and organization of, 247

on the Internet, 19

Annuity(-ies), 299–313

deferred, 311–313

due, future value of, 303–306

due, present value of, 308–311

ordinary, 291–292, 306–307, 309–311

ordinary, future value of, 300–302, 304–306

present value of, 306–311

Annuity due, 303–306

future value of, 303–306

present value of, 308–311

Ante, S. E., 480

Antidilutive securities, 904, 908–909, 921n. 22

APB (Accounting Principles Board), 9, 27

APBO (accumulated postretirement benefit obligation), 1220

APB Opinions (Opinions of the Accounting Principles Board), 9, 11–13

Apple Inc. (Apple Computer), 189, 241, 349, 358, 488, 654, 657, 670, 718, 822, 1054, 1140

April-Marcus, Inc., 422

Arbitrageurs, 979

Arcady, A. T., 1214n. 18

AROs (asset retirement obligations), 723–724

Arrears:

dividend in, 835

preferred dividends in, 707

Articulation, 52

Artificial loss, 1308n. 19

Artistic-related intangible assets, 655

Assessments, 718–719

Asset(s):

on balance sheet, 216

biological, 530

contingent, 758

current, 217–220

defined, 52, 53, 79

depreciable base for, 590

fixed, 538, 599

held for disposal, 603–604

in lessee accounting, 1278

noncurrent, 221–222

of pension plans, 1197–1198, 1260

recognition of, 1125

sales price of, 1296

soft, 19

transfer of, 791

Asset expenditures, 557

Asset gains and losses, with pension plans, 1197–1198, 1260

Asset-liability method, 1144

Asset-linked bonds, 765

Asset retirement obligations (AROs), 723–724

Asset turnover ratio, 611

Asset valuation, 556

Assumptions, 54–56

Astra Zeneca Plc., 657–658

Atlantic Richfield, 608

AT&T Inc., 90, 595, 888–889, 1202, 1217, 1219

Attmore, R. H., 1227

Attribution period, 1219

Audit and Accounting Guides (AdSEC), 10

Auditor's report, 1508–1511

emphasis of matter in, 1510

and expectation gap, 1519n. 24

on going concern of entity, 1509

and lack of consistency, 1510

and management's responsibilities for financial statements, 1512n. 14

qualified/adverse/disclaimer opinion, 1510–1511

standards for, 1508

unqualified/clean opinion, 1508–1510

Automatic Data Processing, 768

Available-for-sale securities, 182n. 21, 218, 952, 955–959, 962–964, 968

Average-cost method:

for cost flow assumption, 429–430

for security purchases, 962n. 6

Average days to sell inventory, 496

Avis, 1081

Avon Products, 236

AXA, 32

Ayers, B., 1122

B

Baan NV, 1109

Bad debts:

adjusting entries for, 107–108

failure to adjust for, 1369–1370

Bahree, B., 607

Baker Hughes, Inc., 537

Balance sheet(s), 85, 214–227, 243

accounting policies on, 236, 237

assets on, 216

and cash flows statement, 1415, 1421, 1423, 1429

classification in, 215–226

classified, 215

columns on, 129

comparative, 1445

contingencies on, 236, 237

contractual situations on, 236, 237

current assets on, 217–218

debit vs. credit balances on, 1443–1444

deferred tax reporting on, 1138–1140

elements of, 216

equity on, 216

errors on, 1366–1370

events after preparation of, 1495–1496

example, 115–116

fair values on, 236, 238–239

format of, 226–228

liabilities on, 216, 222–225

limitations of, 214–215

noncurrent assets on, 221–222

owner's equity on, 225–226

presentation of, 185

stockholders’ equity on, 88, 225–226, 847–850

usefulness of, 214

Balance sheet (percentage-of-receivables) approach, 356–357

Ball, J., 607

Banks:

as lessors, 1271, 1302n. 16

loan losses, 344–345

operating cash flows in, 1439–1440

treatment of purchases/sales of loans/securities by, 1414n. 2

Bank, David, 709

Bank accounts, 376–377

Bank charges, reconciling, 378–381

Bank credits, reconciling, 379

Bank errors, reconciling, 379

Bankers Trust, 979

Bankia Group, 364

Bank of America, 5, 83, 822, 984, 1269, 1273, 1307, 1440

BankOne, 897, 899

Bank overdrafts, 348

Bank reconciliation, 378–381

Bankruptcy-prediction model, 226

Bank statements, 378–381

Barclays, 984

Bargain purchases, 1083–1084

Bargain purchase option, 1277, 1298, 1338

Bargain purchase option test, 1275–1276

Bargain renewal option, 1334

Barnesandnoble.com, 657

Barrick Gold Corporation, 523–524

Barth, Mary, 890n. 6

Barth Industries, 716

Basic elements, 52–53

Basis Technology, 965

Basket purchase, 482

Bearer (coupon) bonds, 765

Bear Stearns & Co., 224

Beaver, W. H., 161n. 2

Beijing Lenovo Parasaga Information Technology, 966–967

Benchmark, verifiable, 56

Benefits/years-of-service actuarial method, 1189–1190, 1219n. 25

Beresford, Dennis R., 972n. 11

Berkshire Hathaway Inc., 32, 822, 1486

Bernanke, Ben S., 316

Beru AG Corporation, 700

Best Buy, 68, 114, 134, 352, 373, 419, 472–474, 489, 727, 730, 785, 823, 849, 1509

Best Western, 1081

Bethlehem Steel, 1125, 1201

Bhamornsiri, Sak, 1064n. 19

Biddle, Gary C., 445n. 20

“Big GAAP versus little GAAP” issue, 1490, 1550n. 29

Biggs, Stanley F., 484n. 8

Bill and hold sales, 1050

Biological assets, 530

Birchall, J., 420

Black & Decker, 68

Bloom, R., 445

Bloomingdale's, 488

BLS (Bureau of Labor Statistics), 440n. 9

Blumenstein, Rebecca, 557

BMC Industries, Inc., 716

BMW, 875

Boeing Capital, 1271

Boeing Corporation, 58, 100, 216, 416, 538, 556, 1067–1068, 1219, 1273, 1284

Boise Cascade, 484

Bonds, 763. See also specific types, e.g.: Discount bonds

between-interest-date issuance of, 770

convertible, 765, 884–886, 890, 919–920, 944–946

corporate listings, 765–766

effective-interest method for, 770–774

and extinguishment of debt, 775–776

face value of, 766–767

and interest date, 768–770

issuance of, 764, 768–770, 816

monitoring investments in, 765–766

notes vs., 777

par on interest date, issuance at, 768

premium, 766–770, 1435

types of, 765

Bond amortization, effective-interest method of, 314–315

Bond discount, amortization of, 1435

Bondholders, 1522

Bond indenture, 765

Bonds payable, 764–776

and contra accounts, 774

decrease in, 1426

discount, 774

increase in, 1422

Bond premium:

amortization of, 1435

valuation of, 766–770

Bonus agreements, 714–715

Bonus payments, and change in accounting method, 1365–1366

Book depreciation, tax depreciation vs., 617

Book of original entry, 85, 91

Book value, 836

bonds, 101

for preference shares, 876

Book value per share, 850, 853–854

BOP Clothing Co., 751–753

Borrowing rate, 1335

Borrus, A., 768

Boston Scientific, 166

BP, 32

Brand images, 670

Briggs & Stratton, 715, 799

“Bright line” cutoffs, 1334n. 22

Brinker International Inc., 1282

British Airways, 1050, 1183

Broadcom, 831, 911

Brokers, 1414n. 2

Brokerage costs, 1030n. 44

Brown, K., 48

Brown, K. L., 1058n. 18

Brown, Robert Moren, 443n. 18

Brown Group, Inc., 845

Brown Shoe Company, 433

Budge, Bruce P., 1437n. 8

Buffet, Warren E., 1486

Building depreciation, 1422, 1448–1449

Burberry, 1032, 1033

Burden, 540

Bureau of Labor Statistics (BLS), 440n. 9

Burger King, 1081

Burlington Industries, 481n. 4

Burnap, N., 1204

Burton, John C., 8n. 4

Business combinations:

intangible assets acquired in, 650n. 1

as present value-based measurement, 289

Business-method patents, 656

Business organization, see Corporate form

Buyback(s), 830–831

of outstanding stock, 837n. 12

sales with, 1049

of treasury stock, 837n. 12

Buyback agreements, 422–423

Byrnes, Nanette, 1183, 1283

Byrnes, Tracey, 1053

C

Cablevision Systems, 836

Calhoun, Charles H., III, 1083n. 31

Callable bonds, 765, 775n. 8

Callable preferred stock, 835

Callaway Golf Co., 1315

Call option, 980

Calpine, 785

Campbell Soup Company, 621, 962–963, 1231, 1412

Cannondale Corporation, 68

Canon, 666

CAP, see Committee on Accounting Procedure

Capettini, Robert, 554n. 10

Capital:

contributed, 875

earned, 875

paid-in, 875

Capital allocation, 4–5

Capital assets errors, 1360

Capital expenditures, 536–537, 557

Capitalization criteria:

avoiding, 1302–1303

for lessee, 1275–1278

for lessor, 1285

Capitalization period, 542

Capitalized lease accounting, 1272n. 1, 1273–1278

bargain purchase option test in, 1275–1276

economic life test in, 1276

recovery of investment test in, 1276–1278

transfer of ownership test in, 1275

Capital leases, 1275–1278, 1333

Capital lease method, 1278–1281

Capital maintenance approach, 163n. 4

Capital markets, integration of, 32

Capital One Financial, 236

Capital stock, 823–824, 830

Capital structure, 1365–1366

Capital structure ratios, 1523n. 26

Captive leasing companies, 1271

Carcache, B., 614n. 15

Cargill, 822

Carrefour, 756, 1028, 1334, 1553

Carrybacks, 1116, 1132–1133, 1145

Carryforward(s), 1116, 1145, 1176–1177. See also Loss carryforwards

Carrying value (bonds), 770n. 3, 816

Cash and cash equivalents, 217–218, 346–349, 1413n. 1, 1437n. 7

alternate terminology for, 346n. 2

on balance sheets, 217–218

basis of valuation of, 217

determining change in, 1416, 1417, 1420, 1423

internal control over, 376

from operating activities, 231

reporting, 346–348

restricted cash vs., 347–348

and statement of cash flows, 1480, 1481

Cash balances, physical protection of, 378

Cash-balance pension plans, 1214n. 18

Cash basis accounting, 6

and accounting theory, 118–120

accrual-basis accounting vs., 118–123

conversion to accrual basis, 120–123

financial statements, 119

modified cash basis, 120

of pension plan, 1189n. 10

theoretical weaknesses of, 123

warranties, 719

Cash controls, 376–381

and bank balances reconciliation, 378–381

and imprest petty cash system, 377–378

and physical protection of cash balances, 378

using bank accounts, 376–377

Cash crunch, 233

Cash debt coverage, 234

Cash deposits, returnable, 707

Cash discounts, 351–352, 427, 547

Cash dividends, 839–840

Cash dividends payable, 1440

Cash flows, 7n. 2

classification of, 1413–1415

determining future change of, 550n. 7

evaluating, 1414–1415

free, 234–235

net income vs., 232–233

Cash flow hedge, 987–989

Cash flow risk, 987

Cash flow statement, see Statement of cash flows

Cash funds, 346

Cash-generating units, 696

Cash over account, 377–378

Cash payments:

classes of, 1429

and direct method, 1432–1433

for income taxes, 1432

for operating expenses, 1431–1432

special rules applying to, 1434

to suppliers, 1430–1431

Cash rebates, 721

Cash receipts:

classes of, 1429

from customers, 1430

and direct method, 1432–1433

special rules applying to, 1434

Cash-related items, 348–349

Catanach, A., 1051

Caterpillar Financial Services Corp., 1271, 1278–1281, 1284, 1286–1289

Caterpillar Inc., 100, 442, 970, 979, 1271, 1291–1295, 1298–1300, 1498

CBS, 656, 830

CDs (certificates of deposit), 346n. 1

CECL (“Current Expected Credit Loss”) model, 374

Ceiling (upper), 475–476

Cendant, 17

Cenker, W., 445

CenturyTel, 1198

Certificates of deposit (CDs), 346n. 1

Change(s) due to error, 1363

Change(s) in accounting (general), 1344

guidelines for, 1363–1364

motivations for, 1365–1366

from or to equity method, 1377–1380

Change(s) in accounting estimate, 180, 1357–1359, 1363, 1404

Change(s) in accounting policies, 1404–1406

Change(s) in accounting principle, 179–180, 1344–1366

accounting for/reporting of, 179–180, 1353–1354

direct/indirect effects of, 1355

disclosure of, 1493

and impracticability, 1356

prospective reporting of, 1345

and retained earnings adjustment, 1354

retrospective, 1345–1354

Change in cash, determining, 1416, 1417, 1420, 1423

Changes in equity, statement of, 877–878

Change(s) in reporting entity, 1359, 1363

Change-in-the-present-value method, 1299–1300

Channel stuffing, 1053

Checks:

outstanding, 379

paper, 378n. 17

postdated, 346

Check fraud, 378n. 17

Checking accounts, 377

Cheney, Richard E., 1525n. 27

Chesapeake Corporation, 237

Chesapeake Energy Corp., 785, 1419

Chevron, 32

ChevronTexaco, 608n. 10

China National Petroleum, 32

Chipotle, 166

Choice Point, Inc., 999

Christie, Rebecca, 1511

Chrysler Corporation, 31, 54, 444, 600n. 8, 1284, 1346

Ciba-Geigy, 469

Ciesielski, J., 883, 1189n. 9

CIFR (Committee for Improvements in Financial Reporting), 1343

Cinergy, 899

Cintas, 537

Cisco Systems, 61, 110, 161, 480, 654, 783, 979, 1437n. 7

CitiCapital, 1308–1309

Citicorp, 170n. 12

Cities Service Company, 729

Citigroup, 49, 170n. 12, 344, 345, 358, 364, 788, 979, 998, 1116–1117, 1119n. 1, 1137n. 6, 1271, 1284

CKE Restaurants Inc., 1282

Claims, 718–719, 1492

Clarcor Inc., 713

Class B common stock, 836

Classification:

of financial instruments, 975–976

in statement of financial position, 278–280

Classified balance sheets, 215

Clean opinion (unqualified opinion), 1508–1510

Clorox Co., 648, 649, 839

Closing, 110–113

Closing entries, 85, 111–113, 117

Closing prices, 110–113

CMCS (Commercial Metals Company), 1496–1497

CNG (Consolidated Natural Gas Company), 332–333

CNH Capital, 1335–1339

CNH Global, 1335–1339

Coach, Inc., 166, 1486–1487, 1498

The Coca-Cola Company, 20, 31, 76, 97, 151, 176, 203, 274, 404–405, 522, 559, 635, 650, 658, 670, 690, 750, 813, 822, 843n. 17, 872, 897, 899, 940, 952, 979, 984, 997, 1024, 1107, 1173, 1184, 1248, 1402, 1412, 1478, 1546

“The Codification,” 14, 22

Codification Research System (CRS), 14

Cohen, A. J., 911, 1486

Cohesiveness of reporting, 185–186

Collaterized receivables, 366n. 11

Collection float, 376

Columbia Sportswear Company, 677

Combination methods for depreciation, 597

Comcast, 1497

Comiskey, Eugene E., 1215n. 19, 1443

Commercial Metals Company (CMCS), 1496–1497

Commercial paper, 346n. 1

Commercial substance, 550–554

Commitments, disclosure of, 1492

Committee for Improvements in Financial Reporting (CIFR), 1343

Committee on Accounting Procedure (CAP), 9, 27, 842n. 15

Commodity-backed bonds, 765

Common costs, 1500–1501

Common-size analysis, 1527–1528

Common stock, 824, 836, 875. See also Preferred stock

adjustment to net income for change related to, 1435

cash dividend paid for, 838n. 13

increase in, 1426

rate of return on, 849

in treasury at cost, 831n. 8

as worksheet entry, 1449

Commonwealth Edison Company, 295, 813

Company names (intangible asset), 654

Comparability, 51, 57

Comparative analysis, 1526

Comparative balance sheets, 1416, 1421, 1424, 1445

Comparative financial statements, correcting errors on, 1362–1363

Compensated absences, 712–714

Compensating balances, 347

Compensation plans:

dilutive securities issuance in, 904n. 15

effective, 891

stock compensation plans, 891–892

Completed-contract accounting method, 1057, 1063–1064, 1067

Completeness, 49

Completion-of-production basis, 1068

Complex capital structure EPS, 904–912

antidilution, 908–909

contingent issue agreement, 908

convertible securities—diluted EPS, 905–907

options and warrants—diluted EPS, 907–908

presentation and disclosure of, 909–910

simple vs., 900

Components, 170

Component depreciation, 597n. 6, 638–639, 1520

Composite depreciation rate, 596

Composite life, 596

Composite methods for depreciation, 595–597

Composite rate, 357

Compounded continuously, 293n. 4

Compounded daily, 293

Compound instrument, 942

Compound interest, 290–293

future value as variable in, 294

on IRAs, 302–303

number of time periods, 294

present value as variable in, 294

rate of interest as variable in, 294

and Social Security, 291

tables for, 291–293, 334–343

variables fundamental to, 294

Comprehensive dollar-value LIFO method, 437–438

Comprehensive income, 182–186, 971–972

defined, 53

display requirements of, 183n. 22

errors in, 1360

and IFRS, 205–206

one-statement approach, 183

two-statement approach, 183, 184

Computer Associates, 899

ConAgra Foods, Inc., 511, 848

Conceptual framework, 42–63

basic assumptions, 54–56

basic elements, 52–53

basic principles, 56–61

constraints, 61–63

defined, 42

development of, 43–44

and IFRS, 78–80

need for, 42–43

objective of financial reporting, 45

qualitative characteristics of information, 45–52

Condensed income statements, 166–167

Conditional expenses, 715

Confirmatory value, 47

Conglomerate (diversified) companies reporting, 1497–1501

ConocoPhillips, 32, 829, 830

Conservatism, 49n. 8

Consigned goods, 422

Consignments, 1051–1053

Consignment shipment, 422

Consistency, 51, 57

Consolidated Edison, 539

Consolidated financial statements, 967

Consolidated Natural Gas Company (CNG), 332–333

Consolidated statements of cash flows, 1434

Consolidations, 1027, 1359

Constant-currency financial reports, 55

Constraints, 61–63

Construction contracts, 1110–1111

Continental Airlines, 215, 1307

Continental Trucking, 963

Contingencies, 757–758

on balance sheets, 236, 237

defined, 237

disclosure of, 1492

errors in, 1360

gain, 715–716

loss, 716–725

presentation of, 728–729

Contingent assets, 758

Contingent liabilities, 700–701, 754, 757. See also Loss contingencies

Contingent shares, 908

Continuing franchise fees, 1083

Continuously compounded, 293n. 4

Contra accounts, and bonds payable, 774

Contracts, onerous, 757

Contract provisions, 757

Contract-related intangible assets, 655–656

Contractual situations, on balance sheets, 236, 237

Contra items, 241

Contributed capital, 875

Contributions, accounting for, 555–556

Contributory pension plans, 1184

Control device, 489

Controlling interest, 967

Convenience financial statements, 1523

Convergence, of U.S. and international standards, 21, 36–38, 414–415, 1346n. 1, 1554

Conversion, involuntary, 561

Convertible bonds, 765, 884–886, 890, 919–920, 944–946

Convertible debt, 942–946

Convertible debt accounting, 884–886

Convertible preferred stock, 835, 886–887, 920

Convertible securities, 905–907

Coolidge, C., 1364

Coon, William R., 437n. 7

Copel CIA, 776

Copyrights, 655

Cornett, C., 1134n. 3

Corning, 911

Corporate bond listings, 765–766

Corporate capital, 824–834

Corporate form, 822–824

capital stock/share system, 823–824

and ownership interests, 824

state laws, 822

Corporate taxes, 710n. 6. See also Income taxes, accounting for

Corporations:

bonds issued by, 763

international accounting standards for, 31

Corrections of errors:

in income statement, 180–181

reporting, 1359–1366

Corridor amortization, 1199–1200, 1202, 1210–1211, 1223

Cost, 474, 527

Cost allocation, 429n. 4, 590–601. See also Depreciation

Cost approach, for valuation, 549n. 5

Cost-benefit analysis, 62

Cost-benefit relationship, 61

Cost constraint, 61–63

Cost flow assumption, 421

average-cost method for, 429–430

and first-in, first-out, 430–431

identification, 428–429

and last-in, first-out, 431–432

Costs included in inventory, 421

period costs, 426

product costs, 426

and treatment of purchase discounts, 426–428

Cost method, 489, 831, 961n. 5

Costs of financing, 426

Cost of goods available for sales or use, 420

Cost of goods sold, 420, 1296

multiple pools contributing to, 437n. 7

in periodic inventory system, 418

section of income statement, 164

Cost-of-goods-sold method, 478–479, 528

Cost per unit of product, 606–607

Cost-recovery accounting method, 1077–1078, 1110–1112

Cost-to-cost basis, 1059–1061

Coughlan, J. D., 591n. 1

Counterbalancing errors, 1367–1369

Counterparty, 981n. 18

Countrywide Financial Corp., 371

Coupons, 721–722

Coupon bonds, 765

Coupon rate, 766

Coverage ratios, 245, 1523, 1524

CPC International, 358

Craig, Susanne, 959

Credits (Cr.), 85–86

Credit balance, 85

Credit cards, 367n. 12

Credit crisis, 12, 588, 601

Creditors, 5–6, 232, 233

disclosure of claims by, 1492

short-term, 1522

Creditor calculations, 794

Credit quality, 768

Credit risk, disclosure of, 372

Credit risk rate of interest, 316

Creswell, J., 176, 657

Cron, William R., 441n. 10

Cross-reference items, 241

CRS (Codification Research System), 14

Cummins, C., 607

Cumulative catch-up, 1061

Cumulative-effect approach, 1345

Cumulative preferred stock, 835

Current assets, 217–220

on balance sheets, 217–220

cash, 217–218

Current cash debt coverage, 234

“Current Expected Credit Loss” (CECL) model, 374

Current liability(-ies), 702–715. See also specific types, e.g.: Accounts payable(s)

analysis of, 729–730

on balance sheets, 222–223

declared cash dividends as, 840

defined, 702

presentation of, 726–729

Current maturities of long-term debt, 705

Current operating performance approach, 168

Current ratios, 729–730

Current receivables, 349

Current tax expense (benefit), 1121, 1145

Curtailment, 1258

Cushing, Barry E., 443n. 17

Customary form, of balance sheets, 226n. 9

Customer-related intangible assets, 654–655

CVS, 1283

CVS/Caremark Corp., 846

Cycle, accounting, see Accounting cycle

D

Daily compounding, 293

Daimler, 666, 1482

DaimlerChrysler, 1439

Dairy Queen, 1081

Dakdduk, Kenneth E., 1220n. 26

Darden Restaurants Inc., 1282

Date of declaration (stock dividends), 839

Date of payment (stock dividends), 839

Date of record (stock dividends), 839

Days outstanding, 374

Days to collect accounts receivable, 374

Debenture bonds, 765

Debits (Dr.), 85–86

Debit balance, 85

Debt(s), 762–763

bad, failure to adjust for, 1369–1370

continuation of, 792–796

current maturities of, 705

extinguishment of, 775–776

issue cost (SFAS No. 6), 774n. 5

long-term, see Long-term debt

settlement of, 791–792

Debt investments, 1028–1031

Debtor accounting, 792n. 16

Debtor calculations, 793

Debt ratings, 768

Debt-rating triggers, 1493

Debt securities, 884

available-for-sale, 218, 952, 955–959, 962–964, 968

convertible, 942–946

held-to-maturity, 218, 953–955

trading, 953, 959–960, 964, 1440

Debt to assets ratio, 787

Debt triggers, 1493

Decision-usefulness approach, 6–7, 45–46

Declaration, date of (stock dividends), 839

Declared cash dividends, 839–840

Declining-balance method, 595

Decreasing-charge methods for depreciation, 594–595

Deductible amounts, 1120

Deductible temporary differences, 1127–1128, 1145

Deep-discount bonds, 765

Deere and Company, 505

Defaults, 1073–1075

Deferrals:

adjusting entries for, 97–102

defined, 97

in reversing entries illustration, 124–125

Deferred annuities, 311–313

Deferred costs, amortization of, 1434–1435

Deferred income taxes, 1119–1126

adjustment to net income for, 1435

and changes in tax rate, 1130–1132

Congressional acts affecting, 1131n. 2

on income statements, 1125–1126

in interperiod tax allocation (example), 1149–1150, 1152–1153

Deferred payment, 1047

Deferred-payment contracts, 547–548

Deferred taxes, disclosure of, 1493

Deferred tax amount, 1119

Deferred tax assets (DTAs), 1116–1117, 1119, 1123–1126, 1145

asset recognition for, in company records, 1125

non-recognition of, 1175–1177

recognized as loss carryforwards, 1134n. 4

valuation allowance for, 1125–1126

Deferred tax benefits, 1124

Deferred tax consequences, 1145

Deferred tax expense (benefit), 1121, 1145, 1149–1150, 1152–1153

Deferred tax liabilities, 1119–1122, 1145

in company assessments, 1122

Congressional acts affecting, 1131n. 2

and SFAS No. 6, 1122

and SFAS No. 109, 1122

Defined-benefit plans, 1185–1186

Defined-contribution plans, 1185

DeFord, Mark L., 1360n. 7

Delhaize Group, 280

Dell Computer, 52, 215, 977–978, 1276

Delta Airlines, 58, 102, 215, 979, 1138, 1268, 1273–1278, 1435

De Mesa Graziano, Cheryl, 1041

Denny's, 1081

Depletion, 604–607

acquisition costs of, 605

defined, 590

development costs of, 605

exploration costs of, 605

and liquidating dividends, 607–608

in oil and gas industry, 608–609

and recoverable reserves, 607

restoration costs of, 605–606

Depletion base, 604–606

Deposits:

legally restricted, 348

in transit, 379

Deposit method, 1078–1079

Depositor errors, reconciling, 379

Depreciable assets, revaluation of, 642

Depreciable base, for assets, 590

Depreciable tax life (recovery periods), 614

Depreciation, 590–601, 637, 638

activity method for, 593

adjusting entries for, 100–101

and asset vs. liability accounting, 1278

changes in method of, 1358

decreasing-charge methods for, 594–595, 611

defined, 590

factors involved in process of, 590

failure to record, 1369

group and composite methods for, 595–597

hybrid or combination methods for, 597

issues in airline industry, 591n. 2

under partial periods, 598–599

post-September 11, 2001 measures, 614n. 15

rate revision for, 600

and replacement of fixed assets, 599

straight-line method for, 593–594

tax methods for, 614–617

Depreciation expense, 1422, 1425, 1434–1435

Depreciation policies, 55

Derivatives, 977–995

basic accounting principles for, 980–984

cash flow hedge, 987–989

characteristics of, 983

defined, 977–978

disclosures for, 991

embedded, 989

and fair hedge value, 984–987

hedging, 984–989

Designated market value, 476

Detachable stock warrant, 888, 890

Development costs, 605, 694, 1520

Devon Energy Corporation, 238–239

Dieter, Richard, 1302n. 15

Differential disclosure, 1489–1490, 1549–1550

Diluted earnings per share, 904–908

convertible securities, 905–907

factors in, 906–907

illustration of, 918–921

options and warrants, 907–908

reconciliation for basic and, 910

Dilutive securities, 884–892, 904, 941–947

Diners Club, 366

Dingell, John, 29

Direct costs, incremental vs. internal, 1298–1299

Direct effects (accounting changes), 1405

Direct-financing leases, 1286–1289, 1337–1339

initial direct costs in, 1299

sales-type vs., 1296

Direct method:

for accounts receivable (net), 1439

for determining net cash flow from operating activities, 1427–1433

indirect vs., 1427–1428, 1433–1434

special rules applying to, 1433–1434

Direct verification, 51

Direct write-off method, 353

Disclaimer of an opinion, 1511

Disclosure(s), 372n. 15

of change in accounting estimate, 1358–1359

for derivatives, 991

of fair value, 999–1003

in financial statements, 1067

of franchisors, 1084

full disclosure principle, 60–61. See also Full disclosure in financial reporting

of interest rates, 289n. 2

for investment securities, 964

of lease data, 1300–1302

of LIFO inventory liquidations, 442n. 13

of operating activities, 1434

as present value-based measurement, 289

quality and quantity of, 1490

of restrictions on retained earnings, 846–847

and Sarbanes-Oxley Act of 2002, 726

and Statement of Position 94-6, 278

techniques of, 239–243

Discontinued operations, 164, 170–173, 921n. 21

Discounts:

cash, 351–352

sales with, 1046–1047

volume, 1046

Discount bonds, 766, 767, 774, 782n. 13, 816

Discounting, 296–297

Discount notes, 779

Discount rate:

leases, 1334

postretirement benefit obligations, 1221n. 27

Discover, 366

Discrete approach, 1503, 1507, 1552, 1553

Distributions to owners, 53

Diversified (conglomerate) companies reporting, 1497–1501

Dividends. See also Stock dividends

cash, 839–840, 1440

date determining receipt of, 839n. 14

and economic recovery, 846

liquidating, 839–840

number of companies paying, 846

property, 840

types of, 838–843

Dividend in arrears, 835

Dividends payable, 707

Dividend policy, 837–847

Dividend preferences, 852–853

Dollar-value LIFO method, 435–440, 489, 498–500

and AICPA Task Force on LIFO Inventory Problems, 479n. 3

comprehensive, 437–438

for determining cost of single item, 478n. 1

example, 436

and price index selection, 438–440

specific-goods pooled approach vs., 435–440

Dollar-value retail method, 436n. 5

Double-declining-balance method, 595

“Double dipping,” 1272

Double-entry accounting system, 86, 154

Double-extension method, 439

Dow Chemical, 821

Dow Jones & Co., 836

Dr. (debits), 85–86

Dr. Pepper, 488

Dresser Industries, 203–204

Drugs.com, 654

Drugstore.com, 50, 427–428, 965

DTAs, see Deferred tax assets

Dudley, Lola W., 899n. 12

Due process system, 11–12

Duffy, Wendy A., 543n. 3

DuPont, 840

Durham, Timothy S., 822

Dynegy, 785

E

E. F. Hutton, 348n. 3

Eagle Clothes, Inc., 422

Eaglesham, J., 1117

Earned capital, 824, 875

Earned revenues, 1043

Earnings:

claim by stockholders, 824

retained, see Retained earnings

smooth, and changes in accounting method, 1365–1366

Earnings before interest, taxes, depreciation, and amortization (EBITDA), 592

Earnings management, 161

Earnings per common share, 177–179

Earnings per share (EPS), 177–179, 899

for complex capital structure, 904–912

computations, 899–912

diluted, 904–908

illustration of, 916–921

on income statement, 164, 165n. 7

interim reporting of, 1505

International Financial Reporting Standards for, 941–947

for simple capital structure, 900–904

Eastman Kodak Company, 68, 170n. 12, 358, 1138, 1489

Eavis, P., 228, 984

eBay, 999

Ebbers, Bernie, 28

EBITDA (earnings before interest, taxes, depreciation, and amortization), 592

Ecolab, 236

Economic consequences, 17, 17n. 9, 591, 842n. 15

Economic crime, 82–83

Economic entity assumption, 54, 79

Economic life, 1290n. 12

Economic life test (75% test), 1276, 1333–1334

Economic Recovery Act, 1134n. 3

Economic Recovery Tax Act of 1981, 614

EDGAR (electronic data gathering and retrieval), 1516

Effective-interest method, 361, 778, 779

and accruing interest, 773

asset vs. liability accounting with, 1278

of bond amortization, 314–315

for bonds, 770–774

for bonds issued at discount, 771–772

for bonds issued at premium, 772–773

and IFRS, 815–818

Effective interest rate, 359n. 9

Effective yield, 359n. 9, 767

Efficiency ratios, 1523n. 26

Efficient-market hypothesis, 1525

EITF (Emerging Issues Task Force), 12–13, 176

Elective straight-line method, 616–617

Electronic data gathering and retrieval (EDGAR), 1516

Electronic dissemination of financial reports, 1516

Eli Lilly, 658n. 4

Elliott, J., 170n. 12

Elmer's Restaurants, 1319–1320

El Paso Corporation, 607

Elstrom, P., 428

Ely, Michael, 1437n. 8

Embedded derivatives, 989

Emerging Issues Task Force (EITF), 12–13, 176

Emerging market IPOs, 820–821

Employees, as pension beneficiaries, 1185–1186

Employee discounts, 493

Employee payroll deductions, 712

Employee-related liabilities, 710–715

Employee Retirement Income Security Act (ERISA) (1974), 1211–1212

Employee stock purchase plans (ESPPs), 896, 946

Employer(s):

payroll taxes paid by, 712

and pension plan risks, 1185–1186

Employer-sponsored defined contribution pension plans, 1186n. 4

Enacted tax rate, 1130

Ending inventory, misstated, 424

Enhancing qualitative characteristics, 50–52

Enron Corp., 5, 9, 17, 43, 48, 215, 364, 726, 776, 783–785, 829, 959, 979n. 14, 996, 1488, 1493, 1493n. 4, 1518

Entity:

economic entity assumption, 54, 79

as going concern, 1509

in reporting, 1359

Entity perspective, 6

Entries:

adjusting, see Adjustments

reversing, see Reversing entries

Environmental liabilities, 289, 722–726

EPBO (expected postretirement benefit obligation), 1220

Epictetus, 706

EPS, see Earnings per share

Equipment:

depreciation of, 1422

loss on sale of, 1425

purchase of, 1426

as worksheet entry, 1448

Equipment lease-versus buy analysis, 1513n. 15

Equity:

on balance sheets, 216

defined, 53, 79

IFRS for, 875

owner's, 225–226

presentation of, 877–878

statement of changes in, 877–878

on statement of financial position, 280–281

Equity awards, share-based, 914

Equity classifications (securities), 884

Equity errors, 1360

Equity holders’ claims, disclosure of, 1492

Equity interest, 791–792

Equity investments, 1031–1035

Equity investors, 5–6

Equity method, 965–967, 1377–1380, 1435

changing from, 1377–1378

changing to, 1378–1380

and fair value options, 967–968

and retrospective application, 1359n. 6

Equity securities, 960–967

Erickson, Naomi, 1218n. 24

ERISA (Employee Retirement Income Security Act of 1974), 1211–1212

Ernst and Young, 821

Error, information items free from, 49–50

Errors, accounting, 1366–1374

on balance sheet and income statement, 1366–1370

correction of, 180–181, 1359–1366, 1519

counterbalancing, 1367–1369

example of, 1361–1363, 1370–1373

fraud vs., 1494

noncounterbalancing, 1369–1370

preparation of financial statements with corrections to, 1373–1374

reporting correction of, 1359–1364

types of, 1360

ESPPs (employee stock purchase plans), 896, 946

Estée Lauder, 836

Estimates:

changes in, see Change(s) in accounting estimate

judgments and, 215

Estimated annual effective tax rate, 1505

E-tailers, 427–428

Ethics, 21

eToys.com, 427

E*Trade Financial, 691

Euronext, 820

European Union, 950

Event, defined, 84

Exchange for noncash consideration, 962n. 6

Exchanges–gain situation, 552–554

Exchanges–loss situation, 551–552

Exchange price, 351

Exchange rate risk, 984

Excise tax, 1214

Ex-dividend date, 839n. 14

Executory contract, lease as, 1273

Executory costs, 1277, 1334

Exercise price, 980

Expectations gap, 18, 1519n. 24

Expected cash flow approach, 315–317

Expected inflation rate of interest, 316

Expected postretirement benefit obligation (EPBO), 1220

Expected rate of return, 1197, 1201

Expected reversal date, 1140

Expense(s):

classification of, 206–208

conditional, 715

defined, 53, 79

on financial statements, 163

on income statement, 164

pension, 1189–1192

postretirement, 1221

prepaid, see Prepaid expenses

Expense expenditures, 557

Expense recognition errors, 1360

Expense recognition principle, 58–60

Expenses subject to year-end-adjustment, 1504–1505

Expense warranty approach, 719–720

Exploration costs of depletion, 605

eXtensible Business Reporting Language (XBLR), 19, 1516

External environment, fraud and, 1518

External events, 84, 90–91

External indexes, 438n. 8, 440n. 9

Extinguishment of debt, 775–776

Extractive industries, R&D costs of, 667n. 12

Extraordinary items:

adjustment to net income for, 1437

determining, 174n. 15

frequency of, 174n. 14

on income statement, 164, 173–176

interim reporting of, 1505

net-of-tax treatment for, 175n. 17

reporting, after September 11, 2001, 175–176

Extraordinary losses, 175

ExxonMobil Company, 32, 90, 349, 416, 605, 607, 608n. 10, 768, 821, 830, 979, 984, 1270

Eziba.com, 966

F

Facebook, 5, 836, 911

Face rate (interest), 293

Face value (bonds), 766

Factors, 366–367

Factoring arrangement, 367n. 12

Factoring receivables, 366–367

FAF (Financial Accounting Foundation), 10

Failure to adjust for bad debts, 1369–1370

Failure to record accrued wages, 1368

Failure to record prepaid expenses, 1368

Faircloth, Lauch, 29

Fair hedge value, 984–987

Fair presentation, 281

Fair value(s), 56–58, 78, 79, 409, 411

of asset, 555

of asset given up, 552

of asset received, 552

on balance sheets, 236, 238–239

debt investments held at, 1029–1031

of derivatives, 980n. 16

disclosure of, 999–1003

equity investments at, 1032–1035

and GAAP/IFRS, 78–79, 1026–1027

hierarchy of, 57, 238, 980n. 16, 1000

of liabilities, 788

and long-term liabilities, 782–783

and monetary exchanges, 553n. 9

of security, 953, 959, 969, 974–975

of stock in lump-sum exchange, 826–827

of stock issued, 841

of stock options, 892

Fair value accounting, economic consequences and, 17

Fair Value Adjustment account, 957

Fair value controversy, 969

Fair value hedge, 992–993

Fair value hierarchy, 57, 238, 980n. 16, 1000

Fair value information, disclosure of, 19

Fair value less costs to sell, 639

Fair value method:

changing from, 1378

changing from equity method to, 1377–1378

of stock compensation, 892, 897–899

for unrealized gains/losses, 1425n. 5

Fair value options, 57, 967–968

Fair value principle, 56–57

Fair-value tests:

for indefinite-life intangible impairment, 662–663

for limited-life intangible impairment, 662

Faithful representation, 48–50

Falconbridge Ltd. Nickel Mines, 601

Family Dollar Stores Inc., 846

Fannie Mae, 32, 899, 979n. 14

FASAC (Financial Accounting Standards Advisory Council), 11

FASB, see Financial Accounting Standards Board

FASB Codification Research System (CRS), 14

FASB Concepts, see Statements of Financial Accounting Concepts

FASB Statements, see Statements of Financial Accounting Standards

Federal Insurance Contribution Act (F.I.C.A.), 710–711

Federal Reserve Bank, 316

Federal Unemployment Tax Act (F.U.T.A.), 711

Federated Department Stores, 1419

FedEx Corporation, 68

Feedback value, 1522

FFO (funds from operations), 597n. 7

Fiat, 31

F.I.C.A. (Federal Insurance Contribution Act), 710–711

FIFO, see First-in, first-out

Final reconciling entry, 1451

Finance leases, 1332

Financial accounting, as discipline, 4

Financial Accounting Foundation (FAF), 10

Financial Accounting Standards Advisory Council (FASAC), 11

Financial Accounting Standards Board (FASB), 10–13

on accounting changes, 1344

Accounting Standards Codification, 14, 22

Accounting Standards Updates of, 11

allowance method, 353–354

APB vs., 10–12

on basis for statement of cash flows, 1413n. 1

and capitalization of interest costs, 426

and cash and cash equivalents, 228n. 10

Codification Research System, 14

Concepts of, 13. See also Statements of Financial Accounting Concepts

conceptual framework, 42, 78–80

convergence, 1554

and cost constraint, 61, 62

on differential disclosure, 1489–1490

on direct method on statement of cash flows, 1420

disclosure of receivables, 372

disclosure requirements, 1550n. 29

disclosures effectiveness project of, 1490

due process system of, 11–12

and fair value, 17, 56–58, 788, 969

and financial engineering, 785n. 14

on financial instruments, 975–976

financial statement presentation, 159, 179, 281–282, 411

and financial statements, 215–216

and GAAP, 10–13, 1490

and goodwill measurement, 660n. 6

and guarantees, 729n. 21

and held-to-maturity requirement, 953n. 2

and IFRS, 31

improved financial statement presentation, 1517

and investments, 950–951, 1037

and irregular items, 168

and key elements of financial statements, 153

and lease accounting, 1274n. 2, 1283, 1303–1304, 1331–1332, 1339

on leased property, 1278

and liabilities, 818

on loan loss allowances, 374

and loss contingencies, 716

on offsetting, 243

on operating cash receipts/payments, 1433–1434

on pension plans, 1190–1191, 1205n. 14

on postretirement benefits accounting, 1217, 1221n. 27, 1225, 1227, 1263

Proposed Standards Updates, 55n. 15, 58n. 17, 790n. 15

and qualitative characteristics of accounting information, 45–46

and revenue recognition, 1042

and sales, 369–370

and SEC, 7, 8n. 4

and securities, 884n. 1

Standards of. See also Statements of Financial Accounting Standards

and statement of cash flows, 1482

and technical accounting issues, 1519

and transactions, 90–91

on uncertain tax positions, 1143

Financial assets, IFRS and, 1027–1028

Financial components approach, 368

Financial crisis, 370n. 14, 1189

Financial engineering, 785n. 14

Financial Executives Institute, 39

Financial flexibility, 214, 229, 234

Financial forecasts, 1513–1516

Financial fraud, 1372–1373

Financial income, 1118, 1127–1130

Financial information, types of, 1488

Financial instruments, 238, 884n. 1, 975–976. See also specific instruments

Financial liquidity, 234

Financial markets, 31

Financial position, statement of, 877. See also Balance sheet(s)

Financial projections, 1513–1516

Financial reporting, 4. See also Reporting

accuracy of, 2

ethics in, 21

and expectations gap, 18

full disclosure in, 1487–1520

general-purpose, 45

of international accounting standards, 20

objective of, 5–7, 45

and politically-influenced standard setting, 16–17

Financial statement(s), 4. See also specific types of statements

and change, 158–159

correcting errors on, 1361–1363

elements of, 162–163

with error corrections, 1373–1374

example of, 247–252

general-purpose, 7

installment-sales transactions presentation, 1075–1077

interest rate swap presentation, 994–995

in interperiod tax allocation (example), 1150–1151, 1153–1154

inventory accounting for, 478n. 2

maintaining monthly vs. quarterly, 117

management's responsibilities for, 1512–1513

for merchandising company, 114–117

notes to, see Notes to the financial statements

and ownership structure, 88–89

pension plan reporting in, see Pension plan reporting

percentage-of-completion presentation, 1061–1063

preparing, 108–110, 1373–1374

presenting, 958–959

timeliness of, 19

worksheet preparation of, 130

Financial statement analysis, 1522–1528

comparative analysis, 1526

percentage analysis, 1527–1528

perspective on, 1522–1523

ratio analysis, 1523–1525

Financing activities, 229, 231, 1412, 1414

extraordinary items, 1437

on statement of cash flows, 1480, 1481–1482

Financing agreement, 706

Finished goods inventory, 416

Firm (as concept), 484n. 8

“Firm” contractual rights and obligations, 1274

Firm purchase commitments, 484n. 8

First Chicago, 1307

First-in, first-out (FIFO), 51

accounting for, 474

for assigning investment costs, 962n. 6

and cost flow assumption, 430–431

and LIFO, 432–433

Fisher, D., 1411

Fixed assets, 538, 599

Fixed percentage of book value method (declining balance), 595

Fixed-rate mortgage, 782

Fleming, Sir Alexander, 656n. 4

Flexibility, financial, 214, 229, 234

Float, collection, 376

Floating-rate mortgage, 782

Floor (lower), 475–476

f.o.b. (free on board) destination, 421

Footstar, 176

Ford, 891, 1271

Ford Motor Company, 4, 18, 51, 54, 160, 236, 239–240, 366, 416, 450, 600n. 8, 714, 715, 821, 822, 836, 891, 1219, 1284, 1344, 1439

Ford Motor Credit, 366, 1271

Foreign companies, SOX compliance by, 154

Foreign Corrupt Practices Act, 82

Foreign currency hedging, 984n. 23

Form 10-Q, 1501, 1502

Fortune Brands, Inc., 495

Foster, Taylor W., III, 842n. 16, 845n. 18

401(k) plan, 1185

Forward-looking information, 19

Fox (network), 656

Fox, J., 1140

Framework for the Preparation and Presentation of Financial Statements, 34

Franchise(s), 655–656, 1081–1084

Franchise agreement, 1082

Franchise fees, continuing, 1083

Franchisor's cost, 1084

Fraud, check, 378n. 17

Fraudulent financial reporting, 1517–1520

accounting errors vs., 1494

causes of, 1518–1519

National Commission on, 1494n. 6

Free cash flow, 234–235, 245

Free on board (f.o.b.) destination, 421

Freight costs, 493

Frequent-flyer programs, 722

Frito Lay, 45

Fruehauf, 1488

Fujitsu Limited, 588

Full-cost concept, 608

Full-costing approach, 540

Full disclosure in financial reporting, 1487–1520

of auditor's reports, 1508–1511

criteria for accounting/reporting choices in, 1520

current reporting issues with, 1513–1520

and differential disclosure, 1489–1490

of diversified companies, 1497–1501

on financial forecasts/projections, 1513–1516

and fraudulent reporting, 1517–1520

increase in reporting requirements, 1489

of interim reports, 1501–1508

on Internet, 1516–1517

issues with, 1493–1508

of management's reports, 1511–1513

and notes to financial statements, 1491–1493

of post-balance-sheet events, 1495–1496

as principle, 1488–1489

of special transactions/events, 1493–1495

and stock markets, 1511

Full disclosure principle, 60–61

Functional expense classification, 164

Function-of-expense method, 207

Fund (term), 1184n. 1

Fundamental qualities, 46–50

Funds from operations (FFO), 597n. 7

Fuqua Industries, 441

F.U.T.A. (Federal Unemployment Tax Act), 711

Future deductible amounts, 1123–1126

Future tax consequences, 1144

Future tax rates, 1130–1132

Future tax savings, 1134

Future value:

of annuity due, 303–306

of an ordinary annuity of 1 (table), 291

computing for unknown, 294

of deferred annuity, 311–312

of 1 (table), 291, 292

of ordinary annuity, 300–302, 304–306

of single sum, 295–296

as variable in compound interest, 294

G

GAAP, see Generally accepted accounting principles

Gains:

adjustment to net income for, 1435–1436

defined, 53

from discontinued operations, 172–173

on financial statements, 163

on income statements, 164

on pension plans, 1197–1202, 1260

and postretirement expense, 1221, 1223

smoothing unexpected, 1260

Gain contingencies, 715–716

Gains trading, 969

The Gap, Inc., 493, 506, 650, 709, 1270

Gap fillers, 658

GASB (Governmental Accounting Standards Board), 1227

Gates, Bill, 895n. 10

Gateway, 1489

GE, see General Electric

Genentech, 649

General checking account, 377

General Electric (GE), 32, 48, 68, 160, 170, 349, 358, 670, 707, 765, 766, 821, 822, 897, 899, 979, 984, 1140, 1217, 1219, 1248, 1497

General Electric Capital Corp., 707

General Electric Credit, 1307

General expenses, 164

General Foods, 1504

General indexes, 438n. 8

General journal entry, 91–92

General ledger, 85, 91–92

Generally accepted accounting principles (GAAP), 7, 13–16

accounting changes and error analysis, 1404–1406

and actual interest capitalization, 542

balance sheet and statement of cash flows, 277–278

“big GAAP versus little GAAP” issue, 1490, 1550n. 29

codification of, 22

comparability of changes, 51n. 9

conceptual framework, 78–79

convergence of IFRS and, 156, 1554

depreciation, 637, 638

development costs, 1520

disclosure requirements, 1548–1549, 1550n. 29

earnings per share disclosures, 910n. 20

and fair value, 56–58, 989n. 32

hierarchy, 14n. 6

and historical cost, 56

and IFRS, 31, 205–206, 243, 278, 408–409, 525, 693–694, 700, 753–754, 815, 874–875, 942, 1026–1027, 1109–1110, 1175, 1250–1251, 1346n. 1, 1404–1405, 1480–1481, 1549

income statements, 205–206

income tax reporting, 1175

intangible assets and impairments, 693–694

inventory accounting, 525

investments, 1026–1037

lease accounting, 1331–1332, 1337, 1339

liabilities, 753–754

major sources of, 13

for offsetting, 243

and OPEBs, 1189n. 8

organizations settings standards for, 7–13

pensions and postretirement benefits, 1250–1251

receivables, 408–409

recovery of impairment loss, 410

and Regulation G, 61

and revaluation equity, 281

revenue recognition, 1042, 1109–1110

share-based compensation, 892

share issuances accounting, 875

statement of cash flows, 1480–1481

stock-based compensation plans, 910n. 20

stockholders’ equity, 874–875

straight-line method, 815

transaction analysis under, 153

using judgment in applying, 14

and variable interest entities, 996–999

General Mills, Inc., 107, 388

General Motors (GM), 32, 49, 51, 54, 539, 600n. 8, 817, 840, 899, 911, 1184, 1219, 1439

General-purpose financial reporting, 45

General-purpose financial statements, 5

General Tire and Rubber, 443n. 14

Georgia-Pacific, 214, 484, 561

Gerth, J., 607

GHGs (greenhouse gases), 730–731

Gibson, Richard, 1282

Gift cards, 1045

Gilbert, D., 1419

GlaxoSmithKline plc, 666

Glencore International, 32

Global Crossing, 48, 555

Global tax rates, 1131–1132

GM, see General Motors

Going concern assumption, 55

Going concern concept, 1509

Goldman Sachs, 5, 1486

Golf Digest, 708

Goods in transit, 421–422

Goodwill, 658–661

impairment of, 663–665, 696–697

recording, 659–661

as write-off, 661

Goodyear Tire and Rubber, 590, 776, 1138

Google, 52, 117, 650, 670, 822, 836, 977–978, 1140

Gore, Richard, 597n. 7

Gotham Utility Company, 713

Governmental Accounting Standards Board (GASB), 1227

Government debt, 762–763

Government grant approach, 731

Granof, Michael H., 443n. 15, 445n. 20

Grant date, 893

The Great Atlantic & Pacific Tea Company, 224–225

Greenberg, Herb, 76, 592

Greenhouse gases (GHGs), 730–731

Gross approach, 1251

Gross margin percentage, 486n. 11

Gross method of revenue recognition, 1051

Gross profit method (gross margin method), 485–488

Gross profit on selling price, 486–487

Gross profit percentage, 486–487

Group methods for depreciation, 595–597

Groupon, 5, 158, 159, 836, 911

Guarantees, 719–721, 729n. 21. See also Warranties

Guaranteed residual value, 1277, 1338

in capitalization of lease, 1303

in lessee accounting, 1291–1293

in lessor accounting, 1294–1295

for sales-type lease, 1297

Guerra, F., 1117

Gujarathi, Mahendra R., 484n. 8

H

H. J. Heinz Company, 1542

Half-year convention, 599, 615

Hall, Ben, 17

Halliburton Company, 223, 1067–1068, 1348

Halperin, Alex, 836

Hanna, D., 170n. 12

Harley-Davidson, Inc., 1494

Hasbro, Inc., 220, 1254–1255

Hayes, Randall, 437n. 7, 441n. 10

Healthcare benefits, 1217n. 20, 1218–1219

Hedging, 979, 984–989

Held-for-collection classification, 1028

Held-to-maturity debt securities, 218, 953–955

Henry, David, 844

The Hershey Company, 5, 6, 444

Hershey Foods, 204, 825

Hertz, 1081

Herz, Bob, 21, 364

Hewitt, Conrad W., 3

Hewlett-Packard Company (HP), 372, 481n. 4, 670, 1184, 1287n. 11, 1301–1302, 1359, 1412

Hickok, Richard S., 1058n. 17

Hierarchy, 35

Historical cost, 56, 57, 78, 214, 638

Holiday Inn, 1081

The Home Depot, 54, 539, 1276, 1283, 1412, 1513

Homestake Mining Company, 1173

Homestore Inc., 1040

Honda, 51

Honeywell Inc., 830, 911

Honeywell International, 1202

Hoogervorst, Hans, 1304, 1554

Horizontal percentage analysis, 1527

Horngren, C., 42n. 2

Host security, 989

HP, see Hewlett-Packard Company

H & R Block, 1081

HTC, 657

Hudson, M., 371

Huffy Corp., 790

Hurricanes, 1496n. 8

Hybrid methods for depreciation, 597

Hybrid plans, 1214n. 18

Hybrid securities, 989

Hypo Real Estate, 588

I

IAASB (International Auditing and Assurance Standards Board), 156

IASs, see International Accounting Standards

IASB, see International Accounting Standards Board

IASCF (International Accounting Standards Committee Foundation), 33

IBM Corporation, 4, 5, 20, 48, 160, 216, 245, 256, 416, 424, 670, 821, 1119n. 1, 1217, 1271, 1285, 1315, 1489

IBM Global Financing, 1271

IDEA (Interactive Data Electronic Applications), 1516

If-converted method, 905–906, 918–919

IFRIC (International Financial Reporting Interpretations Committee), 34–35

IFRIC No. 14, 1257n. 33

IFRS, see International Financial Reporting Standards

IGo Corp., 1040

Ijiri, Yuji, 484n. 8

ILFC (International Lease Finance Corp.), 1271, 1273–1278

Illegal acts, 1494–1495

Imhoff, Eugene A., Jr., 1525n. 28

Impaired note receivable, 364

Impairments, 601–604

GAAP/IFRS standards, 602, 603

of goodwill, 696–697

and IFRS, 638–640, 1035–1036

of indefinite-life intangibles, 696

of intangible assets, 695–696

International Financial Reporting Standards for, 693–699

of limited-life tangibles, 695

measuring, 382–383, 602–603

of receivables, 381–383

recognizing, 381–382, 601–602

recoverability tests for, 602, 662

and restructuring, 792n. 17

reversal of, 1519

risk of, 665

of value, 969–970

Impairment evaluation process, 409–410

Impairment loss, 382–383, 410, 603, 695–696

recovery of, 1036

reversal of, 640–641

Impairment test, 652

Implicit interest rate, 360–361, 1277–1278

Implicit rate, 1332, 1334, 1335

Impracticability, 1356, 1406

Imprest bank accounts, 377–378

Imprest system for petty cash, 377–378

Improvements, 558–559

Imputation, 363, 780

Imputed interest rate, 363, 780

Inadequacy, 591

Incentives, monitoring, 1419

Income, defined, 79

Income approach, 549n. 5

Income available to common stockholders, 904

Income before taxes, see Pretax financial income

Income bonds, 765

Income statement(s), 85, 160–168

and accounting principle changes, 179–180

alternate terminology for, 160n. 1

and cash flows statement, 1416–1417, 1421, 1424, 1429

and changes in estimates, 180

columns on, 129

and comprehensive income, 182–186

condensed, 166–167

and corrections of errors, 180–181

deferred tax reporting on, 1126–1127, 1141–1143

and discontinued operations, 170–173

and earnings per share, 177–179

errors on, 1367–1370

example, 115

and extraordinary items, 173–176

and extraordinary losses, 175

format of, 162–168

illustration of, 1446

intermediate components of, 164–166

irregular items reported on, 168–179

limitations of, 160–161

and quality of earnings, 161–162

and retained earnings statement, 181–182

segmented, 1498

single-step, 167–168

and unusual gains and losses, 169–170

Income statement (percentage-of-sales) approach, 356

Income statement method, see Direct method

Income tax(es):

deferred, adjustment to net income for, 1435

defined, 1145

as operating cash outflows, 1437

payable, in interperiod tax allocation (example), 1147–1154

on statement of cash flows, 1481–1482

Income taxes, accounting for, 1116–1145, 1434n. 6

accounting objectives, 1122–1123

asset-liability method, 1144

on balance sheet, 1138–1140

deferred taxes, 1119–1126, 1145

depreciation, 614–617

differences between pretax and taxable income, 1127–1130

and future deductible amounts, 1123–1126

and future taxable amounts, 1119–1123

on income statement, 164, 1126–1127, 1141–1143

interim reporting, 1505

interperiod tax allocation (example), 1147–1154

intraperiod tax allocation, 171–172

LIFO, 441n. 11

and net operating losses, 1132–1138

tax rate considerations in, 1130–1132

and uncertain tax positions, 1143–1144

and withholding, 711–712

Income tax benefit, 1145

Income taxes currently payable, 1145

Income tax expense, 1145

Income taxes payable, 709–710

Income taxes refundable, 1145

Incorporation acts, 822

Increasing-charge method, of depreciation, 597

Incremental borrowing rate, 1277, 1279n. 6

Incremental direct costs, 1298–1299

Incremental method, 827, 889–890, 919–920

Indefinite-life intangibles, 652, 662–663, 696

Independent lessors, 1271

Independent third-party trustee, 1185

Indexes, computing, 438

Indirect effects (accounting changes), 1405–1406

Indirect method:

for accounts receivable (net), 1438

for determining net cash flow from operating activities, 1418–1419, 1428

direct vs., 1433–1434

special rules applying to, 1433–1434

Indirect verification, 51

Induced conversions, 885–886

Indy Mac Bank, 9

Inflation, monetary unit assumption and, 55

Inflows, cash, 1444

Information, financial, 1488

Information overload, 1488

Information technology, international accounting standards for, 31

ING Group, 32

Initial direct costs (lessor accounting), 1299

Initial franchise fee, 1082–1083

Initial operating-losses, 669

Inland Steel, 593

In-process research and development (IPR&D), 693–694

Input:

in depreciation, 593

measures of, 1058

Installment-sales accounting method, 1068–1077

Instruments, financial, see Financial instruments

In-substance defeasance, 775n. 7

Insurance, adjusting entries for, 99–100

Intangible assets, 648–653, 670–672. See also specific types, e.g.: Limited-life intangibles

amortization of, 651–653

on balance sheets, 222

characteristics of, 650

defined, 650

impairment of, 652, 662–664, 694

International Financial Reporting Standards for, 693–697

presentation of, 670–672

recognition of, 673

valuation of, 650–651

Integral approach, 1503, 1507, 1552

Integrated reports, 649

Intel, 31, 59, 102, 215, 256, 289, 480, 560, 670, 821, 997

Interactive Data Electronic Applications (IDEA), 1516

Interbrand Corp., 670

Interest. See also Compound interest

accruing with effective-interest method, 773

capitalization of, 426n. 3, 543–544

components of, 316

computation of, 289–293

costs of, 426

as pension expense, 1191

as period cost, 426

as postretirement expense, 1220–1221

residual, 875

and time value concepts, 289–293

variables in computation of, 289

Interest-bearing notes, 359, 361–363, 703–704, 778–779

Interest costs, incurred during construction, 638

Interest rate(s), 543–544

in capitalization of lease, 1303

choosing, 316, 363

computation of, 310

disclosure requirement, 289n. 2

implicit, 360–361

imputed, 363

as variable in interest computation, 289

Interest rate risk, 984

Interest rate swap, 994–995

Interest revenue, 352, 546–547

Interest tables, 291–293

Interim period tax, 1505

Interim reports, 1501–1508

continuing controversy about, 1507–1508

and IFRS, 1549, 1552–1554

requirements for, 1503–1504, 1552–1554

unique problems of, 1503–1508

Internal controls, 18, 154, 376

Internal direct costs, 1299

Internal environment, fraud and, 1518

Internal events, 91

Internal indexes, 438n. 8

Internally created goodwill, 659

Internally created intangibles, 650–651, 673

Internal Revenue Code, 1118–1119, 1145

Internal Revenue Service (IRS):

and indexes, 440n. 9

and LIFO conformity rule, 444

and purchases-only-approach, 501n. 16

International accounting convergence, see Convergence, of U.S. and international standards

International Accounting Standards (IASs), 20, 34

No. 1 (“Presentation of Financial Statements”), 408, 753, 874, 1404, 1554

No. 2 (“Inventories”), 525, 1519

No. 7 (“Cash Flow Statements”), 1480, 1481

No. 8 (“Accounting Policies, Changes in Accounting Estimates and Errors”), 1404, 1405, 1519

No. 10 (“Events after the Balance Sheet Date”), 1548

No. 12 (“Income Taxes”), 1175

No. 13, 1110

No. 16, 1519, 1520

No. 17 (“Accounting and Leases”), 1285, 1332

No. 18 (“Revenue”), 525, 1042, 1109

No. 19 (“Employee Benefits”), 1250, 1253, 1257n. 33

No. 24 (“Related Party Disclosures”), 1548

No. 27 (“Consolidated and Separate Financial Statements”), 1026

No. 32 (“Financial Instruments: Presentation”), 874, 1251n. 28

No. 33 (“Earnings per Share”), 904, 941

No. 34 (“Interim Financial Reporting”), 1548

No. 36 (“Impairment of Assets”), 753, 1519

No. 37 (“Provisions, Contingent Liabilities, and Contingent Assets”), 753

No. 38 (“Intangible Assets”), 712, 1520

No. 39 (“Financial Instruments: Recognition and Measurement”), 408, 409, 874, 941, 995, 1026

No. 41 (“Agriculture”), 525

International Accounting Standards Board (IASB), 20, 31, 901, 904, 1346n. 1, 1517

adoption of IFRS, 155–156

classified financial statements, 278–280

conceptual framework, 78–80

contingent liabilities, 700–701

convergence, 1554

definition of entity, 54n. 13

development of standards, 81

disclosures effectiveness project of, 1490

and fair value, 788

and fair value accounting, 17

fair values, 969

on financial instruments, 975–976

financial statement presentation, 159, 179, 281–282, 411

and IFRIC, 35

investments, 950–951, 1037

key elements of financial statements, 153

lease accounting, 1274n. 2, 1283, 1303–1304, 1333, 1334, 1339

on lease accounting, 1303, 1304

liabilities, 818

on loan loss allowances, 374

on offsetting, 243

and postretirement benefits, 1263

provisions in, 716

receivables, 409

recognition of pension assets, 1257n. 33

revenue recognition, 1109–1110, 1113

as standard-setting organization, 32–33

in standard-setting structure, 33–34

statement of cash flows, 1482

technical accounting issues, 1519

International Accounting Standards Committee Foundation (IASCF), 33

International Auditing and Assurance Standards Board (IAASB), 156

International companies, 153

International Financial Reporting Interpretations Committee (IFRIC), 34–35

International Financial Reporting Standards (IFRS), 20, 1109–1113, 1346n. 1

No. 2 (“Share-Based Payment”), 941, 1250

No. 7 (“Financial Instruments: Disclosure”), 408

No. 8 (“Operating Segments”), 1548, 1549, 1554

No. 9 (“Financial Instruments”), 411, 950, 976, 1026

accounting by the lessee, 1332–1337

accounting by the lessor, 1337–1339

accounting changes and error analysis, 1404–1406

accounting for financial assets, 1027–1028

accounting for leases, 1331–1339

accounting for property, plant, and equipment, 637–638

accounting information system, 153–156

adoption of, by U.S., 36–38

agricultural products, 482

balance sheet and statement of cash flows, 277–282

cash and cash equivalents, 1412

component depreciation, 638–639

conceptual framework, 78–80

and CPA exam, 10

debt investments, 1028–1031

development of, 31–38

dilutive securities, 941–947

disclosure requirements, 1548–1554

earnings per share, 941–947

employee stock-purchase plans, 896

equity investments, 1031–1035

GAAP comparison to, 31, 205–206, 243, 278, 408–409, 525, 693–694, 700, 753–754, 815, 874–875, 942, 1026–1027, 1109–1110, 1175, 1250–1251, 1346n. 1, 1404–1405, 1480–1481, 1549

hierarchy of, 35

impairments, 693–699, 1035–1036

income statements, 205–208

income taxes, 1145

income tax reporting, 1175–1178

intangible assets, 693–697

inventory under, 525–532

issuing of, 32–34

liabilities, 753–758, 815–818

long-term debt, 706

markets, 474, 475

mineral products, 482

offsetting, 243

pensions and postretirement benefits, 1250–1263

receivables, 408–411

recognizing impairments, 639–640

revaluations, 638, 642–643

revenue recognition, 1042

reversal of impairment loss, 640–641

share-based compensation, 892

statement of cash flows, 1480–1482

stockholders’ equity, 874–878

technical accounting issues, 1519–1520

International GAAP (iGAAP), see Convergence, of U.S. and international standards

International Lease Finance Corp. (ILFC), 1271, 1273–1278

International Organization of Securities Commissions (IOSCO), 33

International Paper Co., 240, 600, 610–611, 911

International stock exchanges, 820

International Thoroughbred Breeders, 347

Internet:

annual reports published on, 19

full disclosure in financial reporting on, 1516–1517

Interperiod tax allocation, 1147–1154

Intraperiod tax allocation, 171–172

Intrinsic value, 981

Intuit Inc., 219

Inventory(-ies), 416–420. See also related headings, e.g.: Periodic inventory system

alternative method for estimating, 486n. 11

analysis of, 495–496

average days to sell, 496

on balance sheets, 219–220

basis of valuation of, 217

comparable information about, 472–473

control, 419–420

costs included in, 425–428

defined, 416

disclosure of, 1491–1492

estimating, using gross profit percentage, 486n. 11

gross profit method for, 485–488

increase in, 1424–1425

International Financial Reporting Standards for, 525–532

land as, 539

management of, 472–473

method selection for, 443–446

misstated, 424–425

at net realizable value, 481–482

obsolete, 495

presentation of, 494–496

pricing methods, 1553

purchases of, 441n. 10

recovery of loss to, 529–530

slow moving, 495

valuation of, 420, 445–446, 481–485

as worksheet entry, 1447

Inventory cost flow, 417

Inventory errors, 423–425, 1360

Inventory methods, 420n. 1, 443n. 16

Inventory turnover, 496

Investing activities, 229, 231, 1412, 1414

extraordinary items, 1437

on statement of cash flows, 1480, 1481–1482

Investment(s), 950–976

available-for-sale securities, 955–959, 962–964

debt securities, 952–960

derivatives, 979–995

equity method for accounting, 965–966

equity securities, 960–967

fair value controversy, 969

held-to-maturity securities, 953–955

holdings of less than 20%, 961–964

impairment of value, 969–970

long-term, 221

measurement issues, 967–970

by owners, 53

reclassification adjustments, 970–974

security, 952n. 1

short-term, 218–219

stock, as worksheet entry, 1447

trading securities, 959–960, 964

transfers between categories, 974–975

variable-interest entities, 996–999

Investment carrying amount, 1377–1378

Investment in Debt Securities, 952–960

Investors, equity, 5–6

Investors Technical Advisory Committee (ITAC), 11n. 5

Involuntary conversion, 561

IOSCO (International Organization of Securities Commissions), 33

I.O.U.s, 346

Ip, Greg, 154n. 4, 224

iPhone, 654

IPR&D (in-process research and development), 693–694

Irregular items:

analyzing, 169

categories of, 169

and FASB, 168

on income statement, 168–179

IRS, see Internal Revenue Service

Issuance, accounting at time of, 943–944

Issue costs, 828

ITAC (Investors Technical Advisory Committee), 11n. 5

Ivanhoe Mines Ltd., 1335–1339

J

Jack in the Box, 48, 1282

Jaenicke, Henry R., 1044n. 8

Jakab, S., 1051

Japan, 51

Japan Post Holdings, 32

JCPenney Company, 415, 765

Jet Blue Airways, 537

Jiambalvo, James, 1360n. 7

Jiffy Lube International, 1082n. 30

Jim Walter's Corporation, 546

Job Creation and Worker Assistance Act of 2002, 614n. 15

John Deere and Company, 203, 275, 366, 444, 1184

John Deere Credit, 366

Johnson, L. Todd, 972n. 11

Johnson, Todd, 41

Johnson & Johnson, 584–585, 611, 612, 666, 690–691, 768, 829, 979, 1501, 1502

Jones, S. D., 48, 1282

Journal(s), 85, 91–92

Journal entry, general, 91–92

Journalizing, 91–92

JP Morgan, 788, 999

JPMorgan Chase & Co., 49, 224, 822, 839, 1270

Judgments and estimates, 215

Junk bonds, 768