Fundamental Financial Accounting Concepts - Novella - McGraw-Hill

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xxvi Contents Note from the Authors iv Chapter 1 An Introduction to Accounting 2 Chap ter Opening 2 Section 1: Collecting and Organizing Information 3 Role of Accounting in Society 4 Using Free Markets to Set Resource Priorities 4 Accounting Provides Information 6 Types of Accounting Information 6 Nonbusiness Resource Usage 6 Careers in Accounting 7 Measurement Rules 8 Reporting Entities 9 Elements of Financial Statements 10 Using Accounts to Gather Information 11 Accounting Equation 12 Recording Business Events under the Accounting Equation 14 Asset Source Transactions 14 Asset Exchange Transactions 15 Another Asset Source Transaction 16 Asset Use Transactions 16 Summary of Transactions 18 Recap: Types of Transactions 19 Section 2: Reporting Information 19 Preparing Financial Statements 20 Income Statement and the Matching Concept 20 Statement of Changes in Stockholders’ Equity 22 Balance Sheet 22 Statement of Cash Flows 23 The Closing Process 24 The Horizontal Financial Statements Model 25 The Financial Analyst 26 Real-World Financial Reports 26 Annual Report for Target Corporation 26 Special Terms in Real-World Reports 27 A Look Back 28 A Look Forward 29 Self-Study Review Problem 29 Key Terms 30 Questions 31 Multiple-Choice Questions 31 Exercises—Series A 31 Problems—Series A 40 Exercises—Series B 44 Problems—Series B 52 Analyze, Think, Communicate 55 Comprehensive Problem 61 Chapter 2 Accounting for Accruals and Deferrals 62 Chapter Opening 62 Section 1: Accounting for Accruals 63 Accrual Accounting 64 Accounting for Accounts Receivable 65 Other Events 65 Accounting for Accrued Salary Expense (Adjusting Entry) 66 Summary of Events and General Ledger 67 Vertical Statements Model 67 The Closing Process 70 Steps in an Accounting Cycle 70 The Matching Concept 70 The Conservation Principle 72 Section 2: Accounting for Deferrals 72 Second Accounting Cycle 72 Accounting for Supplies Purchase 72 Prepaid Items (Cost versus Expense) 73 Accounting for Receipt of Unearned Revenue 74
Other 2014 Events 74 Adjusting Entries 76 Accounting for Supplies (Adjusting Entry) 76 Accounting for Prepaid Rent (Adjusting Entry) 76 Accounting for Unearned Revenue (Adjusting Entry) 77 Accounting for Accrued Salary Expense (Adjusting Entry) 80 Summary of Events and General Ledger 80 Vertical Statements Model 80 Transaction Classification 84 The Financial Analyst 85 Corporate Governance 85 Importance of Ethics 85 Sarbanes-Oxley Act 85 Common Features of Criminal and Ethical Misconduct 86 A Look Back 88 A Look Forward 89 Appendix 89 Self-Study Review Problem 93 Key Terms 95 Questions 95 Multiple-Choice Questions 95 Section 1 Exercises—Series A 96 Section 2 Exercises—Series A 98 Problems—Series A 107 Section 1 Exercises—Series B 113 Section 2 Exercises—Series B 116 Problems—Series B 125 Analyze, Think, Communicate 131 Comprehensive Problem 136 Chapter 3 The Double-Entry Accounting System 138 Chapter Opening 138 Debit/Credit Terminology 140 Recording Transactions in T-Accounts 140 Asset Source Transactions 140 Asset Exchange Transactions 143 Asset Use Transactions 144 Claims Exchange Transactions 146 Adjusting the Accounts 147 Overview of Debit/Credit Relationships 149 The General Journal 149 Trial Balance and Financial Statements 153 Closing Entries 155 Post-Closing Trial Balance 156 The Financial Analyst 157 Assessing the Effective Use of Assets 157 Assessing Debt Risk 158 Real-World Data 159 Scope of Coverage 160 A Look Back 160 A Look Forward 161 Appendix 161 Self-Study Review Problem 163 Key Terms 166 Questions 166 Multiple-Choice Questions 167 Exercises—Series A 167 Problems—Series A 175 Exercises—Series B 182 Problems—Series B 191 Analyze, Think, Communicate 198 Comprehensive Problem 204 xxvii
Page 1 and 2: Fundamental Financial Accounting Co
Page 3 and 4: This book is dedicated to our stude
Page 5 and 6: scheme. Later, in Chapter 12, we in
Page 7 and 8: WHAT WE DID TO MAKE IT BETTER This
Page 9 and 10: Chapter 7 Accounting for Receivable
Page 11 and 12: STUDENTS? edm25362_ch03_138-205.ind
Page 13 and 14: REINFORCED? Analyze, Think, Communi
Page 15 and 16: SUCCESS? ● LESS MANAGING. MORE TE
Page 17 and 18: ● ONLINE COURSE MANAGEMENT McGraw
Page 19 and 20: • Instructor PowerPoints • Exce
Page 21 and 22: ACKNOWLEDGMENTS Our grateful apprec
Page 23 and 24: Robert Derstine, Villanova Universi
Page 25: Chapter 1 An Introduction to Accoun
Page 29 and 30: The Financial Analyst 283 Average N
Page 31 and 32: Continuing Expenditures for Plant A
Page 33 and 34: Dividends, Stock Splits, and Approp

Fundamental Financial Accounting Concepts - Novella - McGraw-Hill

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