Accounting Books

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Book SynopsisTable of Contents1 Cost Accounting Has Purpose 1-1 1.1 Companies Know Their Purpose: Do You Know Yours? 1-2 Purpose Is Meaningful 1-2 Company Strategy: Turning Purpose into Action 1-2 Your Own Strategy 1-4 Measures, Targets, and Results on the Balanced Scorecard 1-5 1.2 The Purpose of Cost Accounting 1-9 Data Analytics in Action: Data Analytics Isn’t New 1-9 Big Picture Thinking and Decision-Making 1-10 Using Data Analytics to Problem-Solve 1-14 Data Analytics in Action: Keeping Score 1-14 The Value Chain 1-15 1.3 What Guides Our Purpose? 1-17 The Importance of Ethics in Business 1-17 Governing Bodies Within Accounting 1-18 Appendix 1A: Why You Should Learn to Learn 1-23 Your Role as a Lifelong Learner 1-23 Fixed versus Growth Mindset 1-23 Purposeful Pedagogy 1-24 How This Text Can Help You Learn 1-25 Data Analytics Activities 1-35 2 Refresher on Cost Terms 2-1 2.1 Overview of Costs 2-2 Using Financial Statements to Interpret Revenues and Expenses 2-2 Costs versus Expenses: Let’s Get Specific 2-3 Opportunity Costs and Sunk Costs 2-4 2.2 Costs for Service Providers, Merchandisers, and Manufacturers 2-7 Service Providers 2-7 Data Analytics in Action: Cutting Corners 2-8 Merchandisers 2-8 Manufacturers 2-10 2.3 Defining and Assigning Costs 2-11 Product and Period Costs 2-12 Manufacturing and Nonmanufacturing Costs 2-12 The Cost Object, Direct Costs, and Indirect Costs 2-14 Prime Costs and Conversion Costs 2-15 2.4 Variable and Fixed Costs and the Relevant Range 2-16 Variable Costs 2-16 Managing Variable Costs 2-17 Data Analytics in Action: It’s a Snap! 2-17 Fixed Costs 2-17 Managing Fixed Costs 2-18 Relevant Range and Costs of Capacity 2-19 Fixed Costs on a Per-Unit Basis: Be Careful 2-20 2.5 Tracing Product Costs from the Balance Sheet to the Income Statement 2-21 Inventoriable Costs 2-22 Raw Materials Inventory on the Balance Sheet 2-22 Work-in-Process Inventory on the Balance Sheet 2-23 Finished Goods Inventory on the Balance Sheet 2-24 Cost of Goods Manufactured 2-25 Cost of Goods Sold 2-26 2.6 Comparing Gross Margin and Contribution Margin Income Statements 2-28 Gross Margin versus Contribution Margin 2-28 Full Costs 2-30 Data Analytics Activities 2-49 3 Cost Behavior and Cost Estimation 3-1 3.1 The Basics of Cost Behavior 3-2 Selecting Cost Drivers 3-2 Data Analytics in Action: Counting Cars 3-2 The Relevant Range, and Costs Within It 3-3 3.2 Estimating Costs Is Crucial: Here’s How 3-9 Account Analysis Method 3-9 High-Low Method 3-10 Data Analytics in Action: Scatter to Avoid Slacking? 3-12 Excel Tutorial: The Scatter Plot 3-12 3.3 Sophisticated Cost Estimation with Regression 3-15 Overview of the Regression Method 3-15 Excel Tutorial: Regression Analysis 3-17 Evaluating Regression Output 3-21 Assumptions of Regression 3-23 Multiple Regression 3-25 3.4 When Costs Are Nonlinear: The Learning Curve 3-29 Applying the Learning Curve 3-30 Learning Curve Impacts on Costs and Prices 3-31 Data Analytics Activities 3-54 4 Cost-Volume-Profit Analysis 4-1 4.1 Contribution Margin and the Break-Even Sales Point 4-2 Data Analytics in Action: Consuming Coffee and Trends 4-2 Contribution Margin 4-2 Numbers of Sales in Units to Break Even 4-4 Sales in Dollars to Break Even 4-5 What Happens After Break-Even Analysis? 4-6 4.2 Cost-Volume-Profit (CVP) Analysis 4-8 It’s Graphic: Understanding CVP Relationships 4-9 The Relevant Range: Quite Relevant 4-10 Margin of Safety 4-10 4.3 Break-Even with Target Profit and Taxes 4-12 Modifying the Break-Even to Include Target Profit 4-12 Modifying the Break-Even to Include Target Profit After[1]Tax 4-13 4.4 Break-Even with Multiple Products 4-14 Data Analytics in Action: Big Data for Bigger Sales 4-15 4.5 Operating Leverage and Sensitivity Analysis 4-17 Sensitivity Analysis Shows the Effects of Operating Leverage 4-17 Using the Degree of Operating Leverage Multiplier 4-18 4.6 CVP Analysis for Service and Nonprofit Organizations 4-21 Data Analytics in Action: More Service, Fewer Costs 4-21 Data Analytics Activities 4-35 5 Relevant Costs for the Decision[1]Maker 5-1 5.1 Decision-Making Made Easier 5-2 Data Analytics in Action: Don’t Succumb to Analysis Paralysis 5-2 5.2 What Are Relevant Costs and Relevant Information? 5-4 How Relevant Information Supports Decision-Making 5-4 Sunk Costs 5-5 The Total Cost Approach versus the Relevant Cost Approach 5-6 5.3 Management Decisions Requiring Use of Relevant Costs 5-7 Insource versus Outsource 5-7 Keep versus Drop 5-11 Excel Tutorial: Goal Seek 5-12 Product-Mix Decisions 5-14 Data Analytics in Action: Tasty, Fast, or Both? 5-15 Excel Tutorial: Solver 5-17 Special Orders 5-20 5.4 Decision-Making and Opportunity Costs 5-22 5.5 Fixed Costs and Decision-Making 5-25 Direct Fixed Costs 5-25 Common Fixed Costs 5-26 Allocated Fixed Costs 5-27 Data Analytics Activities 5-44 6 Mastering the Master Budget 6-1 6.1 Why Budget? 6-2 Budgeting and Behavior Modification 6-2 Data Analytics in Action: Budgeting Made Fun? 6-2 Types of Budgets 6-3 Budgeting and Ethical Considerations 6-5 6.2 The Master Budget 6-7 Revisiting the Strategic Planning Process 6-7 Organizational Structure and Responsibility Centers 6-8 The Master Budget Inputs and Outputs 6-10 Follow-Up and Feedback 6-11 6.3 The Operating Budget and the Budgeted Income Statement 6-12 Sales Forecast: It All Starts Here 6-13 Production Budget 6-14 Direct Materials Purchases Budget 6-16 Direct Labor Budget 6-17 Manufacturing Overhead Budget 6-18 Cost of Goods Sold and Cost of Goods Manufactured Budgets 6-20 Selling, General, and Administrative Expenses Budget 6-21 Non-Operating Expenses Budget 6-23 6.4 The Financial Budget and the Budgeted Balance Sheet 6-24 Budgeted Inventory Balance 6-25 Cash Receipts, Cash Collections, and the Budgeted Accounts Receivable Balance 6-26 Data Analytics in Action: Banks Expedite Loan Collections 6-27 Cash Disbursements and Budgeted Accounts Payable Balance 6-29 Budgeted Cash Balance 6-31 6.5 Budgeting in Retail and Service Organizations 6-35 Budgeting for Retailers 6-35 Budgeting for Service Providers and Nonprofit Organizations 6-36 Data Analytics Activities 6-57 7 Capital Budgeting Choices and Decisions 7-1 7.1 Capital Budgeting: The Point and the Context 7-2 Data Analytics in Action: Using Data to Scout a Location 7-2 The Circle of Life of Businesses 7-2 Return on Investment (ROI) 7-4 7.2 Elements of Capital Budgeting Decisions 7-6 Timeliness 7-6 Time Value of Money 7-7 Cash Flows: Lump Sums and Annuities 7-9 Discount Rate 7-13 Tax Rate 7-14 Depreciation Tax Shield: Yes You Can! 7-15 Data Analytics in Action: Data Informs Decision[1]Making 7-15 7.3 Tools to Evaluate Capital Budgeting Choices 7-17 Net Present Value (NPV): A Powerful Machine 7-17 Internal Rate of Return (IRR) 7-20 Payback Period 7-22 Accounting Rate of Return (ARR) 7-24 Profitability Index 7-25 7.4 Sensitivity Analysis 7-27 7.5 Making the Decision 7-29 7.6 The Follow-Up 7-33 Post-Investment Audit 7-33 Performance Evaluation 7-33 Data Analytics Activities 7-50 Time Value of Money Tables 7-52 8 Job Costing Visualized 8-1 8.1 Job Costing: An Overview 8-2 Defining Jobs and Job Costing 8-2 Revisiting Product Costs 8-2 Actual versus Normal Costing 8-4 Data Analytics in Action: Is It Hot in Here? 8-4 How Job Costing Is Organized 8-6 8.2 Actual and Applied Manufacturing Overhead 8-10 Accounting for Actual and Applied Manufacturing Overhead 8-10 Calculating Applied Manufacturing Overhead 8-12 Budgeting Manufacturing Overhead for a Specific Job 8-13 8.3 Putting It Together: Costing Jobs and Units 8-15 Cost Flows, Accounts, and Journal Entries 8-16 Year-End Adjustments 8-22 Income Statement Impacts of Job Costing 8-23 8.4 Job Costing and Decision-Making 8-26 Job Costing’s Impacts on Decision 8-26 Data Analytics in Action: Information or Invasion? 8-26 Ethical Considerations Related to Job Costing 8-27 8.5 Job Costing in Service Organizations 8-30 Data Analytics Activities 8-51 9 Activity-Based Costing 9-1 9.1 Traditional Job Costing and ABC Compared 9-1 Drawbacks of Traditional Costing 9-2 The Advantage of Activity-Based Costing 9-3 A Better Cost with Activity-Based Costing 9-4 Data Analytics in Action: A Sweet Outcome 9-5 9.2 The Cost Hierarchy, Activities, and Cost Drivers 9-7 Identifying Activities as Cost Pools 9-7 Cost Drivers 9-9 The Cost Hierarchy 9-10 9.3 Using Activity-Based Costing for Product Costing 9-13 Step 1: Identify Direct Costs 9-14 Step 2: Identify Activities and Cost Drivers 9-15 Step 3: Calculate Cost Driver Rates and Assign MOH 9-15 Step 4: Record MOH Costs 9-16 9.4 Decision-Making Outcomes, Including Time-Driven Activity-Based Costing (TDABC) 9-19 Impacts of Activity-Based Costing on Product and Service Costs 9-19 Who Should Use Activity-Based Costing? 9-19 Broader Outcomes of Using Activity-Based Costing 9-21 Time-Driven Activity-Based Costing: A Time-Saving Alternative 9-22 Data Analytics in Action: An Impressive By[1]Product 9-24 Data Analytics Activities 9-43 10 Variance Analysis and Standard Costing 10-1 10.1 A Variety of Purposes for Budgets and Variance Analysis 10-2 Motivate and Benchmark 10-2 Plan and Control 10-3 Evaluate Performance and Troubleshoot 10-4 Data Analytics in Action: Process Improvements at Nike 10-4 10.2 Master Budget and Flexible Budget Variances 10-6 Limitations of the Master Budget 10-6 The Flexible Budget 10-7 10.3 Standard Costing 10-11 The Purpose of Standard Costing 10-11 Setting and Updating Standards 10-13 Data Analytics in Action: A New Way of Checking Out the Competition 10-13 10.4 Direct Materials and Direct Labor Variances 10-15 Overview of Production Variances 10-16 Direct Materials Variances 10-17 Direct Labor Variances 10-22 10.5 Variable-MOH and Fixed-MOH with Journal Entries 10-24 Variable-MOH: Price and Efficiency Variances 10-24 Data Analytics in Action: Calculate All the Variances 10-24 Fixed-MOH: Price and Volume Variances 10-26 Journal Entries to Close Variances 10-28 10.6 Sales Variances 10-31 Master Budget Sales Variances: Sales Price Variance and Simplified Sales Activity Variance 10-31 Comprehensive Sales Activity Variance: Sales Mix Variance and Sales Quantity Variance 10-33 Sales Quantity Variance: Market Size Variance and Market Share 10-38 11 Process Costing 11-1 11.1 Process Costing: An Overview 11-2 Data Analytics in Action: Mining Data for Mining Real 11-3 Job Costing versus Process Costing 11-3 The Importance of Determining WIP Inventory Correctly 11-4 The Steps of Process Costing 11-5 11.2 Step 1: Verify Physical Units in the Period and Identify Degree of Completion 11-7 No Beginning or Ending WIP Inventory 11-7 With Only Ending WIP Inventory 11-8 With Beginning and Ending WIP Inventory 11-8 11.3 Step 2: Determine Status of Physical Units and Convert to Equivalent Units 11-13 Using the FIFO Method to Determine Status of Physical Units 11-14 Using the Weighted-Average Method to Determine Status of Physical Units 11-15 11.4 Steps 3 and 4: Account for Costs and Calculate Cost per Equivalent Unit 11-17 Using the FIFO Method to Calculate Cost per Equivalent Unit 11-18 Using the Weighted-Average Method to Calculate Cost per Equivalent Unit 11-18 11.5 Step 5: Assign Costs to WIP Inventory and FG Inventory with Journal Entries 11-21 Assigning Costs Using the FIFO Method with Corresponding Journal Entries 11-22 Assigning Costs Using the Weighted-Average Method with Corresponding Journal Entries 11-24 Applications of Determining Product Costs 11-25 11.6 Costs Transferred-In from Another Department 11-26 Transferred-In Costs Using the FIFO Method 11-26 Transferred-In Costs Using the Weighted-Average Method 11-29 11.7 Operation Costing 11-31 Data Analytics Activities 11-51 12 Absorption versus Variable Costing 12-1 12.1 Absorption Costing: An Overview 12-2 The Purpose of Absorption Costing and How It Works 12-3 Management Decision-Making and Absorption Costing 12-6 Data Analytics in Action: This Machine Is Learning! 12-7 Balance Sheet and Income Statement Impacts of Absorption Costing 12-8 12.2 Variable Costing: An Overview 12-10 The Purpose of Variable Costing and How It Works 12-10 Balance Sheet and Income Statement Impacts of Variable Costing 12-11 12.3 Side-by-Side: Comparing Absorption Costing and Variable Costing 12-13 The Two Methods Compared: Inventory Costs and Balance Sheet Impacts 12-13 The Two Methods Compared: COGS, Operating Income, and Income Statement Impacts 12-14 12.4 Determining Denominator Volumes for Fixed[1]MOH 12-17 Managing Capacity 12-18 Denominator Volume Choices 12-18 Further Outcomes of Denominator Decisions 12-20 13 Data Analytics 13-1 13.1 Big Data? Data Analytics? Challenges and Opportunities 13-2 Overview of Data 13-2 Big Data and Data Analytics in Cost Accounting 13-3 Challenges and Opportunities 13-3 Data Analytics in Action: Meeting the Challenges 13-4 13.2 Sourcing and Storing Data 13-6 The Role of Data Analytics in Decision-Making 13-6 Data Sources and Data Storage 13-7 The Cost of Data and Its Ethical Considerations 13-10 Data Analytics in Action: When Data Is Especially Costly 13-11 13.3 Categories of Data Analytics Techniques 13-13 Overview of Data Analytics Categories 13-14 Descriptive Analytics 13-15 Diagnostic Analytics 13-18 Predictive Analytics 13-19 Prescriptive Analytics 13-20 Data Analytics in Action: Price Check on Aisle 3 13-20 13.4 Your Role in Solving Business Problems with Data Analytics 13-23 Data Analytics Outcomes in Cost Accounting 13-23 Being Career-Ready 13-25 14 Support Department Costing 14-1 14.1 Support Department Costing: An Overview 14-1 Types of Support Departments and Their Costs 14-2 Allocating Support Department Costs 14-4 Data Analytics in Action: Keep or Drop? 14-5 Cost Allocation Bases for Support Departments 14-6 14.2 Methods of Allocating Support Department Costs 14-8 The Direct Method Illustrated 14-8 Step Method Illustrated 14-10 Reciprocal Method Illustrated 14-12 Excel Tutorial: The Reciprocal Method 14-13 Comparing the Three Methods 14-16 Data Analytics in Action: This Call May Be Analyzed 14-16 14.3 Allocating Common Costs and Bundled Revenues 14-20 Stand-Alone Cost Allocation Method 14-20 Incremental Cost Allocation Method 14-21 Allocating Revenue from Sales of Bundled Products/Services 14-22 15 Joint Costs and Decision[1]Making 15-1 15.1 Joint Costs: Description and Illustration 15-2 15.2 Methods of Allocating Joint Costs 15-4 Sales Value at Split-Off Method 15-4 Net Realizable Value (NRV) Method 15-5 Physical Quantities Method 15-6 Choosing an Allocation Method 15-8 15.3 Joint Costs and Decision-Making: Should We Sell or Process Further? 15-10 Relevance of Joint Costs to Sell-or-Process-Further Decisions 15-10 Sell-or-Process-Further Decision Factors 15-10 Data Analytics in Action: More Fresh Options 15-11 Decision-Making and Performance Evaluation 15-12 15.4 A Decision: How Should We Account for By-Product and Scrap? 15-13 By-Products Revisited 15-13 Data Analytics in Action: Analysis Reduces Waste 15-14 The Production Method 15-14 The Sales Method: By-Products and Scrap Recognized at Time of Sale 15-17 Production Method versus Sales Method 15-19 16 The Art and Science of Pricing to Optimize Revenue 16-1 16.1 Pricing: Art + Science + Psychology 16-2 Truths About Pricing 16-2 Consider the Context: Customers, Costs, and Competitors 16-3 16.2 Special-Order Pricing: Be Opportunistic 16-5 Lowest Acceptable Special-Order Price 16-6 Relationship to Relevant Costs for the Decision[1]Maker 16-7 16.3 Cost-Plus Pricing: If You Can Sell the Plus, Charge It 16-9 Overview of the Cost-Plus Method 16-10 The Calculation: A Starting Point 16-10 Data Analytics in Action: Using Data to Set Prices 16-10 Comparing Special-Order Pricing to Cost-Plus Pricing 16-13 16.4 Target Costing for Target Pricing—Backward but Brilliant 16-14 Steps to Implement Target Costing for Target Pricing 16-15 The Value in Value Engineering 16-16 Data Analytics in Action: Ensuring the Value of Business Activities 16-16 16.5 Consumers and Pricing Practices 16-17 Consumer Perceptions and Pricing 16-17 Other Pricing Practices: Fair or Illegal? 16-18 Data Analytics in Action: No Free Parking 16-19 Data Analytics Activities 16-33 17 Management Control Systems and Transfer Pricing 17-1 17.1 The Need for an Effective Management Control System 17-2 Centralized versus Decentralized Organizations 17-2 Goal Congruence 17-4 Components of a Management Control System 17-5 17.2 How Responsibility Centers Work 17-6 Characteristics of Responsibility Centers 17-6 Cost Centers 17-8 Revenue Centers 17-9 Profit Centers 17-10 Investment Centers 17-10 Data Analytics in Action: Major League Baseball Invests in Data 17-11 17.3 How to Measure Performance of Investment Centers 17-13 Return on Investment and Its Components 17-13 Residual Income (RI) 17-16 Economic Value Added (EVA®) 17-16 17.4 Transfer Pricing: An Overview 17-18 The Genesis of Transfer Pricing 17-19 Determining the Optimal Transfer Price Range 17-21 How Companies Set Transfer Prices 17-23 Management and Transfer Pricing 17-27 Transfer Pricing in Multinational Companies 17-28 18 Business Strategy, Performance Measurement, and the Balanced Scorecard 18-1 18.1 An Overview of Business Strategy 18-1 The Strategic Planning Process 18-2 A Closer Look at Business Strategy 18-3 18.2 Performance Measurement Guides Performance 18-8 Congruent Outcomes: Linking Business Strategy to Employees’ Objectives 18-8 The Performance Measurement Process 18-9 Traits of Financial Performance Measures 18-12 Traits of Nonfinancial Performance Measures 18-13 18.3 Using the Balanced Scorecard to Assess Company Performance 18-15 Balancing the Four Perspectives 18-16 Linking Business Strategy to the Balanced Scorecard 18-17 Data Analytics in Action: New Measures and Targets 18-18 Evaluating Success 18-20 Company Index I-1 Subject Index I-0 Key Formulas Review K-0

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Book SynopsisTable of ContentsPart 1: An Overview of Financial Accounting 1 1 Financial Accounting and Its Economic Context 2 2 A Closer Look at the Financial Statements 31 Part 2: Measurement, Mechanics, and Use of Financial Statements 75 3 The Measurement Fundamentals of Financial Accounting 76 4 The Mechanics of Financial Accounting 111 5 Using Financial Statement Information 173 Part 3: Assets: A Closer Look 231 6 The Current Asset Classification, Cash, and Accounts Receivable 232 7 Merchandise Inventory 271 8 Investments in Equity Securities 313 9 Long-Lived Assets 357 Part 4: Liabilities and Shareholders’ Equity: A Closer Look 401 10 Introduction to Liabilities: Economic Consequences, Current Liabilities, and Contingencies 402 11 Long-Term Liabilities: Notes, Bonds, and Leases 444 12 Shareholders’ Equity 492 13 The Complete Income Statement 542 14 The Statement of Cash Flows 578 Appendix A The Time Value of Money 633 Appendix B Predictive Data Analytics and Financial Accounting 661 Appendix C Quality of Earnings Cases: A Comprehensive Review 667 Glossary 698 Index 729

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Book SynopsisTable of Contents1 Introduction to Financial Statements 1-1 Knowing the Numbers: Columbia Sportswear Company 1-1 1.1 Business Organization and Accounting Information Uses 1-2 Forms of Business Organization 1-3 Users and Uses of Financial Information 1-4 Data Analytics 1-6 Ethics in Financial Reporting 1-7 1.2 The Three Types of Business Activity 1-8 Financing Activities 1-9 Investing Activities 1-9 Operating Activities 1-10 1.3 The Four Financial Statements 1-11 Income Statement 1-12 Retained Earnings Statement 1-13 Balance Sheet 1-14 Statement of Cash Flows 1-16 Interrelationships of Statements 1-17 Elements of an Annual Report 1-20 Appendix 1A: Career Opportunities in Accounting 1-23 “Show Me the Money” 1-24 2 A Further Look at Financial Statements 2-1 Just Fooling Around?: The Motley Fool 2-2 2.1 The Classified Balance Sheet 2-3 Current Assets 2-3 Long-Term Investments 2-5 Property, Plant, and Equipment 2-5 Intangible Assets 2-5 Current Liabilities 2-7 Long-Term Liabilities 2-7 Stockholders’ Equity 2-7 2.2 Analyzing the Financial Statements Using Ratios 2-8 Ratio Analysis 2-8 Using the Income Statement 2-9 Using a Classified Balance Sheet 2-10 2.3 Financial Reporting Concepts 2-14 The Standard-Setting Environment 2-14 Qualities of Useful Information 2-16 Assumptions in Financial Reporting 2-17 Principles in Financial Reporting 2-18 Cost Constraint 2-18 3 The Accounting Information System 3-1 Accidents Happen: MF Global Holdings Ltd 3-1 3.1 Using the Accounting Equation to Analyze Transactions 3-3 Accounting Transactions 3-3 Analyzing Transactions 3-4 Summary of Transactions 3-10 3.2 Accounts, Debits, and Credits 3-11 Debits and Credits 3-11 Debit and Credit Procedures 3-12 Stockholders’ Equity Relationships 3-15 Summary of Debit/Credit Rules 3-16 3.3 Using a Journal 3-17 The Recording Process 3-17 The Journal 3-18 3.4 The Ledger and Posting 3-20 The Ledger 3-20 Chart of Accounts 3-21 Posting 3-21 The Recording Process Illustrated 3-22 Summary Illustration of Journalizing and Posting 3-28 3.5 The Trial Balance 3-30 Limitations of a Trial Balance 3-31 4 Accrual Accounting Concepts 4-1 Keeping Track of Groupons: Groupon 4-1 4.1 Accrual-Basis Accounting and Adjusting Entries 4-2 The Revenue Recognition Principle 4-3 The Expense Recognition Principle 4-4 Accrual versus Cash Basis of Accounting 4-5 The Need for Adjusting Entries 4-5 Types of Adjusting Entries 4-6 4.2 Adjusting Entries for Deferrals 4-7 Prepaid Expenses 4-7 Unearned Revenues 4-12 4.3 Adjusting Entries for Accruals 4-15 Accrued Revenues 4-15 Accrued Expenses 4-17 Summary of Basic Relationships 4-20 4.4 The Adjusted Trial Balance and Closing Entries 4-23 Preparing the Adjusted Trial Balance 4-23 Preparing Financial Statements 4-24 Quality of Earnings 4-24 Closing the Books 4-27 Summary of the Accounting Cycle 4-30 Appendix 4A: Using a Worksheet 4-34 5 Merchandising Operations and the Multiple-Step Income Statement 5-1 Buy Now, Vote Later: REI 5-1 5.1 Merchandising Operations and Inventory Systems 5-2 Operating Cycles 5-3 Flow of Costs 5-4 5.2 Recording Purchases Under a Perpetual System 5-6 Freight Costs 5-8 Purchase Returns and Allowances 5-9 Purchase Discounts 5-10 Summary of Purchasing Transactions 5-11 5.3 Recording Sales Under a Perpetual System 5-11 Sales Returns and Allowances 5-13 Sales Discounts 5-14 Data Analytics and Credit Sales 5-15 5.4 Preparing the Multiple-Step Income Statement 5-16 Single-Step Income Statement 5-16 Multiple-Step Income Statement 5-17 5.5 Cost of Goods Sold Under a Periodic System 5-21 5.6 Gross Profit Rate and Profit Margin 5-23 Gross Profit Rate 5-23 Profit Margin 5-24 Appendix 5A: Periodic Inventory System 5-27 Recording Merchandise Transactions 5-27 Recording Purchases of Merchandise 5-28 Freight Costs 5-28 Recording Sales of Merchandise 5-28 Comparison of Entries—Perpetual vs. Periodic 5-29 Appendix 5B: Adjusting Entries for Credit Sales with Returns and Allowances 5-30 Data Analytics in Action 5-52 6 Reporting and Analyzing Inventory 6-1 “Where Is That Spare Bulldozer Blade?”: Caterpillar 6-1 6.1 Classifying and Determining Inventory 6-2 Classifying Inventory 6-2 Determining Inventory Quantities 6-4 6.2 Inventory Methods and Financial Effects 6-7 Specific Identification 6-7 Cost Flow Assumptions 6-8 Financial Statement and Tax Effects of Cost Flow Methods 6-13 Using Inventory Cost Flow Methods Consistently 6-15 6.3 Inventory Presentation and Analysis 6-17 Presentation 6-17 Lower-of-Cost-or-Net Realizable Value 6-17 Financial Analysis and Data Analytics 6-18 Adjustments for LIFO Reserve 6-21 Appendix 6A: Inventory Cost Flow Methods in Perpetual Inventory Systems 6-24 First-In, First-Out (FIFO) 6-24 Last-In, First-Out (LIFO) 6-25 Average-Cost 6-26 Appendix 6B: Effects of Inventory Errors 6-27 Income Statement Effects 6-27 Balance Sheet Effects 6-28 Data Analytics in Action 6-49 7 Fraud, Internal Control, and Cash 7-1 Minding the Money in Madison: Barriques 7-1 7.1 Fraud and Internal Control 7-3 Fraud 7-3 The Sarbanes-Oxley Act 7-3 Internal Control 7-4 Principles of Internal Control Activities 7-5 Data Analytics and Internal Controls 7-10 Limitations of Internal Control 7-11 7.2 Cash Controls 7-12 Cash Receipts Controls 7-12 Cash Disbursements Controls 7-14 Petty Cash Fund 7-16 7.3 Control Features of a Bank Account 7-17 Electronic Banking 7-18 Bank Statements 7-18 Reconciling the Bank Account 7-20 7.4 Reporting Cash 7-25 Cash Equivalents 7-26 Restricted Cash 7-26 Managing and Monitoring Cash 7-27 Cash Budgeting 7-29 Appendix 7A: Operation of a Petty Cash Fund 7-32 Establishing the Petty Cash Fund 7-33 Making Payments from the Petty Cash Fund 7-33 Replenishing the Petty Cash Fund 7-34 Data Analytics in Action 7-56 8 Reporting and Analyzing Receivables 8-1 What’s Cooking?: Nike 8-1 8.1 Recognition of Accounts Receivable 8-3 Types of Receivables 8-3 Recognizing Accounts Receivable 8-3 8.2 Valuation and Disposition of Accounts Receivable 8-5 Valuing Accounts Receivable 8-5 Disposing of Accounts Receivable 8-13 8.3 Notes Receivable 8-15 Determining the Maturity Date 8-16 Computing Interest 8-16 Recognizing Notes Receivable 8-17 Valuing Notes Receivable 8-17 Disposing of Notes Receivable 8-17 8.4 Receivables Presentation and Management 8-20 Financial Statement Presentation of Receivables 8-20 Managing Receivables 8-21 Evaluating Liquidity of Receivables 8-23 Accelerating Cash Receipts 8-24 Data Analytics and Receivables Management 8-25 Data Analytics in Action 8-46 9 Reporting and Analyzing Long-Lived Assets 9-1 A Tale of Two Airlines: American Airlines 9-1 9.1 Plant Asset Expenditures 9-3 Determining the Cost of Plant Assets 9-3 Expenditures During Useful Life 9-6 To Buy or Lease? 9-7 9.2 Depreciation Methods 9-8 Factors in Computing Depreciation 9-9 Depreciation Methods 9-9 Revising Periodic Depreciation 9-14 Impairments 9-15 9.3 Plant Asset Disposals 9-16 Sale of Plant Assets 9-16 Retirement of Plant Assets 9-18 9.4 Intangible Assets 9-19 Accounting for Intangible Assets 9-19 Types of Intangible Assets 9-20 Research and Development Costs 9-22 9.5 Statement Presentation and Analysis 9-23 Presentation 9-23 Analysis 9-25 Appendix 9A: Other Depreciation Methods 9-30 Declining-Balance Method 9-30 Units-of-Activity Method 9-31 Data Analytics in Action 9-55 10 Reporting and Analyzing Liabilities 10-1 And Then There Were Two: Maxwell Car Company 10-1 10.1 Accounting for Current Liabilities 10-3 What Is a Current Liability? 10-3 Notes Payable 10-3 Sales Taxes Payable 10-4 Unearned Revenues 10-5 Current Maturities of Long-Term Debt 10-6 Payroll and Payroll Taxes Payable 10-6 10.2 Characteristics of Bonds 10-9 Types of Bonds 10-9 Issuing Procedures 10-10 Bond Trading 10-10 Determining the Market Price of a Bond 10-11 10.3 Accounting for Bond Transactions 10-14 Issuing Bonds at Face Value 10-14 Discount or Premium on Bonds 10-14 Issuing Bonds at a Discount 10-15 Issuing Bonds at a Premium 10-17 Redeeming Bonds at Maturity 10-19 Redeeming Bonds Before Maturity 10-19 10.4 Presentation and Analysis 10-20 Presentation 10-20 Analysis 10-22 Appendix 10A: Straight-Line Amortization 10-26 Amortizing Bond Discount 10-26 Amortizing Bond Premium 10-28 Appendix 10B: Effective-Interest Amortization 10-29 Amortizing Bond Discount 10-29 Amortizing Bond Premium 10-31 Appendix 10C: Accounting for Long-Term Notes Payable 10-32 11 Reporting and Analyzing Stockholders’ Equity 11-1 Oh Well, I Guess I’ll Get Rich: Facebook 11-1 11.1 Corporate Form of Organization 11-3 Characteristics of a Corporation 11-3 Forming a Corporation 11-6 Stockholder Rights 11-7 Stock Issue Considerations 11-8 Corporate Capital 11-10 11.2 Accounting for Common, Preferred, and Treasury Stock 11-12 Accounting for Common Stock 11-12 Accounting for Preferred Stock 11-13 Accounting for Treasury Stock 11-14 11.3 Accounting for Dividends and Stock Splits 11-16 Cash Dividends 11-16 Dividend Preferences 11-19 Stock Dividends 11-21 Stock Splits 11-22 11.4 Presentation and Analysis 11-24 Retained Earnings 11-24 Retained Earnings Restrictions 11-25 Balance Sheet Presentation of Stockholders’ Equity 11-26 Analysis of Stockholders’ Equity 11-28 Debt versus Equity Decision 11-29 Appendix 11A: Entries for Stock Dividends 11-32 Data Analytics in Action 11-55 12 Statement of Cash Flows 12-1 Got Cash?: Microsoft 12-2 12.1 Usefulness and Format of the Statement of Cash Flows 12-3 Usefulness of the Statement of Cash Flows 12-3 Classification of Cash Flows 12-3 Significant Noncash Activities 12-4 Format of the Statement of Cash Flows 12-5 12.2 Preparing the Statement of Cash Flows— Indirect Method 12-6 Indirect and Direct Methods 12-7 Indirect Method—Computer Services Company 12-7 Step 1: Operating Activities 12-9 Summary of Conversion to Net Cash Provided by Operating Activities—Indirect Method 12-12 Step 2: Investing and Financing Activities 12-13 Step 3: Net Change in Cash 12-15 12.3 Analyzing the Statement of Cash Flows 12-17 The Corporate Life Cycle 12-17 Free Cash Flow 12-19 Appendix 12A: Statement of Cash Flows—Direct Method 12-22 Step 1: Operating Activities 12-24 Step 2: Investing and Financing Activities 12-28 Step 3: Net Change in Cash 12-30 Appendix 12B: Worksheet for the Indirect Method 12-30 Preparing the Worksheet 12-31 Appendix 12C: Statement of Cash Flows—T-Account Approach 12-35 Data Analytics in Action 12-61 13 Financial Analysis: The Big Picture 13-1 It Pays to Be Patient: Warren Buffett 13-2 13.1 Sustainable Income and Quality of Earnings 13-3 Sustainable Income 13-3 Quality of Earnings 13-7 13.2 Horizontal Analysis and Vertical Analysis 13-9 Horizontal Analysis 13-10 Vertical Analysis 13-12 13.3 Ratio Analysis 13-15 Liquidity Ratios 13-16 Solvency Ratios 13-17 Profitability Ratios 13-17 Financial Analysis and Data Analytics 13-18 Comprehensive Example of Ratio Analysis 13-18 Appendix A Specimen Financial Statements: Apple Inc. A-1 Appendix B Specimen Financial Statements: Columbia Sportswear Company B-1 Appendix C Specimen Financial Statements: Under Armour, Inc. C-1 Appendix D Specimen Financial Statements: Amazon.com, Inc. D-1 Appendix E Specimen Financial Statements: Walmart Inc. E-1 Appendix F Time Value of Money F-1 F.1 Interest and Future Values F-2 Nature of Interest F-2 Future Value of a Single Amount F-3 Future Value of an Annuity F-5 F.2 Present Values F-8 Present Value Variables F-8 Present Value of a Single Amount F-9 Present Value of an Annuity F-11 Time Periods and Discounting F-13 Present Value of a Long-Term Note or Bond F-3 F.3 Capital Budgeting Situations F-16 F.4 Using Technological Tools F-18 Present Value of a Single Sum F-19 Present Value of an Annuity F-20 Future Value of a Single Sum F-21 Future Value of an Annuity F-22 Internal Rate of Return F-22 Useful Applications F-23 Appendix G Reporting and Analyzing Investments G-1 G.1 Accounting for Debt Investments G-2 Why Corporations Invest G-2 Accounting for Debt Investments G-2 G.2 Accounting for Stock Investments G-4 Holdings of Less Than 20% G-5 Holdings Between 20% and 50% G-6 Holdings of More Than 50% G-7 G.3 Reporting Investments in Financial Statements G-9 Debt Securities G-9 Equity Securities G-12 Balance Sheet Presentation G-13 Presentation of Realized and Unrealized Gain or Loss G-14 Company Index I-1 Subject Index I-5 Rapid Review: Chapter Content

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Book SynopsisLearn to identify, detect, investigate, and prevent financial fraud today with the latest edition of FRAUD EXAMINATION, 5E. You gain a strong understanding of the types of fraud and nature of fraud investigation today with current business examples and numerous actual fraud cases, delivered first-hand from the authors' experience.The book presents today's most important fraud concepts with an emphasis on the growing area of ebusiness fraud. Significant discussion familiarizes you with forensic analysis. You also review legal options for victims of fraud. New discussion emphasizes how technology is often used to accomplish fraud and how it can be used most effectively to detect fraud.Table of ContentsPart I: INTRODUCTION TO FRAUD. 1. The Nature of Fraud. 2. Who Commits Fraud and Why. 3. Fighting Fraud: An Overview. Part II: FRAUD PREVENTION. 4. Preventing Fraud. Part III: FRAUD DETECTION. 5. Recognizing the Symptoms of Fraud. 6. Data-Driven Fraud Detection Part IV: FRAUD INVESTIGATION. 7. Investigating Theft Acts. 8. Investigating Concealment. 9. Conversion Investigation Methods. 10. Inquiry Methods and Fraud Reports. Part V: MANAGEMENT FRAUD. 11. Financial Statement Fraud. 12. Revenue- and Inventory-Related Financial Statement Frauds. 13. Liability, Asset, and Inadequate Disclosure Frauds. Part VI: OTHER TYPES OF FRAUD. 14. Fraud Against Organizations. 15. Consumer Fraud. 16. Bankruptcy, Divorce, and Tax Fraud. 17. e-Commerce Fraud. Part VII: RESOLUTION OF FRAUD. 18. Legal Follow-Up. Appendix. Bibliography. Glossary.

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Book SynopsisTransform your high school accounting course with CENTURY 21 ACCOUNTING MULTICOLUMN JOURNAL 10E, the leader in high school accounting education for more than 100 years. CENTURY 21 ACCOUNTING 10E maintains its renowned instructional design and step-by-step approach to teaching accounting. Greater emphasis on conceptual understanding and financial statement analysis encourages students to apply accounting concepts to real-world situations and make informed business decisions. New features like Forensic Accounting, Think Like an Accountant, Financial Literacy, and Why Accounting? are a few examples of the expanded opportunities for students to master critical-thinking skills. In addition, problems integrated throughout the text equip students to work with Microsoft Excel, Peachtree, QuickBooks, and Automated Accounting Online. Online Working Papers, powered by Aplia, provide engaging digital homework solutions.Table of ContentsPART I: ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP. 1. Starting a Proprietorship: Changes That Affect the Accounting Equation. 2. Analyzing Transactions into Debit and Credit Parts. 3. Journalizing Transactions. 4. Posting to a General Ledger. 5. Cash Control Systems. RA1 Part A: An Accounting Cycle for a Proprietorship: Journalizing and Posting Transactions. 6. Work Sheet and Adjusting Entries for a Service Business. 7. Financial Statements for a Proprietorship. 8. Recording Closing Entries and Preparing a Post-Closing Trial Balance for a Service Business. RA1 Part B: An Accounting Cycle for a Proprietorship: End-of-Fiscal-Period Work. Simulation Marketing Page for Red Carpet Events. PART II: ACCOUNTING FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION. 9. Accounting for Purchases and Cash Payments. 10. Accounting for Sales and Cash Receipts. 11. Transactions Journalized on a General Journal. 12. Preparing Payroll Records. 13. Accounting for Payroll and Payroll Taxes. RA2 Part A: An Accounting Cycle for a Corporation: Journalizing and Posting Transactions. 14. Accounting for Uncollectible Accounts Receivable. 15. Preparing Adjusting Entries and a Trial Balance. 16. Financial Statements and Closing Entries for a Corporation. 17. Financial Statement Analysis. RA 2 Part B: An Accounting Cycle for a Corporation: End-of-Fiscal-Period Work. Simulation Marketing Page for Authentic Threads. PART III: ACCOUNTING FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION ADJUSTMENTS AND VALUATION. 18. Acquiring Capital for Growth and Development. 19. Accounting for Plant Assets, Depreciation, and Intangible Assets. 20. Accounting for Inventory. RA3 Part A: An Accounting Cycle for a Corporation: Journalizing and Posting Transactions. 21. Accounting for Accruals, Deferrals, and Reversing Entries. 22. End-of-Fiscal-Period Work for a Corporation. RA3 Part B: An Accounting Cycle for a Corporation: End-of-Fiscal-Period Work. Simulation Marketing Page for Digital Diversions. PART IV: ADDITIONAL ACCOUNTING PROCEDURES. 23. Accounting for Partnerships. 24. Recording International and Internet Sales. Bonus Chapter 25. 21st Century Skills App. A: Accounting Concepts. App. B: Analyzing Nike���s Financial Statements. App. C: Using a Calculator and Computer Keypad. App. D: Recycling Problems. App. E: Answers to Audit Your Understanding. English Glossary. Index.

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Book SynopsisGain a solid foundation in the core accounting concepts as you develop a true appreciation for why accounting is important to business and a prosperous society with Warren/Reeve/Duchac's FINANCIAL AND MANAGERIAL ACCOUNTING, 14E. This latest edition clearly demonstrates how accounting is more than just data and black and white rules. Instead, you see how accounting provides key information used to make critical business decisions. A new chapter schema provides context that emphasizes how each chapter's content fits into the big picture. The book focuses on why accounting is important and consistently reinforces connections to the big picture throughout the text by connecting journal entries to the accounting equation. You also gain important practice in making business decisions.

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Book SynopsisGain a solid foundation in accounting to ensure you are prepared for future business courses and the real world with Warren/Reeve/Duchac's market-leading ACCOUNTING, 27E and CNOWv2. This edition helps you connect concepts to the bigger picture with features such as the new chapter opening schema that allows you to see how each chapter's specific content fits within the overall framework of the book. A focus on why accounting is important to business and a prosperous society is reinforced throughout with Why It Matters Concept Clip animations in CNOWv2 and a new CNOWv2 Journal Entry Tool that illustrates the impact of transactions on the accounting equation. In addition, the Warren/Reeve/Duchac hallmark accounting cycle coverage provides unmatched foundation so you are prepared to succeed in later chapters.Table of Contents1. Introduction to Accounting and Business. 2. Analyzing Transactions. 3. The Adjusting Process. 4. Completing the Accounting Cycle. 5. Accounting Systems. 6. Accounting for Merchandising Businesses. 7. Inventories. 8. Internal Controls and Cash. 9. Receivables. 10. Long-Term Assets: Fixed and Intangible. 11. Current Liabilities and Payroll. 12. Accounting for Partnerships and Limited Liability Companies. 13. Corporations: Organization, Stock Transactions, and Dividends.

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Book SynopsisAs an accounting professional, you are expected to help organizations identify enterprise risks and provide quality assurance for the company's information systems. You can rely on ACCOUNTING INFORMATION SYSTEMS, 11E's clear presentation to help you understand the two issues most critical to accounting information systems in use today: enterprise systems and controls for maintaining those systems. ACCOUNTING INFORMATION SYSTEMS, 11E explores today's most intriguing accounting information systems (AIS) topics and details how these issues relate to business processes, information technology, strategic management, security, and internal controls. The authors focus on today's most important advancements, using a conversational tone rather than complex technical language to ensure you develop the solid foundation in AIS that you need to be successful.Table of Contents1. Introduction to Accounting Information Systems. 2. Enterprise Systems. 3. Electronic Business (E-Business) Systems. 4. Documenting Information Systems. 5. Database Management Systems. 6. Relational Databases and SQL. 7. Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control. 8. Controlling Information Systems: Introduction to Pervasive Controls. 9. Controlling Information Systems: Business Process and Application Controls. 10. The Order Entry/Sales (OE/S) Process. 11. The Billing/Accounts Receivable/Cash Receipts (B/AR/CR) Process. 12. The Purchasing Process. 13. The Accounts Payable/Cash Disbursements (AP/CD) Process. 14. The Human Resources (HR) Management and Payroll Processes. 15. Integrated Production Processes (IPP). 16. The General Ledger and Business Reporting (GL/BR) Process. 17. Acquiring and Implementing Accounting Information Systems.

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Book SynopsisToday's financial accounting is continuously changing. Now, you have a resource to help you understand the importance of accounting information and how that information is critical to others in business today with Wahlen/Jones/Pagach's INTERMEDIATE ACCOUNTING, 3E. Positive examples and cases from familiar companies, such as Starbucks, Coca-Cola, Apple, Louis Vuitton and Nestlé, reinforce the book's unique, approachable perspective. You see the power of financial accounting information for investors, creditors and other stakeholders. This edition's in-depth coverage also clearly addresses the latest accounting standards. This edition works closely with CNOWv2 digital resources to help you manage the rigor and time requirements of today's intermediate accounting course. Learning tools help you master key concepts. In addition, algorithmic homework exercises allow you to solve multiple versions of exercises, in order to build confidence and expertise.Table of ContentsPart I: FINANCIAL REPORTING AND STATEMENTS: OBJECTIVES, CONCEPTS, AND ANALYSIS. 1. The Demand for and Supply of Financial Accounting Information. 2. Financial Reporting: Its Conceptual Framework. 3. Review of a Company���s Accounting System. 4. The Balance Sheet and the Statement of Shareholders��� Equity. 5. The Income Statement and the Statement of Cash Flows. Time Value of Money Module. Part II: BUSINESS OPERATING ACTIVITIES. 6. Cash and Receivables. 7. Inventories: Cost Measurement and Flow Assumptions. 8. Inventories: Special Valuation Issues. 9. Current Liabilities and Contingent Obligations. Part III: INVESTING ACTIVITIES. 10. Property, Plant, and Equipment: Acquisition and Subsequent Investments. 11. Depreciation, Depletion, Impairment, and Disposal. 12. Intangibles. 13. Investments and Long-Term Receivables. Part IV: FINANCING ACTIVITIES. 14. Financing Liabilities: Bonds and Long-Term Notes Payable. 15. Contributed Capital. 16. Retained Earnings and Earnings Per Share. Part V: SPECIAL TOPICS IN FINANCIAL REPORTING. 17. Advanced Issues in Revenue Recognition. 18. Accounting for Income Taxes. 19. Accounting for Post-Retirement Benefits. 20. Accounting for Leases. 21. The Statement of Cash Flows. 22. Accounting for Changes and Errors. Appendix A: Starbucks Financial Statements (full report). Appendix B: List of the Official Pronouncements of the AICPA and FASB. Appendix C: List of the Official Pronouncements of the IASB. Appendix D: Brief Guide to Key Differences Between IFRS and GAAP by Chapter.

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Book SynopsisEstablish a strong foundation in the managerial accounting fundamentals that you need for business success with Warren/Tayler's leading MANAGERIAL ACCOUNTING, 15E. Business examples provide a meaningful context as they demonstrate how each chapter's content fits into the "big picture." The authors clearly connect fundamental accounting concepts to real businesses today. Each chapter begins with a real-world company opener that is linked to applicable content throughout the chapter. In addition, new Certified Management Accountant (CMA) exam questions prepare you for professional success, while Pathways Challenges help you hone critical-thinking skills. This edition also works seamlessly with online CNOWv2 resources to provide a range of activities that guide you through each stage of the learning process from motivation to mastery.Table of Contents1. Introduction to Managerial Accounting. 2. Job Order Costing. 3. Process Cost Systems. 4. Activity-Based Costing. 5. Support Department and Joint Cost Allocation. 6. Cost-Volume-Profit Analysis. 7. Variable Costing for Management Analysis. 8. Budgeting. 9. Evaluating Variances from Standard Costs. 10. Evaluating Decentralized Operations. 11. Differential Analysis and Product Pricing. 12. Capital Investment Analysis. 13. Lean Manufacturing and Activity Analysis. 14. The Balanced Scorecard and Corporate Social Responsibility. 15. Statement of Cash Flows. 16. Financial Statement Analysis. Appendix A: Interest Tables. Appendix B: Nike Inc., Form 10-K Glossary. Index.

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