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Financial Accounting 12th edition [Kietas viršelis]

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  • Formatas: Hardback, 864 pages, aukštis x plotis x storis: 100x100x100 mm, weight: 100 g
  • Išleidimo metai: 10-Jan-2018
  • Leidėjas: Pearson
  • ISBN-10: 0134725980
  • ISBN-13: 9780134725987
  • Formatas: Hardback, 864 pages, aukštis x plotis x storis: 100x100x100 mm, weight: 100 g
  • Išleidimo metai: 10-Jan-2018
  • Leidėjas: Pearson
  • ISBN-10: 0134725980
  • ISBN-13: 9780134725987

For courses in introductory financial accounting.


A student-centered approach to financial accounting

Accounting is the language of business, and understanding the role accounting plays in business is critical to a student’s success in earning a business degree. Financial Accounting puts the focus on the purpose of Accounting in business. With student-friendly examples and streamlined chapters, the 12th Edition delivers a student-centric approach to learning financial accounting. Time-tested resources like the Turnkey Case Resources, help students grasp the practical concepts of accounting, so that they can put them into practice in their future business careers. 


Also available with MyLab Accounting

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  • 0134727673 / 9780134727677 MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting  
Preface xvi
Chapter 1 The Financial Statements 1(59)
Spotlight: The Walt Disney Company
1(2)
Explain Why Accounting Is Critical to Businesses
3(2)
Describe the Decision Makers Who Use Accounting
3(1)
Describe the Two Types of Accounting and Who Uses Each Type
4(1)
Explain How Businesses Are Organized
4(1)
Explain and Apply Underlying Accounting Concepts, Assumptions, and Principles
5(4)
The Entity Assumption
7(1)
The Continuity (Going-Concern) Assumption
7(1)
The Historical Cost Principle
7(1)
The Stable-Monetary-Unit Assumption
8(1)
Apply the Accounting Equation to Business Organizations
9(3)
Assets and Liabilities
9(1)
Equity
10(2)
Construct Financial Statements and Analyze the Relationships Among Them
12(11)
The Income Statement
13(3)
The Statement of Retained Earnings
16(1)
The Balance Sheet
16(4)
The Statement of Cash Flows
20(3)
Evaluate Business Decisions Ethically
23(4)
American Institute of Certified Public Accountants Code of Professional Conduct
25(2)
End-of-Chapter Summary Problem
27(33)
Chapter 2 Transaction Analysis 60(60)
Spotlight: The Walt Disney Company Records Millions of Transactions a Year!
60(1)
Recognize a Business Transaction and the Various Types of Accounts in Which It Can Be Recorded
61(2)
Assets
61(1)
Liabilities
62(1)
Stockholders' Equity
62(1)
Analyze the Impact of Business Transactions on the Accounting Equation
63(8)
Example: Alladin Travel, Inc.
63(6)
Transactions and Financial Statements
69(2)
Mid-Chapter Summary Problem
71(1)
Analyze the Impact of Business Transactions on Accounts
72(4)
The T-Account
73(1)
Increases and Decreases in the Accounts: The Rules of Debit and Credit
73(1)
Additional Stockholders' Equity Accounts: Revenues and Expenses
74(2)
Journalize Transactions and Post Journal Entries to the Ledger
76(7)
Posting from the Journal to the Ledger
76(2)
The Flow of Accounting Data
78(5)
Accounts After Posting to the Ledger
83(1)
Construct a Trial Balance
83(5)
Analyzing Accounts
84(1)
Correcting Accounting Errors
85(1)
Chart of Accounts
86(1)
The Normal Balance of an Account
86(2)
End-of-Chapter Summary Problem
88(32)
Chapter 3 Accrual Accounting and Income 120(81)
Spotlight: September Is Busy at Walt Disney World Headquarters
120(1)
Explain How Accrual Accounting Differs from Cash-Basis Accounting
121(2)
Accrual Accounting and Cash Flows
122(1)
The Time-Period Concept
122(1)
Apply the Revenue and Expense Recognition Principles
123(2)
The Revenue Principle
123(1)
The Expense Recognition Principle
124(1)
Adjust the Accounts
125(14)
Which Accounts Need to Be Updated (Adjusted)?
125(1)
Categories of Adjusting Entries
126(1)
Prepaid Expenses
126(3)
Depreciation of Plant Assets
129(2)
Accrued Expenses
131(2)
Accrued Revenues
133(1)
Unearned Revenues
134(1)
Summary of the Adjusting Process
135(3)
The Adjusted Trial Balance
138(1)
Construct the Financial Statements
139(2)
Mid-Chapter Summary Problem
141(5)
Close the Books
146(4)
Classifying Assets and Liabilities
148(1)
Reporting Assets and Liabilities: The Walt Disney Company
148(1)
Formats for the Financial Statements
148(2)
Analyze and Evaluate a Company's Debt-Paying Ability
150(6)
Net Working Capital
151(1)
Current Ratio
151(1)
Debt Ratio
152(1)
How Do Transactions Affect the Ratios?
152(4)
End-of-Chapter Summary Problem
156(45)
Chapter 4 Internal Control and Cash 201(47)
Spotlight: Cooking the Books at Green Valley Coffee Company: $10 Million Is a Lot of Beans!
201(2)
Describe Fraud and Its Impact
203(2)
Fraud and Ethics
204(1)
Explain the Objectives and Components of Internal Control
205(6)
The Components of Internal Control
206(1)
Internal Control Procedures
207(2)
Information Technology
209(1)
Safeguard Controls
210(1)
Internal Controls for E-Commerce
210(1)
Security Measures
210(1)
Evaluate Internal Controls over Cash Receipts and Cash Payments
211(4)
Cash Receipts over the Counter
211(1)
Cash Receipts by Mail
212(1)
Controls over Payments Made by Check or EFT
213(1)
The Limitations of Internal Control-Costs and Benefits
214(1)
Mid-Chapter Summary Problem
215(1)
Prepare a Bank Reconciliation
216(8)
Signature Card
216(1)
Deposit Ticket
217(1)
Check
217(1)
Bank Statement
217(1)
Bank Reconciliation
218(3)
Preparing the Bank Reconciliation
221(1)
Online Banking
222(2)
Report Cash on the Balance Sheet
224(1)
End-of-Chapter Summary Problem
224(24)
Chapter 5 Receivables and Revenue 248(57)
Spotlight: Apple's Accounts Receivable Are Small Compared to the Company's Net Sales Revenue and Are Mostly Collectible
248(2)
Apply Generally Accepted Accounting Principles (GAAP) for Proper Revenue Recognition
250(3)
Shipping Terms
252(1)
Collection
252(1)
Speeding up the Cash Flow from Sales
252(1)
Account for Sales Returns and Allowances
253(1)
Account for Sales Discounts
254(2)
Disclosure of Net Revenues on the Income Statement
255(1)
Account for Accounts Receivable
256(2)
Types of Receivables
256(1)
Managing and Accounting for Receivables
257(1)
Evaluate Collectability Using the Allowance for Uncollectible Accounts
258(7)
Allowance Method
259(5)
Direct Write-Off Method
264(1)
Computing Cash Collections from Customers
264(1)
Account for Notes Receivable and Interest Revenue
265(3)
Accounting for Notes Receivable
266(2)
Evaluate Liquidity Using Three New Ratios
268(2)
Quick (Acid-Test) Ratio
268(1)
Accounts Receivable Turnover and Days' Sales Outstanding
269(1)
End-of-Chapter Summary Problem
270(35)
Chapter 6 Inventory and Cost of Goods Sold 305(62)
Spotlight: Under Armour, Inc.'s Performance Slips
305(2)
Show How to Account for Inventory
307(6)
Sale Price versus Cost of Inventory
308(2)
Periodic versus Perpetual Inventory Systems
310(3)
Apply and Compare Various Inventory Cost Methods
313(5)
Apply the Various Inventory Costing Methods
313(3)
Compare the Effects of FIFO, LIFO, and Average-Cost Methods on Gross Profit and Ending Inventory
316(1)
The Tax Advantage of LIFO
317(1)
Mid-Chapter Summary Problem
318(1)
Explain and Apply Underlying U.S. GAAP for Inventory
319(3)
Disclosure Principle
320(1)
Lower-of-Cost-or-Market Rule
320(2)
Compute and Evaluate Gross Profit (Margin) Percentage, Inventory Turnover, and Days' Inventory Outstanding (DIO)
322(2)
Gross Profit Percentage
322(1)
Inventory Turnover and Days Inventory Outstanding (DIO)
323(1)
Use the Cost-of-Goods-Sold (COGS) Model to Make Management Decisions
324(2)
Computing Budgeted Purchases
325(1)
Estimating Inventory Using the Gross Profit Method
325(1)
Analyze Effects of Inventory Errors
326(2)
End-of-Chapter Summary Problem
328(39)
Chapter 7 Plant Assets, Natural Resources, and Intangibles 367(69)
Spotlight: FedEx Corporation
367(3)
Explain How to Account for the Cost of Plant Assets
370(2)
Land
370(1)
Buildings, Machinery, and Equipment
370(1)
Land Improvements and Leasehold Improvements
371(1)
Lump-Sum (or Basket) Purchases of Assets
371(1)
Distinguish a Capital Expenditure from an Immediate Expense
372(2)
Explain How to Account for Depreciation on Plant Assets
374(7)
How to Measure Depreciation
375(1)
Depreciation Methods
375(5)
Comparing Depreciation Methods
380(1)
Mid-Chapter Summary Problem
381(5)
Other Issues in Accounting for Plant Assets
383(1)
Depreciation for Tax Purposes
383(1)
Depreciation for Partial Years
384(1)
Changing the Useful Life of a Depreciable Asset
385(1)
Fully Depreciated Assets
386(1)
Analyze the Effect of a Plant Asset Disposal
386(5)
Disposing of a Fully Depreciated Asset for No Proceeds
387(1)
Selling a Plant Asset
387(1)
Exchanging a Plant Asset
388(1)
T-Accounts for Analyzing Plant Asset Transactions
389(2)
Apply GAAP for Natural Resources and Intangible Assets
391(4)
Accounting for Natural Resources
391(1)
Accounting for Intangible Assets
392(1)
Accounting for Specific Intangibles
393(2)
Accounting for Research and Development Costs
395(1)
Explain the Effect of an Asset Impairment on the Financial Statements
395(1)
Analyze Rate of Return on Assets
396(2)
DuPont Analysis: A More Detailed View of ROA
397(1)
Analyze the Cash Flow Impact of Long-Lived Asset Transactions
398(3)
End-of-Chapter Summary Problem
401(35)
Chapter 8 Current and Contingent Liabilities 436(32)
Spotlight: Amazon.com Moves a Lot of Merchandise and Incurs Many Liabilities
436(2)
Distinguish Between Current and Long-Term Liabilities
438(1)
Account for Accounts Payable and Analyze Accounts Payable Turnover
438(2)
Account for Notes Payable and Accrued Interest
440(1)
Account for Accrued Liabilities and Unearned Revenue
441(4)
Account for Contingent Liabilities
445(2)
End-of-Chapter Summary Problem
447(21)
Chapter 9 Long-Term Liabilities 468(54)
Spotlight: Southwest Airlines Is Flying High
468(1)
Account for Bonds Payable and Interest Expense with Straight-Line Amortization
469(7)
Issuing Bonds Payable at Par (Face Value)
471(2)
Issuing Bonds Payable at a Discount
473(2)
Issuing Bonds Payable at a Premium
475(1)
Account for Bonds Payable and Interest Expense with Effective-Interest Amortization
476(8)
Issuing Bonds Payable at a Discount
476(2)
Interest Expense on Bonds Issued at a Discount
478(2)
Issuing Bonds Payable at a Premium
480(4)
Account for Other Features of Bonds Payable
484(2)
Accounting for Partial-Period Interest Amounts
484(1)
Retiring Bonds Payable Before Their Maturity
484(1)
Accounting for Convertible Bonds and Notes
485(1)
Describe Other Long-Term Liabilities
486(4)
Deferred Income Taxes
486(2)
Commitments
488(1)
Leases
488(2)
Analyze the Impact of Leverage on the Financial Statements
490(2)
The Leverage Ratio
490(1)
The Times-Interest-Earned Ratio
491(1)
Report Long-Term Liabilities on the Financial Statements
492(2)
Reporting on the Balance Sheet
492(1)
Disclosing the Fair Value of Long-Term Debt
493(1)
Reporting Financing Activities on the Statement of Cash Flows
493(1)
End-of-Chapter Summary Problem
494(28)
Chapter 10 Stockholders' Equity 522(72)
Spotlight: The Home Depot: Building Toward Success
522(2)
Explain the Features of a Corporation
524(4)
Organizing a Corporation
525(1)
Stockholders' Rights
526(1)
Stockholders' Equity
526(1)
Classes of Stock
527(1)
Account for the Issuance of Stock
528(5)
Common Stock
528(4)
How an "Other Than Cash" Stock Issuance Can Create an Ethical Challenge
532(1)
Preferred Stock
532(1)
Mid-Chapter Summary Problem
533(2)
Authorized, Issued, and Outstanding Stock
535(1)
Explain How Treasury Stock Affects a Company
535(4)
How Is Treasury Stock Recorded?
535(2)
Retirement of Treasury Stock
537(1)
Resale of Treasury Stock
537(1)
Issuing Stock for Employee Compensation
537(1)
Summary of Treasury-Stock Transactions
538(1)
Account for Retained Earnings, Dividends, and Stock Splits
539(5)
Should the Company Declare and Pay Cash Dividends?
539(1)
Cash Dividends
539(1)
Analyzing the Stockholders' Equity Accounts
540(1)
Dividends on Preferred Stock
541(1)
Stock Dividends
542(1)
Stock Splits
543(1)
Summary of the Effects on Assets, Liabilities, and Stockholders' Equity
544(1)
Evaluate a Company's Performance Using New Ratios
544(6)
ROE: Relating Profitability to Stockholder Investment
544(3)
Earnings Per Share (EPS)
547(1)
Effect of Equity Financing on EPS
548(1)
Market Capitalization and the Price-Earning Ratio
549(1)
Report Stockholders' Equity Transactions in the Financial Statements
550(3)
Statement of Cash Flows
550(1)
Statement of Stockholders' Equity
551(1)
A Detailed Stockholders' Equity Section of the Balance Sheet
552(1)
End-of-Chapter Summary Problems
553(41)
Chapter 11 The Statement of Cash Flows 594(74)
Spotlight: Google: The Ultimate Answer (and Cash) Machine
594(2)
Identify the Purposes of the Statement of Cash Flows
596(2)
How's Your Cash Flow? Telltale Signs of Financial Difficulty
597(1)
Distinguish Among Operating, Investing, and Financing Activities
598(2)
Two Formats for Operating Activities
599(1)
Prepare a Statement of Cash Flows by the Indirect Method
600(9)
Cash Flows from Operating Activities
602(2)
Cash Flows from Investing Activities
604(2)
Cash Flows from Financing Activities
606(2)
Noncash Investing and Financing Activities
608(1)
Mid-Chapter Summary Problem
609(3)
Prepare a Statement of Cash Flows Using the Direct Method
612(12)
Cash Flows from Operating Activities
614(1)
Depreciation, Depletion, and Amortization Expense
615(1)
Cash Flows from Investing Activities
615(1)
Cash Flows from Financing Activities
615(1)
Noncash Investing and Financing Activities
616(1)
Computing Operating Cash Flows Using the Direct Method
617(4)
Computing Investing and Financing Cash Flows
621(1)
Measuring Cash Adequacy: Free Cash Flow
621(3)
End-of-Chapter Summary Problems
624(44)
Chapter 12 Financial Statement Analysis 668(77)
Spotlight: Evaluating Under Armour, Inc., and Apple Inc., Using Different Financial Analysis Tools
668(1)
Perform an Industry and Company Analysis
669(2)
Perform a Horizontal Analysis
671(4)
Trend Percentages
675(1)
Perform a Vertical Analysis
675(5)
Prepare Common-Size Financial Statements
678(1)
Benchmarking
679(1)
Benchmarking Against a Key Competitor
679(1)
Mid-Chapter Summary Problem
680(1)
Use Ratios to Make Business Decisions
681(15)
Remember to Start at the Beginning: Company and Industry Information
683(1)
Now Let's Do the Numbers
684(1)
Measuring Ability to Pay Current Liabilities
684(3)
Measuring Turnover and the Cash Conversion Cycle
687(3)
Measuring Leverage: The Overall Ability to Pay Debts
690(1)
Measuring Profitability
690(4)
Analyzing Stock as an Investment
694(2)
The Limitations of Ratio Analysis
696(1)
Evaluate the Quality of Earnings
696(5)
An Audit Adds Credibility to Financial Statements
697(1)
Red Flags in Financial Statement Analysis
698(1)
Efficient Markets
698(3)
End-of-Chapter Summary Problems
701(44)
Appendix A: Apple Inc. Annual Report 2016 745(21)
Appendix B: Typical Charts of Accounts for Different Types of Businesses 766(2)
Appendix C: Summary of U.S. Generally Accepted Accounting Principles (GAAP) 768(2)
Appendix D: Summary of Differences Between U.S. GAAP and IFRS Cross Referenced to
Chapter
770(2)
Appendix E: Investments
Explain Why Companies Invest in Other Companies
772(1)
Investments in Equity Securities
773(1)
Account for Investments in Equity Securities When the Investor Has Insignificant Influence
773(4)
Recording the Purchase of Equity Securities
774(1)
Recording Cash Dividends
775(1)
Adjusting Equity Investments to Their Fair Value
775(1)
Recording the Sale of an Equity Investment
776(1)
Account for Investments in Equity Securities When the Investor Has Significant Influence
777(2)
Purchase of Equity-Method Investments
777(2)
Account for Investments in Equity Securities When the Investor Has Controlling Influence
779(1)
Consolidation Accounting
779(1)
Account for Investments in Debt Securities
780(18)
Appendix F: Time Value Of Money
Explain the Impact the Time Value of Money Has on Certain Types of Investments
798(13)
Present Value
799(1)
Present-Value Tables
800(1)
Present Value of an Ordinary Annuity
801(1)
Using Microsoft Excel to Calculate Present Value
802(2)
Using the PV Model to Compute Fair Value of Available-for-Sale Investments
804(1)
Present Value of an Investment in Bonds
804(7)
Company Index 811(3)
Glindex 814
About our authors William (Bill) Thomas is the J. E. Bush Professor of Accounting and a Master Teacher at Baylor University. A Baylor University alumnus, he received both his BBA and MBA there and went on to earn his PhD from The University of Texas at Austin.

With primary interests in the areas of financial accounting and auditing, Bill Thomas has served as the J. E. Bush Professor of Accounting since 1995. He has been a member of the faculty of the Accounting and Business Law Department of the Hankamer School of Business since 1971, and served as chair of the department for 12 years. He has been recognized as an Outstanding Faculty Member of Baylor University as well as a Distinguished Professor for the Hankamer School of Business. Dr. Thomas has received many awards for outstanding teaching, including the Outstanding Professor in the Executive MBA Programs as well as designation as Master Teacher.

Thomas is the author of textbooks in auditing and financial accounting, as well as many articles in auditing, financial accounting and reporting, taxation, ethics, and accounting education. His scholarly work focuses on the subject of fraud prevention and detection, as well as ethical issues among accountants in public practice. He presently serves as the accounting and auditing editor of Today's CPA, the journal of the Texas Society of Certified Public Accountants, with a circulation of approximately 28,000.

Thomas is a certified public accountant in Texas. Prior to becoming a professor, Thomas was a practicing accountant with the firms of KPMG, LLP, and BDO Seidman, LLP. He is a member of the American Accounting Association, the American Institute of Certified Public Accountants, and the Texas Society of Certified Public Accountants.

Wendy M. Tietz is a professor for the Department of Accounting in the College of Business Administration at Kent State University, where she has taught since 2000. She teaches introductory financial and managerial accounting in a variety of formats, including large sections, small sections, and web-based sections. She has received numerous college and university teaching awards while at Kent State University. Most recently she was named the Beta Gamma Sigma Professor of the Year for the College of Business Administration.

Dr. Tietz is a Certified Public Accountant, a Certified Management Accountant, and a Chartered Global Management Accountant. She is a member of the American Accounting Association (AAA), the Institute of Management Accountants (IMA), and the American Institute of Certified Public Accountants (AICPA). She has published in Issues in Accounting Education, Accounting Education: An International Journal, and Journal of Accounting & Public Policy. She received the 2014 Bea Sanders/AICPA Innovation in Teaching Award for her accounting educator blog entitled, Accounting in the Headlines. She regularly presents at AAA regional and national meetings. Dr. Tietz is also the co-author of a managerial accounting textbook, Managerial Accounting, with Dr. Karen Braun.

Tietz received her PhD from Kent State University. She received both her MBA and BSA from the University of Akron. She worked in industry for several years, both as a controller for a financial institution and as the operations manager and controller for a recycled plastics manufacturer.

Tietz and her husband, Russ, have 2 grown sons. In her spare time, she enjoys walking, reading, and exploring new technology. She is passionate about using technology to expand the boundaries of the traditional classroom.

Walter T. Harrison Jr. is professor emeritus of accounting at the Hankamer School of Business, Baylor University. He received his BBA from Baylor University, his MS from Oklahoma State University, and his PhD from Michigan State University.

Professor Harrison, recipient of numerous teaching awards from student groups as well as from university administrators, has also taught at Cleveland State Community College, Michigan State University, the University of Texas, and Stanford University.

A member of the American Accounting Association and the American Institute of CPAs and Association of International Certified Professional Accountants, Professor Harrison has served as chairman of the Financial Accounting Standards Committee of the American Accounting Association, on the Teaching/Curriculum Development Award Committee, on the Program Advisory Committee for Accounting Education and Teaching, and on the Notable Contributions to Accounting Literature Committee.

Professor Harrison has lectured in several foreign countries and published articles in numerous journals, including Journal of Accounting Research, Journal of Accountancy, Journal of Accounting and Public Policy, Economic Consequences of Financial Accounting Standards, Accounting Horizons, Issues in Accounting Education, and Journal of Law and Commerce.

Professor Harrison has received scholarships, fellowships, and research grants or awards from PricewaterhouseCoopers, Deloitte & Touche, the Ernst & Young Foundation, and the KPMG Foundation.

Charles T. Horngren (1926 to 2011) was the Edmund W. Littlefield Professor of Accounting, emeritus, at Stanford University. A graduate of Marquette University, he received his MBA from Harvard University and his PhD from the University of Chicago. He was also the recipient of honorary doctorates from Marquette University and DePaul University.

A certified public accountant, Horngren served on the Accounting Principles Board for 6 years, the Financial Accounting Standards Board Advisory Council for 5 years, and the Council of the American Institute of Certified Public Accountants for 3 years. For 6 years, he served as a trustee of the Financial Accounting Foundation, which oversees the Financial Accounting Standards Board and the Government Accounting Standards Board.

Horngren is a member of the Accounting Hall of Fame. As a member of the American Accounting Association, Horngren was its president and its director of research. He received its first annual Outstanding Accounting Educator Award. The California Certified Public Accountants Foundation gave Horngren its Faculty Excellence Award and its Distinguished Professor Award. He was the first person to have received both awards. The American Institute of Certified Public Accountants presented its first Outstanding Educator Award to Horngren. Horngren was named Accountant of the Year, in Education, by the national professional accounting fraternity, Beta Alpha Psi.

Professor Horngren was also a member of the Institute of Management Accountants, from whom he received its Distinguished Service Award. He was a member of the institute's Board of Regents, which administers the Certified Management Accountant examinations.

Horngren is an author of these other accounting books published by Pearson: Cost Accounting: A Managerial Emphasis, 15e, 2015 (with Srikant M. Datar and Madhav V. Rajan); Introduction to Financial Accounting, 11e, 2014 (with Gary L. Sundem, John A. Elliott, and Donna Philbrick); Introduction to Management Accounting,16e, 2014 (with Gary L. Sundem, Jeff Schatzberg, and Dave Burgstahler); Horngren's Financial & Managerial Accounting,5e, 2016 (with Tracie L. Miller-Nobles, Brenda L. Mattison, and Ella Mae Matsumura), and Horngren's Accounting,11e, 2016 (with Tracie L. Miller-Nobles, Brenda L. Mattison, and Ella Mae Matsumura). Horngren was the consulting editor for Pearson's Charles T. Horngren Series in Accounting.