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Chapter 1 The Financial Statements |
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1 | (58) |
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Spotlight: RadioShack Corporation |
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1 | (2) |
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Explain Why Accounting is the Language of Business |
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3 | (3) |
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Who Uses Accounting Information? |
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4 | (1) |
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Two Kinds of Accounting: Financial Accounting and Management Accounting |
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4 | (1) |
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5 | (1) |
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Explain and Apply Underlying Accounting Concepts, Assumptions, and Principles |
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6 | (5) |
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8 | (1) |
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The Continuity (Going-Concern) Assumption |
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8 | (1) |
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The Historical Cost Principle |
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8 | (1) |
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The Stable-Monetary-Unit Assumption |
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9 | (2) |
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Apply the Accounting Equation to Business Organizations |
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11 | (3) |
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11 | (1) |
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12 | (2) |
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Evaluate Business Operations Through the Financial Statements |
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14 | (8) |
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The Income Statement Measures Operating Performance |
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14 | (2) |
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The Statement of Retained Earnings Shows What a Company Did with Its Net Income |
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16 | (1) |
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The Balance Sheet Measures Financial Position |
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17 | (3) |
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The Statement of Cash Flows Measures Cash Receipts and Payments |
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20 | (2) |
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Construct the Financial Statements and Analyze the Relationships Among Them |
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22 | (2) |
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Evaluate Business Decisions Ethically |
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24 | (31) |
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End-of-Chapter Summary Problem |
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27 | (28) |
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55 | (4) |
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Chapter 2 Transaction Analysis |
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59 | (76) |
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59 | (1) |
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Explain What a Transaction Is |
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60 | (1) |
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Define "Account," and List and Differentiate Between Different Types of Accounts |
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61 | (2) |
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61 | (1) |
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61 | (1) |
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Stockholders' (Owners') Equity |
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62 | (1) |
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Show the Impact of Business Transactions on the Accounting Equation |
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63 | (10) |
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Example: Genie Car Wash, Inc. |
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63 | (5) |
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Transactions and Financial Statements |
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68 | (3) |
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Mid-Chapter Summary Problem |
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71 | (2) |
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Analyze the Impact of Business Transactions on Accounts |
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73 | (3) |
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73 | (1) |
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Increases and Decreases in the Accounts: The Rules of Debit and Credit |
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73 | (2) |
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Additional Stockholders' Equity Accounts: Revenues and Expenses |
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75 | (1) |
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Record (Journalize and Post) Transactions in the Books |
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76 | (7) |
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Copying Information (Posting) from the Journal to the Ledger |
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77 | (1) |
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The Flow of Accounting Data |
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78 | (4) |
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Accounts After Posting to the Ledger |
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82 | (1) |
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Construct and Use a Trial Balance |
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83 | (39) |
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84 | (1) |
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Correcting Accounting Errors |
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84 | (1) |
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85 | (1) |
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The Normal Balance of an Account |
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86 | (1) |
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86 | (1) |
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Analyzing Transactions Using Only T-Accounts |
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86 | (3) |
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End-of-Chapter Summary Problem |
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89 | (33) |
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122 | (13) |
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Chapter 3 Accrual Accounting & Income |
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135 | (95) |
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Spotlight: Starbucks Corporation |
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135 | (1) |
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Explain How Accrual Accounting Differs From Cash-Basis Accounting |
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136 | (2) |
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Accrual Accounting and Cash Flows |
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137 | (1) |
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138 | (1) |
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Apply the Revenue and Expense Recognition Principles |
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138 | (2) |
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138 | (1) |
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The Expense Recognition Principle |
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139 | (1) |
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Ethical Issues in Accrual Accounting |
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140 | (1) |
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140 | (14) |
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Which Accounts Need to Be Updated (Adjusted)? |
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140 | (1) |
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Categories of Adjusting Entries |
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141 | (1) |
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142 | (2) |
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Depreciation of Plant Assets |
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144 | (2) |
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146 | (2) |
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148 | (1) |
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149 | (2) |
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Summary of the Adjusting Process |
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151 | (2) |
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The Adjusted Trial Balance |
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153 | (1) |
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Construct the Financial Statements |
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154 | (8) |
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Mid-Chapter Summary Problem |
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156 | (6) |
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162 | (4) |
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Classifying Assets and Liabilities Based on Their Liquidity |
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162 | (2) |
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Reporting Assets and Liabilities: Starbucks Corporation |
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164 | (1) |
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Formats for the Financial Statements |
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164 | (2) |
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Analyze and Evaluate a Company's Debt-Paying Ability |
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166 | (49) |
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166 | (1) |
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166 | (1) |
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167 | (1) |
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How Do Transactions Affect the Ratios? |
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167 | (4) |
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End-of-Chapter Summary Problem |
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171 | (44) |
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215 | (15) |
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Chapter 4 Internal Control & Cash |
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230 | (53) |
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Spotlight: Cooking the Books: EPIC Products Takes a Hit |
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230 | (3) |
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Describe Fraud and Its Impact |
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233 | (2) |
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234 | (1) |
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Explain the Objectives and Components of Internal Control |
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235 | (7) |
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The Sarbanes-Oxley Act (SOX) |
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235 | (1) |
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The Components of Internal Control |
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236 | (2) |
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Internal Control Procedures |
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238 | (1) |
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239 | (1) |
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240 | (1) |
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Internal Controls for E-Commerce |
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240 | (1) |
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241 | (1) |
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The Limitations of Internal Control---Costs and Benefits |
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241 | (1) |
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Design and Use a Bank Reconciliation |
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242 | (10) |
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242 | (1) |
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242 | (1) |
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242 | (1) |
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243 | (1) |
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243 | (1) |
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Preparing the Bank Reconciliation |
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244 | (4) |
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248 | (2) |
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Mid-Chapter Summary Problem |
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250 | (2) |
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Evaluate Internal Controls over Cash Receipts and Cash Payments |
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252 | (3) |
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Cash Receipts over the Counter |
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252 | (1) |
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252 | (1) |
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Controls over Payment by Check |
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253 | (2) |
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Construct and Use a Cash Budget |
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255 | (28) |
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Reporting Cash on the Balance Sheet |
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256 | (1) |
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Compensating Balance Agreements |
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256 | (1) |
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End-of-Chapter Summary Problem |
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257 | (26) |
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Chapter 5 Short-Term Investments & Receivables |
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283 | (54) |
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Spotlight: Receivables and Short-Term Investments are Double PepsiCo's Inventories! |
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283 | (1) |
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Account for Short-Term Investments |
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284 | (5) |
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285 | (1) |
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Reporting on the Balance Sheet and the Income Statement |
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286 | (1) |
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Ethics and the Current Ratio |
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287 | (1) |
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Mid-Chapter Summary Problem |
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288 | (1) |
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Apply GAAP for Proper Revenue Recognition |
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289 | (2) |
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Shipping Terms, Sales Discounts, and Sales Returns |
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289 | (2) |
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Account for and Control Accounts Receivable |
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291 | (2) |
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291 | (1) |
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Internal Controls over Cash Collections on Account |
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291 | (1) |
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How Do We Manage the Risk of Not Collecting? |
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292 | (1) |
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Evaluate Collectibility Using the Allowance for Uncollectible Accounts |
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293 | (8) |
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294 | (6) |
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300 | (1) |
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Computing Cash Collections from Customers |
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300 | (1) |
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Account for Notes Receivable |
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301 | (3) |
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Accounting for Notes Receivable |
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302 | (2) |
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Show How to Speed Up Cash Flow from Receivables |
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304 | (2) |
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Credit Card or Bankcard Sales |
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304 | (1) |
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Selling (Factoring) Receivables |
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305 | (1) |
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Reporting on the Statement of Cash Flows |
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305 | (1) |
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Evaluate Liquidity Using Two New Ratios |
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306 | (31) |
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306 | (1) |
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Days' Sales in Receivables |
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306 | (2) |
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End-of-Chapter Summary Problem |
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308 | (29) |
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Chapter 6 Inventory & Cost of Goods Sold |
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337 | (63) |
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Spotlight: Williams-Sonoma, Inc. |
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337 | (2) |
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Show How to Account for Inventory |
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339 | (5) |
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Sale Price vs. Cost of Inventory |
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341 | (1) |
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Accounting for Inventory in the Perpetual System |
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342 | (2) |
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Apply and Compare Various Inventory Cost Methods |
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344 | (9) |
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What Goes into Inventory Cost? |
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345 | (1) |
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Apply the Various Inventory Costing Methods |
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345 | (3) |
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Compare the Effects of FIFO, LIFO, and Average Cost on Cost of Goods Sold, Gross Profit, and Ending Inventory |
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348 | (1) |
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Keeping Track of Perpetual Inventories under LIFO and Weighted-Average Cost Methods |
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349 | (1) |
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The Tax Advantage of LIFO |
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349 | (2) |
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Mid-Chapter Summary Problem |
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351 | (2) |
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Explain and Apply Underlying GAAP for Inventory |
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353 | (2) |
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353 | (1) |
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Lower-of-Cost-or-Market Rule |
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353 | (2) |
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Inventory and the Detailed Income Statement |
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355 | (1) |
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Compute and Evaluate Gross Profit (Margin) and Inventory Turnover |
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355 | (2) |
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355 | (1) |
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356 | (1) |
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Use the COGS Model to Make Management Decisions |
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357 | (2) |
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Computing Budgeted Purchases |
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358 | (1) |
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Estimating Inventory by the Gross Profit Method |
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358 | (1) |
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Analyze Effects of Inventory Errors |
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359 | (41) |
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End-of-Chapter Summary Problem |
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362 | (38) |
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Chapter 7 Plant Assets, Natural Resources, & Intangibles |
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400 | (63) |
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Spotlight: FedEx Corporation |
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400 | (2) |
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Measure and Account for the Cost of Plant Assets |
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402 | (3) |
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402 | (1) |
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Buildings, Machinery, and Equipment |
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403 | (1) |
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Land Improvements and Leasehold Improvements |
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403 | (1) |
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Lump-Sum (or Basket) Purchases of Assets |
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403 | (2) |
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Distinguish a Capital Expenditure from an Immediate Expense |
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405 | (1) |
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Measure and Record Depreciation on Plant Assets |
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406 | (12) |
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How to Measure Depreciation |
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407 | (1) |
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408 | (3) |
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Comparing Depreciation Methods |
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411 | (2) |
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Mid-Chapter Summary Problem |
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413 | (1) |
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Other Issues in Accounting for Plant Assets |
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414 | (1) |
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Depreciation for Tax Purposes |
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414 | (2) |
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Depreciation for Partial Years |
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416 | (1) |
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Changing the Useful Life of a Depreciable Asset |
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416 | (2) |
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418 | (1) |
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Analyze the Effect of a Plant Asset Disposal |
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418 | (5) |
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Disposing of a Fully Depreciated Asset for No Proceeds |
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419 | (1) |
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419 | (1) |
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420 | (1) |
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T-Accounts for Analyzing Plant Asset Transactions |
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421 | (2) |
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Apply GAAP for Natural Resources and Intangible Assets |
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423 | (3) |
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Accounting for Natural Resources |
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423 | (1) |
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Accounting for Intangible Assets |
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424 | (1) |
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Accounting for Specific Intangibles |
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424 | (2) |
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Accounting for Research and Development Costs |
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426 | (1) |
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Explain the Effect of an Asset Impairment on the Financial Statements |
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426 | (2) |
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Analyze Rate of Return on Assets |
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428 | (2) |
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DuPont Analysis: A More Detailed View of ROA |
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428 | (2) |
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Analyze the Cash Flow Impact of Long-Lived Asset Transactions |
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430 | (33) |
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End-of-Chapter Summary Problems |
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433 | (30) |
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Chapter 8 Long-Term Investments & the Time Value of Money |
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463 | (54) |
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Spotlight: Intel Holds Several Different Types of Investments |
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463 | (3) |
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465 | (1) |
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Reporting Investments on the Balance Sheet |
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465 | (1) |
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Analyze and Report Investments in Held-to-Maturity Debt Securities |
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466 | (2) |
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Analyze and Report Investments in Available-for-Sale Securities |
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468 | (4) |
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Accounting Methods for Long-Term Stock Investments |
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468 | (1) |
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The Fair Value Adjustment |
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469 | (2) |
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Selling an Available-for-Sale Investment |
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471 | (1) |
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Analyze and Report Investments in Affiliated Companies Using The Equity Method |
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472 | (3) |
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Buying a Large Stake in Another Company |
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472 | (1) |
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Accounting for Equity-Method Investments |
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472 | (3) |
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Analyze and Report Controlling Interests in Other Corporations Using Consolidated Financial Statements |
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475 | (8) |
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475 | (1) |
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475 | (1) |
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The Consolidated Balance Sheet and the Related Work Sheet |
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476 | (1) |
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Goodwill and Noncontrolling Interest |
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477 | (1) |
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Income of a Consolidated Entity |
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477 | (2) |
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Mid-Chapter Summary Problems |
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479 | (2) |
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Consolidation of Foreign Subsidiaries |
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481 | (1) |
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Foreign Currencies and Exchange Rates |
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481 | (1) |
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The Foreign-Currency Translation Adjustment |
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482 | (1) |
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Report Investing Activities on the Statement of Cash Flows |
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483 | (1) |
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Explain the Impact of the Time Value of Money on Certain Types of Investments |
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484 | (33) |
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485 | (1) |
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486 | (1) |
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Present Value of an Annuity |
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487 | (2) |
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Using Microsoft Excel to Calculate Present Value |
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489 | (1) |
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Using the PV Model to Compute Fair Value of Available-for-Sale Investments |
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490 | (1) |
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Present Value of an Investment in Bonds |
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491 | (1) |
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End-of-Chapter Summary Problems |
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492 | (25) |
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517 | (64) |
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Spotlight: Southwest Airlines: A Success Story |
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517 | (1) |
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Account for Current and Contingent Liabilities |
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518 | (9) |
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Current Liabilities of Known Amount |
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518 | (5) |
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Current Liabilities That Must Be Estimated |
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523 | (1) |
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524 | (1) |
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Are All Liabilities Reported on the Balance Sheet? |
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525 | (1) |
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Summary of Current Liabilities |
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526 | (1) |
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Mid-Chapter Summary Problem |
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527 | (1) |
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Account for Bonds Payable, Notes Payable, and Interest Expense |
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527 | (14) |
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528 | (2) |
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Issuing Bonds Payable at Par (Face Value) |
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530 | (2) |
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Issuing Bonds Payable at a Discount |
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532 | (1) |
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What Is the Interest Expense on These Bonds Payable? |
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532 | (1) |
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Interest Expense on Bonds Issued at a Discount |
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533 | (2) |
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Partial-Period Interest Amounts |
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535 | (1) |
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Issuing Bonds Payable at a Premium |
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536 | (3) |
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The Straight-Line Amortization Method: A Quick and Dirty Way to Measure Interest Expense |
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539 | (1) |
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Should We Retire Bonds Payable Before Their Maturity? |
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540 | (1) |
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Convertible Bonds and Notes |
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540 | (1) |
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Analyze and Differentiate Financing with Debt Versus Equity |
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541 | (3) |
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543 | (1) |
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The Times-Interest-Earned Ratio |
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544 | (1) |
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Understand Other Long-Term Liabilities |
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544 | (3) |
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544 | (1) |
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544 | (1) |
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Do Lessees Prefer Operating Leases or Capital Leases? |
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545 | (1) |
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Pensions and Postretirement Liabilities |
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546 | (1) |
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547 | (34) |
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Reporting on the Balance Sheet |
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547 | (1) |
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Disclosing the Fair Value of Long-Term Debt |
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548 | (1) |
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Reporting Financing Activities on the Statement of Cash Flows |
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548 | (1) |
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End-of-Chapter Summary Problem |
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549 | (32) |
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Chapter 10 Stockholders' Equity |
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581 | (69) |
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Spotlight: RadioShack Corporation |
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581 | (2) |
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Explain The Features of a Corporation |
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583 | (4) |
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584 | (1) |
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584 | (1) |
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585 | (1) |
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586 | (1) |
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Account for the Issuance of Stock |
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587 | (9) |
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589 | (3) |
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A Stock Issuance for Other Than Cash Can Create an Ethical Challenge |
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592 | (1) |
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593 | (1) |
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Mid-Chapter Summary Problem |
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594 | (1) |
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Authorized, Issued, and Outstanding Stock |
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595 | (1) |
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Show How Treasury Stock Affects a Company |
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596 | (3) |
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How is Treasury Stock Recorded? |
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596 | (1) |
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597 | (1) |
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598 | (1) |
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Treasury Stock for Employee Compensation |
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598 | (1) |
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Summary of Treasury-Stock Transactions |
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599 | (1) |
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Account for Retained Earnings, Dividends, and Splits |
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599 | (7) |
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Should the Company Declare and Pay Cash Dividends? |
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600 | (1) |
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600 | (1) |
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Analyzing the Stockholder's Equity Accounts |
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601 | (1) |
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Dividends on Preferred Stock |
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602 | (1) |
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603 | (1) |
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604 | (1) |
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Summary of the Effects on Assets, Liabilities, and Stockholders' Equity |
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605 | (1) |
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Use Stock Values in Decision Making |
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606 | (3) |
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Market, Redemption, Liquidation, and Book Value |
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606 | (1) |
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ROE: Relating Profitability to Stockholder Investment |
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607 | (2) |
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Report Equity Transactions in the Financial Statements |
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609 | (41) |
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609 | (1) |
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Reporting Stockholders' Equity on the Balance Sheet |
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610 | (2) |
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End-of-Chapter Summary Problem |
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612 | (38) |
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Chapter 11 The Income Statement, the Statement of Comprehensive Income, & the Statement of Stockholders' Equity |
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650 | (47) |
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Spotlight: The Gap, Inc: A Global Icon Adapts to Changing Markets |
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650 | (1) |
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Evaluate Quality of Earnings |
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651 | (3) |
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651 | (2) |
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Cost of Goods Sold and Gross Profit (Gross Margin) |
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653 | (1) |
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Operating and Other Expenses |
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654 | (1) |
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Operating Income (Earnings) |
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654 | (1) |
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Account for Foreign-Currency Gains and Losses |
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654 | (2) |
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Dollars Versus Foreign Currency |
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654 | (2) |
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Reporting Foreign-Currency Gains and Losses on the Income Statement |
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656 | (1) |
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Should We Hedge Our Foreign-Currency-Transaction Risk? |
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656 | (1) |
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Account for Other Items on the Income Statement |
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656 | (5) |
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Interest Expense and Interest Income |
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656 | (1) |
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656 | (2) |
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Which Income Number Predicts Future Profits? |
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658 | (1) |
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659 | (1) |
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660 | (1) |
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Compute Earnings Per Share |
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661 | (2) |
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What Should You Analyze to Gain an Overall Picture of a Company? |
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662 | (1) |
|
Correcting Retained Earnings |
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662 | (1) |
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Analyze the Statement of Comprehensive Income and the Statement of Stockholders' Equity |
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663 | (3) |
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Reporting Comprehensive Income |
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663 | (1) |
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Reporting Stockholders' Equity |
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664 | (2) |
|
Differentiate Management's and Auditors' Responsibilites in Financial Reporting |
|
|
666 | (31) |
|
Management's Responsibility |
|
|
666 | (1) |
|
|
666 | (3) |
|
End-of-Chapter Summary Problem |
|
|
669 | (28) |
|
Chapter 12 The Statement of Cash Flows |
|
|
697 | (74) |
|
Spotlight: Google: The Ultimate Answer Machine |
|
|
697 | (2) |
|
Identify the Purposes of the Statement of Cash Flows |
|
|
699 | (1) |
|
How's Your Cash Flow? Telltale Signs of Financial Difficulty |
|
|
700 | (1) |
|
Distinguish Among Operating, Investing, and Financing Activities |
|
|
700 | (2) |
|
Two Formats for Operating Activities |
|
|
701 | (1) |
|
Prepare a Statement of Cash Flows by the Indirect Method |
|
|
702 | (14) |
|
Cash Flows from Operating Activities |
|
|
703 | (4) |
|
Cash Flows from Investing Activities |
|
|
707 | (1) |
|
Cash Flows from Financing Activities |
|
|
708 | (3) |
|
Noncash Investing and Financing Activities |
|
|
711 | (2) |
|
Mid-Chapter Summary Problem |
|
|
713 | (3) |
|
Prepare a Statement of Cash Flows by the Direct Method |
|
|
716 | (55) |
|
Cash Flows from Operating Activities |
|
|
717 | (2) |
|
Depreciation, Depletion, and Amortization Expense |
|
|
719 | (1) |
|
Cash Flows from Investing Activities |
|
|
719 | (1) |
|
Cash Flows from Financing Activities |
|
|
720 | (1) |
|
Non-Cash Investing and Financing Activities |
|
|
720 | (1) |
|
Computing Operating Cash Flows by the Direct Method |
|
|
721 | (4) |
|
Computing Investing and Financing Cash Flows |
|
|
725 | (1) |
|
Measuring Cash Adequacy: Free Cash Flow |
|
|
726 | (2) |
|
End-of-Chapter Summary Problem |
|
|
728 | (43) |
|
Chapter 13 Financial Statement Analysis |
|
|
771 | (76) |
|
Spotlight: How Well is Amazon.com Doing? |
|
|
771 | (2) |
|
Perform Horizontal Analysis |
|
|
773 | (4) |
|
Illustration: Amazon.com, Inc. |
|
|
774 | (3) |
|
|
777 | (1) |
|
Perform Vertical Analysis |
|
|
777 | (2) |
|
Illustration: Amazon.com, Inc. |
|
|
777 | (2) |
|
Prepare Common-Size Financial Statements |
|
|
779 | (2) |
|
|
780 | (1) |
|
Benchmarking Against a Key Competitor |
|
|
780 | (1) |
|
Analyze the Statement of Cash Flows |
|
|
781 | (3) |
|
Mid-Chapter Summary Problem |
|
|
783 | (1) |
|
Use Ratios to Make Business Decisions |
|
|
784 | (14) |
|
Measuring Ability to Pay Current Liabilities |
|
|
785 | (3) |
|
Measuring Turnover and the Cash Conversion Cycle |
|
|
788 | (3) |
|
Measuring Leverage: Overall Ability to Pay Debts |
|
|
791 | (1) |
|
|
792 | (4) |
|
Analyzing Stock as an Investment |
|
|
796 | (2) |
|
The Limitations of Ratio Analysis |
|
|
798 | (1) |
|
Use Other Measures to Make Investment Decisions |
|
|
798 | (49) |
|
Economic Value Added (EVA®) |
|
|
798 | (1) |
|
Red Flags in Financial Statement Analysis |
|
|
799 | (1) |
|
|
800 | (3) |
|
End-of-Chapter Summary Problem |
|
|
803 | (44) |
Appendix A Amazon.com 2010 Annual Report |
|
847 | (26) |
Appendix B RadioShack 2010 Annual Report |
|
873 | (18) |
Appendix C Typical Charts of Accounts for Different Types of Businesses |
|
891 | (2) |
Appendix D Summary of Generally Accepted Accounting Principles (GAAP) |
|
893 | (2) |
Appendix E Summary of Differences Between U.S. GAAP and IFRS Cross Referenced to Chapter |
|
895 | (4) |
Company Index |
|
899 | (6) |
Glindex |
|
905 | |