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1 Accounting: Information for Decision Making |
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Accounting Information: A Means to an End |
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4 | (2) |
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Accounting from a User's Perspective |
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5 | (1) |
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Types of Accounting Information |
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5 | (1) |
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6 | (4) |
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Determining Information Needs |
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7 | (1) |
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The Cost of Producing Accounting Information |
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8 | (1) |
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Basic Functions of an Accounting System |
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8 | (1) |
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Who Designs and Installs Accounting Systems? |
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8 | (1) |
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Components of Internal Control |
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8 | (2) |
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Financial Accounting Information |
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10 | (4) |
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External Users of Accounting Information |
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10 | (1) |
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Objectives of External Financial Reporting |
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10 | (3) |
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Characteristics of Externally Reported Information |
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13 | (1) |
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Management Accounting Information |
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14 | (3) |
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Users of Internal Accounting Information |
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14 | (1) |
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Objectives of Management Accounting Information |
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15 | (1) |
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Characteristics of Management Accounting Information |
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16 | (1) |
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Integrity of Accounting Information |
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17 | (7) |
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17 | (3) |
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Professional Organizations |
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20 | (2) |
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Competence, Judgment, and Ethical Behavior |
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22 | (2) |
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24 | (3) |
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24 | (1) |
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25 | (1) |
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25 | (1) |
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26 | (1) |
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26 | (1) |
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Accounting as a Stepping-Stone |
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26 | (1) |
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But What about Me? I'm Not an Accounting Major |
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26 | (1) |
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Ethics, Fraud, & Corporate Governance |
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27 | (1) |
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27 | (2) |
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29 | (3) |
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32 | (8) |
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2 Basic Financial Statements |
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Introduction to Financial Statements |
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40 | (1) |
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A Starting Point: Statement of Financial Position |
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41 | (10) |
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42 | (2) |
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44 | (1) |
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45 | (1) |
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45 | (1) |
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The Effects of Business Transactions: An Illustration |
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46 | (4) |
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Effects of These Business Transactions on the Accounting Equation |
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50 | (1) |
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51 | (2) |
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53 | (1) |
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Relationships among Financial Statements |
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54 | (3) |
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Financial Analysis and Decision Making |
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57 | (1) |
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Forms of Business Organization |
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57 | (2) |
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57 | (1) |
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58 | (1) |
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58 | (1) |
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Reporting Ownership Equity in the Statement of Financial Position |
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58 | (1) |
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The Use of Financial Statements by External Parties |
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59 | (2) |
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The Need for Adequate Disclosure |
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60 | (1) |
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Management's Interest in Financial Statements |
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60 | (1) |
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Ethics, Fraud, & Corporate Governance |
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61 | (1) |
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62 | (1) |
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63 | (3) |
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66 | (22) |
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3 The Accounting Cycle: Capturing Economic Events |
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88 | (1) |
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The Role of Accounting Records |
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88 | (1) |
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88 | (1) |
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89 | (1) |
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89 | (2) |
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Double-Entry Accounting---The Equality of Debits and Credits |
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90 | (1) |
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91 | (1) |
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Posting Journal Entries to the Ledger Accounts (and How to "Read" a Journal Entry) |
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92 | (1) |
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Recording Balance Sheet Transactions: An Illustration |
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92 | (4) |
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Ledger Accounts after Posting |
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96 | (2) |
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98 | (5) |
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98 | (1) |
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The Income Statement: A Preview |
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98 | (2) |
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100 | (1) |
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100 | (2) |
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The Accrual Basis of Accounting |
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102 | (1) |
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Debit and Credit Rules for Revenue and Expenses |
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102 | (1) |
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103 | (1) |
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Recording Income Statement Transactions: An Illustration |
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103 | (6) |
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109 | (1) |
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February's Ledger Balances |
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109 | (2) |
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111 | (1) |
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Uses and Limitations of the Trial Balance |
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112 | (1) |
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112 | (1) |
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The Accounting Cycle in Perspective |
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112 | (1) |
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Ethics, Fraud, & Corporate Governance |
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113 | (1) |
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114 | (5) |
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119 | (23) |
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4 The Accounting Cycle: Accruals and Deferrals |
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142 | (14) |
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The Need for Adjusting Entries |
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142 | (1) |
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Types of Adjusting Entries |
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142 | (1) |
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Adjusting Entries and Timing Differences |
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143 | (1) |
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Characteristics of Adjusting Entries |
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143 | (2) |
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Year-End at Overnight Auto Service |
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145 | (1) |
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Converting Assets to Expenses |
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145 | (3) |
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The Concept of Depreciation |
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148 | (3) |
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Converting Liabilities to Revenue |
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151 | (1) |
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152 | (2) |
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Accruing Uncollected Revenue |
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154 | (1) |
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Accruing Income Taxes Expense: The Final Adjusting Entry |
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155 | (1) |
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Adjusting Entries and Accounting Principles |
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156 | (4) |
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The Concept of Materiality |
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157 | (1) |
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Effects of the Adjusting Entries |
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158 | (2) |
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160 | (1) |
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Ethics, Fraud, & Corporate Governance |
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161 | (1) |
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162 | (5) |
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167 | (27) |
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5 The Accounting Cycle: Reporting Financial Results |
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Preparing Financial Statements |
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194 | (4) |
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194 | (3) |
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The Statement of Retained Earnings |
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197 | (1) |
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197 | (1) |
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Relationships among the Financial Statements |
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198 | (2) |
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Drafting the Notes That Accompany Financial Statements |
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198 | (1) |
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What Types of Information Must Be Disclosed? |
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199 | (1) |
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Closing the Temporary Accounts |
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200 | (4) |
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Closing Entries for Revenue Accounts |
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201 | (1) |
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Closing Entries for Expense Accounts |
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202 | (1) |
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Closing the Income Summary Account |
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203 | (1) |
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Closing the Dividends Account |
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203 | (1) |
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Summary of the Closing Process |
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204 | (1) |
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After-Closing Trial Balance |
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205 | (1) |
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A Last Look at Overnight: Was 2015 a Good Year? |
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205 | (1) |
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Financial Analysis and Decision Making |
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206 | (2) |
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Preparing Financial Statements Covering Different Periods of Time |
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207 | (1) |
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Ethics, Fraud, & Corporate Governance |
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208 | (1) |
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208 | (1) |
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Supplemental Topic: The Worksheet |
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209 | (4) |
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Isn't This Really a Spreadsheet? |
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209 | (1) |
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209 | (1) |
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The Mechanics: How It's Done |
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209 | (3) |
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What If: A Special Application of Worksheet Software |
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212 | (1) |
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213 | (4) |
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217 | (26) |
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Comprehensive Problem 1 Susquehanna Equipment Rentals |
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243 | (5) |
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6 Merchandising Activities |
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248 | (3) |
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The Operating Cycle of a Merchandising Company |
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248 | (1) |
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Income Statement of a Merchandising Company |
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249 | (1) |
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Accounting System Requirements for Merchandising Companies |
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250 | (1) |
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Two Approaches Used in Accounting for Merchandise Inventories |
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251 | (1) |
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Perpetual Inventory Systems |
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251 | (3) |
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Taking a Physical Inventory |
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253 | (1) |
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Closing Entries in a Perpetual Inventory System |
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254 | (1) |
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Periodic Inventory Systems |
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254 | (5) |
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Operation of a Periodic Inventory System |
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254 | (1) |
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Closing Process in a Periodic Inventory System |
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255 | (2) |
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Comparison of Perpetual and Periodic Inventory Systems |
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257 | (1) |
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Selecting an Inventory System |
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258 | (1) |
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Transactions Relating to Purchases |
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259 | (3) |
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Credit Terms and Cash Discounts |
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259 | (2) |
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Returns of Unsatisfactory Merchandise |
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261 | (1) |
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Transportation Costs on Purchases |
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261 | (1) |
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Transactions Relating to Sales |
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262 | (2) |
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Sales Returns and Allowances |
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262 | (1) |
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263 | (1) |
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263 | (1) |
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Accounting for Sales Taxes |
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264 | (1) |
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Modifying an Accounting System |
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264 | (1) |
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Special Journals Provide Speed and Efficiency |
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264 | (1) |
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Financial Analysis and Decision Making |
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265 | (1) |
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Ethics, Fraud, & Corporate Governance |
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266 | (1) |
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266 | (1) |
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267 | (4) |
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271 | (19) |
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How Much Cash Should a Business Have? |
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290 | (1) |
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The Valuation of Financial Assets |
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290 | (1) |
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291 | (6) |
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Reporting Cash in the Balance Sheet |
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291 | (1) |
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292 | (1) |
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Internal Control over Cash |
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292 | (1) |
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293 | (1) |
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Reconciling the Bank Statement |
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293 | (4) |
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297 | (1) |
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Accounting for Marketable Securities |
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298 | (2) |
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Purchase of Marketable Securities |
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298 | (1) |
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Recognition of Investment Revenue |
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298 | (1) |
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298 | (1) |
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Adjusting Marketable Securities to Market Value |
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299 | (1) |
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300 | (9) |
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Internal Control over Receivables |
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301 | (1) |
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301 | (2) |
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The Allowance for Doubtful Accounts |
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303 | (1) |
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Writing Off an Uncollectible Account Receivable |
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303 | (1) |
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Monthly Estimates of Credit Losses |
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304 | (2) |
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Recovery of an Account Receivable Previously Written Off |
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306 | (1) |
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307 | (1) |
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Factoring Accounts Receivable |
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307 | (1) |
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308 | (1) |
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Notes Receivable and Interest Revenue |
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309 | (2) |
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309 | (1) |
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Accounting for Notes Receivable |
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310 | (1) |
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Financial Analysis and Decision Making |
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311 | (2) |
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Ethics, Fraud, & Corporate Governance |
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313 | (1) |
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313 | (1) |
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314 | (4) |
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318 | (24) |
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8 Inventories and the Cost of Goods Sold |
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342 | (1) |
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The Flow of Inventory Costs |
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342 | (9) |
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343 | (1) |
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343 | (1) |
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344 | (1) |
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344 | (1) |
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344 | (1) |
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First-In, First-Out Method |
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345 | (1) |
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Last-In, First-Out Method |
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346 | (1) |
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Evaluation of the Methods |
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347 | (2) |
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Do Inventory Methods Really Affect Performance? |
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349 | (1) |
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The Principle of Consistency |
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349 | (1) |
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Just-in-Time (JIT) Inventory Systems |
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349 | (2) |
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Taking a Physical Inventory |
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351 | (9) |
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Recording Shrinkage Losses |
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351 | (1) |
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LCM and Other Write-Downs of Inventory |
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351 | (1) |
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The Year-End Cutoff of Transactions |
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352 | (1) |
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Periodic Inventory Systems |
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353 | (3) |
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International Financial Reporting Standards |
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356 | (1) |
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Importance of an Accurate Valuation of Inventory |
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357 | (1) |
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Techniques for Estimating the Cost of Goods Sold and the Ending Inventory |
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358 | (1) |
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358 | (1) |
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359 | (1) |
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"Textbook" Inventory Systems Can Be Modified... and They Often Are |
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359 | (1) |
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Financial Analysis and Decision Making |
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360 | (1) |
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Ethics, Fraud, & Corporate Governance |
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361 | (1) |
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361 | (1) |
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362 | (3) |
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365 | (18) |
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Comprehensive Problem 2 Music-Is-Us, Inc. |
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383 | (5) |
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9 Plant and Intangible Assets |
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Plant Assets as a "Stream of Future Services" |
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388 | (1) |
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Major Categories of Plant Assets |
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388 | (1) |
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Accountable Events in the Lives of Plant Assets |
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388 | (1) |
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Acquisitions of Plant Assets |
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388 | (3) |
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Determining Cost: An Example |
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389 | (1) |
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Some Special Considerations |
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389 | (1) |
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Capital Expenditures and Revenue Expenditures |
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390 | (1) |
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391 | (8) |
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Allocating the Cost of Plant and Equipment over the Years of Use |
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391 | (1) |
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392 | (1) |
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Methods of Computing Depreciation |
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392 | (1) |
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393 | (2) |
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The Declining-Balance Method |
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395 | (2) |
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Which Depreciation Methods Do Most Businesses Use? |
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397 | (1) |
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Financial Statement Disclosures |
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398 | (1) |
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The Impairment of Plant Assets |
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399 | (1) |
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Other Depreciation Methods |
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399 | (1) |
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The Units-of-Output Method |
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399 | (1) |
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400 | (1) |
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400 | (1) |
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Decelerated Depreciation Methods |
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400 | (1) |
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Depreciation Methods in Use: A Survey |
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400 | (1) |
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Disposal of Plant and Equipment |
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400 | (3) |
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Gains and Losses on the Disposal of Plant and Equipment |
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401 | (1) |
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Trading in Used Assets for New Ones |
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402 | (1) |
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International Financial Reporting Standards |
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402 | (1) |
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403 | (4) |
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403 | (1) |
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Operating Expenses versus Intangible Assets |
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403 | (1) |
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403 | (1) |
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403 | (3) |
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406 | (1) |
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Trademarks and Trade Names |
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406 | (1) |
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406 | (1) |
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407 | (1) |
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Other Intangibles and Deferred Charges |
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407 | (1) |
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Research and Development (R&D) Costs |
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407 | (1) |
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Financial Analysis and Decision Making |
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407 | (1) |
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408 | (1) |
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Accounting for Natural Resources |
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408 | (1) |
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Depreciation, Amortization, and Depletion---A Common Goal |
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409 | (1) |
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Plant Transactions and the Statement of Cash Flows |
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409 | (1) |
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Ethics, Fraud, & Corporate Governance |
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410 | (1) |
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410 | (1) |
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411 | (3) |
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414 | (18) |
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The Nature of Liabilities |
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432 | (1) |
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433 | (4) |
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433 | (1) |
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433 | (1) |
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The Current Portion of Long-Term Debt |
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434 | (1) |
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435 | (1) |
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435 | (2) |
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437 | (1) |
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437 | (16) |
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Maturing Obligations Intended to Be Refinanced |
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437 | (1) |
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Installment Notes Payable |
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438 | (2) |
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440 | (1) |
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440 | (2) |
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Tax Advantage of Bond Financing |
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442 | (1) |
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Accounting for Bonds Payable |
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442 | (2) |
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Bonds Issued at a Discount or a Premium |
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444 | (1) |
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Accounting for a Bond Discount: An Illustration |
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445 | (2) |
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Accounting for a Bond Premium: An Illustration |
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447 | (3) |
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Bond Discount and Premium in Perspective |
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450 | (1) |
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The Concept of Present Value |
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450 | (1) |
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Bond Prices after Issuance |
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451 | (1) |
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Early Retirement of Bonds Payable |
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452 | (1) |
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Estimated Liabilities, Loss Contingencies, and Commitments |
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453 | (1) |
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453 | (1) |
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453 | (1) |
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454 | (1) |
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Evaluating the Safety of Creditors' Claims |
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454 | (2) |
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Methods of Determining Creditworthiness |
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455 | (1) |
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How Much Debt Should a Business Have? |
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455 | (1) |
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Financial Analysis and Decision Making |
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456 | (1) |
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Ethics, Fraud, & Corporate Governance |
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457 | (1) |
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Special Types of Liabilities |
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457 | (4) |
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Lease Payment Obligations |
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457 | (1) |
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457 | (1) |
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458 | (1) |
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Liabilities for Pensions and Other Postretirement Benefits |
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458 | (2) |
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460 | (1) |
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461 | (1) |
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462 | (5) |
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467 | (19) |
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11 Stockholders' Equity: Paid-In Capital |
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486 | (2) |
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Why Businesses Incorporate |
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486 | (1) |
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Publicly Owned Corporations |
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487 | (1) |
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Formation of a Corporation |
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488 | (2) |
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Stockholder Records in a Corporation |
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490 | (1) |
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Paid-In Capital of a Corporation |
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490 | (6) |
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Authorization and Issuance of Capital Stock |
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490 | (2) |
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Common Stock and Preferred Stock |
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492 | (1) |
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Characteristics of Preferred Stock |
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493 | (2) |
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Book Value per Share of Common Stock |
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495 | (1) |
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496 | (3) |
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Market Price of Preferred Stock |
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497 | (1) |
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Market Price of Common Stock |
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498 | (1) |
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Book Value and Market Price |
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498 | (1) |
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498 | (1) |
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499 | (2) |
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Recording Purchases of Treasury Stock |
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499 | (1) |
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Reissuance of Treasury Stock |
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499 | (2) |
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501 | (1) |
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Financial Analysis and Decision Making |
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501 | (1) |
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Ethics, Fraud, & Corporate Governance |
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502 | (1) |
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502 | (1) |
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503 | (3) |
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506 | (15) |
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Comprehensive Problem 3 Springdale Retail, Inc. |
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521 | (3) |
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12 Income and Changes in Retained Earnings |
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|
Reporting the Results of Operations |
|
|
524 | (5) |
|
Developing Predictive Information |
|
|
524 | (1) |
|
Reporting Irregular Items: An Illustration |
|
|
524 | (1) |
|
|
|
524 | (1) |
|
|
|
525 | (1) |
|
|
|
525 | (2) |
|
|
|
527 | (2) |
|
Financial Analysis and Decision Making |
|
|
529 | (1) |
|
Other Transactions Affecting Retained Earnings |
|
|
530 | (8) |
|
|
|
530 | (1) |
|
|
|
531 | (1) |
|
|
|
532 | (1) |
|
|
|
532 | (2) |
|
Statement of Retained Earnings |
|
|
534 | (1) |
|
|
|
535 | (1) |
|
|
|
536 | (1) |
|
Statement of Stockholders' Equity |
|
|
536 | (1) |
|
Stockholders' Equity Section of the Balance Sheet |
|
|
537 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
538 | (1) |
|
|
|
539 | (1) |
|
|
|
540 | (4) |
|
|
|
544 | (22) |
|
13 Statement of Cash Flows |
|
|
|
|
|
566 | (3) |
|
Purposes of the Statement |
|
|
566 | (1) |
|
Example of a Statement of Cash Flows |
|
|
566 | (1) |
|
Classification of Cash Flows |
|
|
566 | (3) |
|
Preparing a Statement of Cash Flows |
|
|
569 | (14) |
|
|
|
570 | (1) |
|
|
|
570 | (1) |
|
|
|
571 | (1) |
|
Cash and Cash Equivalents |
|
|
571 | (1) |
|
Cash Flows from Operating Activities |
|
|
572 | (1) |
|
Cash Payments for Merchandise and for Expenses |
|
|
573 | (2) |
|
Cash Flows from Investing Activities |
|
|
575 | (2) |
|
Cash Flows from Financing Activities |
|
|
577 | (1) |
|
Relationship between the Statement of Cash Flows and the Balance Sheet |
|
|
578 | (1) |
|
Reporting Operating Cash Flows by the Indirect Method |
|
|
579 | (1) |
|
Reconciling Net Income with Net Cash Flows |
|
|
580 | (1) |
|
The Indirect Method: A Summary |
|
|
581 | (1) |
|
Indirect Method May Be Required in a Supplementary Schedule |
|
|
581 | (1) |
|
The Statement of Cash Flows: A Second Look |
|
|
581 | (2) |
|
Financial Analysis and Decision Making |
|
|
583 | (1) |
|
|
|
584 | (3) |
|
Budgeting: The Primary Cash Management Tool |
|
|
585 | (1) |
|
What Priority Should Managers Give to Increasing Net Cash Flows? |
|
|
585 | (1) |
|
Some Strategies for Permanent Improvements in Cash Flow |
|
|
586 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
587 | (1) |
|
A Worksheet for Preparing a Statement of Cash Flows |
|
|
587 | (4) |
|
|
|
587 | (1) |
|
|
|
588 | (2) |
|
|
|
590 | (1) |
|
|
|
591 | (2) |
|
|
|
593 | (5) |
|
|
|
598 | (26) |
|
14 Financial Statement Analysis |
|
|
|
Financial Statements Are Designed for Analysis |
|
|
624 | (1) |
|
|
|
625 | (4) |
|
Dollar and Percentage Changes |
|
|
625 | (1) |
|
|
|
626 | (1) |
|
|
|
627 | (1) |
|
|
|
627 | (1) |
|
|
|
627 | (1) |
|
|
|
628 | (1) |
|
Quality of Assets and the Relative Amount of Debt |
|
|
629 | (1) |
|
Measures of Liquidity and Credit Risk |
|
|
629 | (5) |
|
A Classified Balance Sheet |
|
|
629 | (2) |
|
|
|
631 | (1) |
|
|
|
631 | (1) |
|
|
|
632 | (1) |
|
|
|
632 | (1) |
|
Evaluating Financial Ratios |
|
|
632 | (2) |
|
Liquidity, Credit Risk, and the Law |
|
|
634 | (1) |
|
Measures of Profitability |
|
|
634 | (7) |
|
Classifications in the Income Statement |
|
|
635 | (1) |
|
Multiple-Step Income Statements |
|
|
636 | (2) |
|
|
|
638 | (1) |
|
|
|
638 | (1) |
|
Single-Step Income Statements |
|
|
639 | (1) |
|
Evaluating the Adequacy of Net Income |
|
|
639 | (1) |
|
Return on Investment (ROI) |
|
|
639 | (1) |
|
|
|
640 | (1) |
|
|
|
640 | (1) |
|
Comprehensive Illustration: Seacliff Company |
|
|
641 | (15) |
|
Analysis by Common Stockholders |
|
|
644 | (2) |
|
Return on Investment (ROI) |
|
|
646 | (1) |
|
|
|
647 | (1) |
|
Analysis by Long-Term Creditors |
|
|
648 | (1) |
|
Analysis by Short-Term Creditors |
|
|
648 | (4) |
|
|
|
652 | (1) |
|
Usefulness of Notes to Financial Statements |
|
|
653 | (1) |
|
International Financial Reporting Standards |
|
|
653 | (1) |
|
Summary of Analytical Measurements |
|
|
654 | (2) |
|
Ethics, Fraud, & Corporate Governance |
|
|
656 | (1) |
|
|
|
656 | (2) |
|
|
|
658 | (4) |
|
|
|
662 | (20) |
|
Comprehensive Problem 4 Home Depot, Inc. |
|
|
682 | (4) |
|
15 Global Business and Accounting |
|
|
|
|
|
686 | (2) |
|
Environmental Forces Shaping Globalization |
|
|
688 | (3) |
|
Political and Legal Systems |
|
|
688 | (1) |
|
|
|
689 | (1) |
|
|
|
689 | (1) |
|
Technology and Infrastructure |
|
|
690 | (1) |
|
Harmonization of Financial Reporting Standards |
|
|
691 | (2) |
|
International Financial Reporting Standards: Adoption or Convergence |
|
|
691 | (2) |
|
Foreign Currencies and Exchange Rates |
|
|
693 | (7) |
|
|
|
693 | (1) |
|
Accounting for Transactions with Foreign Companies |
|
|
694 | (4) |
|
Currency Fluctuations---Who Wins and Who Loses? |
|
|
698 | (2) |
|
Consolidated Financial Statements That Include Foreign Subsidiaries |
|
|
700 | (1) |
|
|
|
700 | (3) |
|
Foreign Corrupt Practices Act |
|
|
702 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
703 | (1) |
|
|
|
703 | (1) |
|
|
|
704 | (3) |
|
|
|
707 | (17) |
|
16 Management Accounting: A Business Partner |
|
|
|
Management Accounting: Basic Framework |
|
|
724 | (3) |
|
Management Accounting's Role in Assigning Decision-Making Authority |
|
|
724 | (1) |
|
Management Accounting's Role in Decision Making |
|
|
724 | (1) |
|
Management Accounting's Role in Performance Evaluation and Rewards |
|
|
725 | (1) |
|
Accounting Systems: A Business Partner |
|
|
725 | (2) |
|
Accounting for Manufacturing Operations |
|
|
727 | (2) |
|
Classifications of Manufacturing Costs |
|
|
728 | (1) |
|
Product Costs versus Period Costs |
|
|
728 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
729 | (8) |
|
Product Costs and the Matching Principle |
|
|
730 | (1) |
|
Inventories of a Manufacturing Business |
|
|
730 | (1) |
|
The Flow of Costs Parallels the Flow of Physical Goods |
|
|
730 | (1) |
|
Accounting for Manufacturing Costs: An Illustration |
|
|
731 | (1) |
|
|
|
731 | (1) |
|
|
|
732 | (1) |
|
|
|
733 | (1) |
|
Direct and Indirect Manufacturing Costs |
|
|
734 | (1) |
|
Work in Process Inventory, Finished Goods Inventory, and the Cost of Goods Sold |
|
|
734 | (1) |
|
The Need for Per-Unit Cost Data |
|
|
735 | (1) |
|
Determining the Cost of Finished Goods Manufactured |
|
|
735 | (1) |
|
Financial Statements of a Manufacturing Company |
|
|
736 | (1) |
|
|
|
737 | (1) |
|
|
|
738 | (3) |
|
|
|
741 | (21) |
|
17 Job Order Cost Systems and Overhead Allocations |
|
|
|
|
|
762 | (3) |
|
Job Order Cost Systems and the Creation of Goods and Services |
|
|
762 | (1) |
|
Overhead Application Rates |
|
|
763 | (1) |
|
What "Drives" Overhead Costs? |
|
|
764 | (1) |
|
|
|
765 | (6) |
|
|
|
765 | (1) |
|
Flow of Costs in Job Costing: An Illustration |
|
|
766 | (1) |
|
Accounting for Direct Materials |
|
|
766 | (1) |
|
Accounting for Direct Labor Costs |
|
|
767 | (1) |
|
Accounting for Overhead Costs |
|
|
767 | (3) |
|
Accounting for Completed Jobs |
|
|
770 | (1) |
|
Job Order Costing in Service Industries |
|
|
771 | (1) |
|
Activity-Based Costing (ABC) |
|
|
771 | (1) |
|
ABC versus a Single Application Rate: A Comparison |
|
|
772 | (6) |
|
Stage 1 Separate Activity Cost Pools |
|
|
773 | (2) |
|
Stage 2 Allocate Activity Cost Pools to the Products |
|
|
775 | (2) |
|
Determining Unit Costs Using ABC |
|
|
777 | (1) |
|
The Trend toward More Informative Cost Accounting Systems |
|
|
778 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
779 | (1) |
|
|
|
779 | (1) |
|
|
|
780 | (2) |
|
|
|
782 | (24) |
|
|
|
|
Production of Goods and Services and Costing Systems |
|
|
806 | (1) |
|
|
|
807 | (11) |
|
Tracking the Physical Flow and Related Production Costs |
|
|
807 | (2) |
|
Process Costing and Equivalent Units |
|
|
809 | (2) |
|
|
|
811 | (2) |
|
Tracking Costs Using a Process Costing Production Report |
|
|
813 | (4) |
|
Evaluating Departmental Efficiency |
|
|
817 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
818 | (1) |
|
|
|
818 | (1) |
|
|
|
819 | (4) |
|
|
|
823 | (21) |
|
19 Costing and the Value Chain |
|
|
|
|
|
844 | (2) |
|
International Financial Reporting Standards and the Value Chain |
|
|
844 | (1) |
|
Value- and Non-Value-Added Activities |
|
|
844 | (2) |
|
Activity-Based Management |
|
|
846 | (4) |
|
Activity-Based Management across the Value Chain |
|
|
846 | (2) |
|
ABC: A Subset of Activity-Based Management |
|
|
848 | (2) |
|
The Target Costing Process |
|
|
850 | (4) |
|
Components of the Target Costing Process |
|
|
850 | (1) |
|
Target Costing: An Illustration |
|
|
850 | (4) |
|
Characteristics of the Target Costing Process |
|
|
854 | (1) |
|
Just-in-Time Inventory Procedures |
|
|
854 | (2) |
|
JIT, Supplier Relationships, and Product Quality |
|
|
855 | (1) |
|
Measures of Efficiency in a JIT System |
|
|
855 | (1) |
|
Total Quality Management and the Value Chain |
|
|
856 | (2) |
|
Components of the Cost of Quality |
|
|
856 | (1) |
|
Measuring the Cost of Quality |
|
|
857 | (1) |
|
|
|
858 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
858 | (1) |
|
|
|
859 | (1) |
|
|
|
860 | (3) |
|
|
|
863 | (19) |
|
20 Cost-Volume-Profit Analysis |
|
|
|
Cost-Volume Relationships |
|
|
882 | (6) |
|
Fixed Costs (and Fixed Expenses) |
|
|
882 | (1) |
|
Cost-Volume Relationships: A Graphic Analysis |
|
|
883 | (2) |
|
The Behavior of Per-Unit Costs |
|
|
885 | (1) |
|
|
|
886 | (1) |
|
Additional Cost Behavior Patterns |
|
|
887 | (1) |
|
Cost Behavior and Operating Income |
|
|
888 | (10) |
|
Cost-Volume-Profit Analysis: An Illustration |
|
|
888 | (1) |
|
Preparing and Using a Cost-Volume-Profit Graph |
|
|
889 | (1) |
|
Contribution Margin: A Key Relationship |
|
|
890 | (1) |
|
How Many Units Must We Sell? |
|
|
891 | (1) |
|
How Many Dollars in Sales Must We Generate? |
|
|
892 | (1) |
|
What Is Our Margin of Safety? |
|
|
892 | (1) |
|
What Change in Operating Income Do We Anticipate? |
|
|
892 | (1) |
|
Business Applications of CVP |
|
|
892 | (3) |
|
Additional Considerations in CVP |
|
|
895 | (1) |
|
CVP Analysis When a Company Sells Many Products |
|
|
895 | (1) |
|
Determining Semivariable Cost Elements: The High-Low Method |
|
|
896 | (1) |
|
Assumptions Underlying Cost-Volume-Profit Analysis |
|
|
897 | (1) |
|
Summary of Basic Cost-Volume-Profit Relationships |
|
|
897 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
898 | (1) |
|
|
|
898 | (1) |
|
|
|
899 | (3) |
|
|
|
902 | (18) |
|
|
|
|
The Challenge of Changing Markets |
|
|
920 | (1) |
|
The Concept of Relevant Cost Information |
|
|
920 | (3) |
|
Relevant Information in Business Decisions |
|
|
921 | (1) |
|
International Financial Reporting Standards and Relevant Costs |
|
|
922 | (1) |
|
A Simple Illustration of Relevant Costs |
|
|
922 | (1) |
|
|
|
923 | (1) |
|
Sunk Costs versus Out-of-Pocket Costs |
|
|
923 | (1) |
|
Incremental Analysis in Common Business Decisions |
|
|
923 | (8) |
|
|
|
923 | (2) |
|
Production Constraint Decisions |
|
|
925 | (1) |
|
|
|
926 | (2) |
|
Sell, Scrap, or Rebuild Decisions |
|
|
928 | (1) |
|
|
|
929 | (2) |
|
Ethics, Fraud, & Corporate Governance |
|
|
931 | (1) |
|
|
|
931 | (1) |
|
|
|
932 | (3) |
|
|
|
935 | (16) |
|
Comprehensive Problem 5 The Gilster Company |
|
|
951 | (5) |
|
22 Responsibility Accounting and Transfer Pricing |
|
|
|
|
|
956 | (4) |
|
The Need for Information about Responsibility Center Performance |
|
|
957 | (1) |
|
Cost Centers, Profit Centers, and Investment Centers |
|
|
957 | (3) |
|
Responsibility Accounting Systems |
|
|
960 | (11) |
|
Responsibility Accounting: An Illustration |
|
|
960 | (1) |
|
Assigning Revenue and Costs to Responsibility Centers |
|
|
961 | (1) |
|
|
|
962 | (1) |
|
|
|
962 | (1) |
|
|
|
963 | (1) |
|
|
|
963 | (1) |
|
|
|
963 | (1) |
|
|
|
964 | (2) |
|
When Is a Responsibility Center "Unprofitable"? |
|
|
966 | (1) |
|
Evaluating Responsibility Center Managers |
|
|
966 | (1) |
|
Arguments against Allocating Common Fixed Costs to Business Centers |
|
|
967 | (1) |
|
|
|
967 | (3) |
|
Nonfinancial Objectives and Information |
|
|
970 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
971 | (1) |
|
Responsibility Center Reporting in Financial Statements |
|
|
971 | (1) |
|
International Financial Reporting Standards and Responsibility Center Reporting |
|
|
971 | (1) |
|
|
|
972 | (1) |
|
|
|
973 | (2) |
|
|
|
975 | (19) |
|
|
|
|
Profit Rich, Yet Cash Poor |
|
|
994 | (1) |
|
Operating Cash Flows: The Lifeblood of Survival |
|
|
994 | (1) |
|
Budgeting: The Basis for Planning and Control |
|
|
995 | (20) |
|
Benefits Derived from Budgeting |
|
|
996 | (1) |
|
Establishing Budgeted Amounts |
|
|
996 | (2) |
|
|
|
998 | (1) |
|
The Master Budget: A Package of Related Budgets |
|
|
998 | (2) |
|
Steps in Preparing a Master Budget |
|
|
1000 | (1) |
|
Preparing the Master Budget: An Illustration |
|
|
1000 | (1) |
|
Operating Budget Estimates |
|
|
1000 | (5) |
|
Budgeted Income Statement |
|
|
1005 | (1) |
|
|
|
1006 | (3) |
|
|
|
1009 | (1) |
|
|
|
1009 | (3) |
|
Using Budgets Effectively |
|
|
1012 | (1) |
|
|
|
1013 | (2) |
|
Ethics, Fraud, & Corporate Governance |
|
|
1015 | (1) |
|
|
|
1015 | (1) |
|
|
|
1016 | (3) |
|
|
|
1019 | (21) |
|
|
|
|
|
|
1040 | (13) |
|
Establishing and Revising Standard Costs |
|
|
1040 | (2) |
|
Direct Materials Standards |
|
|
1042 | (1) |
|
|
|
1042 | (1) |
|
Manufacturing Overhead Standards |
|
|
1042 | (1) |
|
Standard Costs and Variance Analysis: An Illustration |
|
|
1042 | (2) |
|
Materials Price and Quantity Variances |
|
|
1044 | (2) |
|
Labor Rate and Efficiency Variances |
|
|
1046 | (1) |
|
Manufacturing Overhead Variances |
|
|
1047 | (3) |
|
Valuation of Finished Goods |
|
|
1050 | (1) |
|
Evaluating Cost Variances from Different Perspectives |
|
|
1050 | (3) |
|
A Final Note: JIT Systems and Variance Analysis |
|
|
1053 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
1053 | (1) |
|
|
|
1054 | (1) |
|
|
|
1055 | (3) |
|
|
|
1058 | (22) |
|
25 Rewarding Business Performance |
|
|
|
Motivation and Aligning Goals and Objectives |
|
|
1080 | (1) |
|
Communicating Goals and Objectives |
|
|
1080 | (1) |
|
Accounting Information and Feedback about Goal Achievement |
|
|
1080 | (1) |
|
Rewarding Goal Achievement |
|
|
1080 | (1) |
|
|
|
1081 | (4) |
|
|
|
1081 | (2) |
|
The Components of Return on Investment |
|
|
1083 | (1) |
|
|
|
1083 | (1) |
|
|
|
1084 | (1) |
|
|
|
1085 | (1) |
|
The Short Horizon Problem |
|
|
1085 | (1) |
|
Failing to Undertake Profitable Investments |
|
|
1085 | (1) |
|
|
|
1086 | (1) |
|
Residual Income and Economic Value Added |
|
|
1086 | (1) |
|
|
|
1086 | (1) |
|
|
|
1087 | (1) |
|
|
|
1087 | (4) |
|
The Financial Perspective |
|
|
1089 | (1) |
|
|
|
1090 | (1) |
|
The Business Process Perspective |
|
|
1090 | (1) |
|
The Learning and Growth Perspective |
|
|
1090 | (1) |
|
Difficulties with the Balanced Scorecard |
|
|
1090 | (1) |
|
|
|
1091 | (3) |
|
Components of Management Compensation |
|
|
1091 | (1) |
|
International Financial Reporting Standards and Management Compensation |
|
|
1092 | (1) |
|
Design Choices for Management Compensation |
|
|
1092 | (1) |
|
Goals and Rewards in Life |
|
|
1093 | (1) |
|
Ethics, Fraud, & Corporate Governance |
|
|
1094 | (1) |
|
|
|
1094 | (1) |
|
|
|
1095 | (3) |
|
|
|
1098 | (15) |
|
Comprehensive Problem 6 Utease Corporation |
|
|
1113 | (5) |
|
|
|
|
Capital Investment Decisions |
|
|
1118 | (9) |
|
Financial and Nonfinancial Considerations |
|
|
1118 | (1) |
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Evaluating Capital Investment Proposals: An Illustration |
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1118 | (1) |
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1119 | (1) |
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Return on Average Investment |
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1120 | (1) |
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Discounting Future Cash Flows |
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1121 | (3) |
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1124 | (2) |
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Behavioral Considerations in Capital Budgeting |
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1126 | (1) |
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1127 | (1) |
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A Comment from the Authors |
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1127 | (1) |
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Ethics, Fraud, & Corporate Governance |
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1128 | (1) |
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1129 | (3) |
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1132 | |
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A Home Depot 2012 Financial Statements |
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B The Time Value of Money: Future Amounts and Present Values |
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1 | (1) |
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Relationships between Present Values and Future Amounts |
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1 | (1) |
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2 | (1) |
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Applications of the Time Value of Money Concept |
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2 | (1) |
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2 | (4) |
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3 | (1) |
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The Future Amount of an Annuity |
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4 | (2) |
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Interest Periods of Less Than One Year |
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6 | (1) |
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6 | (4) |
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Using Present Value Tables |
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7 | (1) |
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What Is the Appropriate Discount Rate? |
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7 | (1) |
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The Present Value of an Annuity |
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8 | (2) |
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Discount Periods of Less Than One Year |
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10 | (1) |
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Valuation of Financial Instruments |
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10 | (4) |
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Interest-Bearing Receivables and Payables |
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10 | (1) |
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"Non-Interest-Bearing" Notes |
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10 | (2) |
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12 | (1) |
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13 | (1) |
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Obligations for Postretirement Benefits |
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14 | (1) |
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14 | |
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C Forms of Business Organization |
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Importance of Business Form |
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1 | (1) |
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1 | (2) |
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The Concept of the Separate Business Entity |
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1 | (1) |
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Characteristics of a Sole Proprietorship |
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1 | (1) |
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Unlimited Personal Liability |
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2 | (1) |
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Accounting Practices of Sole Proprietorships |
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2 | (1) |
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Evaluating the Financial Statements of a Proprietorship |
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2 | (1) |
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3 | (3) |
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3 | (1) |
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Partnerships That Limit Personal Liability |
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4 | (1) |
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Accounting Practices of Partnerships |
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5 | (1) |
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Evaluating the Financial Statements of a Partnership |
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6 | (1) |
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6 | (8) |
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6 | (1) |
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Stockholders' Liability for Debts of a Corporation |
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7 | (1) |
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What Types of Businesses Choose the Corporate Form of Organization? |
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7 | (1) |
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Accounting for Corporate Income Taxes |
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8 | (1) |
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9 | (1) |
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Owners' Equity in a Corporate Balance Sheet |
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10 | (1) |
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The Issuance of Capital Stock |
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10 | (1) |
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10 | (1) |
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11 | (1) |
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Closing Entries and the Statement of Retained Earnings |
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11 | (1) |
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Evaluating the Financial Statements of a Corporation |
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12 | (1) |
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The Concept---and the Problem---of "Double Taxation" |
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13 | (1) |
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13 | (1) |
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Selecting an Appropriate Form of Business Organization |
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14 | (1) |
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Incorporating an Established Business |
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14 | (1) |
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Supplemental Topic: Partnership Accounting---A Closer Look |
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15 | (7) |
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Opening the Accounts of a New Partnership |
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15 | (3) |
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Allocating Partnership Net Income among the Partners |
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18 | (4) |
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22 | |
| Index |
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1 | |
