Toc: Cover Title Page Copyright Page About the Authors Brief Contents Contents Preface Acknowledgments Chapter 1: The Financial Statements Spotlight: The Walt Disney Company Explain Why Accounting Is Critical to Businesses Describe the Decision Makers Who Use Accounting Describe the Two Types of Accounting and Who Uses Each Type Explain How Businesses Are Organized Explain and Apply Underlying Accounting Concepts, Assumptions, and Principles The Entity Assumption The Continuity (Going-Concern) Assumption The Historical Cost Principle The Stable-Monetary-Unit Assumption Apply the Accounting Equation to Business Organizations Assets and Liabilities Equity Construct Financial Statements and Analyze the Relationships Among Them The Income Statement The Statement of Retained Earnings The Balance Sheet The Statement of Cash Flows Evaluate Business Decisions Ethically American Institute of Certified Public Accountants Code of Professional Conduct End-of-Chapter: Summary Problem Chapter 2: Transaction Analysis Spotlight: The Walt Disney Company Records Millions of Transactions a Year! Recognize a Business Transaction and the Various Types of Accounts in Which It Can Be Recorded Assets Liabilities Stockholders’ Equity Analyze the Impact of Business Transactions on the Accounting Equation Example: Alladin Travel, Inc. Transactions and Financial Statements Mid-Chapter: Summary Problem Analyze the Impact of Business Transactions on Accounts The T-Account Increases and Decreases in the Accounts: The Rules of Debit and Credit Additional Stockholders’ Equity Accounts: Revenues and Expenses Journalize Transactions and Post Journal Entries to the Ledger Posting from the Journal to the Ledger The Flow of Accounting Data Accounts After Posting to the Ledger Construct a Trial Balance Analyzing Accounts Correcting Accounting Errors Chart of Accounts The Normal Balance of an Account End-of-Chapter: Summary Problem Chapter 3: Accrual Accounting and Income Spotlight: September Is Busy at Walt Disney World Headquarters Explain How Accrual Accounting Differs from Cash-Basis Accounting Accrual Accounting and Cash Flows The Time-Period Concept Apply the Revenue and Expense Recognition Principles The Revenue Principle The Expense Recognition Principle Adjust the Accounts Which Accounts Need to Be Updated (Adjusted)? Categories of Adjusting Entries Prepaid Expenses Depreciation of Plant Assets Accrued Expenses Accrued Revenues Unearned Revenues Summary of the Adjusting Process The Adjusted Trial Balance Construct the Financial Statements Mid-Chapter: Summary Problem Close the Books Classifying Assets and Liabilities Reporting Assets and Liabilities: The Walt Disney Company Formats for the Financial Statements Analyze and Evaluate a Compan