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