Financial Accounting
John Wiley & Sons Inc (Verlag)
978-1-119-59457-4 (ISBN)
1 The Purpose and Use of Financial Statements 1-1
Trading on a Long Tradition: The North West Company 1-1
Uses and Users of Accounting Information 1-2
Internal Users 1-3
External Users 1-3
Forms of Business Organization 1-5
Proprietorships 1-5
Partnerships 1-5
Corporations 1-6
Generally Accepted Accounting Principles for Business Organizations 1-8
Types of Business Activity 1-9
Financing Activities 1-9
Investing Activities 1-10
Operating Activities 1-11
Summary of Business Activities 1-12
Financial Statements 1-13
The Financial Statements 1-14
North West’s Financial Statements 1-22
Elements of an Annual Report 1-26
2 A Further Look at Financial Statements 2-1
Fashioning Value for Investors: Aritzia 2-1
The Classified Statement of Financial Position 2-2
Assets 2-3
Liabilities 2-7
Shareholders’ Equity 2-10
Comprehensive Illustration 2-11
Using the Financial Statements 2-13
Using the Statement of Financial Position 2-14
Using the Statement of Income 2-17
Framework for the Preparation and Presentation of Financial Statements 2-20
Objective of General-Purpose Financial Reporting 2-21
Qualitative Characteristics of Useful Financial Information 2-21
Going Concern Assumption 2-24
Elements of Financial Statements 2-24
Measurement of the Elements 2-24
Summary of Conceptual Framework 2-25
3 The Accounting Information System 3-1
Keeping Good Accounts: It’s What You Do for the Brew: True Büch Kombucha 3-1
Analyzing Transactions 3-2
Analyzing Transactions Using the Accounting Equation 3-3
Analyzing Transactions Using the Accounting Equation—Illustrated 3-5
Recording Transactions 3-14
T Accounts 3-15
Normal Balances and Debit and Credit Effects 3-15
Financial Statement Relationships 3-20
Journalizing Transactions 3-21
General Journal 3-22
Posting Transactions 3-23
Chart of Accounts 3-24
Posting 3-25
The Recording Process Illustrated 3-26
Preparing a Trial Balance 3-34
Procedure for Preparing a Trial Balance 3-34
Limitations of a Trial Balance 3-35
Review of the Accounting Cycle—Steps 1–4 3-36
4 Accrual Accounting Concepts 4-1
School’s Out, Time to Balance the Books: Western University 4-1
Accrual Accounting and the Need for Adjusting Entries 4-2
Accrual Versus Cash Basis of Accounting 4-3
Revenue Recognition 4-5
Expense Recognition 4-8
Adjusting Entries 4-9
Adjusting Entries for Prepayments 4-12
Prepaid Expenses 4-12
Deferred Revenues 4-18
Adjusting Entries for Accruals 4-20
Accrued Expenses 4-21
Accrued Revenues 4-25
Summary of Basic Relationships 4-27
The Adjusted Trial Balance and Financial Statements 4-30
Adjusted Trial Balance 4-30
Financial Statements 4-31
Closing the Books 4-33
Closing Entries 4-34
Post-Closing Trial Balance 4-40
Review of the Accounting Cycle 4-41
5 Merchandising Operations 5-1
Going with the Flow: Loblaw Companies Limited 5-1
Merchandising Operations 5-3
Income Measurement Process 5-4
Inventory Systems 5-4
Recording Purchases of Merchandise 5-7
Purchases 5-8
Adjusting Entry at Period End 5-11
Summary of Purchase Transactions 5-12
Recording Sales of Merchandise 5-13
Sales 5-14
Summary of Sales Transactions 5-17
Statement of Income Presentation 5-19
Single-Step Statement of Income 5-19
Multiple-Step Statement of Income 5-20
Statement of Comprehensive Income 5-23
Evaluating Profitability 5-24
Gross Profit Margin 5-24
Profit Margin 5-25
Appendix 5A: Periodic Inventory System 5-26
Recording Purchases of Merchandise 5-27
Recording Sales of Merchandise 5-28
Calculating Cost of Goods Sold 5-29
Adjusting Entry at Period End 5-31
Statement of Income 5-32
Comparison of Entries: Perpetual vs. Periodic 5-33
Appendix 5B: Sales Returns and Sales Discounts Under ASPE 5-34
Sales Returns 5-34
Sales Discounts 5-35
6 Reporting and Analyzing Inventory 6-1
lululemon athletica Stretches Inventory Levels: lululemon 6-1
Determining Inventory Quantities 6-3
Determining Ownership of Goods 6-3
Taking a Physical Inventory and Making Count Adjustments 6-5
Internal Controls 6-5
Inventory Cost Determination Method 6-6
Specific Identification 6-7
First-In, First-Out (FIFO) 6-8
Average Cost 6-11
Effects of Cost Determination Methods 6-13
Choice of Cost Formula 6-14
Financial Statement Effects 6-14
Inventory Errors 6-17
Errors Made When Determining the Cost of Inventory 6-17
Errors Made When Recording Goods in Transit at Period End 6-19
Presentation and Analysis of Inventory 6-20
Valuing Inventory at the Lower of Cost and Net Realizable Value 6-20
Reporting Inventory 6-22
Inventory Turnover 6-23
Appendix 6A: Inventory Cost Determination Methods in Periodic System 6-25
First-In, First-Out (FIFO) 6-26
Average Cost 6-28
7 Internal Control and Cash 7-1
Cash Control Down to a Tea: DAVIDsTEA 7-1
Internal Control 7-2
Control Activities 7-3
Limitations of Internal Control 7-8
Fraud 7-10
Cash Controls 7-11
Control Activities over Cash Receipts 7-11
Control Activities over Cash Payments 7-13
Bank Accounts—A Key Control Activity 7-15
Bank Statements 7-15
Reconciling the Bank Account 7-18
Reporting and Managing Cash 7-24
Reporting Cash 7-25
Managing Cash 7-25
8 Reporting and Analyzing Receivables 8-1
Steering Clear of Bad Debts: NFI Group 8-1
Accounts Receivable 8-2
Recording Accounts Receivable 8-3
Subsidiary Ledgers 8-4
Uncollectible Accounts Receivable 8-6
Measuring and Recording Expected Credit Losses 8-7
Writing Off Uncollectible Accounts 8-11
Collecting Uncollectible Accounts 8-12
Summary of Allowance Method 8-13
Notes Receivable 8-14
Recording Notes Receivable 8-15
Derecognizing Notes Receivable 8-16
Statement Presentation of Receivables 8-18
Statement of Financial Position 8-18
Statement of Income 8-18
Managing Receivables 8-19
Extending Credit 8-20
Establishing a Payment Period 8-20
Monitoring Collections 8-20
Evaluating Liquidity of Receivables 8-21
9 Reporting and Analyzing Long-Lived Assets 9-1
WestJet’s Assets Are for the Long Haul: WestJet 9-1
Property, Plant, and Equipment 9-2
Determining Cost 9-3
To Buy or Lease? 9-6
Depreciation 9-7
Depreciation Methods 9-8
Comparison of Depreciation Methods 9-14
Other Issues 9-15
Derecognition 9-18
Sale of Property, Plant, and Equipment 9-18
Retirement of Property, Plant, and Equipment 9-21
Intangible Assets and Goodwill 9-23
Accounting for Intangible Assets 9-23
Goodwill 9-27
Statement Presentation of Long-Lived Assets 9-29
Statement of Financial Position 9-29
Statement of Income 9-31
Statement of Cash Flows 9-31
Analyzing Assets 9-32
Return on Assets 9-32
Asset Turnover 9-33
Profit Margin Revisited 9-33
10 Reporting and Analyzing Liabilities 10-1
Planting and Planning for the Future: Interfor 10-1
Current Liabilities 10-2
Operating Line of Credit 10-3
Sales Taxes 10-4
Property Taxes 10-5
Payroll 10-6
Provisions and Contingent Liabilities 10-9
Interest-Bearing Liabilities 10-11
Liabilities with Principal Due at Maturity 10-12
Liabilities with Instalment Payments 10-14
Advantages and Disadvantages of Debt Financing 10-18
Statement Presentation and Analysis 10-18
Presentation 10-18
Analysis 10-20
Appendix 10A: Bonds Payable 10-24
Accounting for Bond Issues 10-25
Accounting for Bond Interest Expense 10-26
Accounting for Bond Retirements 10-29
Determining the Issue Price of Bonds 10-30
11 Reporting and Analyzing Shareholders’ Equity 11-1
Owning Shares Is a Family Affair: Leon's Furniture 11-1
Corporate form of Organization 11-2
Characteristics of a Corporation 11-3
Share Issue Considerations 11-5
Share Capital 11-8
Common Shares 11-8
Preferred Shares 11-11
Dividends 11-14
Cash Dividends 11-15
Stock Dividends 11-16
Stock Splits 11-18
Comparison of Effects 11-19
Presentation of Shareholders’ Equity 11-20
Statement of Financial Position 11-20
Statement of Changes in Equity (IFRS) 11-23
Statement of Retained Earnings (ASPE) 11-24
Summary of Shareholders’ Equity Transactions 11-24
Measuring Corporate Performance 11-26
Dividend Record 11-26
Earnings Performance 11-29
12 Reporting and Analyzing Investments 12-1
Managing Money for Clients and the Company: Scotiabank 12-1
Classifying Investments 12-2
Why Companies Invest 12-3
Non-Strategic Investments 12-3
Strategic Investments 12-4
Accounting for Non-Strategic Investments 12-5
Valuation of Non-Strategic Investments 12-6
Using a Fair Value Model 12-7
Accounting for Strategic Investments 12-10
Using the Equity Method 12-12
Using the Cost Model 12-14
Reporting Investments 12-16
Statement of Income 12-16
Statement of Comprehensive Income 12-17
Statement of Changes in Equity 12-17
Statement of Financial Position 12-18
Appendix 12A: Investments in Bonds 12-23
Recording a Bond Investment for the Investor 12-24
Recording a Bond for Investor and Investee 12-26
13 Statement of Cash Flows 13-1
The Statement of Cash Flows: A Feature Presentation: Cineplex 13-1
Reporting of Cash Flows 13-3
Classification of Cash Flows 13-3
Format of the Statement of Cash Flows 13-5
Preparation of the Statement of Cash Flows 13-6
The Operating Activities Section of the Statement of Cash Flows Using the Indirect Method 13-9
Preparing the Operating Activities Section 13-10
Summary of Conversion to Net Cash Provided (Used) by Operating Activities 13-16
The Investing Activities Section of the Statement of Cash Flows 13-18
Preparing the Investing Activities Section 13-18
The Financing Activities Section and Completion of the Statement of Cash Flows 13-22
Preparing the Financing Activities Section 13-23
Completing the Statement of Cash Flows 13-26
Using Cash Flows to Evaluate a Company 13-28
Corporate Life Cycle and Cash Flows 13-28
Free Cash Flow 13-30
Appendix 13A: The Operating Activities Section of the Statement of Cash Flows Using the Direct Method 13-31
Cash Receipts 13-32
Cash Payments 13-33
Summary of Conversion to Net Cash Provided (Used) by Operating Activities 13-36
14 Performance Measurement 14-1
Growing a Business, Shrinking Expenses: Sobeys 14-1
Comparative Analysis 14-3
Horizontal Analysis 14-3
Vertical Analysis 14-7
Ratio Analysis 14-12
Liquidity Ratios 14-13
Current Ratio 14-13
Receivables Turnover 14-14
Inventory Turnover 14-16
Liquidity Conclusion 14-17
Summary of Liquidity Ratios 14-17
Solvency Ratios 14-19
Debt to Total Assets 14-19
Times Interest Earned 14-20
Free Cash Flow 14-20
Solvency Conclusion 14-21
Summary of Solvency Ratios 14-21
Profitability Ratios 14-22
Gross Profit Margin 14-23
Profit Margin 14-24
Asset Turnover 14-25
Return on Assets 14-26
Return on Common Shareholders’ Equity 14-27
Basic Earnings per Share 14-28
Price-Earnings (P-E) Ratio 14-29
Payout Ratio 14-30
Dividend Yield 14-31
Profitability Conclusion 14-32
Summary of Profitability Ratios 14-32
Limitations of Financial Analysis 14-34
Diversification 14-34
Alternative Accounting Policies and Estimates 14-34
Other Comprehensive Income 14-35
Nonrecurring Items 14-35
Appendix A Specimen Financial Statements: The North West Company Inc. A-1
Appendix B Specimen Financial Statements: Sobeys Inc. B-1
Glossary G-1
Rapid Review RR-1
Company Index / Subject Index I-1
Erscheinungsdatum | 30.06.2020 |
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Verlagsort | New York |
Sprache | englisch |
Maße | 213 x 274 mm |
Gewicht | 1778 g |
Themenwelt | Wirtschaft ► Betriebswirtschaft / Management ► Rechnungswesen / Bilanzen |
ISBN-10 | 1-119-59457-X / 111959457X |
ISBN-13 | 978-1-119-59457-4 / 9781119594574 |
Zustand | Neuware |
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