Financial Accounting

  Jane Reimers has taught introductory financial accounting for over 20 years, to students with a wide range of abilities and backgrounds. After earning her Ph.D. from the University of Michigan, where she first taught financial accounting, she spent four years at Duke, fourteen years at Florida State, and the past three years at Rollins College in Winter Park, Florida. Her students have been traditional and non-traditional, and they have been accounting and other business majors, economics majors, fashion design majors, sports management majors, and even IRS employees who needed an introductory course in financial accounting. She has lectured in auditoriums, taught in small- and medium sized-classrooms, and coordinated an on-line course for hundreds of students. With an undergraduate degree in education and graduate degrees in accounting and a wealth of teaching experience, she has written a book for this exact time in the history of accounting education. She hopes both students and instructors come away with the enthusiasm and respect she has for accounting. 

                                                                FINANCIAL ACCOUNTING

Getting Started: Your Business IQ

What’s Your Business IQ?

 

Chapter 1:  The Link Between Business and Accounting

1.1           What is Accounting and Why is it Important to Business?

1.2           Using Financial Reports to Make Decisions

1.3           The Accounting Equation and the Basic Financial Statements

1.4           Financial Statement Analysis

1.5           Business Risks and Controls

1.6           Let’s Go for a Test Drive

1.7           Rapid Review

 

Chapter 2:  Preparing Financial Statements and Analyzing Business Transactions

2.1           Objectives, Assumptions, and Qualifies of Financial Reporting

2.2           A Closer Look at the Balance Sheet

2.3           A Closer Look at the Income Statement

2.4           A Closer Look at the Statement of Changes in Shareholders’ Equity

2.5           Cash Flows

2.6           Notes to the Financial Statements

2.7           A Summary of the Assumptions, Principles, and Constraints in Financial Reporting

2.8           Business Transactions and the Financial Statements

2.9           Financial Statement Analysis:  The Current Ratio

2.10         Business Risk and Internal Controls

2.11         Let’s Go for a Test Drive  

2.12         Rapid Review

 

Chapter 3:  The Accounting Information System and the Accounting Cycle

3.1           Keeping Track of Business Transactions

3.2           Using Debits and Credits to Record Transactions

3.3           The Accounting Cycle

3.4           Recording and Posting Transactions and Preparing a Trial Balance

3.5           Financial Statement Analysis

3.6           Business Risks and Controls

3.7           Let’s Go for a Test Drive

3.8           Rapid Review

 

Chapter 4:  Accrual Basis Accounting and the Accounting Cycle

4.1           Measuring Income – Recording Revenues and Expense

4.2           Timing Differences

4.3           Making Adjusting Entries and Preparing the Financial Statements

4.4           Closing the Revenue and Expense Accounts

4.5           Financial Statement Analysis

4.6           Business Risks and Controls

4.7           Let’s Go for a Test Drive

4.8           Rapid Review

 

Chapter 5: Accounting for Merchandising Operations

5.1           Merchandising firms

5.2           Acquiring Merchandise for Sale

5.3           Sale of Merchandise

5.4           Recording Inventory:  Perpetual versus Periodic Recordkeeping              

5.5           Multi-step Income Statement

5.6           Financial Statement Analysis—Gross Profit Ratio and Profit Margin Ratio

5.7           Business Risks and Internal Controls

5.8           Let’s Go for a Test Drive. 

5.9           Rapid Review

 

Chapter 6: Reporting and Analyzing Inventory 

6.1          Determining What Belongs in the Inventory

6.2           Inventory Cost Flow Assumptions  

6.3           How Cost Flow Assumptions Affect Financial Statements 

6.4           Complications in Valuing Inventory—Lower-of-cost-or-market Rule 

6.5           Financial Statement Analysis:  Inventory Turnover

6.6           Business Risk and Control:  Inventory

6.7           Let’s Go for a Test Drive

6.8           Rapid Review

6.9           The mechanics

 

Chapter 7: Cash, Accounts Receivable, and Bad Debt Expense

7.1           Accounts Receivable and Bad Debt Expense

7.2           Accounting for Credit Card Sales

7.3           Notes Receivable

7.4           Controlling Cash

7.5           Reporting Case

7.6           Analyzing Accounts Receivable with Ratio Analysis

7.7           Business Risk and Control

7.8           Let’s Go for a Test Drive

7.9           Rapid Review

 

 

Chapter 8: Reporting and Interpreting Long-term Operational Assets

8.1           Acquiring Plant Assets

8.2           Using Long-term Tangible Assets:  Depreciation and Depletion

8.3           Using Intangible Assets:  Amortization

8.4           Changes after the Purchase of the Asset

8.5           Selling Long-term Assets

8.6           Presentation of Long-term Assets of the Financial Statements

8.7           Financial Statement Analysis – Return on Assets and Asset Turnover

8.8           Business Risk and Control

8.9           Let’s Go for a Test Drive

8.10         Rapid Review

 

Chapter 9: Reporting and Understanding Liabilities

9.1           Definitely Determinable Liabilities

9.2           Estimated Liabilities

9.3           Long-term Notes Payable and Mortgages

9.4           Long-Term Liabilities:  Raising Money by Issuing Bonds

9.6           Financial Statement Analysis – Financial Leverage and Debt Ratios

9.8           Business Risk and Controls – Long-Term Debt

9.9           Let’s Go for a Test Drive

9.10         Rapid Review

 

Chapter 10: Reporting and Understanding Shareholders’ Equity

10.1         Components of Shareholders’ Equity in a Corporation – Contributed Capital

10.2         Cash Dividends

10.3         Treasury Stock

10.4         Stock Dividends and Stock Splits

10.5         Retained Earnings

10.6         Financial Statement Analysis

10.7         Business Risk and Control 10.7a.  Owners’ Risks

10.8         Let’s Go for a Test Drive

 

Chapter 11: More About the Statement of Cash Flows

11.1         Categories of Cash Flows

11.2         Accrual-Basis Accounting Versus Cash-Basis Accounting

11.3         Overview of the Two Methods of Preparing and Presenting the Statement of ash Flows

11.4         Statement of Cash Flows – Indirect Method

11.5         Cash Flows from Operating Activities – Direct Method

11.6         Cash from Investing and Financing Activities

11.7         Putting it all Together to Prepare the Statement of Cash Flows

11.8         Financial Statement Analysis – Using Cash Flows to Evaluate Performance

11.9         Business Risk and Control

11.10       Let’s Go for a Test Drive

11.11       Rapid Review

 

Chapter 12: More About Financial Statement Analysis

12.1         Accounting as an element of strategy

12.2         General analysis

12.3         Comparative analysis

12.4         Ratio analysis

12.5         Financial Statement Analysis Comprehensive Problem

12.6         Let’s Go for a Test Drive  

12.7         Rapid Review  

 

Chapter 13: Quality of Earnings and Corporate Governance

13.1         Why are Earnings Important?

13.2         The Quality of Earnings

13.3         Common Ways to Manipulate Earnings

13.4         What We Learned from the Scandals of the Early 2000s

13.5         The Sarbanes-Oxley Act of 2002

13.6         Evaluating Corporate Governance

13.7         Let’s Take a Test Drive

13.8         Rapid Review