An Introduction to Accounting
1.1 Accounting is an Information System
1.2 Forms of Organization
1.3 The Framework for the Preparation and Presentation of Financial
Statements
1.4 Understanding of Financial Statements
Balance Sheet
Income Statement ( Statement of Financial Performance)
Statement of Changes in Equity/Statement of Retained Earnings
Statement of Cash Flow
1.5 Accounting and its Profession
1.6 Accounting Elements and Using the Accounting Equation
What is Accounting Equation
Effects of Transactions on the Accounting Equation
1.7 Ethics in Accounting
Some Basic Ethical Standards
Vocabulary
Self-Test Questions
Discussion Questions
Exercises
Problems
2 Recording Transactions
2.1 Economic Events and Business Documents
2.2 T Accounts and Debit & Credit
Types of Accounts
Chart of Accounts and Ledger
The Accounting Equation and the Rules of Debits and Credits
Normal Balances
2.3 Journalizing and Posting Transactions
Journalizing Transactions
Posting Transactions
2.4 Preparing a Trial Balance
Trial Balance
Locating and Correcting Errors
Formatting Conventions
2.5 Using the Information-the Debt Ratio
Vocabulary
Self-Test Questions
Discussion Questions
Exercises
Problems
3 Adjusting the Accounts, Preparing the Statements, and Completing the Accounting Cycle
3.1 The Need for Adjustments
Time Period Principle
Need for Adjustments at the End of an Accounting Period
Accrual and Cash Basis of Accounting
3.2 Adjusting the Accounts
Prepaid Expenses
Depreciation
Unearned Revenues
Accrued Expenses
Accrued Revenues
3.3 Adjusted Trial Balance and Preparation of Financial Statements
3.4 Using the Worksheet
Purpose of the Worksheet
Preparing Worksheets
3.5 Closing Entries
Purpose of Closing Entries
Preparing the Closing Entries
3.6 Post-closing Trial Balance
3.7 Classification of Balance Sheet Items
Assets
Liabilities
Owner' s Equity
3.8 Using the Information-the Current Ratio
Vocabulary
Serf-Test Questions
Discussion Questions
Exercises
Problems
4 Accounting for Merchandising Enterprises
4.1 Service Enterprise versus Merchandising Concern
Service Enterprise
Merchandising Enterprise
Periodic and Perpetual Inventory Systems
4.2 Purchase, Sales Revenue and Cost of Goods Sold
Merchandise Purchases-Perpetual Inventory System
Purchase Returns and Allowances
Trade Discounts
Purchase Discounts
Transportation Costs
Revenue from Sales and Cost of Goods Sold--Perpetual Inventory System
Sales Returns and Allowances
Sales Discounts
Shrinkage
Summary of Merchandising Cost Flows
4.3 Multiple-step Income Statement
4.4 Worksheet for a Merchandising Enterprise and Closing Entries
Worksheet for a Merchandiser
Closing Entries
4.5 Special Journals
Sales Journal
Cash Receipts Journal
Purchases Journal
Cash Disbursements Journal
Testing the Accuracy of Ledgers
Subsidiary Inventory Records
4.6 Using the Information-Acid-Test Ratio, Gross Margin Ratio
Vocabulary
Self-Test Questions
Discussion Questions
Exercises
Problems
5 Accounting for Cash, Temporary Investments, and Receivables
5.1 Cash, Cash Equivalents, and Liquidity
5.2 Internal Control over Cash
The Characteristics of an Effective System of Internal Control
Internal Control for Cash
5.3 The Petty Cash Fund
Establishing the Fund
Making Petty Cash Payments
Reimbursing the Fund
5.4 Reconciling the Bank Balance
Bank Statement
Need for Reconciling the Bank Balance
Steps in Reconciling the Bank Balance
5.5 Trading Securities
Accounting for Trading securities
Balance Sheet Presentation
5.6 Credit Sales and Bad Debts
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6 Inventories and Cost of Goods Sold
7 Long-Term Assets: Investments, Fixed Assets, Natural Resources and Intangible Assets
8 Current and Long-Term Liabilities
9 Owner' s Equity
10 Statement of Cash Flows