Financial Accounting: Tools for Business Decision Making, 7th Edition

Contents

Chapter 1

Introduction to Financial Statements

Knowing the Numbers

Forms of Business Organization

Users and Uses of Financial Information

Internal Users

External Users

Ethics in Financial Reporting

Business Activities

Financing Activities

Investing Activities

Operating Activities

Communicating with Users

Income Statement

Retained Earnings Statement

Balance Sheet

Statement of Cash Flows

Interrelationships of Statements

Other Elements of an Annual Report

A Look at IFRS

Chapter 2

A Further Look at Financial Statements

Just Fooling Around?

The Classified Balance Sheet

Current Assets

Long-Term Investments

Property, Plant, and Equipment

Intangible Assets

Current Liabilities

Long-Term Liabilities

Stockholders’ Equity

Using the Financial Statements

Ratio Analysis

Using the Income Statement

Using the Statement of Stockholders’ Equity

Using a Classified Balance Sheet

Keeping an Eye on Cash

Financial Reporting Concepts

The Standard-Setting Environment

Qualities of Useful Information

Assumptions in Financial Reporting

Principles in Financial Reporting

Cost Constraint

A Look at IFRS

Chapter 3

The Accounting Information System

Accidents Happen

The Accounting Information System

Accounting Transactions

Analyzing Transactions

Summary of Transactions

The Account

Debits and Credits

Debit and Credit Procedures

Stockholders’ Equity Relationships

Summary of Debit/Credit Rules

Steps in the Recording Process

The Journal

The Ledger

Chart of Accounts

Posting

The Recording Process Illustrated