Preface
Chapter 1  Role of Accounting in Society
	Why It Matters
	1.1 Explain the Importance of Accounting and Distinguish between Financial and Managerial Accounting
	1.2 Identify Users of Accounting Information and How They Apply Information
	1.3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities
	1.4 Explain Why Accounting Is Important to Business Stakeholders
	1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
	Key Terms
	Summary
	Multiple Choice
	Questions
Chapter 2  Introduction to Financial Statements
	Why It Matters
	2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
	2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses
	2.3 Prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 3  Analyzing and Recording Transactions
	Why It Matters
	3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
	3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions
	3.3 Define and Describe the Initial Steps in the Accounting Cycle
	3.4 Analyze Business Transactions Using the Accounting Equation and Show the Impact of Business Transactions on Financial Statements
	3.5 Use Journal Entries to Record Transactions and Post to T-Accounts
	3.6 Prepare a Trial Balance
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 4  The Adjustment Process
	Why It Matters
	4.1 Explain the Concepts and Guidelines Affecting Adjusting Entries
	4.2 Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries
	4.3 Record and Post the Common Types of Adjusting Entries
	4.4 Use the Ledger Balances to Prepare an Adjusted Trial Balance
	4.5 Prepare Financial Statements Using the Adjusted Trial Balance
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 5  Completing the Accounting Cycle
	Why It Matters
	5.1 Describe and Prepare Closing Entries for a Business
	5.2 Prepare a Post-Closing Trial Balance
	5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity
	5.4 Appendix: Complete a Comprehensive Accounting Cycle for a Business
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 6  Merchandising Transactions
	Why It Matters
	6.1 Compare and Contrast Merchandising versus Service Activities and Transactions
	6.2 Compare and Contrast Perpetual versus Periodic Inventory Systems
	6.3 Analyze and Record Transactions for Merchandise Purchases Using the Perpetual Inventory System
	6.4 Analyze and Record Transactions for the Sale of Merchandise Using the Perpetual Inventory System
	6.5 Discuss and Record Transactions Applying the Two Commonly Used Freight-In Methods
	6.6 Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies
	6.7 Appendix: Analyze and Record Transactions for Merchandise Purchases and Sales Using the Periodic Inventory System
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 7  Accounting Information Systems
	Why It Matters
	7.1 Define and Describe the Components of an Accounting Information System
	7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders
	7.3 Analyze and Journalize Transactions Using Special Journals
	7.4 Prepare a Subsidiary Ledger
	7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 8  Fraud, Internal Controls, and Cash
	Why It Matters
	8.1 Analyze Fraud in the Accounting Workplace
	8.2 Define and Explain Internal Controls and Their Purpose within an Organization
	8.3 Describe Internal Controls within an Organization
	8.4 Define the Purpose and Use of a Petty Cash Fund, and Prepare Petty Cash Journal Entries
	8.5 Discuss Management Responsibilities for Maintaining Internal Controls within an Organization
	8.6 Define the Purpose of a Bank Reconciliation, and Prepare a Bank Reconciliation and Its Associated Journal Entries
	8.7 Describe Fraud in Financial Statements and Sarbanes-Oxley Act Requirements
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 9  Accounting for Receivables
	Why It Matters
	9.1 Explain the Revenue Recognition Principle and How It Relates to Current and Future Sales and Purchase Transactions
	9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
	9.3 Determine the Efficiency of Receivables Management Using Financial Ratios
	9.4 Discuss the Role of Accounting for Receivables in Earnings Management
	9.5 Apply Revenue Recognition Principles to Long-Term Projects
	9.6 Explain How Notes Receivable and Accounts Receivable Differ
	9.7 Appendix: Comprehensive Example of Bad Debt Estimation
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 10  Inventory
	Why It Matters
	10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
	10.2 Calculate the Cost of Goods Sold and Ending Inventory Using the Periodic Method
	10.3 Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method
	10.4 Explain and Demonstrate the Impact of Inventory Valuation Errors on the Income Statement and Balance Sheet
	10.5 Examine the Efficiency of Inventory Management Using Financial Ratios
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 11  Long-Term Assets
	Why It Matters
	11.1 Distinguish between Tangible and Intangible Assets
	11.2 Analyze and Classify Capitalized Costs versus Expenses
	11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs
	11.4 Describe Accounting for Intangible Assets and Record Related Transactions
	11.5 Describe Some Special Issues in Accounting for Long-Term Assets
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 12  Current Liabilities
	Why It Matters
	12.1 Identify and Describe Current Liabilities
	12.2 Analyze, Journalize, and Report Current Liabilities
	12.3 Define and Apply Accounting Treatment for Contingent Liabilities
	12.4 Prepare Journal Entries to Record Short-Term Notes Payable
	12.5 Record Transactions Incurred in Preparing Payroll
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 13  Long-Term Liabilities
	Why It Matters
	13.1 Explain the Pricing of Long-Term Liabilities
	13.2 Compute Amortization of Long-Term Liabilities Using the Effective-Interest Method
	13.3 Prepare Journal Entries to Reflect the Life Cycle of Bonds
	13.4 Appendix: Special Topics Related to Long-Term Liabilities
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 14  Corporation Accounting
	Why It Matters
	14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
	14.2 Analyze and Record Transactions for the Issuance and Repurchase of Stock
	14.3 Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits
	14.4 Compare and Contrast Owners’ Equity versus Retained Earnings
	14.5 Discuss the Applicability of Earnings per Share as a Method to Measure Performance
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 15  Partnership Accounting
	Why It Matters
	15.1 Describe the Advantages and Disadvantages of Organizing as a Partnership
	15.2 Describe How a Partnership Is Created, Including the Associated Journal Entries
	15.3 Compute and Allocate Partners’ Share of Income and Loss
	15.4 Prepare Journal Entries to Record the Admission and Withdrawal of a Partner
	15.5 Discuss and Record Entries for the Dissolution of a Partnership
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Chapter 16  Statement of Cash Flows
	Why It Matters
	16.1 Explain the Purpose of the Statement of Cash Flows
	16.2 Differentiate between Operating, Investing, and Financing Activities
	16.3 Prepare the Statement of Cash Flows Using the Indirect Method
	16.4 Prepare the Completed Statement of Cash Flows Using the Indirect Method
	16.5 Use Information from the Statement of Cash Flows to Prepare Ratios to Assess Liquidity and Solvency
	16.6 Appendix: Prepare a Completed Statement of Cash Flows Using the Direct Method
	Key Terms
	Summary
	Multiple Choice
	Questions
	Exercise Set A
	Exercise Set B
	Problem Set A
	Problem Set B
	Thought Provokers
Appendix A Financial Statement Analysis
Appendix B Time Value of Money
Appendix C Suggested Resources
Answer Key
	Chapter 1
	Chapter 2
	Chapter 3
	Chapter 4
	Chapter 5
	Chapter 6
	Chapter 7
	Chapter 8
	Chapter 9
	Chapter 10
	Chapter 11
	Chapter 12
	Chapter 13
	Chapter 14
	Chapter 15
	Chapter 16
Index