Find the Full Original Textbook (PDF) in the link

below:

CLICK HERE
 Detailed Contents

1 Accounting in Action 1-1

Knowing the Numbers: Columbia Sportswear 1-1
Accounting Activities and Users 1-3
Three Activities 1-3
Who Uses Accounting Data 1-4
The Building Blocks of Accounting 1-6
Ethics in Financial Reporting 1-6
Generally Accepted Accounting Principles 1-8
Measurement Principles 1-8
Assumptions 1-9
The Accounting Equation 1-11
Assets 1-11
Liabilities 1-11
Owner’s Equity 1-12
Analyzing Business Transactions 1-13
Accounting Transactions 1-14
Transaction Analysis 1-14
Summary of Transactions 1-19
The Four Financial Statements 1-20
Income Statement 1-20
Owner’s Equity Statement 1-22
Balance Sheet 1-22
Statement of Cash Flows 1-23
Appendix 1A: Career Opportunities in Accounting 1-24
Public Accounting 1-24
Private Accounting 1-25
Governmental Accounting 1-25
Forensic Accounting 1-25
“Show Me the Money” 1-25
A Look at IFRS 1-47
2 The Recording Process 2-1
Accidents Happen: MF Global Holdings 2-1
Accounts, Debits, and Credits 2-2
The Account 2-2
Debits and Credits 2-3
Summary of Debit/Credit Rules 2-6
The Journal 2-7
The Recording Process 2-7
The Journal 2-8
The Ledger and Posting 2-10
The Ledger 2-10
Posting 2-12
Chart of Accounts 2-13
The Recording Process Illustrated 2-13

Summary Illustration of Journalizing and Posting 2-19

The Trial Balance 2-21
Limitations of a Trial Balance 2-22
Locating Errors 2-22
Dollar Signs and Underlining 2-22
A Look at IFRS 2-46

3 Adjusting the Accounts 3-1

Keeping Track of Groupons: Groupon 3-1
Accrual-Basis Accounting and Adjusting Entries 3-2
Fiscal and Calendar Years 3-3
Accrual- versus Cash-Basis Accounting 3-3
Recognizing Revenues and Expenses 3-3
The Need for Adjusting Entries 3-5
Types of Adjusting Entries 3-5
Adjusting Entries for Deferrals 3-6
Prepaid Expenses 3-6
Unearned Revenues 3-10
Adjusting Entries for Accruals 3-13
Accrued Revenues 3-13
Accrued Expenses 3-14
Summary of Basic Relationships 3-17
Adjusted Trial Balance and Financial Statements 3-20
Preparing the Adjusted Trial Balance 3-21
Preparing Financial Statements 3-21
Appendix 3A: Alternative Treatment of Deferrals 3-24
Prepaid Expenses 3-25
Unearned Revenues 3-26
Summary of Additional Adjustment Relationships 3-27
Appendix 3B: Financial Reporting Concepts 3-28
Qualities of Useful Information 3-28
Assumptions in Financial Reporting 3-28
Principles in Financial Reporting 3-29
Cost Constraint 3-30
A Look at IFRS 3-58

4 Completing the Accounting

Cycle 4-1
Everyone Likes to Win: Rhino Foods 4-1
The Worksheet 4-2
Steps in Preparing a Worksheet 4-3
Preparing Financial Statements from a Worksheet 4-
10
Preparing Adjusting Entries from a Worksheet 4-11
Closing the Books 4-11
Preparing Closing Entries 4-12
Posting Closing Entries 4-14
Preparing a Post-Closing Trial Balance 4-16
The Accounting Cycle and Correcting Entries 4-19
Summary of the Accounting Cycle 4-19
Reversing Entries—An Optional Step 4-19
Correcting Entries—An Avoidable Step 4-19
Classified Balance Sheet 4-23
Current Assets 4-24
Long-Term Investments 4-25
Property, Plant, and Equipment 4-25
Intangible Assets 4-25
Current Liabilities 4-26
Long-Term Liabilities 4-27
Owner’s Equity 4-28
Appendix 4A: Reversing Entries 4-29
Reversing Entries Example 4-29
A Look at IFRS 4-59

5 Accounting for Merchandising

Operations 5-1
Buy Now, Vote Later: REI 5-1
Merchandising Operations and Inventory Systems 5-3
Operating Cycles 5-3
Flow of Costs 5-4
Recording Purchases under a Perpetual System 5-6
Freight Costs 5-8
Purchase Returns and Allowances 5-9
Purchase Discounts 5-9
Summary of Purchasing Transactions 5-10
Recording Sales Under a Perpetual System 5-11
Sales Returns and Allowances 5-12
Sales Discounts 5-13
The Accounting Cycle for a Merchandising
Company 5-15
Adjusting Entries 5-15
Closing Entries 5-15
Summary of Merchandising Entries 5-16
Multiple-Step and Comprehensive Income
Statements 5-17
Multiple-Step Income Statement 5-18
Single-Step Income Statement 5-20
Comprehensive Income Statement 5-21
Classified Balance Sheet 5-21
Appendix 5A: Worksheet for a Merchandising
Company 5-23
Using a Worksheet 5-23
Appendix 5B: Periodic Inventory System 5-24
Determining Cost of Goods Sold Under a Periodic
System 5-25
Recording Merchandise Transactions 5-25

Recording Purchases of Merchandise 5-26

Recording Sales of Merchandise 5-27
Journalizing and Posting Closing Entries 5-28
Using a Worksheet 5-29
A Look at IFRS 5-54

6 Inventories 6-1
“Where Is That Spare Bulldozer Blade?”:
Caterpillar 6-1
Classifying and Determining Inventory 6-2
Classifying Inventory 6-3
Determining Inventory Quantities 6-4
Inventory Methods and Financial Eff ects 6-7
Specific Identification 6-7
Cost Flow Assumptions 6-8
Financial Statement and Tax Eff ects of Cost Flow
Methods 6-12
Using Inventory Cost Flow Methods Consistently 6-14
Eff ects of Inventory Errors 6-15
Income Statement Eff ects 6-15
Balance Sheet Eff ects 6-16
Inventory Statement Presentation and Analysis 6-17
Presentation 6-17
Lower-of-Cost-or-Net Realizable Value 6-17
Analysis 6-18
Appendix 6A: Inventory Methods and the Perpetual
System 6-20
First-In, First-Out (FIFO) 6-20
Last-In, First-Out (LIFO) 6-21
Average-Cost 6-22
Appendix 6B: Estimating Inventories 6-22
Gross Profit Method 6-23
Retail Inventory Method 6-24
A Look at IFRS 6-48

7 Accounting Information
Systems 7-1
QuickBooks® Helps This Retailer Sell Guitars: Intuit 7-
1
Overview of Accounting Information Systems 7-2
Computerized Accounting Systems 7-3
Manual Accounting Systems 7-5
Subsidiary Ledgers 7-5
Subsidiary Ledger Example 7-6
Advantages of Subsidiary Ledgers 7-7
Special Journals 7-8
Sales Journal 7-9
Cash Receipts Journal 7-11
Purchases Journal 7-15
Cash Payments Journal 7-17
Eff ects of Special Journals on the General
Journal 7-20
Cyber Security: A Final Comment 7-21
A Look at IFRS 7-44

8 Fraud, Internal Control,

and Cash 8-1
Minding the Money in Madison: Barriques 8-1
Fraud and Internal Control 8-3
Fraud 8-3
The Sarbanes-Oxley Act 8-3
Internal Control 8-4
Principles of Internal Control Activities 8-4
Limitations of Internal Control 8-10
Cash Controls 8-11
Cash Receipts Controls 8-12
Cash Disbursements Controls 8-14
Petty Cash Fund 8-16
Control Features of a Bank Account 8-19
Making Bank Deposits 8-19
Writing Checks 8-20
Electronic Funds Transfer (EFT) System 8-21
Bank Statements 8-21
Reconciling the Bank Account 8-22
Reporting Cash 8-27
Cash Equivalents 8-27
Restricted Cash 8-27
A Look at IFRS 8-48

9 Accounting for Receivables 9-1

A Dose of Careful Management Keeps Receivables
Healthy:
Whitehall-Robins 9-1
Recognition of Accounts Receivable 9-2
Types of Receivables 9-3
Recognizing Accounts Receivable 9-3
Valuation and Disposition of Accounts Receivable 9-5
Valuing Accounts Receivable 9-5
Disposing of Accounts Receivable 9-11
Notes Receivable 9-13
Determining the Maturity Date 9-14
Computing Interest 9-15
Recognizing Notes Receivable 9-15
Valuing Notes Receivable 9-16
Disposing of Notes Receivable 9-16
Presentation and Analysis 9-18
Presentation 9-19
Analysis 9-20
A Look at IFRS 9-41

10 Plant Assets, Natural Resources,

and Intangible Assets 10-1
How Much for a Ride to the Beach?: Rent-A-Wreck 10-
1
Plant Asset Expenditures 10-2
Determining the Cost of Plant Assets 10-3
Expenditures During Useful Life 10-5
Depreciation Methods 10-7
Factors in Computing Depreciation 10-7
Depreciation Methods 10-8
Depreciation and Income Taxes 10-13
Revising Periodic Depreciation 10-13
Impairments 10-13
Plant Asset Disposals 10-14
Retirement of Plant Assets 10-15
Sale of Plant Assets 10-15
Natural Resources and Intangible Assets 10-17
Natural Resources 10-17
Depletion 10-17
Intangible Assets 10-18
Accounting for Intangible Assets 10-18
Research and Development Costs 10-21
Statement Presentation and Analysis 10-21
Presentation 10-21
Analysis 10-22
Appendix 10A: Exchange of Plant Assets 10-23
Loss Treatment 10-24
Gain Treatment 10-24
A Look at IFRS 10-46

11 Current Liabilities and Payroll

Accounting 11-1
Financing His Dreams: Wilbert Murdock 11-1
Accounting for Current Liabilities 11-2
What Is a Current Liability? 11-2
Notes Payable 11-3
Sales Taxes Payable 11-4
Unearned Revenues 11-4
Current Maturities of Long-Term Debt 11-5
Reporting and Analyzing Current Liabilities 11-6
Reporting Uncertainty 11-6
Reporting of Current Liabilities 11-7
Analysis of Current Liabilities 11-8
Accounting for Payroll 11-9
Determining the Payroll 11-10
Recording the Payroll 11-13
Employer Payroll Taxes 11-16
Filing and Remitting Payroll Taxes 11-18
Internal Control for Payroll 11-19
Appendix 11A: Additional Fringe Benefits 11-20
12 Accounting for Partnerships 12-1
From Trials to the Top Ten: Razor & Tie 12-1
Forming a Partnership 12-2
Characteristics of Partnerships 12-3
Organizations with Partnership Characteristics 12-3
Advantages and Disadvantages of Partnerships 12-5
The Partnership Agreement 12-6
Accounting for a Partnership Formation 12-6
Accounting for Net Income or Net Loss 12-8
Dividing Net Income or Net Loss 12-8
Partnership Financial Statements 12-11
Liquidation of a Partnership 12-12
No Capital Deficiency 12-13
Capital Deficiency 12-15
Appendix 12A: Admissions and Withdrawals
of Partners 12-18
Admission of a Partner 12-18
Withdrawal of a Partner 12-21

13 Corporations: Organization and

Capital Stock Transactions 13-1
Oh Well, I Guess I’ll Get Rich: Facebook 13-1
Corporate Form of Organization 13-2
Characteristics of a Corporation 13-3
Forming a Corporation 13-5
Stockholder Rights 13-6
Stock Issue Considerations 13-6
Corporate Capital 13-9
Accounting for Stock Transactions 13-10
Accounting for Common Stock 13-10
Accounting for Preferred Stock 13-12
Accounting for Treasury Stock 13-14
Statement Presentation of Stockholders’
Equity 13-17
A Look at IFRS 13-36

14 Corporations: Dividends,
Retained Earnings, and Income
Reporting 14-1
Owning a Piece of the Action: Van Meter Inc. 14-1
Accounting for Dividends and Stock Splits 14-2
Cash Dividends 14-3
Dividend Preferences 14-4
Stock Dividends 14-7
Stock Splits 14-9
Reporting and Analyzing Stockholders’ Equity 14-11
Retained Earnings 14-11
Statement Presentation and Analysis 14-13
Corporate Income Statements 14-16
Income Statement Presentation 14-16
Income Statement Analysis 14-16
Appendix 14A: Stockholders’ Equity
Statement 14-18
Appendix 14B: Book Value per Share 14-18
Book Value per Share 14-18
Book Value versus Market Price 14-20
A Look at IFRS 14-38

15 Long-Term Liabilities 15-1

And Then There Were Two: Chrysler 15-1
Major Characteristics of Bonds 15-2
Types of Bonds 15-3
Issuing Procedures 15-3
Bond Trading 15-4
Determining the Market Price of a Bond 15-5
Accounting for Bond Transactions 15-6
Issuing Bonds at Face Value 15-7
Discount or Premium on Bonds 15-7
Issuing Bonds at a Discount 15-8
Issuing Bonds at a Premium 15-9
Redeeming Bonds at Maturity 15-11
Redeeming Bonds before Maturity 15-11
Accounting for Long-Term Notes Payable 15-12
Reporting and Analyzing Long-Term Liabilities 15-14
Presentation 15-14
Use of Ratios 15-14
Debt and Equity Financing 15-15
Lease Liabilities 15-16
Appendix 15A: Straight-Line Amortization 15-17
Amortizing Bond Discount 15-17
Amortizing Bond Premium 15-19
Appendix 15B: Eff ective-Interest Amortization 15-20
Amortizing Bond Discount 15-20
Amortizing Bond Premium 15-22
A Look at IFRS 15-41

16 Investments 16-1
“Is There Anything Else We Can Buy?”:
Time Warner 16-1
Accounting for Debt Investments 16-2
Why Corporations Invest 16-2
Accounting for Debt Investments 16-4
Accounting for Stock Investments 16-6
Holdings of Less than 20% 16-6
Holdings Between 20% and 50% 16-7
Holdings of More than 50% 16-8
Reporting Investments in Financial Statements 16-10
Debt Securities 16-11
Equity Securities 16-14
Balance Sheet Presentation 16-15
Presentation of Realized and Unrealized
Gain or Loss 16-16
A Look at IFRS 16-35
17 Statement of Cash Flows 17-1
Got Cash?: Microsoft 17-1
Usefulness and Format of the Statement of
Cash Flows 17-3
Usefulness of the Statement of Cash Flows 17-3
Classification of Cash Flows 17-3
Significant Noncash Activities 17-4
Format of the Statement of Cash Flows 17-5
Preparing the Statement of Cash Flows—
Indirect Method 17-6
Indirect and Direct Methods 17-7
Indirect Method—Computer Services
Company 17-7
Step 1: Operating Activities 17-9
Summary of Conversion to Net Cash Provided
by Operating Activities—Indirect
Method 17-12
Step 2: Investing and Financing Activities 17-13
Step 3: Net Change in Cash 17-14
Analyzing the Statement of Cash Flows 17-17
Free Cash Flow 17-17
Appendix 17A: Statement of Cash Flows—Direct
Method 17-19
Step 1: Operating Activities 17-19
Step 2: Investing and Financing Activities 17-24
Step 3: Net Change in Cash 17-26
Appendix 17B: Worksheet for the Indirect Method 17-
26
Preparing the Worksheet 17-27
Appendix 17C: Statement of Cash Flows—T-Account
Approach 17-31
A Look at IFRS 17-58
18 Financial Analysis: The Big
Picture 18-1
It Pays to Be Patient: Warren Buff ett 18-2
Sustainable Income and Quality of Earnings 18-3
Sustainable Income 18-3
Quality of Earnings 18-7
Horizontal Analysis and Vertical Analysis 18-9
Horizontal Analysis 18-10
Vertical Analysis 18-12
Ratio Analysis 18-14
Liquidity Ratios 18-15
Solvency Ratios 18-16
Profitability Ratios 18-16
Comprehensive Example of Ratio Analysis 18-17
A Look at IFRS 18-51
19 Managerial Accounting 19-1
Just Add Water . . . and Paddle: Current Designs 19-1
Managerial Accounting Basics 19-3
Comparing Managerial and Financial Accounting 19-3
Management Functions 19-3
Organizational Structure 19-5
Managerial Cost Concepts 19-7
Manufacturing Costs 19-7
Product Versus Period Costs 19-8
Illustration of Cost Concepts 19-9
Manufacturing Costs in Financial Statements 19-10
Income Statement 19-11
Cost of Goods Manufactured 19-11
Cost of Goods Manufactured Schedule 19-12
Balance Sheet 19-13
Managerial Accounting Today 19-14
Service Industries 19-14
Focus on the Value Chain 19-15
Balanced Scorecard 19-17
Business Ethics 19-17
Corporate Social Responsibility 19-18
20 Job Order Costing 20-1
Profiting from the Silver Screen: Disney 20-1
Cost Accounting Systems 20-3
Process Cost System 20-3
Job Order Cost System 20-3
Job Order Cost Flow 20-4
Accumulating Manufacturing Costs 20-5
Assigning Manufacturing Costs 20-7
Raw Materials Costs 20-8
Factory Labor Costs 20-10
Predetermined Overhead Rates 20-12
Entries for Jobs Completed and Sold 20-15
Assigning Costs to Finished Goods 20-15
Assigning Costs to Cost of Goods Sold 20-16
Summary of Job Order Cost Flows 20-17
Job Order Costing for Service Companies 20-18
Advantages and Disadvantages of Job
Order Costing 20-19
Applied Manufacturing Overhead 20-20
Under- or Overapplied Manufacturing
Overhead 20-21
21 Process Costing 21-1
The Little Guy Who Could: Jones Soda 21-1
Overview of Process Cost Systems 21-3
Uses of Process Cost Systems 21-3
Process Costing for Service Companies 21-4
Similarities and Diff erences Between Job Order Cost
and Process Cost Systems 21-4
Process Cost Flow and Assigning Costs 21-6
Process Cost Flow 21-6
Assigning Manufacturing Costs—Journal Entries 21-6
Equivalent Units 21-9
Weighted-Average Method 21-9
Refinements on the Weighted-Average Method 21-10
The Production Cost Report 21-12
Compute the Physical Unit Flow (Step 1) 21-13
Compute the Equivalent Units of
Production (Step 2) 21-13
Compute Unit Production Costs (Step 3) 21-14
Prepare a Cost Reconciliation Schedule
(Step 4) 21-15
Preparing the Production Cost Report 21-15
Costing Systems—Final Comments 21-16
Appendix 21A: FIFO Method for Equivalent
Units 21-17
Equivalent Units Under FIFO 21-17
Comprehensive Example 21-18
FIFO and Weighted-Average 21-22
22 Cost-Volume-Profit 22-1
Don’t Worry—Just Get Big: Amazon.com 22-1
Cost Behavior Analysis 22-2
Variable Costs 22-3
Fixed Costs 22-3
Relevant Range 22-5
Mixed Costs 22-6
Mixed Costs Analysis 22-7
High-Low Method 22-7
Importance of Identifying Variable and
Fixed Costs 22-9
Cost-Volume-Profit Analysis 22-10
Basic Components 22-10
CVP Income Statement 22-11
Break-Even Analysis 22-14
Mathematical Equation 22-15
Contribution Margin Technique 22-15
Graphic Presentation 22-16
Target Net Income and Margin of Safety 22-18
Target Net Income 22-18
Margin of Safety 22-20
Appendix 22A: Regression Analysis 22-21
23 Incremental Analysis 23-1
Keeping It Clean: Method Products 23-1
Decision-Making and Incremental
Analysis 23-3
Incremental Analysis Approach 23-3
How Incremental Analysis Works 23-4
Qualitative Factors 23-5
Relationship of Incremental Analysis
and Activity-Based Costing 23-5
Types of Incremental Analysis 23-6
Special Orders 23-6
Make or Buy 23-8
Opportunity Cost 23-9
Sell or Process Further 23-10
Single-Product Case 23-11
Multiple-Product Case 23-11
Repair, Retain, or Replace Equipment 23-14
Eliminate Unprofitable Segment or
Product 23-15
24 Budgetary Planning 24-1
What’s in Your Cupcake?: BabyCakes NYC 24-1
Eff ective Budgeting and the Master
Budget 24-3
Budgeting and Accounting 24-3
The Benefits of Budgeting 24-3
Essentials of Eff ective Budgeting 24-3
The Master Budget 24-6
Sales, Production, and Direct Materials
Budgets 24-8
Sales Budget 24-8
Production Budget 24-9
Direct Materials Budget 9-10
Direct Labor, Manufacturing Overhead, and S&A
Expense Budgets 24-13
Direct Labor Budget 24-13
Manufacturing Overhead Budget 24-14
Selling and Administrative Expense Budget 24-15
Budgeted Income Statement 24-15
Cash Budget and Budgeted Balance Sheet 24-17
Cash Budget 24-17
Budgeted Balance Sheet 24-20
Budgeting in Nonmanufacturing
Companies 24-22
Merchandisers 24-22
Service Companies 24-23
Not-for-Profit Organizations 24-24
25 Budgetary Control and
Responsibility Accounting 25-1
Pumpkin Madeleines and a Movie: Tribeca Grand
Hotel 25-1
Budgetary Control and Static Budget
Reports 25-3
Budgetary Control 25-3
Static Budget Reports 25-4
Flexible Budget Reports 25-6
Why Flexible Budgets? 25-7
Developing the Flexible Budget 25-9
Flexible Budget—A Case Study 25-9
Flexible Budget Reports 25-11
Responsibility Accounting and Responsibility
Centers 25-13
Controllable versus Noncontrollable Revenues
and Costs 25-15
Principles of Performance Evaluation 25-15
Responsibility Reporting System 25-17
Types of Responsibility Centers 25-18
Investment Centers 25-22
Return on Investment (ROI) 25-23
Responsibility Report 25-23
Judgmental Factors in ROI 25-24
Improving ROI 25-24
Appendix 25A: ROI vs. Residual Income 25-26
Residual Income Compared to ROI 25-27
Residual Income Weakness 25-27

26 Standard Costs and Balanced

Scorecard 26-1
80,000 Diff erent Caff einated Combinations:
Starbucks 26-2
Overview of Standard Costs 26-3
Distinguishing Between Standards
and Budgets 26-4
Setting Standard Costs 26-4
Direct Materials Variances 26-7
Analyzing and Reporting Variances 26-7
Calculating Direct Materials Variances 26-9
Direct Labor and Manufacturing Overhead
Variances 26-11
Direct Labor Variances 26-11
Manufacturing Overhead Variances 26-14
Variance Reports and Balanced Scorecards 26-16
Reporting Variances 26-16
Income Statement Presentation of Variances 26-16
Balanced Scorecard 26-17
Appendix 26A: Standard Cost Accounting
System 26-20

Journal Entries 26-20

Ledger Accounts 26-22
Appendix 26B: Overhead Controllable
and Volume Variances 26-23
Overhead Controllable Variance 26-23
Overhead Volume Variance 26-24

27 Planning for Capital

Investments 27-1
Floating Hotels: Holland America Line 27-2
Capital Budgeting and Cash Payback 27-3
Cash Flow Information 27-3
Illustrative Data 27-4
Cash Payback 27-4
Net Present Value Method 27-6
Equal Annual Cash Flows 27-7
Unequal Annual Cash Flows 27-8
Choosing a Discount Rate 27-9
Simplifying Assumptions 27-9
Comprehensive Example 27-10
Capital Budgeting Challenges and
Refinements 27-11
Intangible Benefits 27-11
Profitability Index for Mutually Exclusive
Projects 27-13
Risk Analysis 27-14
Post-Audit of Investment Projects 27-15
Internal Rate of Return 27-16
Comparing Discounted Cash Flow
Methods 27-17
Annual Rate of Return 27-18

Appendix A Specimen Financial

Statements:
Apple Inc. A-1

Appendix B Specimen Financial

Statements:
PepsiCo, Inc. B-1

Appendix C Specimen Financial

Statements: The Coca-

Cola Company C-1

xvi Contents

Using Financial Calculators G-15

Present Value of a Single Sum G-16
Present Value of an Annuity G-17
Future Value of a Single Sum G-17
Future Value of an Annuity G-17
Internal Rate of Return G-18
Useful Applications of the Financial Calculator G-18
Appendix H Just-in-Time Processing
and Activity-Based
Costing H-1

Just-in-Time Processing and Activity-Based Costing H-

1
Just-in-Time Processing H-1
Activity-Based Costing H-3
Applying Activity-Based Costing H-4
Identify and Classify Activities and Assign Overhead to
Cost
Pools (Step 1) H-5
Identify Cost Drivers (Step 2) H-5
Compute Activity-Based Overhead Rates (Step 3) H-6
Allocate Overhead Costs to Products (Step 4) H-6
Comparing Unit Costs H-7
Benefits of ABC H-8
Limitations of ABC H-8
Cases for Managerial Decision-Making
(The full text of these cases is available in WileyPLUS.)
Company Index I-1
Subject Index I-4

Appendix D Specimen Financial

Statements:
Amazon.com, Inc. D-1

Appendix E Specimen Financial

Statements: Wal-Mart
Stores, Inc. E-1

Appendix F Specimen Financial

Statements: Louis
Vuitton F-1

Appendix G Time Value of Money G-1

Interest and Future Values G-1
Nature of Interest G-1
Future Value of a Single Amount G-3
Future Value of an Annuity G-5
Present Values G-7
Present Value Variables G-7
Present Value of a Single Amount G-7
Present Value of an Annuity G-9
Time Periods and Discounting G-11
Present Value of a Long-Term Note or Bond G-11
Capital Budgeting Situations G-14
 CHAPTER 1: Accounting in Action

Feature Story Knowing the Numbers Many students

who take this course do not plan to be accountants. If
you are in that group, you might be thinking, “If I’m not
going to be an accountant, why do I need to know
accounting?” Well, consider this quote from Harold
Geneen, the former chairman of IT&T: “To be good at
your business, you have to know the numbers—cold.”
In business, accounting and financial statements are
the means for communicating the numbers. If you
don't know how to read financial statements, you
can't really know your business.

Knowing the numbers is sometimes even a matter of

corporate survival. Consider the story of Columbia
Sportswear Company, headquartered in Portland,
Oregon. Gert Boyle's family fl ed Nazi Germany when
she was 13 years old and then purchased a small hat
company in Oregon, Columbia Hat CHAPTER 1 © My
Good Images/Shutterstock Chapter Preview The
following Feature Story about Columbia Sportswear
Company highlights the importance of having good fi
nancial information and knowing how to use it to make
effective business decisions. Whatever your pursuits
or occupation, the need for financial information is
inescapable. You cannot earn a living, spend money,
buy on credit, make an investment, or pay taxes
without receiving, using, or dispensing financial
information. Good decision-making depends on good
information.
The Chapter Preview describes the purpose of the
chapter and highlights major topics.

The Feature Story helps you picture how the chapter

topic relates to the real world of accounting and
business.

1-2 CHAPTER 1 Accounting in Action Company. In

1971, Gert's husband, who was then running the
company, died suddenly of a heart attack. The
company was in the midst of an aggressive expansion,
which had taken its sales above $1 million for the first
time but which had also left the company financially
stressed. Gert took over the small, struggling
company with help from her son Tim, who was then a
senior at the University of Oregon. Somehow, they
kept the company afl oat. Today, Columbia has more
than 4,000 employees and annual sales in excess of
$1 billion. Its brands include Columbia, Mountain
Hardwear, Sorel, and Montrail.
Gert still heads up the Board of Directors, and Tim is
the company's President and CEO.
Columbia doesn't just focus on financial success. The
company is very committed to corporate, social, and
environmental responsibility. For example, several of
its factories have participated in a project to increase
health awareness of female factory workers in
developing countries. Columbia was also a founding
member of the Sustainable Apparel Coalition, which is
a group that strives to reduce the environmental and
social impact of the apparel industry. In addition, it
monitors all of the independent factories that produce
its products to ensure that they comply with the
company's Standards of Manufacturing Practices.
These standards address issues including forced
labor, child labor, harassment, wages and benefits,
health and safety, and the environment.

Employers such as Columbia Sportswear generally

assume that managers in all areas of the company are
“financially literate.” To help prepare you for that, in
this textbook you will learn how to read and prepare
financial statements, and how to use basic tools to
evaluate financial results.

Find the Full Original Textbook (PDF) in the link

below:

CLICK HERE