Table of Contents

1 Introduction to Financial Statements 2

2 A Further Look at Financial Statements 46

3 The Accounting Information System 100

4 Accrual Accounting Concepts 162

5 Merchandising Operations and the Multiple-Step Income Statement 228

6 Reporting and Analyzing Inventory 282

7 Fraud, Internal Control, and Cash 334

8 Reporting and Analyzing Receivables 396

9 Reporting and Analyzing Long-Lived Assets 446

10 Reporting and Analyzing Liabilities 504

11 Reporting and Analyzing Stockholders? Equity 568

12 Statement of Cash Flows 624

13 Financial Analysis: The Big Picture 688

14 Managerial Accounting 752

15 Job Order Costing 798

16 Process Costing 844

17 Activity-Based Costing 894

18 Cost-Volume-Profit 944

19 Cost-Volume-Profit Analysis: Additional Issues 984

20 Incremental Analysis 1040

21 Budgetary Planning 1080

22 Budgetary Control and Responsibility Accounting 1132

23 Standard Costs and Balanced Scorecard 1192

24 Planning for Capital Investments 1244

APPENDICES

A Specimen Financial Statements: Tootsie Roll Industries, Inc. A-1

B Specimen Financial Statements: The Hershey Company B-1

C Specimen Financial Statements: Zetar plc C-1

D Time Value of Money D-1

E Reporting and Analyzing Investments E-1*

F Payroll Accounting F-1*

G Subsidiary Ledgers and Special Journals G-1*

H Accounting for Partnerships H-1*

I Accounting for Sole Proprietorships I-1*

J Pricing J-1

Company Index I-1

Subject Index I-3