Financial accounting : tools for business decision-making

Description

Cover Title Page Copyright Page Your Team for Success in Accounting About the Authors What’s New Active Teaching and Learning Supplementary Material Acknowledgements Student Success is a Team Effort Brief Contents Contents Chapter 1 The Purpose and Use of Financial Statements Managing a Healthy Bottom Line Uses and Users of Accounting Internal Users External Users Ethical Behaviour by Users Forms of Business Organization Proprietorships Partnerships Corporations Generally Accepted Accounting Principles for Business Organizations Business Activities Financing Activities Investing Activities Operating Activities Summary of Business Activities Communicating with Users Sierra's Financial Statements Shoppers Drug Mart's Financial Statements Elements of an Annual Report Chapter 2 A Further Look at Financial Statements Real Values and International Standards The Classified Statement of Financial Position (Balance Sheet) Assets Liabilities Shareholders' Equity Comprehensive Illustration Using the Financial Statements Using the Statement of Financial Position (Balance Sheet) Using the Income Statement Framework for the Preparation and Presentation of Financial Statements Objective of Financial Reporting Qualitative Characteristics of Useful Financial Information Cost Constraint on Useful Financial Reporting Underlying Assumption Elements of Financial Statements Measurement of the Elements Summary of Conceptual Framework Chapter 3 The Accounting Information System Learning to Handle the Dough Accounting Transactions Analyzing Transactions Summary of Transactions The Account Debits and Credits Summary of Debit and Credit Effects The Journal Recording Process General Journal The Ledger General Ledger Posting The Recording Process Illustrated The Trial Balance Limitations of a Trial Balance Chapter 4 Accrual Accounting Concepts School's Out, Time to Balance the Books Timing Issues Revenue Recognition Expense Recognition Accrual Versus Cash Basis of Accounting The Basics of Adjusting Entries Types of Adjusting Entries Adjusting Entries for Prepayments Adjusting Entries for Accruals Sierra Corporation Illustration The Adjusted Trial Balance and Financial Statements Preparing the Adjusted Trial Balance Preparing Financial Statements Closing the Books Preparing Closing Entries Preparing a Post-Closing Trial Balance Chapter 5 Merchandising Operations Going with the Flow Merchandising Operations Operating Cycles Income Measurement Process Inventory Systems Recording Purchases of Merchandise Purchases Sales Taxes Freight Costs Purchase Returns and Allowances Discounts Summary of Purchase Transactions Recording Sales of Merchandise Sales Sales Taxes Freight Costs Sales Returns and Allowances Discounts Summary of Sales Transactions Summary of Merchandising Entries Income Statement Presentation Single-Step Income Statement Multiple-Step Income Statement Evaluating Profitability Gross Profit Margin Profit Margin Appendix 5A-Periodic Inventory System Chapter 6 Reporting and Analyzing Inventory lululemon athletica Stretches Inventory Levels Determining Inventory Quantities Taking a Physical Inventory Determining Ownership of Goods Inventory Cost Determination Methods Specific Identification First-In, First-Out (FIFO) Average Cost Effects of Cost Determination Methods Choice of Cost Determination Method Financial Statement Effects Inventory Errors Errors Made when Determining the Cost of Inventory Errors Made when Recording the Purchase of Inventory Presentation and Analysis of Inventory Valuing Inventory at the Lower of Cost and Net Realizable Value Reporting Inventory Inventory Turnover Appendix 6A-Inventory Cost Determination Methods in Periodic System Chapter 7 Internal Control and Cash Controlling Cash at Nick's Internal Control Control Activities Limitations of Internal Control Cash Controls Control Activities over Cash Receipts Control Activities over Cash Payments Bank Accounts-A Key Control Activity Bank Statements Reconciling the Bank Account Reporting and Managing Cash Reporting Cash Managing Cash Chapter 8 Reporting and Analyzing Receivables Varying Degrees of Credit Accounts Receivable Recording Accounts Receivable Subsidiary Ledgers Interest Revenue Uncollectible Accounts Receivable Measuring and Recording Estimated Uncollectible Accounts Writing off Uncollectible Accounts Collecting Uncollectible Accounts Summary of Allowance Method Notes Receivable Recording Notes Receivable Derecognizing Notes Receivable Statement Presentation of Receivables Statement of Financial Position Income Statement Managing Receivables Extending Credit Establishing a Payment Period Monitoring Collections Evaluating Liquidity of Receivables Chapter 9 Reporting and Analyzing Long-Lived Assets WestJet's Assets Are for the Long Haul Property, Plant, and Equipment Determining Cost Depreciation Derecognition Intangible Assets and Goodwill Accounting for Intangible Assets Goodwill Statement Presentation of Long-Lived Assets Statement of Financial Position Income Statement Statement of Cash Flows Analyzing Assets Return on Assets Asset Turnover Profit Margin Revisited Chapter 10 Reporting and Analyzing Liabilities Canada Post Borrows for Future Gains Current Liabilities Operating Line of Credit Sales Taxes Property Taxes Payroll Short-Term Notes Payable Current Maturities of Non-Current Debt Provisions and Contingent Liabilities Non-current Liabilities: Instalment Notes Payable Fixed Principal Payments Plus Interest Blended Principal and Interest Payments Current and Non-current Portions Statement Presentation and Analysis Presentation Analysis Appendix 10A-Bonds Payable Chapter 11 Reporting and Analyzing Shareholders' Equity Brewing Shareholder Return Corporate Form of Organization Characteristics of a Corporation Share Issue Considerations Share Capital Common Shares Preferred Shares Dividends Cash Dividends Stock Dividends Stock Splits Comparison of Effects Presentation of Shareholders' Equity Statement of Financial Position Statement of Changes in Equity (IFRS) Statement of Retained Earnings (ASPE) Summary of Shareholders' Equity Transactions Measuring Corporate Performance Dividend Record Earnings Performance Chapter 12 Reporting and Analyzing Investments Managing Money for Clients and the Company Classifying Investments Non-Strategic Investments Strategic Investments Accounting for Non-Strategic Investments Valuation of Non-Strategic Investments Using Fair Value Models Accounting for Strategic Investments Using the Equity Method Using the Cost Model Reporting Investments Income Statement Statement of Comprehensive Income Statement of Changes in Equity Statement of Financial Position Consolidated Financial Statements Appendix 12A-Investments in Bonds with Discounts and Premiums Chapter 13 Statement of Cash Flows Cash Flow Can Be a Rocky Road Reporting of Cash Flows Purpose of the Statement of Cash Flows Content of the Statement of Cash Flows Preparing the Statement of Cash Flows Step 1: Operating Activities Section 1: Indirect Method Section 2: Direct Method Step 2: Investing Activities Step 3: Financing Activities Step 4: The Statement of Cash Flows Using Cash Flows to Evaluate a Company Liquidity Solvency Chapter 14 Performance Measurement From the Fur Trade to Fifth Avenue Sustainable Income Statement of Financial Position Income Statement Comparative Analysis Horizontal Analysis Vertical Analysis Ratio Analysis Liquidity Ratios Solvency Ratios Profitability Ratios Limitations of Financial Analysis Alternative Accounting Policies Professional Judgement Comprehensive Income Diversification Inflation Economic Factors Appendices A Specimen Financial Statements: Shoppers Drug Mart Corporation B Specimen Financial Statements: The Jean Coutu Group (PJC) Inc. Company Index Subject Index