Financial Accounting / Edition 4

Financial Accounting / Edition 4

by Walter T. Harrison, Charles T. Horngren

ISBN-10: 0130128465

ISBN-13: 9780130128461

Pub. Date: 07/28/2000

Publisher: Prentice Hall Professional Technical Reference

Financial Accounting, 7e helps users LEARN, PRACTICE, and REMBEMBER the accounting cycle. A specially designed Accounting Cycle Tutorial program is integrated in the first three chapters (icons in the margin point readers to an online program, a free website that accompanies the book). The program includes tutorials, interactive animations, and practice questions

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Financial Accounting, 7e helps users LEARN, PRACTICE, and REMBEMBER the accounting cycle. A specially designed Accounting Cycle Tutorial program is integrated in the first three chapters (icons in the margin point readers to an online program, a free website that accompanies the book). The program includes tutorials, interactive animations, and practice questions that provide readers with additional, beyond the book instruction on the accounting cycle. This book also provides a no password required online practice environment where readers can work on problems that help them master the accounting cycle and gauge their comprehension. A unique Accounting Cycle Pocket Guide is included for readers to use as a handy reference—it illustrates the key steps in the accounting cycle.

This book covers the full range of topics in financial accounting: financial statements, processing information, accrual accounting, internal control and cash, short-term investments and receivables, inventory, plant assets, current and long-term liabilities, stockholders' equity, long-term investments and international operations, using the income statement and statement of stockholders' equity, the statement of cash flows, and financial statement analysis.

For accountants and employees in accounting departments.

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Product Details

Prentice Hall Professional Technical Reference
Publication date:
Charles T. Horngren Accounting Series
Edition description:
Older Edition
Product dimensions:
8.50(w) x 10.87(h) x (d)

Table of Contents

Ch. 1The final statements2
Spotlight : YUM! brands2
Business decisions5
Accounting : the language of business5
Accounting alert : we need an audit to validate the financial statements7
Accounting's foundation : principles and concepts9
The accounting equation12
The financial statements14
Relationships among the financial statements22
Making managerial decisions : in evaluating a company, what do decision makers look for?24
Ch. 2Transaction analysis48
Spotlight : Apple Computer, Inc.48
The account50
Accounting alert : single-entry accounting doesn't cut it53
Accounting for business transactions53
Double-entry accounting62
Recording transactions65
The trial balance71
Making managerial decisions : how to measure results of operations and financial position76
Ch. 3Using accrual accounting to measure income104
Spotlight : Callaway Golf Company104
Accrual accounting versus cash-basis accounting106
Accounting alert : cash-basis accounting doesn't cut it either107
Accounting alert : earnings management and cookie jar reserves110
Updating the accounts : the adjustment process111
Preparing the financial statements124
Formats for the financial statements133
Using accounting ratios134
Making managerial decisions : using the current ratio and the debt ratio138
Ch. 4Internal control & cash172
Spotlight : Merrill Lynch takes a hit172
Internal control174
Accounting alert : are the outside auditors really independent?177
Accounting alert : three faces of internal control181
The bank account as a control device182
Controlling and managing cash189
Ethics and accounting193
Making managerial decisions : ethical judgments195
Ch. 5Short-term investments & receivables216
Spotlight : how Ford Motor Company makes its money216
Short-term investments218
Accounting alert : is that investment really a current asset?221
Accounts and notes receivable223
Making managerial decisions : managing and accounting for receivables225
Accounting for uncollectible receivables226
Accounting alert : shifting sales into the current period makes you look good now, but you pay for it later231
Notes receivable232
Using two key ratios to make decisions235
Reporting on the statement of cash flows237
Ch. 6Merchandise inventory and cost of goods sold260
Spotlight : Pier 1 Imports260
Accounting for inventory262
Inventory costing267
Accounting principles related to inventory274
Inventory and the financial statements276
Additional inventory issues278
Accounting alert : cooking the books to increase reported income281
Making managerial decisions : accounting for inventory283
App. 6AAccounting in the periodic system309
App. 6BThe LIFO reserve - converting a LIFO company's income to the FIFO basis312
Ch. 7Plant assets, natural resources, and intangibles314
Spotlight : UPS to the rescue314
Types of assets316
Accounting alert : is that cost really an asset?320
Measuring plant asset depreciation320
Other issues in accounting for plant assets327
Accounting for natural resources334
Accounting for intangible assets334
Reporting plant asset transactions on the statement of cash flows337
Making managerial decisions : plant assets and related expenses340
Ch. 8Current & long-term liabilities362
Spotlight : tough times for the airlines362
Current liabilities364
Accounting alert : are all your liabilities reported on the balance sheet?370
Long-term liabilities : bonds372
Making managerial decisions : financing with debt or with stock386
Long-term liabilities : leases and pensions387
Reporting liabilities390
Ch. 9Stockholders' equity416
Spotlight : IHOP goes public416
Organizing a corporation419
Issuing stock422
Accounting alert : a stock issuance for other than cash can pose an accounting problem426
Treasury stock transactions429
Retained earnings, dividends, and splits431
Measuring the value of stock435
Reporting stockholders' equity transactions438
Making managerial decisions : investing in stock440
Ch. 10Long-term investments & international operations468
Spotlight : the two parts of GE468
Stock investments : a review470
Available-for-sale investments471
Accounting alert : when should we sell that investment in Hewlett-Packard stock?475
Equity-method investments485
Consolidated subsidiaries477
Long-term investments in bonds and notes481
Making managerial decisions : accounting methods for long-term investments482
Accounting for international operations484
Investing activities on the statement of cash flows490
Ch. 11The income statement & the statement of stockholders' equity500
Spotlight : is something happening to best buy?510
Evaluating the quality of earnings512
Accounting alert : watch out for voluntary accounting changes that increase reported income516
Accounting alert : beware of pro forma earnings519
Accounting for corporate income taxes519
Analyzing retained earnings521
Analyzing the statement of stockholders' equity522
Responsibility for the financial statements524
Making managerial decisions : using the income statement and related notes in investment analysis526
Ch. 12The statement of cash flows546
Spotlight : eBay outlines global business strategy546
Basic concepts : the statement of cash flows548
Accounting alert : how's your cash flow? : telltale signs of financial difficulty549
Preparing the statement of cash flows : indirect method551
Preparing the statement of cash flows : direct method564
Measuring cash adequacy : free cash flow573
Making managerial decisions : investor's and creditors' use of cash flow and related information574
Ch. 13Financial statement analysis606
Spotlight : how well is YUM! doing?606
Horizontal analysis608
Vertical analysis611
Using ratios to make business decisions617
Accounting alert : the limitations of ratio analysis620
Other measures627
Accounting alert : red flags in financial statement analysis628
Making managerial decisions : using ratios in financial statement analysis629
App. AYUM! Brands annual report 2003659
App. BPier 1 Imports annual report 2004671
App. CTime value of money : future value and present value679
App. DTypical charts of accounts for different types of businesses689
App. ESummary of generally accepted accounting principles (GAAP)691
App. FCheck figures693

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