Accounting: Business Reporting for Decision Making, 6th Edition
Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver
ISBN: 9780730329886
Accounting: Business Reporting for Decision Making, 6th Edition builds on the success of its previous editions, but now has an enhanced business focus and ensuring key concepts are highlighted through business scenarios. In most chapters, we have used JB Hi-Fi Ltd either as case-study or as a basis for the chapter’s exercises or problems, which provides you with interesting real-world examples designed to support you to critically apply course concepts to real-world contexts. Each chapter contains a series of pre-work, activities and revision learning tools to support your studies and enhance understanding.
This is the latest offering from Jacqueline Birt, a Senior Lecturer at the University of Queensland and market-leading Accounting author. This resource is most suitable for introductory accounting units that have a focus on financial decision making in business rather than the preparation of financial reports. It is also highly suited to first-year units in accounting in business degrees, MBA introductory accounting units and accounting service units.
ENJOY.
Author(s): Jacqueline Birt et al.
Edition: 6th
Publisher: Wiley
Year: 2016
Language: English
Pages: 662
Cover......Page 1
Title Page......Page 3
Copyright Page......Page 4
Contents......Page 5
Preface......Page 11
About the authors......Page 14
CHAPTER 1 Introduction to accounting and business decision making......Page 15
1.1 The accounting process......Page 16
1.2 Accounting information and its role in decision making......Page 18
1.3 Financial accounting and management accounting......Page 20
1.4 Role of accounting information in business planning......Page 22
1.6 Sources of company regulation......Page 24
1.7 Australian and international accounting standards......Page 28
1.8 Role of the conceptual framework......Page 31
1.9 Limitations of accounting information......Page 35
1.10 Careers in accounting......Page 37
CHAPTER 2 Accounting in society......Page 67
2.1 Business sustainability, drivers, principles and theories......Page 68
2.2 Reporting and disclosure......Page 72
2.3 Corporate governance......Page 76
2.4 Corporate governance principles, guidelines and practices......Page 78
2.5 Ethics in business......Page 79
2.6 Professional codes of ethics and ethical
decision-making methods......Page 84
CHAPTER 3 Business structures......Page 103
3.1 Forms of business entities......Page 104
3.2 Definition and features of a sole trader......Page 105
3.3 Advantages and disadvantages of a sole trader......Page 106
3.5 Advantages and disadvantages of a partnership......Page 108
3.6 Definition and features of a company......Page 110
3.7 Types of companies......Page 111
3.8 Advantages and disadvantages of a company......Page 114
3.10 Advantages and disadvantages of a trust......Page 115
3.11 Comparison of business reports......Page 117
3.12 Differential reporting......Page 123
CHAPTRT 4 Business transactions......Page 138
4.1 Recognising business transactions......Page 139
4.2 Business and personal transactions and business events......Page 140
4.3 The accounting equation......Page 141
4.4 Analysis of business transactions......Page 142
4.5 The accounting worksheet......Page 144
4.6 Capturing accounting information: journals and ledger accounts......Page 147
4.7 Rules of debit and credit......Page 149
4.8 The trial balance......Page 151
4.9 Accounting errors......Page 152
CHAPTER 5 Balance sheet......Page 170
5.1 Financial reporting obligations......Page 171
5.2 Nature and purpose of the balance sheet......Page 173
5.3 Accounting policy choices, estimates
and judgements......Page 177
5.4 The definition of assets......Page 179
5.5 The definition of liabilities......Page 181
5.6 The definition and nature of equity......Page 182
5.7 Assets, liabilities and equity......Page 183
5.8 Format and presentation of the balance sheet......Page 184
5.9 Presentation and disclosure of elements
on the balance sheet......Page 187
5.10 Measurement of various assets and liabilities......Page 199
5.11 Potential limitations of the balance sheet......Page 207
CHAPTER 6 Statement of profit or loss and statement of changes in equity......Page 230
6.1 Purpose and importance of measuring financial performance......Page 231
6.2 Accounting concepts for financial reporting......Page 233
6.3 Effect of accounting policy choices, estimates and judgements on financial statements......Page 238
6.5 Income......Page 242
6.6 Expenses......Page 243
6.7 Applying recognition criteria to income
and expenses......Page 245
6.8 Presenting the statement of profit or loss......Page 249
6.9 Financial performance measures......Page 253
6.10 The statement of comprehensive income......Page 255
6.11 The link between the financial statements......Page 258
CHAPTER 7 Statement of cash flows......Page 279
7.1 The purpose and usefulness of a statement of cash flows......Page 280
7.2 Format of the statement of cash flows......Page 293
7.3 Preparing the statement of cash flows......Page 298
7.4 Analysing the statement of cash flows......Page 307
CHAPTER 8 Analysis and interpretation of financial statements......Page 333
8.1 Users and decision making......Page 334
8.3 Analytical methods......Page 336
8.4 Profitability analysis......Page 346
8.5 Asset efficiency analysis......Page 351
8.6 Liquidity analysis......Page 355
8.7 Capital structure analysis......Page 357
8.8 Market performance analysis......Page 360
8.9 Ratio interrelationships......Page 363
8.10 Limitations of ratio analysis......Page 365
CHAPTER 9 Budgeting......Page 396
9.1 Strategic planning and budgeting......Page 397
9.2 Budgets......Page 399
9.3 Types of budgets......Page 401
9.4 Master budget......Page 402
9.5 The cash budget......Page 409
9.6 Budgets: planning and control......Page 412
9.7 Behavioural aspects of budgeting......Page 414
CHAPTER 10 Cost–volume–profit analysis......Page 434
10.1 Cost behaviour......Page 435
10.2 Break-even analysis......Page 438
10.3 Contribution margin ratio......Page 445
10.5 Using break-even data......Page 446
10.6 Operating leverage......Page 447
10.7 Contribution margin per limiting factor......Page 449
10.8 Relevant information for decision making......Page 450
10.9 Outsourcing decisions......Page 451
10.10 Special order decisions......Page 454
CHAPTER 11 Costing and pricing in an entity......Page 476
11.1 Use of cost information......Page 477
11.2 Direct costs......Page 478
11.3 Cost allocation......Page 480
11.4 Allocation process......Page 484
11.5 Inventoriable product cost......Page 492
11.6 Pricing of products and services......Page 497
CHAPTER 12 Capital investment......Page 514
12.1 The nature and scope of investment decisions......Page 515
12.2 Accounting rate of return......Page 519
12.3 Payback period......Page 520
12.4 Net present value......Page 521
12.5 Internal rate of return......Page 527
12.6 Practical issues in making decisions......Page 530
CHAPTER 13 Financing the business......Page 544
13.1 Managing net working capital......Page 545
13.2 Managing cash......Page 547
13.3 Managing accounts receivable......Page 549
13.4 Managing inventories......Page 552
13.5 Sources of short-term finance......Page 555
13.6 Sources of long-term debt finance......Page 560
13.7 Equity finance......Page 563
13.8 Hybrid finance......Page 565
13.9 International sources of funding......Page 566
CHAPTER 14 Performance measurement......Page 576
14.1 Organisational performance measurement......Page 577
14.2 Divisional performance measurement......Page 583
14.3 Investment centre performance evaluation......Page 588
14.4 Environmental and social performance......Page 594
14.5 Individual performance measurement......Page 599
14.6 Non-financial performance evaluation......Page 601
Appendix......Page 620
EULA......Page 662
