Weygandt's Financial Accounting, 9th Edition offers a more in-depth introduction to financial accounting with a continued focus on relevant examples based on everyday life. The goal of this text is to help readers further understand the fundamental concepts necessary to use accounting effectively today, as well as an introduction to IFRS and how to use accounting in the future. Kimmel, Weygandt and Kieso present real financial statements and establish how a financial statement communicates the financing, investing, and operating activities of a business to users of accounting information.
Author(s): Jerry J. Weygandt, Kieso, Paul D. Kimmel
Edition: 9
Publisher: Wiley
Year: 2013
Language: English
Pages: 763
Tags: Финансово-экономические дисциплины;Бухгалтерский учет;Финансовый учет;
Cover......Page 1
Title Page......Page 5
Copyright Page......Page 6
Brief Contents......Page 7
Contents......Page 23
Feature Story: Knowing the Numbers ......Page 32
Three Activities ......Page 34
Who Uses Accounting Data? ......Page 35
Ethics in Financial Reporting ......Page 37
Generally Accepted Accounting Principles ......Page 38
Measurement Principles ......Page 39
Assumptions ......Page 40
The Basic Accounting Equation ......Page 42
Stockholders' Equity ......Page 43
Using the Accounting Equation ......Page 45
Transaction Analysis ......Page 46
Summary of Transactions ......Page 51
Income Statement ......Page 52
Balance Sheet ......Page 54
Statement of Cash Flows ......Page 55
Private Accounting ......Page 60
"Show Me the Money" ......Page 61
A Look at IFRS ......Page 80
Feature Story: Accidents Happen ......Page 84
Debits and Credits ......Page 86
Summary of Debit/Credit Rules ......Page 90
Steps in the Recording Process ......Page 91
The Journal ......Page 92
The Ledger ......Page 95
Posting ......Page 96
The Recording Process Illustrated ......Page 98
Summary Illustration of Journalizing and Posting ......Page 104
The Trial Balance ......Page 105
Limitations of a Trial Balance ......Page 106
Use of Dollar Signs ......Page 107
A Look at IFRS ......Page 130
Feature Story: Keeping Track of Groupons ......Page 132
Accrual- versus Cash-Basis Accounting ......Page 134
Recognizing Revenues and Expenses ......Page 135
The Basics of Adjusting Entries ......Page 136
Types of Adjusting Entries ......Page 137
Adjusting Entries for Deferrals ......Page 138
Adjusting Entries for Accruals ......Page 144
Summary of Basic Relationships ......Page 150
Preparing Financial Statements ......Page 153
APPENDIX 3A Alternative Treatment of Prepaid Expenses and Unearned Revenues ......Page 158
Prepaid Expenses ......Page 159
Unearned Revenues ......Page 160
Summary of Additional Adjustment Relationships ......Page 161
Qualities of Useful Information ......Page 162
Principles in Financial Reporting ......Page 163
Cost Constraint ......Page 164
A Look at IFRS ......Page 191
Feature Story: Everyone Likes to Win ......Page 194
Using a Worksheet ......Page 196
Steps in Preparing a Worksheet ......Page 197
Preparing Financial Statements from a Worksheet ......Page 199
Closing the Books ......Page 201
Preparing Closing Entries ......Page 202
Posting Closing Entries ......Page 204
Preparing a Post-Closing Trial Balance ......Page 206
Summary of the Accounting Cycle ......Page 208
Reversing Entries—An Optional Step ......Page 209
Correcting Entries—An Avoidable Step ......Page 210
The Classified Balance Sheet ......Page 211
Current Assets ......Page 212
Long-Term Investments ......Page 213
Intangible Assets ......Page 214
Current Liabilities ......Page 216
Stockholders' (Owners') Equity ......Page 217
Reversing Entries Example ......Page 222
A Look at IFRS ......Page 245
Feature Story: Buy Now, Vote Later ......Page 250
Operating Cycles ......Page 252
Flow of Costs ......Page 253
Recording Purchases of Merchandise ......Page 255
Freight Costs ......Page 256
Purchase Returns and Allowances ......Page 257
Purchase Discounts ......Page 258
Summary of Purchasing Transactions ......Page 259
Recording Sales of Merchandise ......Page 260
Sales Returns and Allowances ......Page 261
Sales Discounts ......Page 262
Closing Entries ......Page 264
Summary of Merchandising Entries ......Page 265
Multiple-Step Income Statement ......Page 266
Classified Balance Sheet ......Page 270
Using a Worksheet ......Page 274
Determining Cost of Goods Sold Under a Periodic System ......Page 276
Recording Purchases of Merchandise ......Page 277
Recording Sales of Merchandise ......Page 278
Journalizing and Posting Closing Entries ......Page 279
Using a Worksheet ......Page 280
A Look at IFRS ......Page 305
Feature Story: "Where Is That Spare Bulldozer Blade?" ......Page 308
Classifying Inventory ......Page 310
Determining Inventory Quantities ......Page 311
Inventory Costing ......Page 314
Cost Flow Assumptions ......Page 315
Financial Statement and Tax Effects of Cost Flow Methods ......Page 320
Using Inventory Cost Flow Methods Consistently ......Page 322
Lower-of-Cost-or-Market ......Page 323
Income Statement Effects ......Page 324
Balance Sheet Effects ......Page 325
Presentation ......Page 326
Analysis ......Page 327
First-In, First-Out (FIFO) ......Page 331
Average-Cost ......Page 332
Gross Profit Method ......Page 335
Retail Inventory Method ......Page 336
A Look at IFRS ......Page 358
Feature Story: Minding the Money in Moose Jaw ......Page 362
The Sarbanes-Oxley Act ......Page 364
Internal Control ......Page 365
Principles of Internal Control Activities ......Page 366
Limitations of Internal Control ......Page 372
Cash Receipts Controls ......Page 374
Cash Disbursements Controls ......Page 377
Petty Cash Fund ......Page 378
Writing Checks ......Page 382
Bank Statements ......Page 383
Reconciling the Bank Account ......Page 385
Electronic Funds Transfer (EFT) System ......Page 389
Cash Equivalents ......Page 390
Restricted Cash ......Page 391
A Look at IFRS ......Page 413
Feature Story: A Dose of Careful Management Keeps Receivables Healthy ......Page 416
Accounts Receivable ......Page 418
Recognizing Accounts Receivable ......Page 419
Valuing Accounts Receivable ......Page 420
Disposing of Accounts Receivable ......Page 426
Notes Receivable ......Page 429
Determining the Maturity Date ......Page 430
Valuing Notes Receivable ......Page 431
Disposing of Notes Receivable ......Page 432
Analysis ......Page 435
A Look at IFRS ......Page 456
Feature Story: How Much for a Ride to the Beach? ......Page 458
Determining the Cost of Plant Assets ......Page 460
Depreciation ......Page 463
Expenditures During Useful Life ......Page 471
Plant Assets Disposals ......Page 472
Natural Resources ......Page 474
Presentation ......Page 475
Intangible Assets ......Page 476
Accounting for Intangible Assets ......Page 477
Research and Development Costs ......Page 479
Presentation ......Page 480
Analysis ......Page 481
Loss Treatment ......Page 485
Gain Treatment ......Page 486
A Look at IFRS ......Page 505
Feature Story: Financing His Dreams ......Page 510
Notes Payable ......Page 512
Sales Taxes Payable ......Page 513
Payroll and Payroll Taxes Payable ......Page 514
Unearned Revenues ......Page 516
Current Maturities of Long-Term Debt ......Page 517
Statement Presentation and Analysis ......Page 518
Bond Basics ......Page 519
Accounting for Bond Issues ......Page 524
Accounting for Bond Redemptions ......Page 528
Accounting for Long-Term Notes Payable ......Page 530
Statement Presentation and Analysis ......Page 532
Present Value of a Single Amount ......Page 537
Present Value of Interest Payments (Annuities) ......Page 539
Computing the Present Value of a Bond ......Page 540
Amortizing Bond Discount ......Page 542
Amortizing Bond Premium ......Page 544
Amortizing Bond Discount ......Page 546
Amortizing Bond Premium ......Page 547
A Look at IFRS ......Page 569
Feature Story: What's Cooking? ......Page 572
Characteristics of a Corporation ......Page 574
Forming a Corporation ......Page 576
Stock Issue Considerations ......Page 578
Corporate Capital ......Page 581
Accounting for Common Stock ......Page 583
Accounting for Treasury Stock ......Page 586
Accounting for Preferred Stock ......Page 590
Cash Dividends ......Page 592
Stock Dividends ......Page 595
Stock Splits ......Page 597
Retained Earnings ......Page 599
Retained Earnings Restrictions ......Page 600
Retained Earnings Statement ......Page 601
Presentation ......Page 603
Analysis ......Page 604
APPENDIX 11A Stockholders' Equity Statement ......Page 608
Book Value per Share ......Page 609
Book Value versus Market Price ......Page 610
A Look at IFRS ......Page 630
Feature Story: "Is There Anything Else We Can Buy?" ......Page 634
Why Corporations Invest ......Page 636
Recording Bond Interest ......Page 637
Recording Sale of Bonds ......Page 638
Holdings of Less than 20% ......Page 639
Holdings Between 20% and 50% ......Page 640
Holdings of More than 50% ......Page 642
Categories of Securities ......Page 644
Balance Sheet Presentation ......Page 648
Presentation of Realized and Unrealized Gain or Loss ......Page 649
Classified Balance Sheet ......Page 650
Consolidated Balance Sheet ......Page 654
Consolidated Income Statement ......Page 657
A Look at IFRS ......Page 675
Feature Story: Got Cash? ......Page 678
Classification of Cash Flows ......Page 680
Format of the Statement of Cash Flows ......Page 682
Indirect and Direct Methods ......Page 684
Preparing the Statement of Cash Flows—Indirect Method ......Page 685
Step 1: Operating Activities ......Page 686
Summary of Conversion to Net Cash Providedby Operating Activities—Indirect Method ......Page 690
Step 2: Investing and Financing Activities ......Page 691
Step 3: Net Change in Cash ......Page 692
Free Cash Flow ......Page 695
APPENDIX 13A Statement of Cash Flows—Direct Method ......Page 700
Step 1: Operating Activities ......Page 701
Step 2: Investing and Financing Activities ......Page 705
Step 3: Net Change in Cash ......Page 707
APPENDIX 13B Using a Worksheet to Prepare the Statement of Cash Flows—Indirect Method ......Page 708
Preparing the Worksheet ......Page 709
APPENDIX 13C Statement of Cash Flows—T-Account Approach ......Page 714
A Look at IFRS ......Page 739
Feature Story: It Pays to Be Patient ......Page 742
Tools of Analysis ......Page 744
Horizontal Analysis ......Page 745
Income Statement ......Page 746
Retained Earnings Statement ......Page 747
Balance Sheet ......Page 748
Income Statement ......Page 749
Ratio Analysis ......Page 750
Liquidity Ratios ......Page 752
Profitability Ratios ......Page 755
Solvency Ratios ......Page 759
Summary of Ratios ......Page 760
Discontinued Operations ......Page 763
Extraordinary Items ......Page 764
Changes in Accounting Principle ......Page 765
Comprehensive Income ......Page 766
Pro Forma Income ......Page 767
Improper Recognition ......Page 768
A Look at IFRS ......Page 791
Appendix A Specimen Financial Statements: Apple Inc.......Page 795
Appendix B Specimen Financial Statements:PepsiCo, Inc.......Page 799
Appendix C Specimen Financial Statements:The Coca-Cola Company......Page 805
Appendix D Specimen Financial Statements: Amazon.com, Inc.......Page 809
Appendix E Specimen Financial Statements: Wal-Mart Stores, Inc.......Page 813
Appendix F Specimen Financial Statements: Zetar plc......Page 817
Simple Interest......Page 821
Future Value of a Single Amount......Page 822
Future Value of an Annuity......Page 824
Present Value of a Single Amount......Page 827
Present Value of an Annuity......Page 829
Computing the Present Value of aLong-Term Note or Bond......Page 831
Computing the Present Values in a CapitalBudgeting Decision......Page 834
Present Value of a Single Sum......Page 836
Present Value of an Annuity......Page 837
Useful Applications of the FinancialCalculator......Page 838
Company Index......Page 843
Subject Index......Page 845
