Accounting Principles: A Business Perspective, …

1 Accounting Principles: A Business Perspective, Financial Accounting (Chapters 9 18)A Textbook Equity Open College Textbookoriginally by Hermanson, Edwards, and MaherFearless copy, print, remix(tm) : CC-BY-NC-SAISBN-13: 978-1461160861 ISBN-10: 14611608631 About This PublicationSimply put, you may copy, print, redistribute, and re-purpose this textbook or parts of this textbook provided that you give attribution (credit) to Textbook Equity, and provided that any derivative work has the same Creative Commons license (CC-BY-NC-SA). That s it. Textbook Equity, in turn, provides attribution, with thanks, to the Global Text Project, who provided the source with it s strategic mission to provide free and low-cost textbooks, this is Textbook Equity s derivative work based on Accounting principles : A Business perspective , First Global Text Edition, Volume 1, Financial Accounting , utilizing the permissions granted by it s Creative Commons license.

2 Global Text Project nor the original authors endorse or are responsible in any way for this printing or it s contents. Textbook Provenance (1998 - 2011)1998 EditionAccounting: A Business perspective (Irwin/Mcgraw-Hill Series in principles of Accounting ) [Hardcover] Roger H. Hermanson (Author), James Don Edwards (Author), Michael W. Maher (Author) Eighth Edition Hardcover: 944 pages Publisher: Richard D Irwin; 7 Sub edition (April 1998) Language: English ISBN-10: 0075615851 ISBN-13: 978-0075615859 Product Dimensions: x x inches Current Hardbound Price $ ( )2010 Editions ( )Global Text Project Conversion to Creative Commons License CC-BY Accounting principles : A Business perspective First Global Text Edition, Volume 1 Financial Accounting , Revision Editor: Donald J. McCubbrey, Version, 817 pages, Free Download Accounting principles : A Business perspective First Global Text Edition, Volume 2 Managerial Accounting , Revision Editor: Donald J.

3 McCubbrey, Version Volume 2, 262 pages, Free Download2011 Editions ( )Textbook Equity publishes this soft cover version using a the CC-BY-NC-SA license. They divided Volume 1 into two sections to fit paperback publishing requirements and made other formatting changes. No content changes were made to Global Text s version. Versions available at the Open College Textbook repository:2 PDF Version, Section 1 of Volume 1 (Chapters 1 8), 436 pages, Free Download Textbook Equity Paperback, Volume 1 Financial Accounting (Chapters 1 8), 436 pages, List Price $ PDF Version, Volume 1 Financial Accounting (Chapters 9 18), Free Download Textbook Equity Paperback, Volume 1 Financial Accounting (Chapters 9 18), List Price $ PDF Version Volume 2, (Chapters 19 26), Free Download Textbook Equity Paperback, Volume 2 Managerial Accounting (Chapters 19 24)

4 , List Price $ original author information and acknowledgments see 3 Table of Contents 9 Receivables and Learning A career in litigation Accounts Current Notes receivable and notes Short-term financing through notes Analyzing and using the financial results Accounts receivable Key Self Alternate Beyond the numbers Critical Using the Internet A view of the real Answers to self 10 Property, plant, and Learning A company accountant's role in managing plant Nature of plant Initial recording of plant Depreciation of plant Subsequent expenditures (capital and revenue) on Subsidiary records used to control plant Analyzing and using the financial results Rate of return on operating Key Alternate Beyond the numbers Critical Using the Internet A view of the real Answers to 11 Plant asset disposals, natural resources, and intangible Learning A company accountant's role in measuring Disposal of plant Sale of plant Natural Intangible Analyzing and using the financial results Total assets Key Alternate Beyond the numbers-Critical Using the Internet A view of the real Answers to 12 Stockholders' equity.

5 Classes of capital Learning The accountant as a corporate The Analyzing and using the financial results Return on average common stockholders' Key Alternate Beyond the numbers Critical Using the Internet A view of the real Answers to 13 Corporations: Paid-in capital, retained earnings, dividends, and treasury Learning The accountant as a financial Paid-in (or contributed) Paid-in capital Stock Paid-in capital Treasury stock Paid-in capital Retained Paid-in capital and retained earnings on the balance Retained earnings Statement of retained Statement of stockholders' Treasury Net income inclusions and Analyzing and using the financial results Earnings per share and price-earnings Key Alternate Beyond the numbers Critical Using the Internet A view of the real Answers to 14 Stock Learning The role of accountants in Business Cost and equity Accounting for short-term stock investments and for long-term stock investments of less than 20 percent.

6 2916 Cost method for short-term investments and for long-term investments of less than 20 percent ..291 The equity method for long-term investments of between 20 percent and 50 percent ..297 Reporting for stock investments of more than 50 percent ..298 Consolidated balance sheet at time of Accounting for income, losses, and dividends of a Consolidated financial statements at a date after Uses and limitations of consolidated Analyzing and using the financial results Dividend yield on common stock and payout Key Alternate Beyond the numbers Critical Using the Internet A view of the real Answers to 15 Long-term financing: Learning The accountant's role in financial Bonds Comparison with Selling (issuing) Bond prices and interest Redeeming bonds Analyzing and using the financial results Times interest earned Appendix.

7 Future value and present Demonstration Solution to demonstration Key Alternate Beyond the numbers Critical Using the Internet A view of the real Answers to 16 Analysis using the statement of cash Learning A career in external Purposes of the statement of cash Uses of the statement of cash Information in the statement of cash Cash flows from operating Steps in preparing statement of cash Analysis of the statement of cash Liquidity and capital Analyzing and using the financial results Cash flow per share of common stock, cash flow margin, and cash flow liquidity Appendix: Use of a working paper to prepare a statement of cash Key Alternate Management's discussion and analysis - Management's discussion and analysis - Financial*..453 Beyond the numbers Critical Using the Internet A view of the real Answers to 17 Analysis and interpretation of financial Learning Accountants as investment Objectives of financial statement Sources of Horizontal analysis and vertical analysis: An Trend Ratio Understanding the learning Demonstration problem.

8 508 Solution to demonstration Key Alternate Beyond the numbers Critical Using the Internet A view of the real Answers to 18 Managerial Accounting concepts/job Learning A manager's Compare managerial Accounting with financial Merchandiser and manufacturer Accounting : Differences in cost Financial reporting by manufacturing The general cost accumulation Job Predetermined overhead Appendix: Variable versus absorption Demonstration Solution to demonstration Key Alternate Beyond the numbers Critical Using the Internet A view of the real Answers to 9 Receivables and payables Learning objectivesAfter studying this chapter, you should be able to: Account for uncollectible accounts receivable under the allowance method. Record credit card sales and collections.

9 Define liabilities, current liabilities, and long-term liabilities. Define and account for clearly determinable, estimated, and contingent liabilities. Account for notes receivable and payable, including calculation of interest. Account for borrowing money using an interest-bearing note versus a non interest-bearing note. Analyze and use the financial results accounts receivable turnover and the number of days' sales in accounts receivable. A career in litigation supportWhat is litigation support? It does not mean working in an attorney's office. It involves assisting legal counsel in attempting to gain favorable verdicts in a court of law. Persons involved in litigation support generally work for a public Accounting firm, a consulting firm, or as a sole proprietor or in partnership with others. An experienced litigation support person can expect to earn an income well into six support in a broad sense encompasses fraud auditing, valuation analysis, investigative Accounting , and forensic Accounting .

10 The practice of litigation support involves assisting legal counsel in such things as product liability disputes, shareholder disputes, contract breaches, and major losses reported by entities. These investigations require the accountant to gather and evaluate evidence to assess the integrity and dollar amounts surrounding the aforementioned accountant can be, and often is, requested to serve as an expert witness in a court of law. This experience requires knowledge of Accounting and auditing in addition to possessing good communication skills, appropriate credentials, relevant 11experience, and critical information that could result in successful resolution of the kind of person pursues litigation support as a career? It takes a very special individual. The person must be part accountant, part auditor, part lawyer, and part skilled businessperson.