Page 4 - Accounting Principles (A Business Perspective)

Inventories and cost of goods sold...............................................................................................................280
Determining inventory cost..........................................................................................................................282
Departures from cost basis of inventory measurement...............................................................................303
Analyzing and using financial results—inventory turnover ratio................................................................308
8. Control of cash.....................................................................................................................332
Internal control.............................................................................................................................................333
Controlling cash............................................................................................................................................ 340
The bank checking account..........................................................................................................................343
Bank reconciliation.......................................................................................................................................347
Petty cash funds............................................................................................................................................ 352
Analyzing and using the financial results—The quick ratio.........................................................................355
9. Receivables and payables.....................................................................................................371
Accounts receivable......................................................................................................................................372
Current liabilities..........................................................................................................................................381
Notes receivable and notes payable.............................................................................................................387
Short-term financing through notes payable...............................................................................................391
Analyzing and using the financial results—Accounts receivable turnover and number of days' sales in
accounts receivable............................................................................................................................................394
10. Property, plant, and equipment........................................................................................410
Nature of plant assets....................................................................................................................................411
Initial recording of plant assets....................................................................................................................412
Depreciation of plant assets..........................................................................................................................416
Subsequent expenditures (capital and revenue) on assets..........................................................................428
Subsidiary records used to control plant assets...........................................................................................431
Analyzing and using the financial results—Rate of return on operating assets..........................................433
11. Plant asset disposals, natural resources, and intangible assets........................................449
Disposal of plant assets................................................................................................................................450
Intangible assets............................................................................................................................................ 461
Analyzing and using the financial results—Total assets turnover...............................................................468
12. Stockholders' equity: Classes of capital stock...................................................................486
The corporation............................................................................................................................................ 487
Documents, books, and records relating to capital stock.............................................................................491
Par value and no-par capital stock...............................................................................................................492
Other values commonly associated with capital stock................................................................................493
Capital stock authorized and outstanding...................................................................................................493
Classes of capital stock.................................................................................................................................494
Types of preferred stock...............................................................................................................................495
Balance sheet presentation of stock.............................................................................................................497
Stock issuances for cash...............................................................................................................................498
Capital stock issued for property or services...............................................................................................500
Balance sheet presentation of paid-in capital in excess of par (or stated) value—Common or preferred. 500
Analyzing and using the financial results—Return on average common stockholders' equity..................503
13. Corporations: Paid-in capital, retained earnings, dividends, and treasury stock............521
Paid-in (or contributed) capital....................................................................................................................522
Retained earnings.........................................................................................................................................523
Paid-in capital and retained earnings on the balance sheet........................................................................523
Retained earnings appropriations................................................................................................................530
Statement of retained earnings....................................................................................................................532
Statement of stockholders' equity................................................................................................................532
Treasury stock............................................................................................................................................... 533
Net income inclusions and exclusions.........................................................................................................536
Analyzing and using the financial results—Earnings per share and price-earnings ratio..........................540

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