Page 5 - Accounting Principles (A Business Perspective)

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14. Stock investments..............................................................................................................559
Cost and equity methods..............................................................................................................................560
Consolidated balance sheet at time of acquisition.......................................................................................568
Accounting for income, losses, and dividends of a subsidiary.....................................................................572
Consolidated financial statements at a date after acquisition.....................................................................572
Uses and limitations of consolidated statements.........................................................................................576
Analyzing and using the financial results—Dividend yield on common stock and payout ratios...............577
15. Long-term financing: Bonds..............................................................................................593
Bonds payable............................................................................................................................................... 594
Bond prices and interest rates.....................................................................................................................600
Analyzing and using the financial results—Times interest earned ratio......................................................611
16. Analysis using the statement of cash flows.......................................................................630
Purposes of the statement of cash flows.......................................................................................................631
Uses of the statement of cash flows..............................................................................................................631
Information in the statement of cash flows.................................................................................................632
Cash flows from operating activities............................................................................................................634
Steps in preparing statement of cash flows..................................................................................................636
Analysis of the statement of cash flows........................................................................................................641
Analyzing and using the financial results—Cash flow per share of common stock, cash flow margin, and cash
flow liquidity ratios............................................................................................................................................ 647
Appendix: Use of a working paper to prepare a statement of cash flows....................................................649
17. Analysis and interpretation of financial statements.........................................................675
Objectives of financial statement analysis...................................................................................................676
Sources of information.................................................................................................................................678
Horizontal analysis and vertical analysis: An illustration...........................................................................679
Trend percentages........................................................................................................................................682
Ratio analysis................................................................................................................................................ 683
18. Managerial accounting concepts/job costing...................................................................728
Compare managerial accounting with financial accounting........................................................................729
Merchandiser and manufacturer accounting: Differences in cost concepts...............................................730
Financial reporting by manufacturing companies.......................................................................................733
The general cost accumulation model..........................................................................................................736
Job costing.................................................................................................................................................... 738
Predetermined overhead rates.....................................................................................................................743
19. Process: Cost systems.........................................................................................................765
Nature of a process cost system....................................................................................................................765
Process costing illustration...........................................................................................................................766
Process costing in service organizations.......................................................................................................775
Spoilage......................................................................................................................................................... 775
20. Using accounting for quality and cost management........................................................795
Importance of good accounting information...............................................................................................795
Quality and customer satisfaction measures...............................................................................................802
Just-in-time method....................................................................................................................................805
Activity-based costing and management.....................................................................................................808
Methods used for activity-based costing.......................................................................................................811
Impact of new production environment on cost drivers..............................................................................815
Activity-based costing in marketing.............................................................................................................816
Strategic use of activity-based management................................................................................................816
Behavioral and implementation issues.........................................................................................................817
Opportunities to improve activity-based costing in practice.......................................................................817
21. Cost-volume-profit analysis...............................................................................................831

Accounting Principles: A Business Perspective 6 A Global Text