Financial accounting : an introduction to concepts, methods, and uses / Clyde P. Stickney, Roman L. Weil.

Format:

Book

Author/Creator:

Stickney, Clyde P., 1944-

Contributor:

Weil, Roman L.

Rosengarten Family Fund.

Language:

English

Subjects (All):

Accounting.

Physical Description:

xx, 952, 12 pages : illustrations (some color) ; 27 cm

Edition:

Tenth edition.

Place of Publication:

Cincinnati, Ohio : Thomson/South-Western, [2003]

Summary:

This widely respected financial accounting text captures the predominant market share among graduate, MBA, and better undergraduate programs. It focuses on presenting, with great clarity, both the basic concepts underlying financial statements and the terminology and methods that allow students to interpret, analyze, and evaluate actual corporate financial statements.

Contents:

Part 1 Overview of Financial Statements 1

Chapter 1 Introduction to Business Activities and Overview of Financial Statements and the Reporting Process 2

Principal Financial Statements 8

Other Items in Annual Reports 19

Financial Reporting Issues 20

The Financial Reporting Process in the United States 25

An International Perspective 27

Part 2 Accounting Concepts and Methods 43

Chapter 2 Balance Sheet: Presenting the Investments and Financing of a Firm 44

Accounting Procedures for Preparing the Balance Sheet 57

An Overview of the Accounting Process 65

Balance Sheet Account Titles 68

Analysis of the Balance Sheet 72

An International Perspective 76

Chapter 3 Income Statement: Reporting the Results of Operating Activities 108

The Accounting Period Convention 110

Accounting Methods for Measuring Performance 110

Measurement Principles of Accrual Accounting 116

Overview of Accounting Procedures 120

Illustration of the Accounting Process for a Merchandising Firm 124

Interpreting and Analyzing the Income Statement 144

Chapter 4 Statement of Cash Flows: Reporting the Effects of Operating, Investing, and Financing Activities on Cash Flows 178

Need for a Statement of Cash Flows 179

Preparing the Statement of Cash Flows 185

An International Perspective 209

Using Information in the Statement of Cash Flows 210

Chapter 5 Introduction to Financial Statement Analysis 246

Objectives of Financial Statement Analysis 248

Analysis of Profitability 250

Analysis of Risk 268

Limitations of Ratio Analysis 276

An International Perspective 276

Appendix 5.1 Pro Forma Financial Statements and Valuation 279

Part 3 Measuring and Reporting Assets and Equities Using Generally Accepted Accounting Principles 313

Chapter 6 Receivables and Revenue Recognition 314

Financial Reporting Environment 316

Quality of Earnings 317

Review of Income Recognition Principles 318

Application of Income Recognition Principles 320

Revenue Recognition at Time of Sale 322

Analyzing Information on Accounts Receivable 334

Income Recognition at Times Different from Sale 336

Summary Illustration of Income Recognition Methods 341

Format and Classification within the Income Statement 343

An International Perspective 345

Appendix 6.1 Effects on the Statement of Cash Flows of Transactions Involving Accounts Receivable 346

Chapter 7 Inventories: The Source of Operating Profits 364

Issue 1 Costs Included in Inventory 367

Issue 2 Valuation Subsequent to Acquisition 374

Issue 3 Cost Flow Assumptions 376

Analyzing Inventory Disclosures 385

An International Perspective 391

Appendix 7.1 Effects on the Statement of Cash Flows of Transactions Involving Inventory 392

Chapter 8 Long-Lived Tangible and Intangible Assets: The Source of Operating Capacity 416

Capitalization versus Immediate Expensing 418

Measurement of Acquisition Cost 422

Treatment of Acquisition Cost Over Life of Asset 426

Depreciation and Amortization: Fundamental Concepts 427

Depreciation and Amortization: Measurement 428

Impact of New Information about Long-Lived Assets 436

Retirement of Assets 444

Financial Statement Presentation 446

Analyzing Financial Statement Disclosures of Long-Lived Assets 447

An International Perspective 451

Appendix 8.1 Effects on the Statement of Cash Flows of Transactions Involving Plant and Intangible Assets 453

Chapter 9 Liabilities: Introduction 474

Current Liabilities 481

Long-Term Liabilities 485

Appendix 9.1 Effects on the Statement of Cash Flows of Transactions Involving Long-Term Liabilities 510

Chapter 10 Liabilities: Off-Balance-Sheet Financing, Leases, Deferred Income Taxes, Retirement Benefits, and Derivatives 534

Off-Balance-Sheet Financing 535

Leases 539

Income Tax Accounting and Deferred Income Taxes 547

Deferred Compensation: Pension Benefits and Other Deferred Compensation 556

Deferred Compensation: Health Care and Other Benefits 558

Derivative Instruments 558

An International Perspective 572

Appendix 10.1 Effects on the Statement of Cash Flows of Transactions Involving Liabilities 572

Chapter 11 Marketable Securities and Investments 596

Overview of the Accounting and Reporting of Investments in Securities 597

Minority, Passive Investments 599

Minority, Active Investments 608

Majority, Active Investments 612

An International Perspective 621

Appendix 11.1 Preparing Consolidated Financial Statements 623

Appendix 11.2 Accounting for Corporate Acquisitions 629

Appendix 11.3 Effects on the Statement of Cash Flows of Investments in Securities 634

Chapter 12 Shareholders' Equity: Capital Contributions, Earnings, and Distributions 670

Capital Contributions 673

Issuing Capital Stock 675

Reporting Operating Transactions 683

An International Perspective 695

Corporate Distributions 696

Earnings and Book Value per Share 703

Disclosure of Changes in Shareholders' Equity 703

An International Perspective 706

Appendix 12.1 Effects on the Statement of Cash Flows of Transactions Involving Shareholders' Equity 709

Chapter 13 Statement of Cash Flows: Another Look 734

Review of T-Account Procedure for Preparing the Statement of Cash Flows 736

Comprehensive Illustration of the Statement of Cash Flows 737

Interpreting the Statement of Cash Flows 754

Part 4 Synthesis 777

Chapter 14 Significance and Implications of Alternative Accounting Principles 778

Establishing Acceptable Accounting Principles 779

Review of Generally Accepted Accounting Principles 782

An Illustration of the Effects of Alternative Accounting Principles on a Set of Financial Statements 788

Assessing the Effects of Alternative Accounting Principles on Investment Decisions 792

The Firm's Selection of Alternative Accounting Principles 797.

Notes:

Includes bibliographical references and index.

Local Notes:

Acquired for the Penn Libraries with assistance from the Rosengarten Family Fund.

ISBN:

0324183518

OCLC:

49699460