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Unit One General Introduction to Financial Accounting 2

Section 1 Accounting Equation and Accounting Elements 2

Section 2 T Account,Double-entry System,the Ledger and Chart of Accounts 6

Section 3 Journalizing and Posting 14

Section 4 Financial Statements 18

Unit Two Assets 26

Section 1 Accounting for Cash 26

Section 2 Accounting for Receivables 34

Section 3 Inventory Accounting 38

Section 4 Accounting for Long-term Assets 45

Unit Three Liabilities 60

Section 1 Current Liabilities 60

Section 2 Long-term Liabilities 69

Unit Four Owner's Equity 80

Section 1 Partnership Accounting 80

Section 2 Corporate Accounting 96

Unit Five Revenue 110

Section 1 Basic Concepts Relating to Revenue Recognition 110

Section 2 Accounting for Revenue 114

Unit Six Costs and Expenses 130

Section 1 Outline of Costs and Expenses 130

Section 2 Accounting for Costs 134

Section 3 Accounting for Expenses 138

Unit Seven Profit 148

Section 1 Definition of Profit 148

Section 2 Accounting for Profit 151

Unit Eight Financial Statements 162

Section 1 Review of Transactions and Summary of Account Balances for Whitman Company 162

Section 2 Balance Sheet 168

Section 3 Income Statement 170

Section 4 Statement of Cash Flows 175

Unit Nine Analyzing Financial Statements 182

Section 1 Purpose of Financial Statement Analysis 182

Section 2 Horizontal Analysis 183

Section 3 Vertical Analysis 186

Section 4 Ratio Analysis 190

Glossary 201

Key to Exercises 215

Bibliography 235