Using Financial Accounting Information: The Alternative to Debits and Credits (Available Titles Aplia)

USING FINANCIAL ACCOUNTING INFORMATION, 7/E, is a non-debit/credit text known for its strong decision-making focus and its incorporation of flagship companies for increased relevance. The student-friendly presentation and innovative transaction analysis of the new edition ensures students master financial accounting concepts and the role of those concepts in business decision making. USING FINANCIAL ACCOUNTING INFORMATION, 7/E, is a complete teaching system with numbered Examples tied to end-of-chapter homework for step-by-step learning, POD Reviews at the end of every section that provide instant feedback to students to help them master key concepts, as well as CengageNOW technology that contains gradable, algorithmic homework activities. Also new is a better and more intuitive system for notating transactions, so students understand better how each transaction affects the financial statements. This edition includes a discussion of the current environment of financial reporting, specifically the International Financial Reporting Standards. Best of all, you can completely customize FINANCIAL ACCOUNTING: THE IMPACT ON DECISION MAKERS to include the content you want to cover and in the same sequence as your syllabus. Important Notice: Media content referenced within the product description or the product text may not be available in the ebook version. Front Cover Title Page Copyright Contents Preface Chapter 1 Accounting as a Form of Communication Kellogg Company: Making Business Decisions What Is Business? Forms of Organization Business Entities Nonbusiness Entities Organizations and Social Responsibility The Nature of Business Activity Financing Activities Investing Activities Operating Activities What Is Accounting and What Information Do Users of Accounting Reports Need? Users of Accounting Information and Their Needs Using Financial Accounting Information Using the Ratio Decision Model: Financial Decision Framework Financial Statements: How Accountants Communicate The Accounting Equation The Balance Sheet The Income Statement The Statement of Retained Earnings The Statement of Cash Flows Relationships Among the Financial Statements Looking at Financial Statements for a Real Company: Kellogg's Kellogg's Balance Sheet Kellogg's Income Statement The Conceptual Framework: Foundation for Financial Statements Conceptual Framework for Accounting Economic Entity Concept Asset Valuation: Cost or Fair Value Going Concern Time Period Assumption Generally Accepted Accounting Principles Accounting as a Social Science Setting Accounting Standards Who Determines the Rules of the Game? The Audit of Financial Statements Introduction to Ethics in Accounting Why Should Accountants Be Concerned with Ethics? Hot Topics: Kellogg's—One of the World's Most Ethical Companies Accountants and Ethical Judgments The Changing Face of the Accounting Profession Chapter 2 Financial Statements and the Annual Report General Mills: Making Business Decisions Objectives of Financial Reporting The Primary Objective of Financial Reporting Secondary Objectives of Financial Reporting What Makes Accounting Information Useful? Qualitative Characteristics Understandability Relevance Reliability Comparability and Consistency Materiality Conservatism A Perspective on Qualitative Characteristics The Classified Balance Sheet Understanding the Operating Cycle Current Assets Noncurrent Assets Current Liabilities Long-Term Liabilities Stockholders' Equity Using a Classified Balance Sheet: Introduction to Ratios Working Capital Current Ratio The Income Statement What Appears on the Income Statement? Format of the Income Statement Using an Income Statement The Statement of Retained Earnings The Statement of Cash Flows Looking at Financial Statements for a Real Company: General Mills, Inc. General Mills's Balance Sheet General Mills's Income Statement Using the Ratio Decision Model: Analyzing the Current Ratio Using the Ratio Decision Model: Analyzing the Pro. t Margin Hot Topics: Paying Dividends in Challenging Economic Times Other Elements of an Annual Report Chapter 3 Processing Accounting Information Carnival Cruise Corporation & PLC: Making Business Decisions Economic Events: The Basis for Recording Transactions External and Internal Events The Role of Source Documents in Recording Transactions Analyzing the Effects of Transactions on the Accounting Equation The Cost Principle Balance Sheet and Income Statement for Glengarry Health Club What Is an Account? Chart of Accounts The General Ledger Identify & Analyze The Double-Entry System The T Account Debits and Credits Debits and Credits for Revenues, Expenses, and Dividends Summary of the Rules for Increasing and Decreasing Accounts Normal Account Balances Debits Aren't Bad, and Credits Aren't Good Debits and Credits Applied to Transactions Transactions for Glengarry Health Club The Journal: The Firm's Chronological Record of Transactions Hot Topics: Conserving Cash to Invest in the Future The Trial Balance Chapter 4 Income Measurement and Accrual Accounting Nordstrom, Inc.: Making Business Decisions Recognition and Measurement in Financial Statements Recognition Measurement Summary of Recognition and Measurement in Financial Statements The Accrual Basis of Accounting Comparing the Cash and Accrual Bases of Accounting What the Income Statement and the Statement of Cash Flows Reveal Accrual Accounting and Time Periods The Revenue Recognition Principle Expense Recognition and the Matching Principle Accrual Accounting and Adjusting Entries Types of Adjusting Entries Types of Adjusting Entries Hot Topics: Keeping a Watchful Eye on Sales Accruals and Deferrals Accruals and Deferrals Summary of Adjustments Comprehensive Example of Adjustments Income Statement and Balance Sheet for Duffy Transit Ethical Considerations for a Company on the Accrual Basis The Accounting Cycle The Use of a Work Sheet The Closing Process Interim Financial Statements Integrative Problem Chapter 5 Inventories and Cost of Goods Sold Gap Inc.: Making Business Decisions The Nature of Inventory Three Types of Inventory Cost and Three Forms of Inventory Net Sales of Merchandise Sales Returns and Allowances Credit Terms and Sales Discounts Hot Topics: Some Work and Some Don't The Cost of Goods Sold The Cost of Goods Sold Model Inventory Systems: Perpetual and Periodic Beginning and Ending Inventories in a Periodic System Cost of Goods Purchased The Gross Profit Ratio Using the Ratio Decision Model: Analyzing the Gross Pro. t Ratio Inventory Valuation and the Measurement of Income Inventory Costs: What Should Be Included? Inventory Costing Methods with a Periodic System Specific Identification Method Weighted Average Cost Method First-in, First-out Method (FIFO) Last-in, First-out Method (LIFO) Selecting an Inventory Costing Method Costing Methods and Cash Flow LIFO Liquidation The LIFO Conformity Rule The LIFO Reserve: Estimating LIFO's Effect on Income and on Taxes Paid for Winnebago Industries Costing Methods and Inventory Pro. ts Changing Inventory Methods Inventory Valuation in Other Countries Inventory Errors Valuing Inventory at Lower of Cost or Market Why Replacement Cost Is Used as a Measure of Market Conservatism Is the Basis for the Lower-of-Cost-or-Market Rule Application of the LCM Rule Lower-of-Cost-or-Market under International Standards Analyzing the Management of Inventory Using the Ratio Decision Model: Analyzing the Management of Inventory How Inventories Affect the Cash Flows Statement APPENDIX—Accounting Tools: Inventory Costing Methods with the Use of a Perpetual Inventory System Chapter 6 Cash and Internal Control Sears Holdings Corporation: Making Business Decisions What Constitutes Cash? Cash Equivalents and the Statement of Cash Flows Hot Topics: Keeping the Cash Flowing Control Over Cash Cash Management Reading a Bank Statement The Bank Reconciliation The Need for Adjustments to the Records Establishing a Petty Cash Fund An Introduction to Internal Control The Sarbanes-Oxley Act of 2002 The Control Environment The Accounting System Internal Control Procedures Limitations on Internal Control Computerized Business Documents and Internal Control Control Over Cash Receipts The Role of Computerized Business Documents in Controlling Cash Disbursements Chapter 7 Receivables and Investments Apple Inc.: Making Business Decisions Accounts Receivable The Use of a Subsidiary Ledger The Valuation of Accounts Receivable Two Methods to Account for Bad Debts Write-Offs of Uncollectible Accounts with the Allowance Method Two Approaches to the Allowance Method of Accounting for Bad Debts The Accounts Receivable Turnover Ratio Using the Ratio Decision Model: Analyzing the Accounts Receivable Rate of Collection Hot Topics: GAAP and Non-GAAP Notes Receivable Important Terms Connected with Promissory Notes Accelerating the In. ow of Cash from Sales Credit Card Sales Discounting Notes Receivable Accounting for Investments Investments in Highly Liquid Financial Instruments Investments in Stocks and Bonds Valuation and Reporting for Investments on the Financial Statements How Liquid Assets Affect the Statement of Cash Flows Chapter 8 Operating Assets: Property, Plant, and Equipment, and Intangibles Nike: Making Business Decisions Operating Assets: Property, Plant, and Equipment Balance Sheet Presentation Acquisition of Property, Plant, and Equipment Use and Depreciation of Property, Plant, and Equipment Capital versus Revenue Expenditures Environmental Aspects of Operating Assets Disposal of Property, Plant, and Equipment IFRS and Property, Plant, and Equipment Operating Assets: Intangible Assets Balance Sheet Presentation Hot Topics: The Nike Brand: Intangible? Yes. Valuable? Absolutely! Acquisition Cost of Intangible Assets Amortization of Intangibles IFRS and Intangible Assets How Long-Term Assets Affect the Statement of Cash Flows Analyzing Long-Term Assets for Average Life and Asset Turnover Using the Ratio Decision Model: Analyzing Average Life and Asset Turnover Integrative Problem Chapter 9 Current Liabilities, Contingencies, and the Time Value of Money Starbucks Corporation: Making Business Decisions Current Liabilities Accounts Payable Notes Payable Current Maturities of Long-Term Debt Taxes Payable Other Accrued Liabilities IFRS and Current Liabilities Reading the Statement of Cash Flows for Changes in Current Liabilities Contingent Liabilities Contingent Liabilities That Are Recorded Contingent Liabilities That Are Disclosed Hot Topics: Starbucks' Liability for Products Contingent Liabilities versus Contingent Assets IFRS and Contingencies Time Value of Money Concepts: Compounding of Interest Simple Interest Compound Interest Interest Compounding Present Value and Future Value: Single Amounts Future Value of a Single Amount Present Value of a Single Amount Present Value and Future Value of an Annuity Future Value of an Annuity Present Value of an Annuity Solving for Unknowns APPENDIX—Accounting Tools: Using Excel® for Problems Involving Interest Calculations Chapter 10 Long-Term Liabilities Coca-Cola: Making Business Decisions Balance Sheet Presentation of Long-Term Liabilities Hot Topics: Coca-Cola versus PepsiCo Bonds Payable: Characteristics Issuance of Bonds Factors Affecting Bond Price Premium or Discount on Bonds Bond Amortization Purpose of Amortization Effective Interest Method: Impact on Expense Effective Interest Method Redemption of Bonds Redemption at Maturity Retired Early at a Gain Financial Statement Presentation of Gain or Loss Liability for Leases Leases IFRS and Leasing Analyzing Debt to Assess a Firm's Ability to Pay Its Liabilities Using the Ratio Decision Model: Analyzing the Debt-to-Equity and Times Interest Earned Ratios How Long-Term Liabilities Affect the Statement of Cash Flows APPENDIX—Accounting Tools: Other Liabilities Chapter 11 Stockholders' Equity Southwest Airlines: Making Business Decisions An Overview of Stockholders' Equity Equity as a Source of Financing Stockholders' Equity on the Balance Sheet How Income and Dividends Affect Retained Earnings Identifying Components of the Stockholders' Equity Section of the Balance Sheet IFRS and Stockholders' Equity What Is Preferred Stock? Issuance of Stock Stock Issued for Cash Stock Issued for Noncash Consideration What Is Treasury Stock? Retirement of Stock Hot Topics: Southwest Airlines' Creation of Stockholders' Value Dividends: Distribution of Income to Shareholders Cash Dividends Cash Dividends for Preferred and Common Stock Stock Dividends Stock Splits Statement of Stockholders' Equity What Is Comprehensive Income? What Analyzing Stockholders' Equity Reveals About a Firm's Value Book Value per Share Using the Ratio Decision Model: Analyzing Book Value per Share Calculating Book Value When Preferred Stock Is Present Market Value per Share How Changes in Stockholders' Equity Affect the Statement of Cash Flows APPENDIX—Accounting Tools: Unincorporated Businesses Integrative Problem Chapter 12 The Statement of Cash Flows Best Buy: Making Business Decisions Cash Flows and Accrual Accounting Purpose of the Statement of Cash Flows Reporting Requirements for a Statement of Cash Flows The Definition of Cash: Cash and Cash Equivalents Classification of Cash Flows Hot Topics: Spending Money to Make Money Noncash Investing and Financing Activities Two Methods of Reporting Cash Flow from Operating Activities How the Statement of Cash Flows Is Put Together The Accounting Equation and the Statement of Cash Flows An Approach to Preparing the Statement of Cash Flows: Direct Method Step 2: Determine the Cash Flows from Operating Activities Compare Net Income with Net Cash Flow from Operating Activities Step 3: Determine the Cash Flows from Investing Activities Step 4: Determine the Cash Flows from Financing Activities Using the Three Schedules to Prepare a Statement of Cash Flows An Approach to Preparing the Statement of Cash Flows: Indirect Method Reconcile Net Income to Net Cash Flows from Operating Activities Summary of Adjustments to Net Income under the Indirect Method Comparison of the Indirect and Direct Methods The Use of Cash Flow Information Creditors and Cash Flow Adequacy Using the Ratio Decision Model: Analyzing Cash Flow Adequacy Stockholders and Cash Flow per Share APPENDIX—Accounting Tools: A Work-Sheet Approach to the Statement of Cash Flows Chapter 13 Financial Statement Analysis GameStop Corp.: Making Business Decisions Precautions in Statement Analysis Watch for Alternative Accounting Principles Take Care When Making Comparisons Understand the Possible Effects of In. ation Analysis of Comparative Statements: Horizontal Analysis Analysis of Common-Size Statements: Vertical Analysis Liquidity Analysis and the Management of Working Capital Working Capital Current Ratio Acid-Test Ratio Cash Flow from Operations to Current Liabilities Accounts Receivable Analysis Inventory Analysis Cash Operating Cycle Solvency Analysis Debt-to-Equity Ratio Times Interest Earned Debt Service Coverage Cash Flow from Operations to Capital Expenditures Ratio Profitability Analysis Rate of Return on Assets Components of Return on Assets Return on Common Stockholders' Equity Return on Assets, Return on Equity, and Leverage Earnings per Share Price/Earnings Ratio Dividend Ratios Summary of Selected Financial Ratios APPENDIX—Accounting Tools: Reporting and Analyzing Other Income Statement Items Hot Topics: No Need to Wait on the Next Annual Report Integrative Problem APPENDIX A: INTERNATIONAL FINANCIAL REPORTING STANDARDS APPENDIX B: EXCERPTS FROM KELLOGG'S FORM 10-K FOR FISCAL YEAR ENDED JANUARY 3, 2009 [2008] APPENDIX C: EXCERPTS FROM GENERAL MILLS'S FORM 10-K FOR THE FISCAL YEAR ENDED MAY 31, 2009 GLOSSARY COMPREHENSIVE INDEX