Introduction to Financial Accounting

✍ Scribed by Henry Dauderis, David Annand, Lyryx Learning, Athabasca University (editor)

• Publisher: CreateSpace Independent Publishing Platform
• Year: 2023
• Tongue: English
• Leaves: 853
• Category: Library

✦ Synopsis

This text is intended for a first course in introductory financial accounting. It was updated to reflect current International Financial Reporting Standards (IFRS). For example, it reflects the recent change in IAS38, para. 98, allowing the use of multiple methods in amortizing intangible assets. It focuses on core Introductory Financial Accounting topics that match pre-requisite requirements for students advancing to Intermediate Financial Accounting. Excluded are advanced topics that are covered in Intermediate Financial Accounting, such as leases and bond amortization. The text takes a corporate approach (vs. beginning with a sole proprietorship emphasis and then converting to a corporate approach); this consistency throughout the book reduces confusion for the introductory student.

The book covers all essential topics: the accounting cycle, merchandising, assigning costs to inventory, cash and receivables, property, plant and equipment, debt financing, equity financing, statement of cash flows, financial statement analysis, and proprietorships and partnerships.

Additionally, this version of the open text is supported by Lyryx Learning, offering at an affordable price editorial services to develop and adapt the content, formative online assessment, course supplements, and daily support to both the students and instructors.

✦ Table of Contents

Table of Contents
1 Introduction to Financial Accounting
Chapter 1 Learning Objectives
Concept Self-Check
1.1 Accounting Defined
1.2 Business Organizations
1.3 Generally Accepted Accounting Principles (GAAP)
1.4 Financial Statements
1.5 Transaction Analysis and Double-entry Accounting
Summary of Chapter 1 Learning Objectives
Discussion Questions
Exercises
Problems
2 The Accounting Process
Chapter 2 Learning Objectives
Concept Self-Check
2.1 Accounts
2.2 Transaction Analysis Using Accounts
2.3 The Trial Balance
2.4 Using Formal Accounting Records
2.5 The Accounting Cycle
Summary of Chapter 2 Learning Objectives
Discussion Questions
Exercises
Problems
3 Financial Accounting and Adjusting Entries
Chapter 3 Learning Objectives
Concept Self-Check
3.1 The Operating Cycle
3.2 Adjusting Entries
3.3 The Adjusted Trial Balance
3.4 Using the Adjusted Trial Balance to Prepare Financial Statements
3.5 The Accounting Cycle
3.6 The Closing Process
Summary of Chapter 3 Learning Objectives
Discussion Questions
Exercises
Problems
4 The Classified Balance Sheet and Related Disclosures
Chapter 4 Learning Objectives
Concept Self-Check
4.1 Financial Statement Disclosure Decisions
4.2 Classified Balance Sheet
4.3 Notes to Financial Statements
4.4 Auditor's Report
4.5 Management's Responsibility for Financial Statements
Summary of Chapter 4 Learning Objectives
Discussion Questions
Exercises
Problems
5 Accounting for the Sale of Goods
Chapter 5 Learning Objectives
Concept Self-Check
5.1 The Basics of Merchandising
5.2 The Purchase and Payment of Merchandise Inventory (Perpetual)
5.3 Merchandise Inventory: Sales and Collection (Perpetual)
5.4 Adjustments to Merchandise Inventory (Perpetual)
5.5 Merchandising Income Statement
5.6 Closing Entries for a Merchandiser
5.7 Appendix A: The Periodic Inventory System
Summary of Chapter 5 Learning Objectives
Discussion Questions
Exercises
Problems
6 Assigning Costs to Merchandise
Chapter 6 Learning Objectives
Concept Self-Check
6.1 Inventory Cost Flow Assumptions
6.2 Financial Statement Impact of Different Inventory Cost Flows
6.3 Lower of Cost and Net Realizable Value (LCNRV)
6.4 Estimating the Balance in Merchandise Inventory
6.5 Appendix A: Ratio Analysis—Merchandise Inventory Turnover
6.6 Appendix B: Inventory Cost Flow Assumptions Under the Periodic System
Summary of Chapter 6 Learning Objectives
Discussion Questions
Exercises
Problems
7 Cash and Receivables
Chapter 7 Learning Objectives
Concept Self-Check
7.1 Internal Control
7.2 Petty Cash
7.3 Cash Collections and Payments
7.4 Accounts Receivable
7.5 Short-Term Notes Receivable
7.6 Appendix A: Ratio Analysis—Acid Test
7.7 Appendix B: Ratio Analysis—Accounts Receivable Turnover
Summary of Chapter 7 Learning Objectives
Discussion Questions
Exercises
Problems
8 Long-lived Assets
Chapter 8 Learning Objectives
Concept Self-Check
8.1 Establishing the Cost of Property, Plant, and Equipment (PPE)
8.2 Depreciation
8.3 Partial Year Depreciation
8.4 Revising Depreciation
8.5 Impairment of Long-lived Assets
8.6 Derecognition of Property, Plant, and Equipment
8.7 Intangible Assets
8.8 Goodwill
8.9 Disclosure
Summary of Chapter 8 Learning Objectives
Discussion Questions
Exercises
Problems
9 Debt Financing: Current and Long-term Liabilities
Chapter 9 Learning Objectives
Concept Self-Check
9.1 Current versus Long-term Liabilities
9.2 Known Current Liabilities
9.3 Estimated Current Liabilities
9.4 Long-Term Liabilities—Bonds Payable
9.5 Long-term Liabilities—Loans Payable
9.6 Appendix A: Present Value Calculations
9.7 Appendix B: Additional Payroll Transactions
9.8 Appendix C: The Effective Interest Rate Method
Summary of Chapter 9 Learning Objectives
Discussion Questions
Exercises
Problems
10 Equity Financing
Chapter 10 Learning Objectives
Concept Self-Check
10.1 The Corporate Structure
10.2 Recording Share Transactions
10.3 Cash Dividends
10.4 Share Dividends
10.5 Book Value
10.6 Appendix A: Reporting for Multiple Classes of Shares
Summary of Chapter 10 Learning Objectives
Discussion Questions
Exercises
Problems
11 The Statement of Cash Flows
Chapter 11 Learning Objectives
Concept Self-Check
11.1 Financial Statement Reporting
11.2 Preparing the Statement of Cash Flows
11.3 Interpreting the Statement of Cash Flows
11.4 Appendix A: Putting It All Together: Corporate Financial Statements
11.5 Appendix B: Statement of Cash Flows – Direct Method
11.5.1 Preparing a Statement of Cash Flows: Direct Method
Summary of Chapter 11 Learning Objectives
Discussion Questions
Exercises
Problems
12 Financial Statement Analysis
Chapter 12 Learning Objectives
Concept Self-Check
12.1 Introduction to Ratio Analysis
12.2 Liquidity Ratios: Analyzing Short-term Cash Needs
12.3 Profitability Ratios: Analyzing Operating Activities
12.4 Leverage Ratios: Analyzing Financial Structure
12.5 Market Ratios: Analysis of Financial Returns to Investors
12.6 Overall Analysis of Big Dog's Financial Statements
12.7 Horizontal and Vertical Trend Analysis
Summary of Chapter 12 Learning Objectives
Discussion Questions
Exercises
Problems
13 Proprietorships and Partnerships
Chapter 13 Learning Objectives
Concept Self-Check
13.1 Proprietorships
13.2 Partnerships
Summary of Chapter 13 Learning Objectives
Discussion Questions
Exercises
Problems
Solutions To Discussion Questions
Chapter 1 Solutions
Chapter 2 Solutions
Chapter 3 Solutions
Chapter 4 Solutions
Chapter 5 Solutions
Chapter 6 Solutions
Chapter 7 Solutions
Chapter 8 Solutions
Chapter 9 Solutions
Chapter 10 Solutions
Chapter 11 Solutions
Chapter 12 Solutions
Chapter 13 Solutions
Solutions To Exercises
Chapter 1 Solutions
Chapter 2 Solutions
Chapter 3 Solutions
Chapter 4 Solutions
Chapter 5 Solutions
Chapter 6 Solutions
Chapter 7 Solutions
Chapter 8 Solutions
Chapter 9 Solutions
Chapter 10 Solutions
Chapter 11 Solutions
Chapter 12 Solutions
Chapter 13 Solutions
Solutions To Problems
Chapter 1 Solutions
Chapter 2 Solutions
Chapter 3 Solutions
Chapter 4 Solutions
Chapter 5 Solutions
Chapter 6 Solutions
Chapter 7 Solutions
Chapter 8 Solutions
Chapter 9 Solutions
Chapter 10 Solutions
Chapter 11 Solutions
Chapter 12 Solutions
Chapter 13 Solutions