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Unit One General Introduction to Financial Accounting2

Section 1 Accounting Equation and Accounting Elements2

Section 2 T Account,Double-entry System,the Ledger and Chart of Accounts6

Section 3 Journalizing and Posting14

Section 4 Financial Statements18

Unit Two Assets26

Section 1 Accounting for Cash26

Section 2 Accounting for Receivables34

Section 3 Inventory Accounting38

Section 4 Accounting for Long-term Assets45

Unit Three Liabilities60

Section 1 Current Liabilities60

Section 2 Long-term Liabilities69

Unit Four Owner's Equity80

Section 1 Partnership Accounting80

Section 2 Corporate Accounting96

Unit Five Revenue110

Section 1 Basic Concepts Relating to Revenue Recognition110

Section 2 Accounting for Revenue114

Unit Six Costs and Expenses130

Section 1 Outline of Costs and Expenses130

Section 2 Accounting for Costs134

Section 3 Accounting for Expenses138

Unit Seven Profit148

Section 1 Definition of Profit148

Section 2 Accounting for Profit151

Unit Eight Financial Statements162

Section 1 Review of Transactions and Summary of Account Balances for Whitman Company162

Section 2 Balance Sheet168

Section 3 Income Statement170

Section 4 Statement of Cash Flows175

Unit Nine Analyzing Financial Statements182

Section 1 Purpose of Financial Statement Analysis182

Section 2 Horizontal Analysis183

Section 3 Vertical Analysis186

Section 4 Ratio Analysis190

Glossary201

Key to Exercises215

Bibliography235