Chapter 1 INTRODUCTION TO FINANCIAL ACCOUNTING

1.1 SCOPE AND PURPOSE OF FINANCIAL ACCOUNTING

1.2 OTHER BRANCHES OF ACCOUNTING

1.3 ACCOUNTING CAREER OPPORTUNITIES

1.4 TYPES OF BUSINESS ENTITY

1.5 BUSINESS ACTIVITIES

1.6 UNDERLYING CONCEPTS OF FINANCIAL ACCOUNTING

1.7 THE ACCOUNTING EQUATION

QUESTIONS

EXERCISES

Chapter 2 FINANCIAL STATEMENTS

2.1 INTRODUCTION

2.2 CASH BASIS VERSUS ACCRUAL BASIS OF ACCOUNTING

2.3 INCOME STATEMENT

2.4 STATEMENT OF FINANCIAL POSITION

2.5 CLASSIFIED FINANCIAL STATEMENTS

QUESTIONS

EXERCISES

Chapter 3 RECORDING TRANSACTIONS

3.1 INTRODUCTION

3.2 ACCOUNTING CYCLE

3.3 THE ACCOUNT

3.4 TWO ACCOUNTING BOOKS:JOURNAL AND LEDGER

3.5 CHART OF ACCOUNTS

3.6 RECORDING TRANSACTIONS

3.7 TRIAL BALANCE

QUESTIONS

EXERCISES

Chapter 4 ADJUSTING AND CLOSING ENTRIES

4.1 INTRODUCTION

4.2 PREPAID EXPENSES

4.3 UNEARNED REVENUES

4.4 TWO WAYS OF RECORDING DEFERRALS

4.5 ACCRUED EXPENSES

4.6 ACCRUED REVENUES

4.7 DEPRECIATION

4.8 CLOSING ENTRIES

4.9 POST-CLOSING TRIAL BALANCE

QUESTIONS

EXERCISES

Chapter 5 PREPARATION OF FINANCIAL STATEMENTS

5.1 INTRODUCTION

5.2 WORKSHEET FOR A SERVICE FIRM

5.3 PREPARATION OF FINANCIAL STATEMENTS

5.4 AFTER THE FINANCIAL STATEMENTS ARE PREPARED

QUESTIONS

EXERCISES

Chapter 6 ACCOUNTING FOR MERCHANDISING FIRMS

6.1 INTRODUCTION

6.2 INVENTORY RECORDING SYSTEM

6.3 ACCOUNTING FOR THE PURCHASES OF MERCHANDISE

6.4 ACCOUNTING FOR THE SALE OF MERCHANDISE

6.5 ADJUSTING AND CLOSING ENTRIES FOR MERCHANDISING FIRMS

6.6 WORKSHEET FOR MERCHANDISING FIRMS

6.7 FINANCIAL STATEMENTS FOR MERCHANDISING FIRMS

QUESTIONS

EXERCISES

Chapter 7 INTERNAL CONTROL AND CASH

7.1 INTRODUCTION

7.2 FRAUD

7.3 INTERNAL CONTROL

7.4 CASH CONTROLS

7.5 BANK RECONCILIATION

7.6 REPORTING CASH

QUESTIONS

EXERCISES

Chapter 8 INVENTORIES

8.1 INTRODUCTION

8.2 DETERMINING THE OWNERSHIP OF GOODS

8.3 COST-BASED INVENTORY VALUATION METHODS

8.4 OTHER INVENTORY VALUATION METHODS

QUESTIONS

EXERCISES

Chapter 9 RECEIVABLES AND PAYABLES

9.1 INTRODUCTION

9.2 TYPES OF RECEIVABLES AND PAYABLES

9.3 RECOGNIZING AND VALUING ACCOUNTS RECEIVABLE

9.4 METHODS OF ESTIMATING UNCOLLECTIBLE ACCOUNTS

9.5 WRITE-OFF A CUSTOMER'S ACCOUNT

9.6 SUBSEQUENT RECOVERY OF WRITTEN OFF RECEIVABLES

9.7 PROMISSORY NOTES

9.8 DISCOUNTING A NOTE RECEIVABLE

9.9 NOTES PAYABLE

QUESTIONS

EXERCISES

Chapter 10 PLANT ASSETS AND INTANGIBLE ASSETS

10.1 PLANT ASSETS

10.2 DETERMING THE COST OF PLANT ASSETS

10.3 EXPENDITURES DURING USEFUL LIFE

10.4 DEPRECIATION

10.5 MEASUREMENT AFTER RECOGNITION

10.6 DISPOSAL OF PLANT ASSETS

10.7 IMPAIRMENTS

10.8 INTANGIBLE ASSETS

10.9 ACCOUNTING FOR INTANGIBLE ASSETS

QUESTIONS

EXERCISES

Chapter 11 LIABILITIES

11.1 INTRODUCTION

11.2 CURRENT LIABILITIES

11.3 NON-CURRENT LIABILITIES

11.4 BONDS PAYABLE

11.5 PROVISION AND WARRANTY LIABILITIES

QUESTIONS

EXERCISES

Chapter 12 SHAREHOLDERS'EQUITY

12.1 INTRODUCTION

12.2 TERMINOLOGY

12.3 TYPES OF SHARES

12.4 SHAREHOLDERS'EQUITY

12.5 ISSUANCE OF SHARES

12.6 TREASURY SHARES

12.7 DIVIDENDS

12.8 SHARE SPLIT

12.9 RETAINED EARNINGS

QUESTIONS

EXERCISES

Chapter 13 INVESTMENTS

13.1 INTRODUCTION

13.2 ACCOUNTING FOR INVESTMENTS IN DEBT SECURITIES

13.3 ACCOUNTING FOR INVESTMENTS IN EQUITY SECURITIES

13.4 VALUING AND REPORTING INVESTMENTS

13.5 PRESENTATION OF INVESTMENTS IN THE FINANCIAL STATEMENTS

QUESTIONS

EXERCISES

Chapter 14 STATEMENT OF CASH FLOWS

14.1 THE PURPOSE OF THE STATEMENT OF CASH FLOWS

14.2 CASH FLOWS BY ACTIVITIES

14.3 TYPES OF CASH INFLOWS AND OUTFLOWS

14.4 PREPARATION OF THE STATEMENT OF CASH FLOWS

14.5 THE INDIRECT METHOD

14.6 THE DIRECT METHOD

QUESTIONS

EXERCISES

Terminology