Accounting Principles
A Business Perspective

Tenth Edition

Susan Hermanson - University of North Carolina Wilmington, USA
James Don Edwards - The University of Georgia, USA
Roger Hermanson - Georgia State University, USA

Other Titles in:
Introductory Accounting

February 2018 | 1 134 pages | SAGE Publications, Inc

Description
Contents

Thoroughly updated in 2017, 10e builds on the strengths of previous editions and continues to provide a thorough understanding of how to use accounting information to analyze business performance and make business decisions. Uses real companies to illustrate many of the accounting concepts, and covers a variety of issues associated with these actual businesses to provide a real-world perspective. Combines solid coverage of financial accounting for business students, regardless of the selected major, and provides non-accounting majors a solid foundation for making effective use of accounting information.

Introduction: The Accounting Environment

Accounting Defined

Employment Opportunities in Accounting

Financial Accounting versus Managerial Accounting

Development of Financial Accounting Standards

Ethical Behavior of Accountants

Critical Thinking and Communication Skills

How to Study the Chapters in This Text

Part 1: Accounting: The Language of Business

Chapter 1. Accounting and its Use in Business Decisions

Forms of Business Organizations

Financial Statements of Business Organizations

The Financial Accounting Process

Analyzing and Using the Financial Results— The Equity Ratio

Appendix: A Comparison of Corporate Accounting with Accounting for Sole Proprietorships and Partnerships

Part 2: Processing Information for Decisions and Establishing Accounting Policy

Chapter 2: Recording Business Transactions

The Account and Rules of Debit and Credit

The Accounting Cycle

The Journal

The Ledger

The Accounting Process in Operation

The Use of Ledger Accounts

Analyzing and Using the Financial Results—Horizontal and Vertical Analyses

Chapter 3: Adjustments for Financial Reporting

Cash versus Accrual Basis Accounting

The Need for Adjusting Entries

Classes and Types of Adjusting Entries

Adjustments for Accrued Items

Adjustments for Deferred Items— A Second Look

Effects of Failing to Prepare Adjusting Entries

Analyzing and Using the Financial Results— Trend Percentages

Chapter 4: Completing the Accounting Cycle

The Accounting Cycle Summarized

The Work Sheet

Preparing Financial Statements

Journalizing Adjusting Entries

The Closing Process

Accounting Systems: From Manual to Computerized

A Classified Balance Sheet

Analyzing and Using the Financial Results— The Current Ratio

Chapter 5: Accounting Theory

Accounting Standards—Generally Accepted Accounting Principles

Objective of Financial Reporting

Underlying Assumptions

The Major Principles

Qualitative Characteristics

Enhancing Qualitative Characteristics

Pervasive Constraint

The Basic Elements of Financial Statements

Summary of Significant Accounting Principles

Chapter 6: Merchandising Transactions: Introduction to Inventories and the Classified Income Statement

Two Income Statements Compared: Service Company and Merchandising Company

Sales Revenues

Cost of Goods Sold

Classified Income Statement

Analyzing and Using the Financial Results— Gross Margin Percentage

Chapter 7: Measuring and Reporting Inventories

Inventories and Cost of Goods Sold

Determining Inventory Cost

Departures from Cost Basis of Inventory Measurement

Analyzing and Using Financial Results— Inventory Turnover Ratio

Part III: Management’s Perspectives in Accounting for Resources

Chapter 8: Control of Cash

Internal Control

Controlling Cash

The Bank Checking Account

Bank Reconciliation

Petty Cash Funds

Analyzing and Using the Financial Results— The Quick Ratio

Chapter 9: Receivables and Payables

Accounts Receivable

Current Liabilities

Notes Receivable and Notes Payable

Short-Term Financing through Notes Payable

Analyzing and Using the Financial Results— Accounts Receivable Turnover and Number of Days’ Sales in Accounts Receivable

Chapter 10: Property, Plant, and Equipment

Nature of Plant Assets

Initial Recording of Plant Assets

Depreciation of Plant Assets

Subsequent Expenditures (Capital and Revenue) on Assets

Subsidiary Records Used to Control Plant Assets

Analyzing and Using the Financial Results— Rate of Return on Operating Assets

Chapter 11: Plant Asset Disposals, Natural Resources, and Intangible Assets

Disposal of Plant Assets

Natural Resources

Intangible Assets

Plant Asset Disposals, Natural Resources, and Intangible Assets

Part IV: Sources of Equity Capital for Management’s Use in Producing Revenues

Chapter 12: Sources of Equity Capital for Management’s Use in Producing Revenues

The Corporation

Sources of Equity Capital for Management’s Use in Producing Revenues

Part Value and No-Par Capital Stock

Other Values Commonly Associated with Capital Stock

Capital Stock Authorized and Outstanding

Classes of Capital Stock

Types of Preferred Stock

Balance Sheet Presentation of Stock

Stock Issuance for Cash

Capital Stock Issued for Property

Balance Sheet Presentation of Paid-In Capital in Excess of Par (or Stated) Value— Common or Preferred

Analyzing and Using the Financial Results—Return on Average Common Stockholders’ Equity

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Accounting Principles
A Business Perspective

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