ACCOUNTING - Higher Education Pearson
ACCOUNTINGIN THE HEADLINESBring Real Life to the Classroom withAccountingintheHeadlines.comACCOUNTINGCASE TEMPLATECreate and customize a case assignmentin a few easy steps usingAccountingCaseTemplate.comM O R E FR O M D R . W E N D Y T I E T ZCaesars Palace and NEW Cheesecake FactorySerial Cases are designed to engage students in IntroductoryAccounting courses by applying concepts to real-life businessesUnparalleled author-written and author-tested resources provide thetools you need to create the class experience you want including:Learning Catalytics – Polling QuestionsConcept VideosA01 HARR5987 12 SE FM.indd 1Lecture Support ToolsSolution VideosDirected Reading Guides06/11/17 2:14 PM
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FinancialACCOUNTINGTWELFTH EDITIONC. William (Bill) ThomasBaylor UniversityWendy M. TietzKent State UniversityWalter T. Harrison Jr.Baylor UniversityCharles T. HorngrenStanford University330 Hudson Street, NY, NY 10013A01 HARR5987 12 SE FM.indd 306/11/17 2:14 PM
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For my wife, Mary Ann.C. William (Bill) ThomasTo my husband, Russ, who steadfastly supports me in every endeavor.Wendy M. TietzA01 HARR5987 12 SE FM.indd 506/11/17 2:14 PM
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About the AuthorsC. William (Bill) Thomas is the J.E. Bush Professor of Accounting and a MasterTeacher at Baylor University. A Baylor University alumnus, he received both his BBAand MBA there and went on to earn his PhD from The University of Texas at Austin.With primary interests in the areas of financial accounting and auditing, Dr. Thomashas served as the J.E. Bush Professor of Accounting since 1995. He has been a memberof the faculty of the Accounting and Business Law Department of the Hankamer Schoolof Business since 1971 and served as chair of the department for 12 years. He has beenrecognized as an Outstanding Faculty Member of Baylor University as well as a Distinguished Professor for the Hankamer School of Business. Dr. Thomas has received manyawards for outstanding teaching, including the Outstanding Professor in the ExecutiveMBA Programs as well as the designation of Master Teacher.Thomas is the author of textbooks in auditing and financial accounting, as well asmany articles in auditing, financial accounting and reporting, taxation, ethics, andaccounting education. His scholarly work focuses on the subject of fraud prevention anddetection, as well as ethical issues among accountants in public practice. He presentlyserves as the accounting and auditing editor of Today’s CPA, the journal of the TexasSociety of Certified Public Accountants, with a circulation of approximately 28,000.Thomas is a Certified Public Accountant in Texas. Prior to becoming a professor,Thomas was a practicing accountant with the firms of KPMG, LLP, and BDO Seidman,LLP. He is a member of the American Accounting Association, the American Instituteof CPAs and Association of International Certified Professional Accountants, and theTexas Society of Certified Public Accountants.Wendy M. Tietz is a professor in the Department of Accounting in the College ofBusiness Administration at Kent State University. She teaches introductory financialand managerial accounting in a variety of formats, including large sections, small sections, and online sections.Dr. Tietz is a Certified Public Accountant (Ohio), a Certified Management Accountant, and a Chartered Global Management Accountant. She is a member of the AmericanAccounting Association, the Institute of Management Accountants, the American Institute of CPAs and Association of International Certified Professional Accountants, and theSustainability Accounting Standards Board Alliance. She has published articles in suchjournals as Issues in Accounting Education, Accounting Education: An InternationalJournal, IMA Educational Case Journal, and Journal of Accounting & Public Policy.Dr. Tietz is also the coauthor of a managerial accounting textbook, Managerial Accounting, with Dr. Karen Braun. She received the 2017 Bea Sanders/AICPA Innovation inTeaching Award for her web tool for financial accounting instructors, the AccountingCase Template. In 2016, Dr. Tietz was awarded the Jim Bulloch Award for Innovations inManagement Accounting Education from the American Accounting Association/Instituteof Management Accountants for her accounting educator blog, Accounting in the Headlines. She also received the 2014 Bea Sanders/AICPA Innovation in Teaching Award forher blog. She regularly presents at AAA regional and national meetings. She is intenselyinterested in the power of storytelling, interactivity, and social media as educational practices to promote engagement and understanding.Dr. Tietz earned her PhD from Kent State University. She received both her MBAand BSA from the University of Akron. Prior to teaching, she worked in industry forseveral years, both as a controller for a financial institution and as the operations manager and controller for a recycled plastics manufacturer.A01 HARR5987 12 SE FM.indd 7vii06/11/17 2:14 PM
viiiAbout the AuthorsWalter T. Harrison Jr. is professor emeritus of accounting at the Hankamer School ofBusiness, Baylor University. He received his BBA from Baylor University, his MS fromOklahoma State University, and his PhD from Michigan State University.Professor Harrison, recipient of numerous teaching awards from student groups aswell as from university administrators, has also taught at Cleveland State CommunityCollege, Michigan State University, the University of Texas, and Stanford University.A member of the American Accounting Association and the American Institute ofCPAs and Association of International Certified Professional Accountants, ProfessorHarrison has served as chairman of the Financial Accounting Standards Committee ofthe American Accounting Association, on the Teaching/Curriculum DevelopmentAward Committee, on the Program Advisory Committee for Accounting Education andTeaching, and on the Notable Contributions to Accounting Literature Committee.Professor Harrison has lectured in several foreign countries and published articles innumerous journals, including Journal of Accounting Research, Journal of Accountancy,Journal of Accounting and Public Policy, Economic Consequences of FinancialAccounting Standards, Accounting Horizons, Issues in Accounting Education, andJournal of Law and Commerce.Professor Harrison has received scholarships, fellowships, and research grants orawards from PricewaterhouseCoopers, Deloitte & Touche, the Ernst & Young Foundation, and the KPMG Foundation.Charles T. Horngren (1926–2011) was the Edmund W. Littlefield Professor ofAccounting, emeritus, at Stanford University. A graduate of Marquette University, hereceived his MBA from Harvard University and his PhD from the University of Chicago.He was also the recipient of honorary doctorates from Marquette University and DePaulUniversity.A certified public accountant, Horngren served on the Accounting Principles Boardfor six years, the Financial Accounting Standards Board Advisory Council for fiveyears, and the Council of the American Institute of Certified Public Accountants forthree years. For six years he served as a trustee of the Financial Accounting Foundation,which oversees the Financial Accounting Standards Board and the GovernmentAccounting Standards Board.Horngren is a member of the Accounting Hall of Fame. As a member of the American Accounting Association, Horngren was its president and its director of research. Hereceived its first annual Outstanding Accounting Educator Award. The California Certified Public Accountants Foundation gave Horngren its Faculty Excellence Award andits Distinguished Professor Award. He was the first person to have received both awards.The American Institute of Certified Public Accountants presented its first OutstandingEducator Award to Horngren. Horngren was named Accountant of the Year, inEducation, by the national professional accounting fraternity, Beta Alpha Psi. ProfessorHorngren was also a member of the Institute of Management Accountants, from whomhe received its Distinguished Service Award. He was a member of the institute’s Boardof Regents, which administers the Certified Management Accountant examinations.Horngren is an author of these other accounting books published by Pearson: CostAccounting: A Managerial Emphasis, Fifteenth Edition, 2015 (with Srikant M. Datarand Madhav V. Rajan); Introduction to Financial Accounting, Eleventh Edition, 2014(with Gary L. Sundem, John A. Elliott, and Donna Philbrick); Introduction to Management Accounting, Sixteenth Edition, 2014 (with Gary L. Sundem, Jeff Schatzberg, andDave Burgstahler); Horngren’s Financial & Managerial Accounting, Fifth Edition,2016 (with Tracie L. Miller-Nobles, Brenda L. Mattison, and Ella Mae Matsumura);and Horngren’s Accounting, Eleventh Edition, 2016 (with Tracie L. Miller-Nobles,Brenda L. Mattison, and Ella Mae Matsumura). Horngren was the consulting editor forPearson’s Charles T. Horngren Series in Accounting.A01 HARR5987 12 SE FM.indd 806/11/17 2:14 PM
Brief ContentsPreface123456789101112xviThe Financial StatementsTransaction Analysis160Accrual Accounting and Income120Internal Control and Cash201Receivables and Revenue248Inventory and Cost of Goods Sold305Plant Assets, Natural Resources, and IntangiblesCurrent and Contingent LiabilitiesLong-Term Liabilities468Stockholders’ Equity522The Statement of Cash Flows594Financial Statement Analysis668367436APPENDIX A: Apple Inc. Annual Report 2016 745APPENDIX B: Typical Charts of Accounts for Different Types of Businesses 766APPENDIX C: Summary of Generally Accepted Accounting Principles (GAAP) 768APPENDIX D: Summary of Differences Between U.S. GAAP and IFRS CrossReferenced to Chapter 770APPENDIX E: Investments 772APPENDIX F: Time Value of Money 798ixA01 HARR5987 12 SE FM.indd 906/11/17 2:14 PM
ContentsPrefacexviChapter 2Chapter 1Transaction AnalysisThe Financial Statements 1SP OTLIGH T The Walt Disney Company RecordsMillions of Transactions a Year! 60SPOT L I GHT The Walt Disney Company 1Explain Why Accounting Is Critical to Businesses3Describe the Decision Makers Who Use Accounting3Describe the Two Types of Accounting and Who UsesEach Type 4Explain How Businesses Are Organized4Explain and Apply Underlying Accounting Concepts,Assumptions, and Principles 5The Entity Assumption7The Continuity (Going-Concern) AssumptionThe Historical Cost Principle77Apply the Accounting Equation to BusinessOrganizations 9Equity910Construct Financial Statements and Analyze theRelationships Among Them 12The Income Statement13The Statement of Retained EarningsThe Balance SheetAssets61Liabilities62Stockholders’ Equity62Analyze the Impact of Business Transactions on theAccounting Equation 63Example: Alladin Travel, Inc.Transactions and Financial Statements69Mid-Chapter Summary Problem71The T-Account73Increases and Decreases in the Accounts: The Rules ofDebit and Credit 73Additional Stockholders’ Equity Accounts: Revenues andExpenses 74Journalize Transactions and Post Journal Entries tothe Ledger 76The Flow of Accounting Data23Construct a Trial BalanceAmerican Institute of Certified Public Accountants Codeof Professional Conduct 25Analyzing AccountsEnd-of-Chapter Summary ProblemChart of Accounts277678Accounts After Posting to the Ledger20Evaluate Business Decisions Ethically63Posting from the Journal to the Ledger1616The Statement of Cash FlowsRecognize a Business Transaction and the Various Typesof Accounts in Which It Can Be Recorded 61Analyze the Impact of Business Transactions onAccounts 72The Stable-Monetary-Unit Assumption 8Assets and Liabilities60838384Correcting Accounting Errors8586The Normal Balance of an Account86End-of-Chapter Summary Problem88xA01 HARR5987 12 SE FM.indd 1006/11/17 2:14 PM
xiContentsChapter 3Chapter 4Accrual Accounting and Income120Internal Control and CashSPOTLIG HT September Is Busy at Walt DisneyWorld Headquarters 120Explain How Accrual Accounting Differs fromCash-Basis Accounting 121Accrual Accounting and Cash Flows122Fraud and EthicsThe Components of Internal Control123Internal Control ProceduresThe Expense Recognition Principle124Information Technology125Safeguard ControlsWhich Accounts Need to Be Updated (Adjusted)?Categories of Adjusting EntriesPrepaid Expenses125209210Evaluate Internal Controls over Cash Receipts andCash Payments 211129131Cash Receipts over the CounterAccrued Revenues133Cash Receipts by MailSummary of the Adjusting Process138Mid-Chapter Summary ProblemMid-Chapter Summary Problem141146Classifying Assets and Liabilities148Reporting Assets and Liabilities: The Walt DisneyCompany 148Formats for the Financial StatementsCurrent RatioDebt Ratio213Signature Card216Deposit Ticket217Check215216217Bank Statement217218Preparing the Bank ReconciliationOnline Banking221222Report Cash on the Balance Sheet 224151End-of-Chapter Summary Problem151224152How Do Transactions Affect the Ratios?152End-of-Chapter Summary Problem156A01 HARR5987 12 SE FM.indd 11Prepare a Bank ReconciliationBank Reconciliation148Analyze and Evaluate a Company’s Debt-PayingAbility 150Net Working Capital212The Limitations of Internal Control—Costs andBenefits 214135Construct the Financial Statements 139Close the Books211Controls over Payments Made by Check or EFT134The Adjusted Trial Balance210210Accrued ExpensesUnearned Revenues206207Internal Controls for E-CommerceSecurity Measures126126Depreciation of Plant Assets204Explain the Objectives and Components of InternalControl 205Apply the Revenue and Expense RecognitionPrinciples 123Adjust the AccountsSP OTLIGH T Cooking the Books at GreenValley Coffee Company: 10 Million Is a Lot ofBeans! 201Describe Fraud and Its Impact 203The Time-Period Concept 122The Revenue Principle20106/11/17 2:14 PM
xiiContentsChapter 5Apply the Various Inventory Costing MethodsReceivables and RevenueCompare the Effects of FIFO, LIFO, and Average-CostMethods on Gross Profit and Ending Inventory 316248SPOT L I GHT Apple’s Accounts Receivable AreSmall Compared to the Company’s Net SalesRevenue and Are Mostly Collectible 248Apply Generally Accepted Accounting Principles(GAAP) for Proper Revenue Recognition 250Shipping TermsCollection252252Account for Sales Returns and AllowancesAccount for Sales Discounts253254Account for Accounts Receivable256Explain and Apply Underlying U.S. GAAP forInventory 319Disclosure Principle320257Evaluate Collectibility Using the Allowance forUncollectible Accounts 258Compute and Evaluate Gross Profit (Margin)Percentage, Inventory Turnover, and Days’Inventory Outstanding (DIO) 322322Computing Budgeted Purchases325Estimating Inventory by the Gross Profit MethodAnalyze Effects of Inventory Errors328264Computing Cash Collections from Customers264Accounting for Notes ReceivableChapter 7Plant Assets, Natural Resources, andIntangibles 367Account for Notes Receivable and InterestRevenue 265266SP OTLIGH T FedEx CorporationEvaluate Liquidity Using Three New Ratios268268367Explain How to Account for the Cost of PlantAssets 370Accounts Receivable Turnover and Days’ SalesOutstanding 269LandEnd-of-Chapter Summ
Charles T. Horngren (1926–2011) was the Edmund W. Littlefield Professor of Accounting, emeritus, at Stanford University. A graduate of Marquette University, he received his MBA from Harvard University and his PhD from the University of Chicago. He was also the recipient of honorary doctorates from Marquette University and DePaul University.
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FINANCIAL ACCOUNTING : MEANING, NATURE AND ROLE OF ACCOUNTING STRUCTURE 1.0 Objective 1.1 Introduction 1.2 Origin and Growth of Accounting 1.3 Meaning of Accounting 1.4 Distinction between Book-Keeping and Accounting 1.5 Distinction between Accounting and Accountancy 1.6 Nature of Accounting 1.7 Objectives of Accounting 1.8 Users of Accounting Information 1.9 Branches of Accounting 1.10 Role .
Accounting Education, (2) Accounting Education, (3) Advances in Accounting Education, (4) Global Perspectives on Accounting Education, (5) Issues in Accounting Education, and (6) The Accounting Educators’ Journal. As noted in Table 1, this article is the 12th in a series of accounting education literature reviews first published in 1986.
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Pearson BTEC Level 4 HNC The Pearson BTEC Level 4 HNC in Business is a qualification with a minimum of 120 credits of which 60 are mandatory core. The Pearson BTEC Level 4 HNC programme must contain a minimum of 65 credits at level 4. Pearson BTEC Level 5 HND The Pearson BTEC Lev
