The Construction of an Income Statement
Reported Profitability and the Principle of Conservatism
Increasing the Net Assets of a Company
Reporting a Balance Sheet
What Is a Balance Sheet?
The Essential Role of Transaction Analysis
The Effects Caused by Common Transactions
An Introduction to Double-Entry Bookkeeping
Preparing Journal Entries
The Connection of the Journal and the Ledger
The Need for Adjusting Entries
Preparing Various Adjusting Entries
Preparing Financial Statements
Chapter Appendix
The Need for the Securities and Exchange Commission
The Role of the Independent Auditor in Financial Reporting
Performing an Audit in financial
The Need for Internal Control
The Purpose and Content of an Independent Auditor’s Report
Accounting for Uncollectible Accounts
The Problem with Estimations
Estimating the Amount of Uncollectible Accounts
Remeasuring Foreign Currency Balances
A Company’s Vital Signs—Accounts Receivable
Determining and Reporting the Cost of Inventory
Perpetual and Periodic Inventory Systems
Cost of Goods Sold – COGS
Reporting Inventory at the Lower-of-Cost-or-Market
Determining Inventory on Hand
The Necessity of Adopting a Cost Flow Assumption