The mission of this text is to present critical concepts in a clear, concise way that is most helpful to learning and enhancing the student's interest. Rather than emphasizing rote learning of rules and regulations, the authors underscore how important it is for users and preparers of financial statements to understand accounting principles and how they are applied in financial reporting decisions. The text presents GAAP as the current solution to a continually evolving host of financial reporting questions. By acquainting students with the political nature of standard setting, the reader becomes aware that both users and preparers are affected by the outcome of the standard setting process.

TABLE OF CONTENTS

Ch. 1 The Environment of Accounting
Ch. 2 The FASB’s Conceptual Framework of Accounting
Ch. 3 Review: The Accounting Information Processing System
Ch. 4 Review: The Income Statement and the Retained Earnings Statement
Ch. 5 Review: The Balance Sheet and the Statement of Cash Flows
Ch. 6 Interest: Concepts of Future and Present Value
Ch. 7 Revenue and Expense Recognition
Ch. 8 Cash and Receivables
Ch. 9 Inventory: Basic Valuation Methods
Ch. 10 Alternative Inventory Valuation Methods
Ch. 11 Operational Assets: Acquisition, Disposal, and Exchange
Ch. 12 Operational Assets: Depreciation and Impairment
Ch. 13 Intangible Assets and Natural Resources
Ch. 14 Investments in Debt and Equity Securities
Ch. 15 Short-Term Liabilities
Ch. 16 Long-Term Liabilities
Ch. 17 Accounting for Leases
Ch. 18 Accounting for Pensions and Other Postemployment Benefits
Ch. 19 Accounting for Income Taxes
Ch. 20 Corporations: Contributed Capital
Ch. 21 Corporations: Retained Earnings and Stock Options
Ch. 22 Earnings per Share
Ch. 23 Statement of Cash Flows
Ch. 24 Accounting Changes and Error Corrections
Ch. 25 Special Topics: Disclosures, Interim Reporting, and Segment Reporting