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ISBN 10: 1119807605
ISBN 13: 978-1119807605
Author: Paul Kimmel, Jerry Weygandt, Jill Mitchell
Provide future business professionals with a practical introduction to financial accounting without the use of debits and credits. With its unique focus on building students’ decision-making skills and emphasis on financial statements, Financial Accounting for Managers, 1st Edition meaningfully integrates data analytics and the importance of using accounting information in real-world decision-making. Engaging real-world industry examples student understanding of accounting concepts and illustrate how these are relevant to their everyday lives and future careers in business and accounting.
1 Introduction to Financial Statements
Knowing the Numbers: Columbia Sportswear Company
Business Organization and Accounting Information Uses
Forms of Business Organization
Users and Uses of Financial Information
Data Analytics
Ethics in Financial Reporting
The Three Types of Business Activity
Financing Activities
Investing Activities
Operating Activities
The Four Financial Statements
Income Statement
Retained Earnings Statement
Balance Sheet
Statement of Cash Flows
ESG Reporting: Beyond the Four Financial Statements
Interrelationships of Statements
Elements of an Annual Report
Appendix: Career Opportunities in Accounting
“Show Me the Money”
2 A Further Look at the Balance Sheet
Just Fooling Around?: The Motley Fool
The Classified Balance Sheet
Current Assets
Long-Term Investments
Property, Plant, and Equipment
Intangible Assets
Current Liabilities
Long-Term Liabilities
Stockholders’ Equity
Analyzing the Balance Sheet Using Ratios
Ratio Analysis
Using a Classified Balance Sheet
3 The Accounting Information System
Accidents Happen: MF Global Holdings Ltd
Financial Reporting Concepts
The Standard-Setting Environment
Qualities of Useful Information
Assumptions in Financial Reporting
Principles in Financial Reporting
Cost Constraint
Using the Accounting Equation to Analyze Transactions
Accounting Transactions
Analyzing Transactions
Summary of Transactions
Preparing Financial Statements
4 Accrual Accounting Concepts
Keeping Track of Groupons: Groupon
Accrual-Basis Accounting and Adjustments
The Revenue Recognition Principle
The Expense Recognition Principle
Accrual versus Cash Basis of Accounting
The Need for Adjustments
Types of Adjustments
Adjustments for Deferrals
Prepaid Expenses
Unearned Revenues
Adjustments for Accruals
Accrued Revenues
Accrued Expenses
Summary of Basic Relationships
Preparing Financial Statements
Preparing Financial Statements from the Adjusted Tabular Summary
Quality of Earnings
5 Fraud, Internal Control, and Cash
Minding the Money in Madison: Barriques
Fraud and Internal Control
Fraud
The Sarbanes-Oxley Act
Internal Control
Principles of Internal Control Activities
Data Analytics and Internal Controls
Limitations of Internal Control
Cash Controls
Cash Receipts Controls
Cash Disbursements Controls
Petty Cash Fund
Control Features of a Bank Account
Electronic Banking
Bank Statements
Reconciling the Bank Account
Reporting Cash
Cash Equivalents
Restricted Cash
Managing and Monitoring Cash
Cash Budgeting
Data Analytics in Action
6 Merchandising Operations and the Multiple-Step Income Statement
Buy Now, Vote Later: REI
Merchandising Operations and Inventory Purchases
Flow of Costs
Recording Purchases Under a Perpetual Inventory System
Freight Costs
Purchase Returns and Allowances
Purchase Discounts
Summary of Purchasing Transactions
Recording Sales Under a Perpetual Inventory System
Recording Sales
Sales Returns and Allowances
Sales Discounts
Data Analytics and Credit Sales
Multiple-Step Income Statement
Format of the Multiple-Step Income Statement
Components of the Multiple-Step Income Statement
Gross Profit Rate and Profit Margin
Gross Profit Rate
Profit Margin
Data Analytics in Action
7 Reporting and Analyzing Inventory and Receivables
“Where Is That Spare Bulldozer Blade?”: Caterpillar
Classifying and Determining Inventory
Classifying Inventory
Determining Inventory Quantities
Inventory Methods and Financial Effects
Specific Identification
Cost Flow Assumptions
Financial Statement and Tax Effects of Cost Flow Methods
Reporting Receivables
Types of Receivables
Recognizing Accounts Receivable
Valuing Accounts Receivable
Data Analytics and Receivables Management
Inventory Presentation and Analysis
Presentation
Analysis
Data Analytics in Action
8 Reporting and Analyzing Long-Lived Assets
A Tale of Two Airlines: American Airlines
Plant Asset Expenditures
Determining the Cost of Plant Assets
Expenditures During Useful Life
Depreciation Methods
Factors in Computing Depreciation
Depreciation Methods
Revising Periodic Depreciation
Impairments
Plant Asset Disposals
Sale of Plant Assets
Retirement of Plant Assets
Intangible Assets
Accounting for Intangible Assets
Types of Intangible Assets
Research and Development Costs
Statement Presentation and Analysis
Presentation
Analysis
Data Analytics in Action
9 Reporting and Analyzing Liabilities
And Then There Were Two: Maxwell Car Company
Accounting for Current Liabilities
What Is a Current Liability?
Notes Payable
Sales Taxes Payable
Unearned Revenues
Current Maturities of Long-Term Debt
Payroll and Payroll Taxes Payable
Characteristics of Bonds
Types of Bonds
Issuing Procedures
Bond Trading
Determining the Market Price of a Bond
Accounting for Bond Transactions
Issuing Bonds at Face Value
Discount or Premium on Bonds
Issuing Bonds at a Discount
Issuing Bonds at a Premium
Redeeming Bonds at Maturity
Accounting for Long-Term Notes Payable
Presentation and Analysis
Presentation
Analysis
10 Reporting and Analyzing Stockholders’ Equity
Oh Well, I Guess I’ll Get Rich: Meta
Corporate Form of Organization
Characteristics of a Corporation
Forming a Corporation
Stockholder Rights
Stock Issue Considerations
Corporate Capital
Accounting for Common, Preferred, and Treasury Stock
Accounting for Common Stock
Accounting for Preferred Stock
Accounting for Treasury Stock
Accounting for Cash Dividends, Stock Dividends, and Stock Splits
Cash Dividends
Dividend Preferences
Stock Dividends
Stock Splits
Presentation and Analysis of Stockholders’ Equity
Balance Sheet Presentation of Stockholders’ Equity
Analysis of Stockholders’ Equity
Debt versus Equity Decision
Data Analytics in Action
11 Statement of Cash Flows
Got Cash?: Microsoft
Usefulness and Format of the Statement of Cash Flows
Usefulness of the Statement of Cash Flows
Classification of Cash Flows
Significant Noncash Activities
Format of the Statement of Cash Flows
Preparing the Statement of Cash Flows—Indirect Method
Indirect and Direct Methods
Indirect Method—Computer Services Company
Step 1: Operating Activities
Summary of Conversion to Net Cash Provided by Operating Activities—Indirect Method
Step 2: Investing and Financing Activities
Step 3: Net Change in Cash
Analyzing the Statement of Cash Flows
The Corporate Life Cycle
Free Cash Flow
Data Analytics in Action
12 Financial Analysis: The Big Picture
It Pays to Be Patient: Warren Buffett
Sustainable Income and Quality of Earnings
Sustainable Income
Quality of Earnings
Horizontal Analysis and Vertical Analysis
Horizontal Analysis
Vertical Analysis
Ratio Analysis
Liquidity Ratios
Solvency Ratios
Profitability Ratios
Financial Analysis and Data Analytics
public financial management system
scope of financial management
objectives of financial management
functions of financial management
importance of financial management
Tags: Paul Kimmel, Jerry Weygandt, Jill Mitchell, Financial Management