Financial Accounting

Chapter 1-Overview of Corporate Financial Reporting What Is Accounting? Forms of Organization Users of Financial Statements Internal Users External Users Development of Accounting Standards Qualitative Characteristics of Accounting Information Business Activities Financing Activities Investing Activities Operating Activities Sears Canada Inc. Annual Report Corporate Profile Report to the Shareholders Management's Discussion and Analysis Board of Directors and Management Financial Section Summary Chapter 2-Transaction Analysis and Accounting Entries User Relevance Basic Accounting Equation Transaction Analysis and Accounting Entries Transaction Analysis-Startup Period Transaction Analysis-Operating Period Financial Statements Balance Sheet Income Statement Cash Flow Statement Summary Chapter 3-Double Entry Accounting Systems User Relevance Double Entry Accounting Systems Accounting Cycle Demo Retail Company Ltd.-The Accounting Cycle Income Statement Format Income from Continuing Operations Income from Non-Operating Sources Income from Unusual or Infrequent Events Corporate Income Taxes Discontinued Operations Extraordinary Items Earnings Per Share Balance Sheet Format Summary Chapter 4-Revenue Recognition User Relevance Performance Measurement The Return on Investment (ROI) as a Measure of Performance Net Income as a Measure of Performance Cash-to-Cash Cycle Cash Acquisition of Inventory Selling Activity Delivery of Product Collection Warranty Service Summary of Cash-to-Cash Cycle Revenue Recognition Revenue Recognition Criteria Applications of Revenue Recognition Revenue Recognition with Multiple Lines of Business Summary Chapter 5-Cash Flow Statement User Relevance Why Another Flow Statement? Ajax Widget Company Performance Evaluation Using the Income and Cash Flow Statements Solutions to the Cash Flow Problem The Cash Flow Statement History Definitions of Cash and Cash Equivalents Components of Cash Flows Preparation of the Cash Flow Statement T-Account Approach Interpretation of Cash Flow Information Analysis of the Cash Flow of Sears Canada Summary Chapter 6-Cash, Temporary Investments, and Accounts & Notes Receivable User Relevance Cash Cash Valuation Methods What Is Canadian Practice? Other Issues Statement Analysis Considerations Temporary Investments Valuation Methods What Is Canadian Practice? Initial Acquisition Dividend/Interest Recognition Recognition of Unrealized Losses/Recoveries and Realized Gains and Losses Statement Analysis Considerations Accounts Receivable Accounts Receivable Valuation Methods What Is Canadian Practice? Percentage of Credit Sales Method Allowance Method Direct Write-Off Method Notes Receivable Interest on Notes Receivable Statement Analysis Considerations Short-Term Liquidity Analysis of Accounts Receivable Using the Accounts Receivable Turnover Ratio Summary Chapter 7-Inventory User Relevance Inventory Recognition and Cost of Goods Sold Valuation Criteria Historical Cost Market Value What Is Canadian Practice? Inventory Systems Perpetual Inventory Systems Periodic Inventory Systems Cost and Benefits of System Choice Cost Flow Assumptions First-In, First-Out (FIFO) Last-In, First-Out (LIFO) Weighted Average Cost Flow Assumption Choice Cost Flow Assumptions and Changing Prices Inventory Estimation Using the Cost-to-Sales Ratio Statement Analysis Considerations Inventory Turnover Other Ratios Summary Chapter 8-Capital Assets-Tangible and Intangible User Relevance Capital Asset Recognition How Are Capital Assets Valued? Historical Cost Market Value What Is Canadian Practice? Amortization Concepts Amortization Methods Straight-Line Method Accelerated Methods Production Methods Recording Amortization Expense Corporate Income Taxes Choice of Amortization Method Changes in Amortization Estimates and Methods Disposal and Writedown of Property, Plant, and Equipment Natural Resources Intangible Assets Advertising Patents, Trademarks, and Copyrights Goodwill Statement Analysis Considerations Using the Return on Assets Ratio Summary Chapter 9-Liabilities User Relevance Recognition Criteria for Liabilities Valuation Criteria Valuation Methods What Is Canadian Practice? Current Liabilities Working Capital Loans and Lines of Credit Accounts Payable Wages and Other Payroll Payables Short-Term Notes and Interest Payable Income Taxes Payable Warranty Payable Unearned Revenues Current Portion of Long-Term Debt Commitments Contingencies Future Income Taxes Other Tax Disclosures Summary Chapter 10-Long-term Liabilities User Relevance Bonds Basic Bond Characteristics Public Bond Issues Bond Pricing Bond Markets Bond Accounting Leasing Lessee Accounting Lessor Accounting Pensions Defined Contribution Plans Defined Benefit Plans Annual Statement Disclosures Post-Employment Benefits Statement Analysis Considerations Summary Appendix-Time Value of Money Tables Chapter 11-Shareholders' Equity User Relevance Forms of Organizations Sole Proprietorship Partnership Corporation Advantages and Disadvantages of the Different Forms of Organization Corporations Shares Common Shares Preferred Shares Issuance of Common Shares Treasury Shares Dividends, Stock Splits, and Options Cash Dividends Property Dividends Stock Dividends Stock Splits Stock Options Statement of Retained Earnings Financial Statement Analysis The Price/Earnings Ratio The Return on Shareholders' Equity Ratio Summary Chapter 12-Financial Statement Analysis User Relevance Overview of Financial Statement Analysis Understanding the Business Reading the Financial Statements Retrospective Versus Prospective Analysis Time-Series Versus Cross-Sectional Analysis Data to Be Used Raw Financial Data Common Size Data Ratio Data Ratios Performance Ratios Turnover Ratios Short-Term Liquidity Ratios Long-Term Liquidity Ratios Earnings Per Share Ratio Price/Earnings Ratio Non-Manufacturing or Non-Retail Company Analysis Summary Ratio Summary Appendix A-Sears Canada Financial Statements Appendix B-Complex Organizations