Introductory Accounting and Finance for Lawyers

by Cunningham, Lawrence A.

• ISBN13: 9780314262851
• ISBN10: 0314262857
• Edition: 3rd
• Format: Paperback
• Copyright: 2002-06-01
• Publisher: West Academic

Table of Contents

Preface	v
First Principles	1	(18)
Introduction to GAAP	4	(5)
The Components of Financial Statements	9	(5)
The Auditor's Report	14	(5)
The Fundamental Equation	19	(19)
Assets, Liabilities and Equity	19	(3)
Journal Entries	22	(2)
Creating the Balance Sheet	24	(3)
Revenues and Expenses	27	(3)
Creating the Income Statement	30	(6)
Alternative Graphic	36	(2)
The Accrual System of Accounting	38	(12)
Cash Versus Accrual Accounting	39	(1)
Applications	40	(6)
Adjusting Entries	46	(1)
Converting From a Cash to Accrual Basis	47	(3)
Inventory and the Cost of Goods Sold	50	(20)
Recording the Cost of Goods Sold	50	(6)
Determining the Cost of Goods Sold	56	(8)
Additional Accounting Issues for Inventories	64	(6)
Fixed Assets and Depreciation	70	(19)
Relationship to Other Concepts	70	(2)
Judgments Required for Depreciation Exercise	72	(2)
Bookkeeping Mechanisms for Depreciation	74	(6)
Methods of Depreciation	80	(5)
Consequences of Conventions	85	(2)
Depletion and Amortization	87	(2)
Other Asset and Liability Issues	89	(33)
Receivables	89	(5)
Intercompany Ownership	94	(5)
Goodwill and Other Intangible Assets	99	(4)
Financial Instruments	103	(4)
Leases and Other Long-term Obligations	107	(2)
Employee Matters	109	(8)
Loss Contingencies	117	(5)
Capital Accounts	122	(22)
Contributed Capital and Distributions	122	(10)
Retained Earnings and Dividend Bookkeeping	132	(6)
Other Comprehensive Income	138	(2)
Capital Accounts in Other Forms of Business Organizations	140	(4)
Financial Statement Analysis	144	(32)
Liquidity and Activity Ratios	147	(7)
Profitability and Performance Ratios	154	(10)
Management's Discussion and Analysis (MD&A)	164	(8)
Segment Reporting	172	(1)
Ratio Categories	172	(4)
The Statement of Cash Flows	176	(15)
Rationale and Organization	177	(1)
The Direct Method	178	(1)
The Indirect Method	179	(7)
Assessment	186	(1)
Cash Flow Ratio Analysis	187	(4)
Valuation Principles	191	(19)
The Time Value of Money	191	(3)
Future Value	194	(3)
Present Value	197	(5)
``The Joys of Compounding''	202	(3)
Graphic Summary	205	(1)
Valuing Bonds	206	(4)
Valuation Techniques	210	(25)
An Introductory Parable: The Old Man and the Tree	210	(8)
Balance Sheet Based Valuation	218	(4)
Income Statement Based Valuation	222	(5)
Cash Flow Based Valuation	227	(8)
Valuation in Court	235	(15)
LeBeau v. M. G. Bancorporation, Inc.	236	(11)
Notes	247	(3)
Perspectives on Auditing	250	(26)
Auditors' Legal Responsibilities	251	(6)
Auditor Independence	257	(19)
Securities and Exchange Commission	258	(18)
Perspectives on the Lawyer's Role	276	(19)
Loss Contingencies and Lawyers' Letters	276	(9)
The Problem of Privileges	285	(5)
Multi-Disciplinary Practice (MDP)	290	(5)
Accounting Shenanigans	295	(16)
Testing the Line	295	(4)
Crossing the Line	299	(9)
Forensic Accounting	308	(3)
Index	311