This book presents accounting, finance and auditing using clear narrative with extensive illustrations. it balances accessibility with rigor. the fifth edition adds material on international accounting and other hot topics. it can be used as the primary book for a one-, two- or three-credit accounting course or to supplement business associations, corporations or corporate finance courses.

Acknowledgements	p. v
Preface	p. vii
First Principles
Three Pillars	p. 2
Introduction to GAAP	p. 5
Components of Financial Statements	p. 12
Introduction to Gaas	p. 16
Finance and Using Financial Information	p. 22
Historical Perspective	p. 23
Accounting
The Fundamental Equation	p. 33
Assets, Liabilities and Equity	p. 33
Journal Entries	p. 36
Creating the Balance Sheet	p. 39
Revenues and Expenses	p. 42
Creating the Income Statement	p. 46
Nine Possible Pairs	p. 51
Data Management	p. 53
The Accrual System and Recognition Principles	p. 55
Cash Versus Accrual Accounting	p. 56
Revenue and Expense Recognition	p. 57
Four Timing Matters	p. 59
Adjusting Entries	p. 64
Conversion Exercise	p. 65
Inventory and the Cost of Goods Sold	p. 70
Recording the Cost of Goods Sold	p. 71
Determining the Cost of Goods Sold	p. 77
Lower of Cost or Market	p. 84
Cost Accounting	p. 86
Disclosure and Tax Matters	p. 87
Fixed Assets and Depreciation	p. 92
Relationship to Other Concepts	p. 92
Required Judgments	p. 94
Depreciation Bookkeeping	p. 96
Depreciation Methods	p. 102
Tax Depreciation Distinguished	p. 107
Consistency, Disclosure and Changing Prices	p. 109
Depletion and Amortization	p. 112
Other Asset and Liability Issues	p. 114
Receivables	p. 115
Intercompany Ownership	p. 119
Financial Instruments	p. 126
Intangible Assets	p. 131
Leases and Other Long-Term Obligations	p. 135
Employee Matters	p. 138
Loss Contingencies	p. 145
Capital Accounts	p. 151
Contributed Capital and Distributions	p. 151
Retained Earnings and Dividend Bookkeeping	p. 161
Other Comprehensive Income	p. 167
Hybrid Instruments	p. 168
Non-Corporate Entities	p. 168
Financial Statement Analysis	p. 172
Liquidity and Activity	p. 175
Profitability and Performance	p. 182
Management's Discussion and Analysis (MD&A)	p. 194
Critical Accounting Policies	p. 205
Segment Reporting	p. 208
Ratio Categories	p. 209
The Statement of Cash Flows	p. 214
Rationale and Organization	p. 215
Direct Method	p. 217
Indirect Method	p. 218
Assessment	p. 224
Analyzing Cash Flow	p. 225
Interpreting Cash Flow	p. 228
Cash Flow Variability	p. 233
Finance
Valuation Principles	p. 243
The Time Value of Money	p. 243
Future Value	p. 246
Present Value	p. 250
Rule of 72s	p. 256
Interest Rates, Tax Effects, and Inflation	p. 258
Valuing Bonds	p. 261
The Cost of Equity	p. 263
Valuation Techniques	p. 267
Introductory Parable: The Old Man and the Tree	p. 267
Balance Sheet Based Valuation	p. 276
Income Statement Based Valuation	p. 281
Cash Flow Based Valuation	p. 288
Synthesis	p. 292
Finance Theory	p. 295
Introductory Statistics	p. 295
Modern Portfolio Theory	p. 302
Capital Asset Pricing Model	p. 311
Efficient Capital Market Hypothesis	p. 315
Valuation in Court	p. 323
Discounted Cash Flow	p. 324
Capitalization of Earnings	p. 330
Valuation by Elimination	p. 339
Auditing
Audit Practice	p. 354
Reasonable Assurance	p. 355
Internal Control	p. 359
Substantive Tests	p. 368
Concluding an Audit	p. 374
Audit Policy	p. 377
Auditing and Corporate Governance	p. 377
Auditor Independence	p. 379
Legal Responsibilities	p. 380
Perspectives on the Lawyer's Role	p. 408
Loss Contingencies and Lawyers' Letters	p. 408
The Problem of Privileges	p. 418
Internal Reporting	p. 422
Multi-Disciplinary Practice (MDP)	p. 423
Shenanigans	p. 429
Testing the Line	p. 429
Crossing the Line	p. 433
Audit Failure	p. 439
Satire	p. 448
Lawyers as Part-Time Accountants	p. 452
Forensic Accounting	p. 454
Glossary	p. 459
Bibliography	p. 481
Table of Cases	p. 485
Index	p. 487
Table of Contents provided by Ingram. All Rights Reserved.

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