Go Bears

by Wallace

ISBN: 1111 | Copyright 2023

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Financial Accounting for Undergraduates, 5e (pg. 1.iii)
About the Authors (pg. 1.iii)
Preface (pg. 1.iv)
Brief Contents (pg. 1.x)
Contents (pg. 1.xi)
Chapter 1: Financial Accounting and Business Decisions (pg. 1.1-1)
Business Organization (pg. 1.1-3)
Your Turn! 1.1 (pg. 1.1-4)
Activities of a Business (pg. 1.1-4)
Financing Activities (pg. 1.1-4)
Investing Activities (pg. 1.1-4)
Operating Activities (pg. 1.1-5)
Your Turn! 1.2 (pg. 1.1-5)
Accounting Information and Its Use (pg. 1.1-5)
External Users of Accounting (pg. 1.1-5)
Internal Users of Accounting (pg. 1.1-6)
Your Turn! 1.3 (pg. 1.1-7)
Ethics and Accounting (pg. 1.1-7)
Your Turn! 1.4 (pg. 1.1-8)
The Accounting Process (pg. 1.1-8)
Generally Accepted Accounting Principles (pg. 1.1-9)
International Financial Reporting Standards (pg. 1.1-10)
Your Turn! 1.5 (pg. 1.1-10)
Financial Statements (pg. 1.1-11)
Balance Sheet (pg. 1.1-11)
Income Statement (pg. 1.1-13)
Statement of Stockholders’ Equity (pg. 1.1-13)
Statement of Cash Flows (pg. 1.1-15)
Relations Among the Financial Statements (pg. 1.1-15)
Your Turn! 1.6 (pg. 1.1-17)
Other Annual Report Components (pg. 1.1-17)
Notes to Financial Statements (pg. 1.1-18)
Independent Auditor’s Report (pg. 1.1-18)
Management’s Discussion and Analysis (pg. 1.1-18)
Your Turn! 1.7 (pg. 1.1-19)
Environmental, Social, and Governance Reporting (pg. 1.1-20)
Careers in Accounting (pg. 1.1-20)
Data Analytics and Blockchain Technology (pg. 1.1-21)
Comprehensive Problem (pg. 1.1-22)
Appendix 1A: FASB’s Conceptual Framework (pg. 1.1-23)
Financial Reporting Objectives (pg. 1.1-24)
Financial Statement Elements (pg. 1.1-24)
Qualitative Characteristics (pg. 1.1-24)
Recognition and Measurement Criteria (pg. 1.1-25)
Summary of Learning Objectives (pg. 1.1-26)
Key Terms (pg. 1.1-28)
Self-Study Questions (pg. 1.1-29)
Questions (pg. 1.1-30)
Short Exercises (pg. 1.1-31)
Data Analytics (pg. 1.1-34)
Data Visualization (pg. 1.1-35)
Exercises-Set A (pg. 1.1-35)
Exercises-Set B (pg. 1.1-39)
Problems-Set A (pg. 1.1-42)
Problems-Set B (pg. 1.1-46)
Serial Problem: Kate’s Cards (pg. 1.1-49)
Extending Your Knowledge (pg. 1.1-50)
Answers to Self-Study Questions: (pg. 1.1-53)
Your Turn! Solutions (pg. 1.1-53)
Chapter 2: Processing Accounting Information (pg. 1.2-1)
Accounting Cycle (pg. 1.2-3)
Your Turn! 2.1 (pg. 1.2-4)
Analyzing Transactions (pg. 1.2-4)
Accounting Equation Expanded (pg. 1.2-5)
Transactions and the Accounting Equation: An Illustration (pg. 1.2-5)
Transaction Summary (pg. 1.2-9)
Your Turn! 2.2 (pg. 1.2-10)
The Account System (pg. 1.2-11)
Chart of Accounts (pg. 1.2-11)
System of Debits and Credits (pg. 1.2-11)
Your Turn! 2.3 (pg. 1.2-13)
Your Turn! 2.4 (pg. 1.2-13)
Recording Transactions (pg. 1.2-14)
General Journal (pg. 1.2-14)
Posting Journal Entries to the General Ledger (pg. 1.2-15)
Illustration of the Recording Process (pg. 1.2-16)
Summary Illustration of Journalizing and Posting Transactions (pg. 1.2-20)
Your Turn! 2.5 (pg. 1.2-21)
Trial Balance (pg. 1.2-22)
Your Turn! 2.6 (pg. 1.2-23)
Comprehensive Problem (pg. 1.2-23)
Summary of Learning Objectives (pg. 1.2-25)
Key Terms (pg. 1.2-26)
Self-Study Questions (pg. 1.2-27)
Questions (pg. 1.2-28)
Short Exercises (pg. 1.2-29)
Data Analytics (pg. 1.2-30)
Data Visualization (pg. 1.2-31)
Exercises-Set A (pg. 1.2-31)
Exercises-Set B (pg. 1.2-34)
Problems-Set A (pg. 1.2-38)
Problems-Set B (pg. 1.2-46)
Serial Problem: Kate’s Cards (pg. 1.2-53)
Extending Your Knowledge (pg. 1.2-54)
Answers to Self-Study Questions: (pg. 1.2-59)
Your Turn! Solutions (pg. 1.2-59)
Chapter 3: Accrual Basis of Accounting (pg. 1.3-1)
Accrual Basis of Accounting (pg. 1.3-3)
Revenue Recognition Principle (pg. 1.3-3)
Expense Recognition (Matching) Principle (pg. 1.3-5)
Your Turn! 3.1 (pg. 1.3-6)
Adjusting Accounts (pg. 1.3-7)
Unadjusted Trial Balance (pg. 1.3-7)
Types of Adjustments (pg. 1.3-7)
Your Turn! 3.2 (pg. 1.3-8)
Deferral Adjusting Entries (pg. 1.3-8)
Allocating Previously Recorded Assets to Expenses (pg. 1.3-8)
Allocating Previously Recorded Unearned Revenue to Revenue (pg. 1.3-10)
Your Turn! 3.3 (pg. 1.3-11)
Accrual Adjusting Entries (pg. 1.3-11)
Recording Previously Unrecorded Expenses (pg. 1.3-11)
Recording Previously Unrecorded Revenues (pg. 1.3-12)
Summary of Accounting Adjustments (pg. 1.3-13)
Your Turn! 3.4 (pg. 1.3-15)
Adjusted Trial Balance and Financial Statements (pg. 1.3-15)
Preparing the Adjusted Trial Balance (pg. 1.3-15)
Preparing Financial Statements (pg. 1.3-16)
STEP 1: Income Statement (pg. 1.3-16)
STEP 2: Statement of Stockholders’ Equity (pg. 1.3-16)
STEP 3: Balance Sheet (pg. 1.3-17)
STEP 4: Statement of Cash Flows (pg. 1.3-17)
Your Turn! 3.5 (pg. 1.3-18)
Closing Process (pg. 1.3-19)
Your Turn! 3.6 (pg. 1.3-19)
Journalizing and Posting the Closing Entries (pg. 1.3-19)
Summary of the Accounting Cycle (pg. 1.3-21)
Your Turn! 3.7 (pg. 1.3-22)
Quality of Accounting Numbers (pg. 1.3-22)
Comprehensive Problem (pg. 1.3-23)
Appendix 3A: Closing Process-Using Income Summary Account (pg. 1.3-26)
Your Turn! 3A.1 (pg. 1.3-27)
Journalizing and Posting the Closing Entries (pg. 1.3-27)
Summary of the Accounting Cycle (pg. 1.3-29)
Your Turn! 3A.2 (pg. 1.3-30)
Appendix 3B: Using a Worksheet (pg. 1.3-30)
Preparing a Worksheet (pg. 1.3-30)
Summary of Learning Objectives (pg. 1.3-33)
Key Terms (pg. 1.3-34)
Self-Study Questions (pg. 1.3-34)
Questions (pg. 1.3-35)
Short Exercises (pg. 1.3-35)
Data Analytics (pg. 1.3-37)
Data Visualization (pg. 1.3-37)
Exercises-Set A (pg. 1.3-37)
Exercises-Set B (pg. 1.3-41)
Problems-Set A (pg. 1.3-44)
Problems-Set B (pg. 1.3-52)
Serial Problem: Kate’s Cards (pg. 1.3-60)
Extending Your Knowledge (pg. 1.3-61)
Answers to Self-Study Questions: (pg. 1.3-64)
Your Turn! Solutions (pg. 1.3-65)
Chapter 4: Understanding Financial Statements (pg. 1.4-1)
Balance Sheet Classification and Analysis (pg. 1.4-3)
Current Assets (pg. 1.4-3)
Long-Term Assets (pg. 1.4-4)
Current Liabilities (pg. 1.4-5)
LongTerm Liabilities (pg. 1.4-5)
Stockholders’ Equity (pg. 1.4-6)
Presentation Format (pg. 1.4-6)
Your Turn! 4.1 (pg. 1.4-7)
Income Statement Classification and Analysis (pg. 1.4-7)
Your Turn! 4.2 (pg. 1.4-11)
Working with Financial Statements (pg. 1.4-11)
Analysis Based on Ratios (pg. 1.4-11)
Working with the Balance Sheet (pg. 1.4-11)
Your Turn! 4.3 (pg. 1.4-13)
Working with the Income Statement (pg. 1.4-14)
Working with the Statement of Stockholders’ Equity (pg. 1.4-15)
Comprehensive Problem (pg. 1.4-18)
Summary of Learning Objectives (pg. 1.4-20)
Self-Study Questions (pg. 1.4-21)
Questions (pg. 1.4-23)
Short Exercises (pg. 1.4-23)
Data Analytics (pg. 1.4-25)
Data Visualization (pg. 1.4-26)
Exercises-Set A (pg. 1.4-26)
Exercises-Set B (pg. 1.4-27)
Problems-Set A (pg. 1.4-29)
Problems-Set B (pg. 1.4-32)
Serial Problem: Kate’s Cards (pg. 1.4-35)
Extending Your Knowledge (pg. 1.4-36)
Answers to Self-Study Questions: (pg. 1.4-39)
Your Turn! Solutions (pg. 1.4-39)
Chapter 5: Accounting for Merchandising Operations (pg. 1.5-1)
The Nature of Merchandising (pg. 1.5-3)
Operating Cycle of a Merchandising Firm (pg. 1.5-4)
Cost Flows (pg. 1.5-5)
Inventory Systems (pg. 1.5-5)
Your Turn! 5.1 (pg. 1.5-6)
Accounting for Purchases of Merchandise (pg. 1.5-6)
Transportation Costs (pg. 1.5-6)
Purchase Returns and Allowances (pg. 1.5-7)
Purchase Discounts (pg. 1.5-8)
Your Turn! 5.2 (pg. 1.5-10)
Accounting for Sales of Merchandise (pg. 1.5-10)
Revenue Side (pg. 1.5-11)
Cost Side (pg. 1.5-11)
Sales Returns and Allowances (pg. 1.5-11)
Sales Discounts (pg. 1.5-12)
Net Sales (pg. 1.5-13)
Your Turn! 5.3 (pg. 1.5-13)
Profitability Analysis (pg. 1.5-13)
Gross Profit Percentage (pg. 1.5-13)
Return on Sales Ratio (Profit Margin) (pg. 1.5-14)
Your Turn! 5.4 (pg. 1.5-15)
Comprehensive Problem (pg. 1.5-16)
Appendix 5A: Periodic Inventory System (pg. 1.5-17)
Accounting for Purchases of Merchandise (pg. 1.5-17)
Your Turn! 5A.1 (pg. 1.5-18)
Accounting for Sales of Merchandise (pg. 1.5-18)
Your Turn! 5A.2 (pg. 1.5-19)
Comparison of Entries under the Perpetual and Periodic Systems (pg. 1.5-19)
Cost of Goods Sold Using a Periodic System (pg. 1.5-20)
Your Turn! 5A.3 (pg. 1.5-20)
Appendix 5B: The Revenue Recognition Standard (pg. 1.5-21)
Adjusting Journal Entry for Sales Discounts (pg. 1.5-21)
Adjusting Journal Entry for Sales Returns and Allowances (pg. 1.5-21)
Your Turn! 5B.1 (pg. 1.5-22)
Summary of Learning Objectives (pg. 1.5-22)
Key Terms (pg. 1.5-24)
Self-Study Questions (pg. 1.5-24)
Questions (pg. 1.5-25)
Short Exercises (pg. 1.5-26)
Data Analytics (pg. 1.5-27)
Data Visualization (pg. 1.5-28)
Exercises-Set A (pg. 1.5-28)
Exercises-Set B (pg. 1.5-30)
Problems-Set A (pg. 1.5-32)
Problems-Set B (pg. 1.5-34)
Serial Problem: Kate’s Cards (pg. 1.5-36)
Extending Your Knowledge (pg. 1.5-37)
Answers to Self-Study Questions: (pg. 1.5-39)
Your Turn! Solutions (pg. 1.5-39)
Chapter 6: Accounting for Inventory (pg. 1.6-1)
Inventory Categories and Concepts (pg. 1.6-3)
Categories of Inventory (pg. 1.6-3)
Concepts of Inventory Management (pg. 1.6-4)
Inventory Ownership and Physical Count (pg. 1.6-4)
Ownership of Inventory (pg. 1.6-5)
Physical Count of Inventory (pg. 1.6-6)
Your Turn! 6.1 (pg. 1.6-7)
Inventory Costing Methods (pg. 1.6-7)
Goods Flow vs. Cost Flow (pg. 1.6-7)
Data for Illustration of Cost Flow Assumptions (pg. 1.6-8)
Specific Identification Method (pg. 1.6-9)
FirstIn, FirstOut (FIFO) Method (pg. 1.6-9)
LastIn, FirstOut (LIFO) Method (pg. 1.6-10)
Weighted-Average Cost Method (pg. 1.6-11)
Your Turn! 6.2 (pg. 1.6-12)
Comparative Analysis of Inventory Costing Methods and Gross Profit (pg. 1.6-12)
Selecting Inventory Methods (pg. 1.6-13)
Your Turn! 6.3 (pg. 1.6-17)
Lower-of-Cost-or-Net Realizable Value Method (pg. 1.6-17)
Net Realizable Value (pg. 1.6-17)
Lower-of-Cost-or-Net Realizable Value (pg. 1.6-17)
Your Turn! 6.4 (pg. 1.6-18)
Inventory Analysis (pg. 1.6-19)
Inventory Turnover and Days’ Sales in Inventory (pg. 1.6-19)
Your Turn! 6.5 (pg. 1.6-20)
Comprehensive Problem (pg. 1.6-20)
Appendix 6A: Inventory Costing Methods and the Perpetual Inventory System (pg. 1.6-21)
Specific Identification Method (pg. 1.6-22)
FirstIn, FirstOut (FIFO) Method (pg. 1.6-22)
LastIn, FirstOut (LIFO) Method (pg. 1.6-23)
Weighted-Average Cost Method (pg. 1.6-24)
Comparative Analysis of Inventory Costing Methods (pg. 1.6-25)
Your Turn! 6A.1 (pg. 1.6-26)
Appendix 6B: LIFO Reserve (pg. 1.6-26)
Your Turn! 6B.1 (pg. 1.6-27)
Summary of Learning Objectives (pg. 1.6-27)
Key Terms (pg. 1.6-29)
Self-Study Questions (pg. 1.6-29)
Questions (pg. 1.6-30)
Short Exercises (pg. 1.6-31)
Data Analytics (pg. 1.6-33)
Data Visualization (pg. 1.6-33)
Exercises-Set A (pg. 1.6-33)
Exercises-Set B (pg. 1.6-36)
Problems-Set A (pg. 1.6-39)
Problems-Set B (pg. 1.6-43)
Serial Problem: Kate’s Cards (pg. 1.6-46)
Extending Your Knowledge (pg. 1.6-47)
Answers to Self-Study Questions: (pg. 1.6-49)
Your Turn! Solutions (pg. 1.6-50)
Chapter 7: Internal Control and Cash (pg. 1.7-1)
Fraud (pg. 1.7-3)
Fraud Triangle (pg. 1.7-3)
Pressure (pg. 1.7-3)
Your Turn! 7.1 (pg. 1.7-4)
Internal Control (pg. 1.7-4)
COSO Framework (pg. 1.7-4)
Control Failures (pg. 1.7-8)
Sarbanes-Oxley Act (pg. 1.7-9)
Your Turn! 7.2 (pg. 1.7-9)
Accounting for Cash (pg. 1.7-10)
Reporting Cash (pg. 1.7-10)
Cash and Cash Equivalents (pg. 1.7-10)
Your Turn! 7.3 (pg. 1.7-11)
Internal Control of Cash Receipts Transactions (pg. 1.7-11)
Cash Received on Account (pg. 1.7-11)
Cash Received from Retail Cash Sales (pg. 1.7-13)
Checks (pg. 1.7-15)
Using Electronic Funds Transfer (pg. 1.7-16)
Petty Cash Fund (pg. 1.7-16)
Your Turn! 7.4 (pg. 1.7-17)
Reconciling The Bank Statement (pg. 1.7-17)
The Bank Reconciliation Process (pg. 1.7-18)
Your Turn! 7.5 (pg. 1.7-22)
Effective Cash Management (pg. 1.7-22)
Monitoring Cash (pg. 1.7-22)
Primary Activities of Effective Cash Management (pg. 1.7-23)
Your Turn! 7.6 (pg. 1.7-23)
Comprehensive Problem (pg. 1.7-24)
Appendix 7A: Auditing and Internal Control (pg. 1.7-25)
Financial Statement Audits (pg. 1.7-25)
Audit Procedures (pg. 1.7-25)
The Audit Report (pg. 1.7-26)
Operational Audits (pg. 1.7-26)
Your Turn! 7A.1 (pg. 1.7-26)
Summary of Learning Objectives (pg. 1.7-27)
Key Terms (pg. 1.7-28)
Self-Study Questions (pg. 1.7-29)
Questions (pg. 1.7-29)
Short Exercises (pg. 1.7-30)
Data Analytics (pg. 1.7-31)
Data Visualization (pg. 1.7-32)
Exercises-Set A (pg. 1.7-32)
Exercises-Set B (pg. 1.7-34)
Problems-Set A (pg. 1.7-35)
Problems-Set B (pg. 1.7-39)
Serial Problem: Kate’s Cards (pg. 1.7-42)
Extending Your Knowledge (pg. 1.7-43)
Answers to Self-Study Questions: (pg. 1.7-46)
Your Turn! Solutions (pg. 1.7-47)
Chapter 8: Accounting for Receivables (pg. 1.8-1)
Accounts Receivable (pg. 1.8-3)
Accounting for Bad Debts (pg. 1.8-3)
Allowance Method (pg. 1.8-4)
Your Turn! 8.1 (pg. 1.8-7)
Estimating Credit Losses (pg. 1.8-7)
Percentage of Net Sales Method (pg. 1.8-7)
Your Turn! 8.2 (pg. 1.8-8)
Accounts Receivable Aging Method (pg. 1.8-8)
Your Turn! 8.3 (pg. 1.8-11)
Credit Card Sales (pg. 1.8-11)
Your Turn! 8.4 (pg. 1.8-12)
Notes Receivable (pg. 1.8-12)
Interest on Notes Receivable (pg. 1.8-12)
Adjusting Entry for Interest (pg. 1.8-14)
Reporting Notes Receivable on the Balance Sheet (pg. 1.8-15)
Your Turn! 8.5 (pg. 1.8-15)
Analyzing and Managing Receivables (pg. 1.8-15)
Your Turn! 8.6 (pg. 1.8-16)
Factoring and Discounting (pg. 1.8-16)
Comprehensive Problem (pg. 1.8-17)
Appendix 8A: Direct Write-Off Method (pg. 1.8-19)
Your Turn! 8A.1 (pg. 1.8-19)
Summary of Learning Objectives (pg. 1.8-19)
Key Terms (pg. 1.8-21)
Self-Study Questions (pg. 1.8-21)
Questions (pg. 1.8-22)
Short Exercises (pg. 1.8-23)
Data Analytics (pg. 1.8-24)
Data Visualization (pg. 1.8-25)
Exercises-Set A (pg. 1.8-25)
Exercises-Set B (pg. 1.8-28)
Problems-Set A (pg. 1.8-32)
Problems-Set B (pg. 1.8-35)
Serial Problem: Kate’s Cards (pg. 1.8-38)
Extending Your Knowledge (pg. 1.8-39)
Answers to Self-Study Questions: (pg. 1.8-41)
Your Turn! Solutions (pg. 1.8-42)
Chapter 9: Accounting for Long-Lived and Intangible Assets (pg. 1.9-1)
Overview of Long-Lived Assets (pg. 1.9-3)
Measuring Acquisition Cost of Plant Assets (pg. 1.9-4)
Acquisition Cost (pg. 1.9-4)
Your Turn! 9.1 (pg. 1.9-6)
Nature of Depreciation (pg. 1.9-7)
Depreciation Accounting: Allocation versus Valuation (pg. 1.9-7)
Calculating Depreciation Expense (pg. 1.9-8)
A Comparison of Alternative Depreciation Methods (pg. 1.9-11)
Your Turn! 9.2 (pg. 1.9-13)
Depreciation Method Estimate Changes (pg. 1.9-13)
Revenue versus Capital Expenditures (pg. 1.9-15)
Revenue Expenditures (pg. 1.9-15)
Capital Expenditures (pg. 1.9-16)
Your Turn! 9.3 (pg. 1.9-16)
Disposals of Plant Assets (pg. 1.9-17)
Sale of Plant Assets (pg. 1.9-17)
Your Turn! 9.4 (pg. 1.9-18)
Intangible Assets and Natural Resources (pg. 1.9-18)
Measurement of Intangible Assets (Cost Determination) (pg. 1.9-18)
Amortization of Intangibles (pg. 1.9-19)
Examples of Intangible Assets (pg. 1.9-19)
Patents (pg. 1.9-19)
Copyright (pg. 1.9-19)
Franchises (pg. 1.9-20)
Trademarks (pg. 1.9-20)
Goodwill (pg. 1.9-20)
Your Turn! 9.5 (pg. 1.9-21)
Natural Resources (pg. 1.9-21)
Your Turn! 9.6 (pg. 1.9-22)
Balance Sheet Presentation (pg. 1.9-22)
Return on Assets and Asset Turnover (pg. 1.9-23)
Your Turn! 9.7 (pg. 1.9-23)
Comprehensive Problem (pg. 1.9-24)
Summary Of Learning Objectives (pg. 1.9-24)
Key Terms (pg. 1.9-26)
SelfStudy Questions (pg. 1.9-26)
Questions (pg. 1.9-27)
Short Exercises (pg. 1.9-28)
Data Analytics (pg. 1.9-29)
Data Visualization (pg. 1.9-30)
Exercises-Set A (pg. 1.9-30)
Exercises-Set B (pg. 1.9-32)
Problems-Set A (pg. 1.9-34)
Problems-Set B (pg. 1.9-37)
Serial Problem: Kate’s Cards (pg. 1.9-40)
Extending Your Knowledge (pg. 1.9-41)
Answers to Self-Study Questions: (pg. 1.9-43)
Your Turn! Solutions (pg. 1.9-43)
Chapter 10: Accounting for Liabilities (pg. 1.10-1)
Current Liabilities (pg. 1.10-3)
Accounts Payable (pg. 1.10-3)
Notes Payable and Interest (pg. 1.10-3)
Interest Payable (pg. 1.10-5)
Current Portion of LongTerm Debt (pg. 1.10-5)
Advance Payments-Unearned Revenue (pg. 1.10-5)
Sales and Excise Taxes Payable (pg. 1.10-6)
PayrollRelated Liabilities (pg. 1.10-6)
Your Turn! 10.1 (pg. 1.10-8)
Income Taxes Payable (pg. 1.10-8)
Long-Term Liabilities (pg. 1.10-9)
Long-Term Notes (Term Loans) (pg. 1.10-9)
Types of Bonds (pg. 1.10-10)
Bond Prices (pg. 1.10-11)
Recording Bonds (pg. 1.10-13)
Your Turn! 10.2 (pg. 1.10-17)
Advantages and Disadvantages of Long-Term Bonds and Notes (pg. 1.10-17)
Contingent Liabilities (pg. 1.10-19)
Examples of Contingent Liabilities (pg. 1.10-20)
Summary of Accounting Treatment for Liabilities (pg. 1.10-21)
Your Turn! 10.3 (pg. 1.10-22)
Analyzing Liabilities (pg. 1.10-22)
Current Ratio and Quick Ratio (pg. 1.10-22)
Times-Interest-Earned Ratio (pg. 1.10-23)
Your Turn! 10.4 (pg. 1.10-24)
Comprehensive Problem (pg. 1.10-25)
Appendix 10A: Bond Pricing (pg. 1.10-25)
Straight-line Interest Method of Discount Amortization (pg. 1.10-26)
Straight-line Interest Method of Premium Amortization (pg. 1.10-27)
Effective Interest Method of Discount Amortization (pg. 1.10-28)
Effective Interest Method of Premium Amortization (pg. 1.10-29)
Using a Financial Calculator (pg. 1.10-30)
Using an Electronic Spreadsheet (pg. 1.10-32)
Your Turn! 10A.1 (pg. 1.10-32)
Appendix 10B: Leases (pg. 1.10-32)
Your Turn! 10B.1 (pg. 1.10-33)
Summary of Learning Objectives (pg. 1.10-33)
Key Terms (pg. 1.10-35)
Self-Study Questions (pg. 1.10-35)
Questions (pg. 1.10-36)
Short Exercises (pg. 1.10-37)
Data Analytics (pg. 1.10-38)
Data Visualization (pg. 1.10-40)
Exercises-Set A (pg. 1.10-40)
Exercises-Set B (pg. 1.10-43)
Problems-Set A (pg. 1.10-46)
Problems-Set B (pg. 1.10-50)
Serial Problem: Kate’s Cards (pg. 1.10-53)
Extending Your Knowledge (pg. 1.10-53)
Answers to Self-Study Questions: (pg. 1.10-56)
Your Turn! Solutions (pg. 1.10-56)
Chapter 11: Stockholders’ Equity (pg. 1.11-1)
Nature and Formation of a Corporation (pg. 1.11-3)
Advantages of the Corporate Form of Organization (pg. 1.11-3)
Disadvantages of the Corporate Form of Organization (pg. 1.11-5)
Accounting for Stockholders’ Equity in Alternative Organizational Forms (pg. 1.11-6)
Your Turn! 11.1 (pg. 1.11-6)
Par Value Stock and NoPar Value Stock (pg. 1.11-6)
Your Turn! 11.2 (pg. 1.11-7)
Types of Capital Stock (pg. 1.11-7)
Common Stock (pg. 1.11-7)
Preferred Stock (pg. 1.11-8)
Your Turn! 11.3 (pg. 1.11-10)
Stock Issuances for Cash (pg. 1.11-10)
Issuing Stock at a Premium (pg. 1.11-11)
Issuing No-Par Stock (pg. 1.11-11)
Noncash Stock Issuances (pg. 1.11-11)
Your Turn! 11.4 (pg. 1.11-12)
Stock Splits (pg. 1.11-12)
Your Turn! 11.5 (pg. 1.11-13)
Treasury Stock (pg. 1.11-13)
Accounting for Treasury Stock (pg. 1.11-13)
Your Turn! 11.6 (pg. 1.11-14)
Cash Dividends and Stock Dividends (pg. 1.11-15)
Cash Dividends (pg. 1.11-15)
Stock Dividends (pg. 1.11-16)
Your Turn! 11.7 (pg. 1.11-18)
Retained Earnings and the Statement of Stockholders’ Equity (pg. 1.11-18)
Statement of Stockholders’ Equity (pg. 1.11-19)
Your Turn! 11.8 (pg. 1.11-19)
Analyzing Stockholders’ Equity (pg. 1.11-20)
Return on Equity (pg. 1.11-20)
Dividend Yield and Dividend Payout Ratio (pg. 1.11-20)
Your Turn! 11.9 (pg. 1.11-22)
Comprehensive Problem (pg. 1.11-22)
Summary of Learning Objectives (pg. 1.11-23)
Key Terms (pg. 1.11-24)
Self-Study Questions (pg. 1.11-24)
Questions (pg. 1.11-25)
Short Exercises (pg. 1.11-26)
Data Analytics (pg. 1.11-27)
Data Visualization (pg. 1.11-28)
Exercises-Set A (pg. 1.11-28)
Exercises-Set B (pg. 1.11-31)
Problems-Set A (pg. 1.11-33)
Problems-Set B (pg. 1.11-37)
Serial Problem: Kate’s Cards (pg. 1.11-42)
Extending Your Knowledge (pg. 1.11-42)
Answers to Self-Study Questions: (pg. 1.11-45)
Your Turn! Solutions (pg. 1.11-45)
Chapter 12: Statement of Cash Flows (pg. 1.12-1)
Cash and Cash Equivalents (pg. 1.12-3)
Activity Classifications in the Statement of Cash Flows (pg. 1.12-4)
Operating Activities (pg. 1.12-5)
Investing Activities (pg. 1.12-5)
Financing Activities (pg. 1.12-6)
Usefulness of Activity Classification (pg. 1.12-6)
Noncash Investing and Financing Activities (pg. 1.12-7)
Using the Statement of Cash Flows (pg. 1.12-8)
Cash Flow from Operating Activities (pg. 1.12-8)
Your Turn! 12.1 (pg. 1.12-9)
Preparing the Statement of Cash Flows Using the Indirect Method (pg. 1.12-9)
Five Steps to Preparing a Statement of Cash Flows (pg. 1.12-11)
Your Turn! 12.2 (pg. 1.12-17)
Analyzing Cash Flows (pg. 1.12-18)
Free Cash Flow (pg. 1.12-18)
Operating-Cash-Flow-to-Current-Liabilities Ratio (pg. 1.12-18)
Operating-Cash-Flow-to-Capital-Expenditures Ratio (pg. 1.12-19)
Your Turn! 12.3 (pg. 1.12-20)
Comprehensive Problem (pg. 1.12-20)
Appendix 12A: Preparing the Statement of Cash Flows Under the Direct Method (pg. 1.12-22)
Your Turn! 12A.1 (pg. 1.12-25)
Summary of Learning Objectives (pg. 1.12-25)
Key Terms (pg. 1.12-26)
Self-Study Questions (pg. 1.12-27)
Questions (pg. 1.12-28)
Short Exercises (pg. 1.12-29)
Data Analytics (pg. 1.12-30)
Data Visualization (pg. 1.12-31)
Exercises-Set A (pg. 1.12-31)
Exercises-Set B (pg. 1.12-34)
Problems-Set A (pg. 1.12-37)
Problems-Set B (pg. 1.12-42)
Serial Problem: Kate’s Cards (pg. 1.12-46)
Extending Your Knowledge (pg. 1.12-47)
Answers to Self-Study Questions: (pg. 1.12-50)
Your Turn! Solutions (pg. 1.12-50)
Chapter 13: Analysis and Interpretation of Financial Statements (pg. 1.13-1)
Persistent Earnings and the Income Statement (pg. 1.13-3)
Discontinued Operations (pg. 1.13-5)
Changes in Accounting Principles (pg. 1.13-5)
Comprehensive Income (pg. 1.13-5)
Your Turn! 13.1 (pg. 1.13-6)
Sources of Information (pg. 1.13-6)
Analytical Techniques (pg. 1.13-7)
Horizontal Analysis (pg. 1.13-7)
Trend Analysis (pg. 1.13-10)
Your Turn! 13.2 (pg. 1.13-11)
Vertical Analysis (pg. 1.13-12)
Your Turn! 13.3 (pg. 1.13-13)
Ratio Analysis (pg. 1.13-13)
Analyzing Firm Profitability (pg. 1.13-14)
Your Turn! 13.4 (pg. 1.13-17)
Analyzing ShortTerm Firm Liquidity (pg. 1.13-18)
Your Turn! 13.5 (pg. 1.13-22)
Analyzing LongTerm Firm Solvency (pg. 1.13-22)
Your Turn! 13.6 (pg. 1.13-24)
Financial Ratios for Common Stockholders (pg. 1.13-25)
Your Turn! 13.7 (pg. 1.13-27)
Limitations of Financial Statement Analysis (pg. 1.13-27)
Comprehensive Problem (pg. 1.13-28)
Appendix 13A: Financial Statement Disclosures (pg. 1.13-29)
Parenthetical Disclosures (pg. 1.13-29)
Notes to the Financial Statements (pg. 1.13-30)
Supplementary Information (pg. 1.13-32)
Summary of Learning Objectives (pg. 1.13-32)
Summary of Financial Statement Ratios (pg. 1.13-33)
Key Terms (pg. 1.13-35)
Self-Study Questions (pg. 1.13-35)
Questions (pg. 1.13-37)
Short Exercises (pg. 1.13-37)
Data Analytics (pg. 1.13-39)
Data Visualization (pg. 1.13-41)
Exercises-Set A (pg. 1.13-41)
Exercises-Set B (pg. 1.13-43)
Problems-Set A (pg. 1.13-46)
Problems-Set B (pg. 1.13-51)
Serial Problem: Kate’s Cards (pg. 1.13-57)
Extending Your Knowledge (pg. 1.13-59)
Answers to Self-Study Questions: (pg. 1.13-63)
Your Turn! Solutions (pg. 1.13-63)
Appendix A: Columbia Sportswear Company (pg. 1.A-1)
Report of Independent Auditors (pg. 1.A-2)
Financial Statements (pg. 1.A-5)
Notes To Financial Statements (pg. 1.A-9)
Comparative Selected Financial Data (pg. 1.A-25)
Report on Internal Control (pg. 1.A-26)
Appendix B: Financial Statements for Under Armour (pg. 1.B-1)
Appendix C: Financial Statements for LVMH Moët Hennessy-Louis Vuitton (pg. 1.C-1)
Appendix D: Accounting for Investments and Consolidated Financial Statements (pg. 1.D-1)
Investments (pg. 1.D-2)
Debt and Equity Securities (pg. 1.D-2)
Investment Categories (pg. 1.D-2)
Your Turn! D-1 (pg. 1.D-3)
Investments in Debt Securities (pg. 1.D-3)
Purchase (pg. 1.D-4)
Recognition of Interest Income (pg. 1.D-5)
Balance Sheet Valuation (pg. 1.D-5)
Sale or Redemption at Maturity (pg. 1.D-7)
Your Turn! D-2 (pg. 1.D-8)
Investments in Equity Securities (pg. 1.D-8)
Purchase (pg. 1.D-8)
Recognition of Investment Income (pg. 1.D-9)
Balance Sheet Valuation (pg. 1.D-10)
Sale (pg. 1.D-10)
Current and Noncurrent Classifications (pg. 1.D-11)
Your Turn! D-3 (pg. 1.D-11)
ParentSubsidiary Relationship (pg. 1.D-12)
Consolidated Financial Statements (pg. 1.D-12)
Limitations of Consolidated Statements (pg. 1.D-13)
Summary of Learning Objectives (pg. 1.D-13)
Key Terms (pg. 1.D-14)
Self-Study Questions (pg. 1.D-14)
Questions (pg. 1.D-16)
Exercises-Set A (pg. 1.D-16)
Exercises-Set B (pg. 1.D-18)
Problems-Set A (pg. 1.D-20)
Problems-Set B (pg. 1.D-22)
Answers to Self-Study Questions: (pg. 1.D-24)
Your Turn! Solutions (pg. 1.D-24)
Appendix E: Accounting and the Time Value of Money (pg. 1.E-1)
Time Value of Money Concept (pg. 1.E-2)
Time Value of Money: Simple Interest Model (pg. 1.E-2)
Time Value of Money: Compound Interest Model (pg. 1.E-2)
Future Value of an Amount (pg. 1.E-3)
Your Turn! E-2 (pg. 1.E-5)
Future Value of an Annuity (pg. 1.E-5)
Your Turn! E-3 (pg. 1.E-6)
Present Value of an Amount (pg. 1.E-7)
Your Turn! E-4 (pg. 1.E-9)
Present Value of an Annuity (pg. 1.E-9)
Your Turn! E-5 (pg. 1.E-10)
Calculations Using a Calculator and a Spreadsheet (pg. 1.E-10)
Summary of Learning Objectives (pg. 1.E-11)
Key Terms (pg. 1.E-11)
Self-Study Questions (pg. 1.E-11)
Exercises-Set A (pg. 1.E-12)
Exercises-Set B (pg. 1.E-13)
Answers to Self-Study Questions: (pg. 1.E-14)
Your Turn! Solutions (pg. 1.E-15)
Appendix F: Data Analytics and Blockchain Technology (pg. 1.F-1)
Data Analytics (pg. 1.F-2)
Big Data (pg. 1.F-2)
Types of Data Analytics (pg. 1.F-3)
Data Analytics in the Accounting Profession (pg. 1.F-3)
The Analytics Mindset (pg. 1.F-5)
Data Analytic Tools (pg. 1.F-6)
Data Visualization (pg. 1.F-7)
Blockchain Technology (pg. 1.F-11)
Summary of Learning Objectives (pg. 1.F-13)
Key Concepts and Terms (pg. 1.F-13)
Video Resources For Tableau (pg. 1.F-14)
Questions (pg. 1.F-14)
Exercises (pg. 1.F-15)
Problems (pg. 1.F-15)
Glossary (pg. 1.G-1)
Index (pg. 1.I-1)
James S. Wallace

James S. Wallace

Associate Professor at The Peter F. Drucker and Masatoshi Ito Graduate School of Management at The Claremont Graduate University.

He received his Bachelors of Arts from the University of California, Santa Barbara, his MBA from the University of California, Davis, and his PhD from the University of Washington. Professor Wallace also holds a CPA certification from the state of California. He previously served on the faculty of the University of California, Irvine and has served as a visiting professor at the University of California, San Diego. Professor Wallace's work has appeared in leading academic journals including the Journal of Accounting and Economics, the Journal of Corporate Finance, and Information Systems Research, along with leading applied journals such as the Journal of Applied Corporate Finance, the Journal of Accountancy, Issues in Accounting Education and Accounting Horizons. Prior to his career in academics, Professor Wallace worked in public accounting and in industry with a Fortune 500 company. He has done consulting work with numerous companies in multiple industries.

Financial Accounting for Undergraduates, 5e (Wallace, Nelson, Christensen)
Errata
Last Updated: Jan 20 2024

Corrections to identified errors in the first printing. 

Excel Templates
Last Updated: Jul 18 2023

Excel templates for use with identified end-of-chapter assignments.  

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