Custom Financial Accounting for MBAs (UNLV)

by Easton, Drake

ISBN: 0000000000 | Copyright 2023

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Financial Accounting for MBAs, 8e (pg. 1.1-1)
Module 1 Financial Accounting for MBAs (pg. 1.1-1)
Preview (pg. 1.1-1)
Reporting on Business Activities (pg. 1.1-3)
Business Activities (pg. 1.1-3)
Business Strategy (pg. 1.1-3)
Review 1-1 (pg. 1.1-4)
Financial Statements: Demand and Supply (pg. 1.1-4)
Demand for Information (pg. 1.1-4)
Supply of Information (pg. 1.1-7)
International Accounting Standards (pg. 1.1-8)
Review 1-2 (pg. 1.1-9)
Structure of Financial Statements (pg. 1.1-9)
Balance Sheet (pg. 1.1-10)
Income Statement (pg. 1.1-13)
Statement of Stockholders’ Equity (pg. 1.1-14)
Statement of Cash Flows (pg. 1.1-15)
Information Beyond Financial Statements (pg. 1.1-16)
Managerial Choices in Financial Accounting (pg. 1.1-17)
Review 1-3 (pg. 1.1-18)
Analysis of Financial Statements (pg. 1.1-18)
Return on Assets (pg. 1.1-18)
Components of Return on Assets (pg. 1.1-18)
Return on Equity (pg. 1.1-20)
Are Financial Statements Relevant? (pg. 1.1-20)
Review 1-4 (pg. 1.1-21)
Financial Statements and Business Analysis (pg. 1.1-22)
Analyzing the Competitive Environment (pg. 1.1-22)
SWOT Analysis of the Business Environment (pg. 1.1-23)
Analyzing Competitive Advantage (pg. 1.1-24)
Review 1-5 (pg. 1.1-25)
Book Road Map (pg. 1.1-25)
Global Accounting (pg. 1.1-26)
Appendix 1A: Financial Statement Data and Analytics (pg. 1.1-26)
SEC Filings (pg. 1.1-26)
Data Analytics (pg. 1.1-29)
Appendix 1B: Accounting Principles and Governance (pg. 1.1-30)
Financial Accounting Environment (pg. 1.1-30)
Audit Report (pg. 1.1-31)
Guidance Answers (pg. 1.1-34)
Questions (pg. 1.1-34)
Mini Exercises (pg. 1.1-35)
Exercises (pg. 1.1-38)
Problems (pg. 1.1-40)
IFRS Applications (pg. 1.1-46)
Management Applications (pg. 1.1-47)
Ongoing Project (pg. 1.1-48)
Solutions to Review Problems (pg. 1.1-48)
Review 1-1-Solution (pg. 1.1-48)
Review 1-2-Solution (pg. 1.1-49)
Review 1-3-Solution (pg. 1.1-49)
Review 1-4-Solution (pg. 1.1-50)
Review 1-5-Solution (pg. 1.1-50)
Module 2 Introducing Financial Statements (pg. 1.2-1)
Preview (pg. 1.2-1)
Balance Sheet (pg. 1.2-3)
Balance Sheet and the Flow of Costs (pg. 1.2-3)
Assets (pg. 1.2-4)
Liabilities and Equity (pg. 1.2-6)
Review 2-1 (pg. 1.2-13)
Income Statement (pg. 1.2-13)
Recognizing Revenues and Expenses (pg. 1.2-14)
Reporting of Transitory Items (pg. 1.2-15)
Analyzing the Income Statement (pg. 1.2-16)
Review 2-2 (pg. 1.2-17)
Statement of Stockholders’ Equity (pg. 1.2-17)
Review 2-3 (pg. 1.2-18)
Statement of Cash Flows (pg. 1.2-18)
Statement Format and Data Sources (pg. 1.2-18)
Review 2-4 (pg. 1.2-20)
Articulation of Financial Statements (pg. 1.2-20)
Retained Earnings Reconciliation (pg. 1.2-20)
Financial Statement Linkages (pg. 1.2-20)
Review 2-5 (pg. 1.2-22)
Additional Information Sources (pg. 1.2-22)
Form 10-K (pg. 1.2-22)
Form 20-F and Form 40-F (pg. 1.2-24)
Form 8-K (pg. 1.2-25)
Analyst Reports (pg. 1.2-25)
Credit Services (pg. 1.2-26)
Data Services (pg. 1.2-26)
Review 2-6 (pg. 1.2-26)
Global Accounting (pg. 1.2-26)
Balance Sheet (pg. 1.2-26)
Income Statement (pg. 1.2-26)
Guidance Answers (pg. 1.2-27)
Questions (pg. 1.2-27)
Mini Exercises (pg. 1.2-28)
Exercises (pg. 1.2-29)
Problems (pg. 1.2-34)
IFRS Applications (pg. 1.2-38)
Management Applications (pg. 1.2-38)
Ongoing Project (pg. 1.2-39)
Solutions to Review Problems (pg. 1.2-40)
Review 2-1-Solution (pg. 1.2-40)
Review 2-2-Solution (pg. 1.2-40)
Review 2-3-Solution (pg. 1.2-40)
Review 2-4-Solution (pg. 1.2-41)
Review 2-5-Solution (pg. 1.2-41)
Review 2-6-Solution (pg. 1.2-42)
Module 3 Transactions, Adjustments, and Financial Statements (pg. 1.3-1)
Preview (pg. 1.3-1)
Basics of Accounting (pg. 1.3-3)
Four-Step Accounting Cycle (pg. 1.3-3)
Financial Statement Effects Template (pg. 1.3-3)
Review 3-1 (pg. 1.3-5)
Accounting Cycle Step 1-Analyze Transactions and Prepare Entries (pg. 1.3-6)
Apple’s Transactions (pg. 1.3-6)
Applying the Financial Statement Effects Template (pg. 1.3-6)
Applying the Journal Entry and T-Account (pg. 1.3-6)
Bookmark 13 (pg. 1.3-8)
Accounting Cycle Step 2-Prepare Accounting Adjustments (pg. 1.3-9)
Four Types of Accounting Adjustments (pg. 1.3-9)
Prepaid Expenses (pg. 1.3-10)
Unearned Revenues (pg. 1.3-10)
Accrued Expenses (pg. 1.3-11)
Accrued Revenues (pg. 1.3-12)
Accounting Adjustments for Apple (pg. 1.3-12)
Review 3-3 (pg. 1.3-13)
Accounting Cycle Step 3-Prepare Financial Statements (pg. 1.3-13)
Income Statement (pg. 1.3-13)
Balance Sheet (pg. 1.3-14)
Statement of Stockholders’ Equity (pg. 1.3-15)
Review 3-4 (pg. 1.3-16)
Accounting Cycle Step 4-Close the Books (pg. 1.3-16)
Closing with the Template (pg. 1.3-16)
Closing with Journal Entries (pg. 1.3-16)
1. Close Revenue and Gain Accounts. (pg. 1.3-16)
2. Close Expense and Loss Accounts. (pg. 1.3-17)
3. Close Dividend Account. (pg. 1.3-17)
Accounting Cycle Summarized (pg. 1.3-17)
Review 3-5 (pg. 1.3-18)
Global Accounting (pg. 1.3-18)
Appendix 3A: FASB’s Financial Statement Presentation Project (pg. 1.3-19)
Guidance Answers (pg. 1.3-19)
Questions (pg. 1.3-20)
Mini Exercises (pg. 1.3-20)
Exercises (pg. 1.3-23)
Problems (pg. 1.3-27)
IFRS Applications (pg. 1.3-32)
Management Applications (pg. 1.3-33)
Solutions to Review Problems (pg. 1.3-35)
Review 3-1-Solution (pg. 1.3-35)
Review 3-2-Solution (pg. 1.3-36)
Review 3-3-Solution (pg. 1.3-36)
Review 3-4-Solution (pg. 1.3-37)
Review 3-5-Solution (pg. 1.3-37)
Module 4 Analyzing and Interpreting Financial Statements (pg. 1.4-1)
Preview (pg. 1.4-1)
Return on Equity (ROE) (pg. 1.4-3)
Review 4-1 (pg. 1.4-3)
ROE Disaggregation: DuPont Analysis (pg. 1.4-4)
Return on Assets (pg. 1.4-4)
Financial Leverage (pg. 1.4-5)
Review 4-2 (pg. 1.4-5)
Return on Assets and Its Disaggregation (pg. 1.4-6)
Analysis of Profitability and Productivity (pg. 1.4-7)
Analysis of Profitability (pg. 1.4-8)
Analysis of Productivity (pg. 1.4-9)
Analysis of Financial Leverage (pg. 1.4-12)
Review 4-3 (pg. 1.4-14)
Balance Sheet Analysis with an Operating Focus (pg. 1.4-14)
Operating and Nonoperating Returns (pg. 1.4-14)
Operating and Nonoperating Liabilities (pg. 1.4-15)
Return on Net Operating Assets (RNOA) (pg. 1.4-15)
Net Operating Assets (NOA) (pg. 1.4-15)
Net Nonoperating Obligations (NNO) (pg. 1.4-17)
Review 4-4 (pg. 1.4-18)
Income Statement Analysis with an Operating Focus (pg. 1.4-19)
Operating Line Items on the Income Statement (pg. 1.4-19)
Nonoperating Line Items on the Income Statement (pg. 1.4-19)
Net Nonoperating Expense (NNE) (pg. 1.4-22)
Review 4-5 (pg. 1.4-22)
Return on Net Operating Assets (RNOA) (pg. 1.4-23)
RNOA vs ROA (pg. 1.4-23)
Financial leverage (pg. 1.4-24)
Review 4-6 (pg. 1.4-25)
RNOA Disaggregation into Margin and Turnover (pg. 1.4-25)
Net Operating Profit Margin (pg. 1.4-25)
Net Operating Asset Turnover (pg. 1.4-26)
Trade-Off between Margin and Turnover (pg. 1.4-27)
Review 4-7 (pg. 1.4-29)
Global Accounting (pg. 1.4-29)
Appendix 4A: Operating versus Nonoperating Classification (pg. 1.4-30)
Appendix 4B: Nonoperating Return Component of ROE (pg. 1.4-31)
Nonoperating Return (pg. 1.4-31)
Nonoperating Return- With Substantial Net Nonoperating Assets: Amazon (pg. 1.4-33)
Nonoperating Return- With Noncontrolling Interest: AT&T (pg. 1.4-34)
Appendix 4C: Liquidity and Solvency Analysis (pg. 1.4-35)
Liquidity Analysis (pg. 1.4-36)
Current Ratio (pg. 1.4-36)
Quick Ratio (pg. 1.4-36)
Solvency Analysis (pg. 1.4-37)
Liabilities-to-Equity (pg. 1.4-37)
Times Interest Earned (pg. 1.4-38)
Vertical and Horizontal Analysis (pg. 1.4-38)
Limitations of Ratio Analysis (pg. 1.4-40)
Review 4-9 (pg. 1.4-41)
Guidance Answers (pg. 1.4-41)
Questions (pg. 1.4-42)
Mini Exercises (pg. 1.4-42)
Exercises (pg. 1.4-46)
Problems (pg. 1.4-50)
IFRS Applications (pg. 1.4-57)
Management Applications (pg. 1.4-57)
Ongoing Project (pg. 1.4-58)
Solutions to Review Problems (pg. 1.4-59)
Review 4-1-Solution (pg. 1.4-59)
Review 4-2-Solution (pg. 1.4-59)
Review 4-3-Solution (pg. 1.4-59)
Review 4-4-Solution (pg. 1.4-60)
Review 4-5-Solution (pg. 1.4-60)
Review 4-6-Solution (pg. 1.4-60)
Review 4-7-Solution (pg. 1.4-60)
Review 4-8-Solution (pg. 1.4-60)
Review 4-9-Solution (pg. 1.4-61)
Cases in Financial Reporting, 8e (pg. 2.1)
Starbucks Corporation—Understanding Financial Statements (pg. 2.1)
Google Inc.—Earnings Announcements and Information Environment (pg. 2.46)
Peter D. Easton

Peter D. Easton

Peter D. Easton is an expert in accounting and valuation and holds the Notre Dame Alumni Chair in Accountancy in the Mendoza College of Business.

Professor Easton’s expertise is widely recognized by the academic research community and by the legal community. Professor Easton frequently serves as a consultant on accounting and valuation issues in federal and state courts.

Professor Easton holds undergraduate degrees from the University of Adelaide and the University of South Australia. He holds a graduate degree from the University of New England and a PhD in Business Administration (majoring in accounting and finance) from the University of California, Berkeley.

Professor Easton’s research on corporate valuation has been published in the Journal of Accounting and Economics, Journal of Accounting Research, The Accounting Review, Contemporary Accounting Research, Review of Accounting Studies, and Journal of Business Finance and Accounting.

Professor Easton has served as an associate editor for 11 leading accounting journals and he is currently an associate editor for the Journal of Accounting Research, Journal of Business Finance and Accounting, and Journal of Accounting, Auditing, and Finance. He is an editor of the Review of Accounting Studies.

Professor Easton has held appointments at the University of Chicago, the University of California at Berkeley, Ohio State University, Macquarie University, the Australian Graduate School of Management, the University of Melbourne, Tilburg University, National University of Singapore, Seoul National University, and Nyenrode University. He is the recipient of numerous awards for excellence in teaching and in research. Professor Easton regularly teaches accounting analysis and security valuation to MBAs. In addition, Professor Easton has taught managerial accounting at the graduate level.


Michael Drake

Michael Drake

Michael Drake, Ph.D., is Assistant Professor of Accounting and PwC Fellow in the Marriott School of Management at Brigham Young University. He received his Ph.D. from Texas A & M University, and his Masters and B.S. in Accounting from Brigham Young University.

He is a Certified Public Accountant with experience in public practice. His research is focused on the use of accounting information in capital markets and has been published in The Journal of Accounting Research, The Journal of Accounting and Economics, The Accounting Review, Review of Accounting Studies, and Contemporary Accounting Research. At Brigham Young University, he teaches financial statement analysis to M.B.A. and M.Acc. students and corporate reporting to B.S. students in Finance.


Financial Accounting for MBAs, 8e (Easton, Wild, Halsey, McAnally)
Errata
Last Updated: Oct 30 2023

Corrections to identified errors in the first printing of the text.

Appendix C
Last Updated: Jun 11 2020

Appendix C:  Comprehensive Case / Harley-Davidson

Excel Templates - Students
Last Updated: Sep 16 2020

Excel templates for use with Module Reviews.

Cases in Financial Reporting, 8e - Rocky Mountain, Starbucks, Granite Bay (Drake, Engel, Hirst, McAnally)
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