Authors: Elizabeth A. Minbiole
ISBN-13: 9780764585654, ISBN-10: 0764585657
Format: Paperback
Publisher: Wiley, John & Sons, Incorporated
Date Published: August 2000
Edition: Updated
Elizabeth A. Minbiole, CPA, MBA, is an associate professor at Northwood University in Midland, Michigan,where she teaches accounting principles, cost accounting, and financial statement analysis; as well as managerial accounting in the Richard DeVos Graduate School of Management.
CliffsQuickReview course guides cover the essentials of your toughest classes. Get a firm grip on core concepts and key material, and test your newfound knowledge with review questions.
From budgeting, cost accounting, and liabilities to partnerships and corporations, CliffsQuickReview Accounting Principles II can help you understand and retain advanced accounting concepts. This guide introduces each topic, defines key terms, and walks you through each sample problem step-by-step. In no time, you'll be ready to tackle other concepts in this book such as
CliffsQuickReview Accounting Principles II acts as a supplement to your textbook and to classroom lectures. Use this reference in any way that fits your personal style for study and review — you decide what works best with your needs. Whether you read the book from cover to cover or focus on select topics, you always get clear, jargon-free explanations of the fundamentals, supplemented with equations, charts, and tables.
With titles available for all the most popular high school and college courses, CliffsQuickReview guides are a comprehensive resource that can help you get the best possible grades.
Fundamental Ideas | 1 | |
Chapter 1 | Current Liabilities | 3 |
Accounts Payable | 3 | |
Payroll Liabilities | 3 | |
Net pay and withholding liabilities | 4 | |
Employer payroll taxes | 7 | |
Notes Payable | 8 | |
Unearned revenues | 10 | |
Contingent liabilities | 11 | |
Warranty liabilities | 11 | |
Chapter 2 | Long-Term Liabilities | 13 |
Notes Payable | 13 | |
Mortgage Payable | 16 | |
Lease Obligations | 18 | |
Bonds Payable | 19 | |
Types of bonds | 19 | |
Bond prices | 20 | |
Bonds issued at par | 23 | |
Bonds issued at a discount | 25 | |
Bonds issued at a premium | 34 | |
Bonds issued between interest dates | 42 | |
Deferred Income Taxes | 43 | |
Chapter 3 | Partnerships | 45 |
Characteristics of a Partnership | 45 | |
Limited life | 45 | |
Mutual agency | 46 | |
Unlimited liability | 46 | |
Ease of formation | 46 | |
Transfer of ownership | 47 | |
Management structure and operations | 47 | |
Relative lack of regulation | 47 | |
Number of partners | 47 | |
Partnership Accounting | 47 | |
Asset contributions to partnerships | 48 | |
Income allocations | 48 | |
Changes in Partners | 52 | |
New partner | 52 | |
Retirement or withdrawal of a partner | 56 | |
Liquidation of a Partnership | 57 | |
The Statement of Partners' Capital | 57 | |
Chapter 4 | Corporations | 59 |
Characteristics of a Corporation | 60 | |
Unlimited life | 60 | |
Limited liability | 60 | |
Separate legal entity | 60 | |
Relative ease of transferring ownership rights | 60 | |
Professional management | 61 | |
Ease of capital acquisition | 61 | |
Government regulations | 61 | |
Stock Terminology | 62 | |
Accounting for Stock Transactions | 64 | |
Stock issued for cash | 64 | |
Stock issued in exchange for assets or services | 66 | |
Treasury stock | 68 | |
Dividends | 71 | |
Cash dividends | 72 | |
Stock dividends | 74 | |
Stock Splits | 76 | |
Stockholders' Equity Section of Balance Sheet | 77 | |
Book value | 78 | |
Income Statement | 79 | |
Earnings per share | 81 | |
Diluted earnings per share | 83 | |
Chapter 5 | Investments | 85 |
Accounting for Debt Securities | 85 | |
Accounting for Equity Securities | 87 | |
Cost method | 87 | |
Equity method | 89 | |
Consolidated financial statements | 91 | |
Balance Sheet Classification and Valuation | 91 | |
Chapter 6 | Statement of Cash Flows | 95 |
Statement of Cash Flows Sections | 95 | |
Operating activities | 96 | |
Investing activities | 96 | |
Financing activities | 97 | |
Cash reconciliation | 97 | |
Preparing the Statement of Cash Flows | 99 | |
Direct Method | 99 | |
Indirect Method | 99 | |
Direct Method of Preparing the Statement of Cash Flows | 104 | |
Operating activities | 108 | |
Investing activities | 112 | |
Financing activities | 114 | |
Reconciliation of net income to cash provided by (used by) operating activities | 115 | |
Indirect Method of Preparing the Statement of Cash Flows | 115 | |
Operating activities | 117 | |
Investing activities and financing activities | 119 | |
Using the Statement of Cash Flow Information | 120 | |
Chapter 7 | Financial Statement Analysis | 123 |
Need for Financial Statement Analysis | 123 | |
Trend Analysis | 123 | |
Percentage change | 123 | |
Trend percentages | 125 | |
Common-Size Analysis | 127 | |
Ratio Analysis | 130 | |
Liquidity ratios | 130 | |
Profitability ratios | 135 | |
Solvency ratios | 141 | |
Limitations on Financial Statement Analysis | 143 | |
Chapter 8 | Managerial and Cost Accounting Concepts | 147 |
Manufacturing Financial Statements | 148 | |
Costing Terminology | 149 | |
The Cost of Goods Manufactured Schedule | 150 | |
Accounting by Manufacturing Companies | 154 | |
Chapter 9 | Traditional Cost Systems | 161 |
Job Order Cost System | 161 | |
Predetermined overhead rate | 162 | |
Process Cost System | 171 | |
Raw materials requisitioned | 174 | |
Factory labor | 175 | |
Factory overhead | 177 | |
Work-in-process accounting | 179 | |
Process costing summary | 183 | |
Chapter 10 | Activity-Based Costing | 187 |
Activity-Based Costing Activities | 187 | |
Activity categories | 189 | |
Comparison of Activity-Based Costing and Traditional Cost System | 190 | |
Chapter 11 | Cost-Volume-Profit Relationships | 197 |
Cost Behavior | 197 | |
Fixed costs | 197 | |
Variable costs | 198 | |
Mixed costs | 200 | |
Cost-Volume-Profit Analysis | 202 | |
Contribution margin and contribution margin ratio | 203 | |
Break-even point | 204 | |
Targeted income | 207 | |
Margin of Safety | 209 | |
Sensitivity Analysis | 210 | |
Chapter 12 | Budgets | 211 |
Operating Budgets | 212 | |
Sales budget | 212 | |
Manufacturing costs | 213 | |
Selling expenses budget | 221 | |
General and administrative expenses budget | 224 | |
Capital Expenditures Budget | 225 | |
Cash Budget | 225 | |
Budgeted Income Statement | 231 | |
Budgeted Balance Sheet | 232 | |
Merchandising Company Budgets | 236 | |
Chapter 13 | Flexible Budgets and Standard costs | 239 |
Flexible Budgets | 239 | |
Preparation of a Flexible Budget | 243 | |
Standard Costs | 245 | |
Variance Analysis | 248 | |
Direct Materials Variances | 249 | |
Direct Labor Variances | 253 | |
Overhead Variances | 255 | |
Total Variance | 264 | |
Chapter 14 | Incremental Analysis | 265 |
Examples of Incremental Analysis | 267 | |
Accepting additional business | 267 | |
Making or buying component parts or products | 270 | |
Selling products or processing further | 271 | |
Eliminating an unprofitable segment | 273 | |
Allocating scarce resources (sales mix) | 275 | |
Chapter 15 | Capital Budgeting | 277 |
Capital Budgeting Techniques | 277 | |
Payback Technique | 277 | |
Net present value | 280 | |
Internal rate of return | 284 | |
Annual rate of return method | 285 | |
Appendix A | Present Value of 1 | 287 |
Appendix B | Present Value Annuity of 1 | 289 |