Fundamental Accounting Principles

Kermit D. Larson The University of Texas at Austin

Twelfth Edition

IRWIN Home wood. IL 60430 Boston, MA 02116

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Contents in Brief

Part One Introduction 1

To the Student Reader 2 Prologue: Ethics: The Most Fundamental Accounting Principle 3

1 Accounting: A n Introduction to Its Concepts 7

Part Two Processing Accounting Data 53

2 Recording Transactions 54 3 Adjusting the Accounts and Preparing the

Statements 100 4 The Work Sheet and Closing the Accounts of

Proprietorships. Partnerships, and Corporations 149

5 Accounting for a Merchandising Concern 201 6 Accounting Systems 253

Part Three Accounting for Assets 297

7 Internal Control and Accounting for Cash 298 8 Short-Term Investments and Receivables 348 9 Inventories and Cost of Goods Sold 394

10 Plant and Equipment 433 11 Plant and Equipment, Natural Resources, and

Intangible Assets 467

Part Four Liabilities, Partners' Equities, and the Evolving Development of Accounting Principles 501

12 Current and Long-Term Liabilities 502 13 Payroll Accounting 541 14 Partnership Accounting 576

APPENDIX E Accounting Principles and the F A S B ' s Conceptual Framework 615

Part Five Accounting for Corporations. Long-Term Installment Notes, and Bonds 623

15 Organization and Operation of Corporations 624

16 Additional Corporate Transactions; Reporting Income and Retained Earnings: Earnings per Share 664

17 Installment Notes Payable and Bonds 707

Part Six

Financial Statements: Interpretation and Modifications 749 18 Statement of Cash Flows 750 19 Stock Investments. Consolidations, and

International Operations 801 20 Analyzing Financial Statements 841

XVIII

Part Seveệpị Managerial Accounting for Costs 883

Part Nine Appendixes 1207

21 Accounting for Manufacturing Companies 884 22 Job Order and Process Cost Accounting

Systems 922 23 Accounting for the Segments and Departments of

a Business; Responsibility Accounting 973

Part Eight Planning and Controlling Business Operations 1019

24 Cost-Volume-Profit Analysis 1020 25 The Master Budget: A Formal Plan for the

Business 1054 26 Flexible Budgets; Standard Costs 1090 27 Capital Budgeting; Managerial Decisions 1130 28 Tax Considerations in Business Decisions 1165

G Present and Future Values: An Expansion 1208 H The Accounting Problem of Changing

Prices 1222 I Answers to Objective Review Questions 1244

J Financial Statements and Related Financial Disclosures from Tyler Corporation 1988 Annual Report 1247

Index 1279

Third Edition

Quantitative Methods for Business

David R. Anderson

Dennis J . Sweeney

Thomas A . Williams

D M Pul.ll.hlna Company

Contents

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