Index I-2accounting for sale of, 551
Bond premium, amortizing, 457
Bond redemption, 457
Bonds, 11, 447
callable, 447, 457, 458
carrying amount of, 551
convertible, 447
debenture, 447
payable, 11, 589
serial, 447
term, 447
zero-coupon, 458
Bonds issued at
premium, 456
discount, 454
face value, 451
Book inventory, 230
Book value, 407
of assets, 109, 410
Borrowers, 442
Building, 589
Build-to-stock (BTS) process, 583
Business, 4
accounting role in, 13
activities, 10
combinations, 549
emphasis and industries, 8
entity concept, 21
forms of, 5
how they make money, 6
information system, 152
nature of, 4
segment, 541
stakeholder, 8, 9
types of, 4
Bylaws, 495
C
Calendar-year accounting period, 168
Callable bonds, 447, 457, 458
Capital
cost of, 637
crime, 403
expenditures, 403
legal, 497
structure, 496
Capital stock, 11
and dividends, 512
Carrying amount of bonds, 551
Carrying value of assets, 109
Cash, 315
bank accounts as a control over,
321
financial statement reporting of, 326
ratio to monthly cash expenses, 328
ratios, 327
Cash basis of accounting, 116, 117,
118
and accrual basis of accounting,
summary of differences, 117
Cash conversion cycle, 596, 597
Cash dividend, 505
Cash equivalents, 326
Cash flow per share, 583
Cash flow to net income, ratio of, 327
Cash flows, 582, 583
accounts receivable and, 372
analysis and interpretation of, 596
inventories and, 283
investment and, 555
fixed assets, and depreciation, 419
reporting, 580
statement of, 15, 18, 65, 115, 174,
218, 580, 591
from financing activities, 580, 582
from investing activities, 580, 581
from operating activities, 235, 580,
585, 588, 595
used for financing activities, 236
used for investing activities, 235
used for payment of dividends, 588
Cash funds, special-purpose, 325
Cash payments
by EFT, 318
control of, 318
for income taxes, 595
for merchandise, 593
for operating expenses, 594
Cash received
by EFT, 317
control of, 315
from cash sales, 315
from customers, 592
in the mail, 316
Cash short and over account, 315
Change fund, 315
Chart of accounts, 160, 161
Charter, 495
Check fraud, 322
Classified balance sheet, 113
Closing entries, 169, 170
Closing process, 169
Collections, monitoring, 370
Common stock, 11, 496, 589
and bond financing alternatives on
earnings per share, 505
market for, 497
Common-size statement, 635
financial, 120
income, 641
Communication, information and, 313
Comparative balance sheet, 236, 585
horizontal analysis, 632
vertical analysis, 70, 634
Comparative income statement
horizontal analysis, 26, 633
vertical analysis, 26, 635
Compensated absences, 446
Compensating balance, 327
Competition, fixed assets as barriers to,
401
Comprehensive income, 508–509
statement of, 545
Comprehensive profitability analysis, 638
Comprehensive ratio analysis, 639
Computerized perpetual inventory
systems, 273
Consignee, 233Consignment, 233
Consignor, 233
Consolidated financial statements, 549
Contingent liabilities, 461, 463
Contract rate, 451
Control environment, 310
Control of
cash payments, 318
cash receipts, 315
inventory, 268
Control procedures, 311
Controlling account, 221, 222
Controls, 55
internal, 306, 308, 309, 654
over cash, bank accounts as, 321
Convertible bonds, 447
Copyright, 413
Corporate annual reports, 653
Corporate form, advantages and disad-
vantages of, 494
Corporation, 5, 494, 495
Cost concept, 22
Cost method, 502
Cost of
capital, 637
fixed assets, 401, 402
goods sold, 12, 266
merchandise purchased, 215
merchandise sold, 12, 212, 216,
266, 267
sales, 12
Cost, valuation of inventory at other
than, 279
Costs
classifying, 400, 401
depreciable, 405
direct labor, 267
factory overhead, 267
transportation, 226
Credit, 155, 442
limit, 369
memorandum, 224
period, 223
rules of, 156
Credit terms, 223
determining, 369
Creditor, 442
Cumulative preferred stock, 498
Current assets, 114, 587
Current liabilities, 114, 442, 587
Current liquidity analysis, 463
Current position analysis, 646
Current ratio, 464, 646, 647
Customers
cash received from, 592
screening of, 369D
Debenture bonds, 447
Debit, 155
memorandum, 225
rules of, 156
Debt, current maturities of long-term, 462
Debtors, 442