A
Accelerated depreciation method,
408–409
Account(s), 100, 155
balance of, 155
bank, 319
cash short and over, 315
chart of, 160
controlling, 221
normal balance of, 156
payable, 11
permanent, 169
temporary, 169
Accounting, 13, 312
accrual basis of, 99, 116, 117, 118
cash basis of, 116, 117, 118
concepts, 20
cycle, 119, 172
equation, 17
financial, 13
fraud in the 2000s, 24
information system, 153
managerial, 13, 153
period concept, 23
principles, changes in, 541
role in business, 13
standards, statements of financial, 21
Accounting for
bond investments, 550, 551
depreciation, 404
dividends, 505
investments in stocks, 544
notes receivable, 366
Accounting system
basic, 153
double-entry, 157
elements of, 54
Accounting Trends & Techniques, 502,
509, 584
Accounts payable, 102, 442, 587, 594
Accounts receivable, 12, 103, 356,
587, 593
aging of, 362
analysis, 642
and cash flows, 372
managing, 368
turnover, 370, 642
Accretion, 505
Accrual basis of accounting, 99, 116,
117, 118
and cash basis of accounting, sum-
mary of differences, 117
concepts including the matching
concept, 98Accruals, 106
and deferrals, 105, 107
Accrued expenses, 106, 594
payable, 587
Accrued fees earned, 110
Accrued revenues, 106
Accrued wages expense, 109
Accumulated depreciation, 108
Accumulated other comprehensive in-
come (loss), 508
ACH, 321
Acid-test ratio, 464, 648
Adequate disclosure concept, 23
Adjusted trial balance, 164, 166
Adjusting entries, 163, 164, 165
Adjustment process, 105
Adjustments for Family Health Care,
107, 111
Administrative expenses, 12, 217
Aging the receivables, 361
Allowance
purchase, 225
purchase return or, 215
sales, 223
Allowance account, write-offs to, 359
Allowance for doubtful accounts, 359
Allowance method, 357
and direct write-off method, compar-
ing, 364, 365
for uncollectible accounts, 358
Amortization, 412
effective interest rate method of, 467
of discount by the interest method,
468
of premium by the interest method,
469
Analysis
accounts receivable, 642
and interpretation of cash flows, 596
asset efficiency, 640
comprehensive profitability, 638
current liquidity, 463
current position, 646
financial utilization, 418
fixed asset, 644
gross profit and operating profit, 233
horizontal, 26, 632
inventory, 282, 643
leverage, 645
long-term liability, 465
margin, 640, 641
of receivables, estimate based on,
361
operational utilization, 417profitability, 636
vertical, 69, 633
Analytical measures
other, 635
summary of, 651, 652
Annual reports, corporate, 653
Annuity, 450
of $1, present value of, 451
payments, 450
Articles of incorporation, 495
Assemble-to-order (ATO) manufacturing
process, 583
Asset efficiency, 641
analysis, 640
summary, 645
Asset impairment, 539
Asset improvements, 403
Asset turnover, 640
Assets, 12, 114
book value of, 109
carrying value of, 109
current, 114, 587
custody of, 312
fixed, 114, 400, 401, 410, 411,
415, 416
intangible, 12, 114, 412, 415
quick, 464, 648
Available-for-sale securities, 544
Average cost method, 269, 273, 276,
279B
Backdating contracts, 588
Bad debt expense, 357
Balance of an account, 155
Balance sheet, 15, 16, 17, 55, 113,
218, 219
for Barnes & Noble, Inc., and
Borders, Inc., partial, 464
reporting receivables on, 367
reporting stockholders’ equity on,
509
Bank accounts, 319
as a control over cash, 321
Bank error, 325
Bank reconciliation, 322, 324
Bank statement, 319, 320, 322
Basic earnings per share, 542
Bond discount, 454
amortization, 455
Bond indenture, 447
Bond investments, 549
accounting for purchase, interest,
and amortization of, 550Subject Index