Consumer
credit rights, 313
(internet
exercise) | | Convertible
preferred stock, 569 | | Corporation |
| capital
maintenance, 555 | | creating,
541, 562 | | closely
held, 542 | | compared
to proprietorship and partnership, 72 |
| defined, 71, 536 |
| directors
of, 539 | | ethical
and social responsibility
of, 544 |
| features
of, 72, 536–538, 555–556 | | financial
statements of, Learning
Goal 31 |
| introduction to, Learning
Goal 28 | | management
issues, 544 | | non-profit
and for profit, 542 | | organization
chart, 539 | | publicly-held,
542 | | regulation,
543 | | stockholders’
equity transactions, Learning Goals 29 and 30 |
| taxes,
538, 631, 643–644 | | Cost
principal, see historical cost | | Cost/benefit
constraint, 361 | | Creditors |
| claims
compared to owners, 52 | | do
not own borrowers assets, 156 | | Cumulative
dividend feature, 568 | | Cumulative
tests | | Learning
Goals 1 through 9, 210 | | Learning
Goals 10 through 18, 375 | | Learning
Goals 19 through 27, 527 | | D |
| Date of declaration,
565 | | Date
of record, 565 | | Debits
and credits | | common
mistakes with, 428 | | defined,
427 | | rules
for use, 428 | Deferred
revenue, see unearned
revenue |
| Deferred tax, 643-644 |
| Deficit (retained earnings),
599 | | Discontinued
operations, 632 | | Diluted
earnings per share, 640 | | Dilution,
560 | | Dividends |
| cash,
564 | | dates
for, 565 | | defined,
558 | | |
|
| in
arrears, 568 | | liquidating,
564 | | preference,
568 | | requirements
for payment, 564 | | stock,
591–595 | Double
entry/single entry
accounting, 94 | | Drawings
(withdrawals) | | defined,
190 | | element
of owner’s capital, 411–412 | | illustrated,
414–416 | | in
statement of owner’s equity, 294 | | normal
balance, 413 | | not
wages, 69 | | recording
rules, 429 | | E |
| Earned surplus, see
retained earnings | | Earnings
per share, 637–640 | | Earnings
statement, see income statement |
| Economic entity |
| compared
to legal entity, 68 | | defined,
63, 68 | | Economic
entity assumption, 64 | | Economic
resources, defined, 4 | Elements
of financial statements,
358, 362 |
| Enron, 227, 280, 368 |
| Entity types, 62 |
| Equity |
| defined,
47 | | partnership,
71 | | proprietorship,
71, see also
owner’s equity |
| corporation,
72 | | EPS,
see earnings per share | | Ethics
in accounting, 223–227 | | Event
(transaction) analysis | | accounting
equation, 99 | | Diagrams,
99 | | T
accounts, 455 | | Ex-dividend
date, 565 | | Expense |
| confused
with liability, 124 | | defined,
10, 112 | | effect
on owner’s equity, 189 | | element
of owner’s capital,
411-412 |
| normal
balance, 413 | | recording
rules, 429 | | resources
consumed to add
value, 9-10 |
| Extraordinary gains and losses, 633 |
|
| E |
FASB, see
Financial Accounting
Standards
Board | | FICO
score, 313 (internet exercise) | Financial
Accounting Standards
Board, 360,
367–368 | | Financial
statements | | articulation
(linkage), 317 | | combined
illustration, 311 | | corporate,
Learning Goal 31 | | deceptive,
640 | | defined,
279 | | features
compared, 312, 315 | | four
general-purpose types, 279 | | order
of preparation, 311–312, 339 | | part
of conceptual framework of
accounting, 362 |
| prepared
from trial balance, 508 | | qualities
of information
in, 281–282 |
| Financing activities, defined, 308 |
| Footing, 396 |
| Footnotes, see
full disclosure | | Franchise,
154 | | Full
disclosure, 280, 366–367 | | G |
GAAP, see Generally
Accepted
Accounting Principles |
| Gain, 189 |
| General journal |
| compared
to ledger, 443 | | defined,
450 | | recording
in illustrated, 451–453 | | posting
to ledger from, 483–487 | | General
ledger, see ledger | | General
partnership, 70 | Generally
Accepted Accounting
Principles (GAAP),
358-360 | | Going
concern assumption, 362 | | H |
| Historical cost, 40,
363–365 | | Income
statement | |
compared to other financial
statements,
311, 312, 316, 320 | | connection
to balance
sheet, 316 |
| corporate,
628-635, 639 | | defined,
286 | | features
of, 287-288 | | multiple-step,
628, 629, 630, 635 | | preparation
of, 289-290 | | single-step,
628, 629, 630 | | |
|
