| I |
Income from
continuing
operations, 629 |
| Income tax expense,
631, 643–644 | | Incorporator,
538 | | Initial
public offering, 545 | | Intangible
asset, defined, 154 | Interest
calculation, see essential math
for
accounting (disk) | | Interest
payable, defined, 155 | | Interest
receivable, defined, 153 | | Investing
activities, defined, 308 | | Investment
bank, 545 | | Investment
by proprietorship owner | | defined,
190 | | effect
on owner’s equity, 189 | | how
to record, 418, 452 | | in
statement of owner’s equity, 294 | | Investments
by stockholders, | | Learning
Goals 28 and 29 | | IPO,
see initial public offering | | J |
| Journal |
| compared
to ledger, 443 | | defined,
449 | | general
journal, 450 | | how
to use, 451–453 | | posting
from, 483–487 | | L |
| Ledger |
| compared
to journal, 443 | | defined,
443 | | general
ledger, 443–444 | | how
to use, 443–447 | | Ledger
account | | defined,
443 | | posting
to, 483 | | recording
in, 506 | | three-column
format, 482 | | Legal
capital, 554 | | Liabilities |
| accounting
equation and, 59 | | balance
sheet presentation, 300 | | compared
to owner’s equity, 52 | | confused
with expense, 124 | common
types summarized,
154–155 |
| defined,
48 | normal
(natural) balance of,
393, 429 |
| personal
liability, 68 | | priority
of, 50 | | | |
| recording rules, 399,
429 | | types
of, 154–155 | | valuation
of, 220, 366 | | Limited
liability company, 543 | | Limited
liability of stockholders, 555 | | Limited
partnership, 70 | | Liquidating
dividends, 564 | | Liquidity,
303 | | Loss,
189 | | M |
Managerial
accounting,
defined, 280 |
Management discussion
and
analysis, 281 |
Manual and computerized
accounting,
522 | | Matching
principle, 366 | | Materiality,
361 | MD
& A, see management discussion
and
analysis | | Measurement,
see valuation | | Monetary
and non-monetary | | assets,
39, 41 | | Monetary
unit measure, 362 | | N |
| Net assets, defined,
188 | | Net
income or loss | | defined,
16, 290 | | effect
on owner’s equity, 189 | | Net
of tax, 632 | | Net
worth, see owner’s equity | Non-monetary
and monetary
assets, 39, 41 |
| Notes payable, defined,
155 | | Notes
receivable, defined, 153 | | No-par
stock, 555 | Normal
(natural) account
balances, 397, 429 |
| O |
| Objective evidence,
40, 363 | | Objectives
of financial reporting, 357 | | Operating
activities, defined, 307 | | Operating
agreement 543 | | Operations,
elements of, 189–190, 286 | Operating
guidelines of
accounting, 358, 362 |
Operating statement,
see income
statement |
| Organization cost, 562 |
| Other comprehensive
income, 624 | | Outstanding
shares, 587 | |
| Owner’s capital |
| defined,
188 | | recording
rules, 399, 429 | | Owner’
equity | | accounting
equation and, 59 | | balance
sheet presentation, 301 | | causes
of change in, 189 | changes
manifest in assets and
liabilities, 338
| | compared
to liabilities, 52 | | defined,
48 | for
corporations, see stockholders’
equity
| normal
(natural) capital account
balance, 412,
429 | priority
compared to
liabilities, 50 |
proprietorship, partnership,
and
corporation overview, 71–72 |
| subdivisions
of 411–412 | | P |
P and L statement, see
income
statement |
| Paid-in capital, 553 |
| Paid-in capital in excess
of par, 556 | | Par
value, 555 | | Partnership |
| defined,
69 | overview
compared to
proprietorship and
corporation,
72 | | Payment
date (dividends), 565 | PCAOB,
see Public Company
Accounting Oversight
Board | | PE
ratio, see price-earnings ratio | | Periodicity,
see time period | | Permanent
differences, 644 | | Personal
liability, 68, 555 | | Posting |
| defined,
483 | | illustrated,
484–484 | | procedure
for, 483 | | reference,
486 | | Practice
bulletins, 360 | | Preemptive
rights, 560 | | Preferred
stock, 553, 556–571 | | Prepaid
expense, defined, 153 | | Price-earnings
ratio, 637 | | Prior
period adjustment, 600 | | Profit
or loss, see net income or loss | Profit
and loss statement, see
income statement |
|
