| Property |
| as
asset, 37 | | defined,
5 | | Proprietorship |
| defined,
62 | | overview
compared to a | | partnership
and corporation, 72 | | Public
Company Accounting | | Oversight
Board, 280, 368 | | Q |
Qualities
of financial information,
281–282,
357 | | R |
| Recognition, 221 |
| Report form balance
sheet, 300 | | Relevance
of information, 282, 357 | Reliability
of information, 282,
357, 363 |
| Realizable value |
| Reserves, 641 |
| Resources used |
| as
expenses, 10 | | to
create wealth, 9, 34 | | Restructuring
charges, 634 | | Retained
earnings | | appropriations
and | | restrictions,
599–600 | | change
in accounting principle | | and,
601 | | deficit,
599 | | defined,
557 | | prior
period adjustment and, 600 | | statement
of, 602 | | transactions
affecting, 601 | | Revenue |
| confirming
added value, 15 | | confused
with receiving cash, 118 | | defined,
15, 116 | | effect
on owner’s equity, 189 | element
of owner’s capital,
411–412
| | normal
balance, 418 | | recording
rules, 429 | | Revenue
recognition principle, 365 | | S |
| Secondary offerings,
545 | | Secret
reserves, 562 | Securities
and Exchange Commission
(SEC), 360, 368
| | Service
potential, 38 | | Services,
defined, 5 | |
|
| | |
SFAS, see statement of financial
accountings standards |
| Single entry, 94 |
Sole proprietorship,
see
proprietorship | | Stable
monetary unit assumption, 362 | | Stakeholders,
defined, 223 | | Start-up
costs, 562 | | Stated
value stock, 555 | | Statement
of cash flows, 307–310 | compared
to other statements, 311,
312, 316, 320
| | defined,
307 | Statement
of changes in cash position,
see
statement of cash flows | Statement
of earnings, see income
statement
| Statement
of financial accountings
standards, 360
| Statement
of financial condition,
see balance
sheet | Statement
of operations, see income
statement
| | Statement
of owner’s equity | | compared
to other financial | | statements,
311, 312, 316, 320 | | defined,
293 | | features
of, 294 | | illustration
of articulation with | balance
sheet and income
statement, 320 |
| preparation
of, 295–296 | Statement
of position, see
balance sheet
| Statement
of retained
earnings, 602 |
Statement of stockholders’
equity, 622–625 |
| defined, 622 |
| features
of, 623–625 | | illustrated,
623 | | Stock |
| as
ownership, 537 | | authorized
shares, 546 | | bid/ask
price, 546 | | dividends,
591–595 | | issuance
procedures, 545–546 | | issued
shares, 546 | | outstanding
shares, 587 | premium,
see paid-in capital in
excess of
par | | retirement,
590 | | splits,
597–599 | |
| |
| subscription sales,
562–564 | | types
of, overview, 553–554 | | Stockholder,
defined 539 | | Stockholders’
equity | | compared
to proprietorship, 558 | | defined,
552 | | normal
account balances, 571 | | ownership
dilution, 560 | transactions
of, Learning Goals 29
and 30 |
Subscriptions
receivable,
563–564 |
| T |
| T account, 396 |
| T account analysis,
455–464 | | Temporary
differences, 643 | Time
period (periodicity)
assumption, 362 |
| Transactions |
analyzing
cumulative effect
of, 200–203 |
analyzing
with accounting
equation, 99,100–132
| | analyzing
with diagrams, 99, 100–132 | | analyzing
with T accounts, 455–464 | | asset
always part of, 99–119 | classification,
valuation, and
timing, 219–220 |
| defined,
96 | | exchange
and non-exchange, 97 | | external
and internal, 97 | | non-asset,
120–132 | recording
in journal and ledger,
Learning Goal 24
| | six
basic patterns of, 133 | | Treasurer,
540 | | Treasury
stock | | balance
sheet presentation, 588 | | defined,
586 | | transactions,
587–589 | | Trial
balance | | defined,
503 | | financial
statements from, 508 | | Trade
payables, 154 | | Trade
receivables, 153 | | Transfer
agents, 546 | | U |
| Underwriting, 545 |
| Unearned revenue |
| defined,
127, 155 | | fraud
situation, 252 | | illustrated,
126–128 | |
|
| |
