| Bad
debts, see uncollectible accounts |
Bank accounts
as internal control,
591–592, 818
|
| Bank cards |
|
as internal control,
630, 638 |
|
recording sales from, 534,
680 |
| Bank reconciliation |
|
adjusting entries
from, 607–608 |
|
purpose of, 597 |
|
procedure, 602–603,
605–607 |
|
what to do if
it will not balance,
611–615 |
| Bank statement, 595 |
|
debits and credits
on, 599 |
|
errors on, 599,
602–603 |
|
used in bank reconciliation,
597,
605–607 |
| Big bath reporting, 873 |
| Book value, 112–113,
750 |
| Boot, 757 |
| Bounced checks,
600 |
Break-even formula,
see Essential
Math Index |
| C |
Capitalizing compared
to expensing,
743–744,
753 |
| Cash basis accounting |
|
compared to accrual basis,
19–22 |
|
manipulation, of 19 |
| Cash controls, see
internal control |
| Cash cycle gap, 680 |
| Cash flow statement, 841–843 |
|
analysis with,
859–860, 882 |
|
illustrated, 843 |
| Cash over and
short, 629 |
| Cash payments internal control,
638 |
| Cash receipts internal control,
636 |
| Cash payments journal, 536–537,
542 |
| Cash receipts journal, 534–535,
542 |
| Cash reporting, 590–591,
841–843 |
| Chain discounts,
341 |
| Change fund, 629 |
| Channel stuffing,
870 |
| Check, 21, 594 |
| Checks, 592 |
|
bounced, 600 |
|
canceled, 594 |
|
control over writing, 597,
638 |
|
endorsement, 595 |
|
hot, 600 |
|
illustrated, 593 |
|
maker and payee, 593 |
|
NSF and RTM, 600 |
|
|
outstanding, 598–599,
603 |
|
payroll, 817–818 |
| Circular E (Pub.
15), 789 |
| Classification, valuation,
and timing |
|
analysis, 37 |
Classified balance
sheet, see
balance sheet |
| Closing, 253–270 |
|
Journalizing, 267 |
|
procedure for,
corporate
differences, 270 |
|
procedure for,
merchandising
business—periodic, 405–408,
422–423 |
|
procedure for,
merchandising
business—perpetual, 485–487 |
|
procedure for,
service business,
260–266 |
|
when to do, 256–257,
270 |
|
where to find
balances, 266 |
|
worksheet as source,
232, 235 |
| Combination, journal,
543–544 |
| Commercial substance,
755 |
| Common-size statements, 849 |
Computerized accounting
systems
differences between manual and,
520, 544, 546–548 |
| |
error corrections, see
disk |
|
hidden costs, 547 |
|
inventory adjustments, 409,
469, 723 |
|
payroll, 821–822 |
|
perpetual inventory, 323 |
|
special journals and, 544 |
|
viruses, 639 |
|
worksheets and,
234 |
| Consignments, 379 |
| Contingent liabilities, 789 |
| Contra accounts, 110 |
| Controlling accounts, 515 |
Cookie jar earnings
management, 873
|
| Copyrights, 765 |
| Corporations |
|
accrued taxes, 150 |
|
closing entries, 270 |
Corporations, corporate
equity,
and financial statements,
|
| see
Volume 1 |
| Correcting errors,
see disk |
Cost of goods available
for sale,
362–375,
395 |
Cost of goods
sold,
estimated, 721 |
|
|
formula for periodic method,
321, 323 |
|
formula for perpetual
method,
322–323 |
|
overview, 320, 358 |
|
periodic method, 320–322,
401,
415–416, 450, 459, 704–7097 |
|
perpetual method,
461, 469,
480–481, 486, 710–715 |
| Cost recovery, see
depreciation |
| Credit cards,
638, see also bank cards |
| Credit memorandum |
|
bank statements, 599 |
|
returns of merchandise, 343,
463 |
| Credit terms,
333 |
| Credits on bank statements,
599 |
| Cumulative tests |
|
for Learning Goals1–11,
193 |
|
for Learning Goals12–17,
287 |
|
for Learning Goals18–21,
441 |
|
for Learning Goals18, 22,
and 23, 501 |
| Current assets,
242, 853 |
| Current liabilities, 243,
786 |
Current portion
of long-term debt,
243, 788 |
| Current ratio,
853, 882 |
|
|
|
|
|
|
| D |
| Debt |
|
classification
of, 241, 243, 788 |
|
leverage, 865 |
|
long term, 241,
244 |
|
ratio, 857 |
| Debit cards, 630 |
| Debit memorandum |
|
bank statements,
599 |
|
returns of merchandise,
371, 455 |
| Debits on bank statements,
599 |
| Declining balance depreciation, |
| |
see fixed
percentage on a
declining balance |
Deferrals, 36,
see also prepaid expense
and unearned
revenue |
| Depletion, 767 |
| Deposit slip illustrated,
595 |
| Depreciation,
105–113, 745–752 |
|
accelerated, 746 |
|
accumulated, 110–111 |
|
adjusting entry,
110 |
|
cash flow and,
843 |
|
changing asset
life, 749–750 |
|
confused with
market value, 107 |
|
| |
|
