|
double-declining
balance
method, 746 |
|
fixed-percentage
on a declining
balance, 746 |
|
MACRS (modified
accelerated cost
recovery system), 747 |
|
misconceptions about 107,
750–751 |
|
omission of, 112 |
|
overview of, 106–108,
745 |
|
partial years, 748 |
|
straight-line method, 109,
740, 745 |
|
units-of-production method,
747 |
Direct write-off
method for
receivables, 676–677 |
Disbursements
journal, see cash
payments journal |
| Discarding fixed assets, 754 |
| Discounts |
|
calculation procedures, 334–336 |
|
journalizing,
337, 368 (periodic),
454 (perpetual) |
|
purchase discounts, 366, 368,
452–454, 459–460 |
|
sales discounts, 332, 401 |
|
trade discounts, 341 |
|
unearned discounts, 338 |
| Dishonored notes,
683 |
| Dividends |
|
closing entry and, 270 |
|
detailed discussion
of, see Volume 1
ratio, 864, 883 |
Double-declining
balance
depreciation, 745–746 |
| Doubtful accounts
expense, |
|
see uncollectible accounts |
|
expense |
Drawing account
(withdrawals)
closed into owner’s capital, 262,
266, 269 |
|
temporary account,
257 |
| E |
| Earnings management, 869–873 |
| Earnings per share, 863, 883 |
| EBITDA, 861 |
| E-commerce, 639 |
| Electronic data integration
(EDI), 514 |
Electronic funds
transfer (EFT),
600, 638 |
| Employees |
|
benefits, 807–808 |
|
defined, 791–792 |
|
earnings record, 813–814 |
|
internal control for, 793–794,
817 |
|
|
payroll taxes
on, 798–802, 804–806 |
|
withholding for,
797–802 |
| Employer payroll taxes, 804–806 |
| Enron, 880 |
| Enterprise systems, 553 |
| EOM credit terms, 333 |
Equipment, see property,
plant,
and
equipment |
| Equity |
|
statement
of owner’s, 235 |
|
return on, 864,
883 |
| ERP systems, 514, 553 |
| Error correction methods,
see disk |
Ethics, see Volume
1 for detailed
discussion |
Ethics in financial reporting,
867–868,
871–872
|
| Exchange of assets, 755–758 |
| Expense recognition, 37, |
|
see also
matching principle |
| Expenditures,
capital and revenue, 744 |
| Expenses, 8, 254 |
|
accrued, 136–150,
159–160 |
|
adjustments for,
see Section I |
|
amortization,
766 |
|
bad debts, see
uncollectible
accounts |
| |
cash basis compared
to accrual
basis, 19–22 |
| |
classification on income
statement, 401 |
| |
cost of goods
sold, 320–323, 401,
415–416, 707, 715–716 |
|
depletion, 767 |
|
depreciation,
106–107, 401,
745–752 |
|
general and administrative,
401 |
|
income tax, 150 |
|
matching principle,
14 |
|
operating, 401 |
|
payroll taxes,
798–802, 804–806 |
|
prepaid, 40–69 |
| |
recognition, see matching
principle;
classification, valuation,
and
timing |
|
selling, 401 |
|
uncollectible
accounts, 684 |
| |
wages and benefits,
95–797,
807–808 |
| F |
| Factors and factoring, 678 |
| Fair Labor Standards Act (FLSA),
797 |
| FICA tax, 800–801, 804–805 |
|
| FIFO (first-in, first-out) |
|
periodic inventory system,
705–706 |
|
perpetual inventory system,
711–712 |
| Financial leverage, 865 |
| Financing activities, 842 |
Financial information
sources,
849,
868 |
| Financial statements |
|
adjusting entries and, see
Section I |
|
analysis of, see Learning
Goal 30 |
|
balance sheet, 240–245 |
|
common size, 849 |
|
fraud, 700, 871–872 |
|
income statement 234, 401,
404 |
|
merchandising and service
businesses compared, 320 |
|
payroll items on, 822–823 |
|
preparing from worksheet,
232,
401, 481 |
|
Sarbanes-Oxley
effect on, 880–881 |
|
statement of cash
flows, see cash
flow statement |
|
statement of owner’s
equity,
233, 235 |
|
ratio analysis of, 851–864 |
| Financial warning signs, 872 |
| Financing period,
680 |
| First-in, first-out, see
FIFO |
| Fiscal year, 5 |
Fixed assets, see property,
plant,
and equipment |
| FOB, 374 |
| Franchises, 765 |
| Free cash flow, 860, 882 |
| Freight-in |
|
periodic inventory method,
372–374 |
|
perpetual inventory method,
457–459 |
| Freight-out, 344 |
| Fringe benefits, 807–808 |
| FUTA tax, 805–806 |
| G |
| GAAP (Generally Accepted |
|
Accounting Principles) |
|
accounts receivable, 665,
675, 677 |
|
basic principles, see
Volume 1 |
|
conceptual framework of
accounting, see Volume 1 |
|
earnings manipulation and,
870–871 |
|
exchanges, 757 |
|
