Financial Accounting and Reporting

Author: L. Murphy Smith Ph.D.; Katherine T. Smith Ph.D.; Shannon Knight Deer
Publisher: CCH U.S.
ISBN: 9780808031338
Published In: July 2012
Format: Paperback , 592 pages
Jurisdiction: U.S. ? Disclaimer:
Countri(es) stated herein are used as reference only

Out of stock

Description
Contents
Author

Details

The textbook, Financial Accounting and Reporting, by Murphy Smith, Katherine Taken Smith and Shannon Knight Deer, is especially designed to present financial accounting in a one-sequence course in 2-year or 4-year colleges. The book can also effectively be used in a graduate-level financial accounting course for MBA students, who are from non-business major backgrounds.

The text presents the fundamentals of financial accounting using a unique cross-functional approach that demonstrates the relevance of accounting information to the various business functional areas (e.g., marketing, finance, and production). This approach motivates learning by both preparers and users of accounting information.

Accounting majors will appreciate how accounting information contributes to the success of the firm and the decision-making of every member of the management team. Non-accounting majors will understand how accounting information contributes to their future job performance. Cross-functional applications are interwoven into the presentation of accounting fundamentals in each chapter. In addition, the book contains contemporary accounting issues related to ethics, information technology, and global commerce. The textbook features a chapter, as well as observations throughout the book, on International Financial Reporting Standards (IFRS) and how they differ from U.S. generally accepted accounting principles (GAAP).

The textbook covers the key topics in financial accounting like most books in this field. The significant difference is the book’s cross-functional perspective that engages students by showing them how they will use financial accounting in their careers. The book is also unique in its integration of accounting ethics, global commerce, and technology.

The textbook includes a CD-ROM containing ancillary materials such as a Solution Manual, Test Bank, Study Guide (including chapter summaries and sample questions and problems), Working Papers in Excel, and Power Point Slides.

Topics and Content

Chapter 1: The Accounting Information System

Applications to people within and outside the firm
Accounting and you
The Accounting Information System
Forms of businesses
Accounting standard-setting
Accounting concepts
Concluding remarks
Chapter review
Glossary
Chapter assignments
Test prepper

Chapter 2: The Financial Statements

Applications to people within and outside the firm
Financial accounting reports: The four financial statements
Relationship among financial statements
A case study: Financial statements of Apple Inc.
Concluding remarks
Chapter review
Glossary
Appendix: Using spreadsheets for financial statement preparation and analysis
Chapter assignments
Test prepper

Chapter 3: Accounting Transaction Processing

Applications to people within and outside the firm
Part I: Recording Business Transactions
Evaluating a business transaction
Relationships among accounts
Basic transactions
Part II: Double-Entry Accounting
Debits, credits, and the T account
Recording general journal entries
Posting to the general ledger
Creating a trial balance
Concluding remarks
Chapter review
Glossary
Appendix: A case study of double-entry accounting
Chapter assignments
Test prepper

Chapter 4: Measuring Profitability and Financial Position on the Financial Statements

Applications to people within and outside the firm
Part I: Accounting for the Business Cycle, Adjustments, and Closing the Books
The business cycle
The accounting process
Accrual basis accounting
Adjusting journal entries
Preparing the adjusted trial balance
Preparing closing journal entries
Part II: Financial Reporting and Ethics
Preparing the financial statements
Financial statement format
Ethical issues pertaining to accrual accounting
Concluding remarks
Glossary
Appendix: Computerized processing of accounting information
Chapter assignments
Test prepper

Chapter 5: Cash, Internal Control, and Ethics

Applications to people within and outside the firm
Cash and cash equivalents
Internal control over cash
Components of internal control structure
Auditing the financial statements
Making ethical decisions
Concluding remarks
Chapter review
Glossary
Appendix: E-business and E-risk
Chapter assignments
Test prepper

Chapter 6: Accounts and Notes Receivable

Applications to people within and outside the firm
Types of receivables
Accounts receivable
Uncollectible accounts receivable
Notes receivable
Managing receivables and cash
Analyzing liquidity and receivables
Concluding remarks
Chapter review
Glossary
Appendix: Short-Term Investments (Marketable Securities)
Chapter assignments
Test prepper

Chapter 7: Accounting for the Merchandising Firm

Applications to people within and outside the firm
What is inventory?
Cost of goods sold
Inventory costing methods
Periodic versus perpetual systems
Evaluating inventory
Application of accounting concepts
International Issues
Concluding remarks
Chapter review
Glossary
Chapter assignments
Test prepper

Chapter 8: Plant Assets, Intangibles, and Long-Term Investments

Applications to people within and outside the firm
Cross-functional issues regarding asset purchases
Cost of plant assets
Depreciating plant assets
Disposal of depreciable plant assets
Natural resources and depletion
Intangible assets and amortization
Long-term investments
Concluding remarks
Chapter review
Glossary
Appendix: Accounting for long-term investments
Chapter assignments
Test prepper

Chapter 9: Liabilities

Applications to people within and outside the firm
Current liabilities
Long-term liabilities
Raising capital: stocks versus bonds
Evaluating the level of debt
Lease liabilities
Pensions and post-retirement benefits
Concluding remarks
Chapter review
Glossary
Chapter assignments
Test prepper

Chapter 10: Accounting for the Corporation

Applications to people within and outside the firm
Characteristics of the corporate form of business
Common stock
Preferred stock
Stock dividends and stock splits
Stock option
Treasury stock
Concluding remarks
Chapter review
Glossary
Chapter assignments
Test prepper

Chapter 11: More About the Income Statement and Statement of Stockholders’ Equity

Applications to people within and outside the firm
Corporate income statement
Statement of stockholders’ equity
Ethical & legal responsibility for the financial statements
Concluding remarks
Chapter review
Glossary
Chapter assignments
Test prepper

Chapter 12: The Statement of Cash Flows

Applications to people within and outside the firm
The importance of cash flows
Preparing the statement of cash flows
Making decisions based on the statement of cash flows
Concluding remarks
Chapter review
Glossary
Appendix: Direct method for preparing the statement of cash flows
Chapter assignments
Test prepper

Chapter 13: Financial Statement Analysis

Applications to people within and outside the firm
Analyzing financial performance
Financial ratios
Vertical analysis
Horizontal analysis
Trend analysis
Comparative Analysis
Concluding remarks
Chapter review
Glossary
Chapter assignments
Test prepper

Chapter 14: Accounting for Global Commerce

Applications to people within and outside the firm
Accounting for global commerce
International financial reporting standards
International standards on auditing
Restating foreign subsidiary financial statements
Working in a different culture
Concluding remarks
Chapter review
Glossary
Chapter assignments
Test prepper

Dr. L. Murphy Smith, CPA, is the David and Ashley Dill Distinguished Professor of Accounting at Murray State University. Dr. Smith's academic record includes numerous professional journal articles, research grants, books, and professional meeting presentations in the U.S. and abroad. His work has been cited in various news media, including Fortune, USA Today, and The Wall Street Journal. He has received numerous teaching and research awards, including the Outstanding Educator Award from the Texas Society of CPAs and Outstanding Researcher Award from the American Accounting Association Strategic and Emerging Technologies Section. He ranks in the top one percent of authors on Social Sciences Research Network (SSRN.com) by downloaded articles. During his career, he has held a number of leadership positions in academic and professional organizations, such as American Accounting Association Professionalism & Ethics Committee and Institute of Internal Auditors Academic Relations Committee.

Dr. Katherine T. Smith is a business professor at Murray State University. Previously, she taught at Texas A&M University, University of Mississippi, and Louisiana Tech University. She has been recognized for both outstanding teaching and outstanding research. Her research has appeared in major academic journals. Her work is widely recognized; she is in the top 5 percent of authors on Social Sciences Research Network, based on downloaded articles. She serves on six journal editorial boards. She has co-authored several books. In addition, she has made numerous presentations at professional meetings in the U.S. and abroad. In 2010 she received the Outstanding Educator Award from the Academy of Educational Leadership.

Shannon Knight Deer, CPA, is the Assistant Department Head in the Accounting Department at Texas A&M University. She gained experience in public accounting prior to entering academia. She teaches financial reporting at the principles and intermediate levels and stays abreast of emerging issues through consulting work and teaching a CPA review course. Her accomplishments include departmental and university level teaching awards.