Survey of Accounting

by Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell

Overview

Provide future business professionals with a practical introduction to financial and managerial accounting without the use of debits and credits. With its unique focus on building students' decision-making skills and emphasis on financial statements, Survey of Accounting, 3rd Edition meaningfully integrates data analytics and the importance of using accounting information in real-world decision-making. Adaptive practice opportunities and engaging real-world industry examples and videos strengthen student understanding of accounting concepts and illustrate how these are relevant to their everyday lives and future careers in business and accounting.

Product Details

ISBN-13:	9781119895688
Publisher:	Wiley
Publication date:	11/15/2022
Pages:	992
Product dimensions:	8.60(w) x 10.90(h) x 1.40(d)

About the Author

JERRY J. WEYGANDT, PhD, CPA, is the Authur Andersen Alumni Professor of Accounting at the University of Wisconsin— Madison.

DONALD E. KIESO, PhD, CPA, is the KPMG Emeritus Professor of Accounting at Northern Illinois University.

PAUL D. KIMMEL, PhD, CPA, is Associate Professor of Accounting at the University of Wisconsin— Milwaukee.

AGNES L. DeFRANCO, EdD, CHE, CHAE, is Associate Professor of the Conrad N. Hilton School of Hotel and Restaurant Management at the University of Houston.

Donald E. Kieso, Ph.D., C.P.A., received his bachelor's degree from Aurora University and his doctorate in accounting from the University of Illinois. he has served as chairman of the Department of Accountancy and is currently the KPMG Peat Marwick Emeritus Professor of Accounting at Northern Illinois University. He has public accounting experience with Price Waterhouse & Co.(San Francisco and Chicago) and Arthur Andersen & Co. (Chicago) and research experience with the research Division of the American Institute of Certified Public Accountants (New York). He has done postdoctorate work as a Visiting Scholar at he University of California at Berkeley and is a recipient of NIU's Teaching Excellence Award and four Golden Apple Teaching Awards. Professor Kieso is the author of other accounting and business books and is a member of the American Accounting Association, the American Institute of certified Public Accountants, and the Illinois CPA Society. He has served as a member of the Board of Directors of the Illinois CPA Society, the AACSB's Accounting Accreditation Committees, the State of Illinois Comptroller's Commission, as Secretary-Treasure of the Federation of Schools of Accountancy, and as Secretary-Treasurer of the American Accounting Association. Professor Kieso served as a charter member of the national Accounting Education Change Commission. He is the recipient of the Outstanding Accounting Educator Award from the Illinois CPA Society, the FSA's Joseph A. Silvoso Award of Merit, and the NIU Foundation's Humanitarian Award for Service to Higher Education.

Jerry J. Weygandt, Ph.D., C.P.A, is Arthur Andersen Alumni Professor of Accounting at the University ofWisconsin-Madison. He Holds a Ph.D. in accounting from the University of Illinois. Articles by Professor Weygandt have appeared in the Accounting Review, Journal of Accounting research, Accounting Horizons, Journal of Accountancy, and other academic and professional journals. These articles have examined such financial reporting issues as accounting for price-level adjustments, pensions, convertible securities, stock option contracts, and interim reports. Professor Weygandt is author of other accounting and financial reporting books and is a member of the American Accounting Association, the American Institute of Certified Public Accountants. He has served on numerous committees of the American Accounting Association and as a member of the editorial board of the Accounting Review; he also has served as President and Secretary-Treasurer of the American Accounting Association. In addition, he has been actively involved with the American Institute of certified Public Accountants and has been a member of the Accounting Standards Executive Committee (AcSEC) of that organization. He has served on the FASB task force that examined the reporting issues related to accounting for income taxes and as a trustee of the Financial Accounting Foundation. Professor Weygandt has received the Chancellor's Award for Excellence in Teaching and the Beta Gamma Sigma Dean's Teaching Award. He is on the Board of Directors of M & I Bank of Southern Wisconsin. He is the recipient of the Wisconsin Institute of CPA's Outstanding Educator's Award and the Lifetime Achievement Award. In 2001 he received the American Accounting Association's Outstanding Accounting Educator Award.

Terry D. Warfield, Ph.D. isassociate professor of accounting at the University of Wisconsin-Madison. He received a B.S. and M.B.A from Indiana University and a Ph.D. in accounting from the University of Iowa. Professor Warfield's area of expertise is financial reporting, and prior to his academic career, he worked for five years in the banking industry. He served as the Academic Accounting Fellow in the Office of the Chief Accountant at the U.S. Securities and Exchange commission in Washington, D.C. from 1995-1996). Professor Warfield's primary research interests concern financial accounting standards and disclosure policies. He has published scholarly articles in the Accounting Review, Journal of Accounting and Economics, Research in Accounting Regulation, and Accounting Horizons, and he has served on the editorial boards of the Accounting Review, Accounting Horizons, and Issues in Accenting Education. He has served as president of the Financial Accounting and Reporting Section, the Financial Accounting Standards Committee of the American Accounting Association (Chair 1995-1996), and on the AAA-FASB Research Conference Committee. Professor Warfield has received teaching awards at both the University of Iowa and the University of Wisconsin, and he was named to the teaching Academy at the University of Wisconsin in 1995. Professor Warfield has developed and published several case studies based on his research for use in accounting classes. Theses cases have been selected for the AICPA Professor-Practitioner Case Development Program and have been published in Issues in Accounting Education.

Kimmel is Associate Professor of Accounting, University of Wisconsin-Milwaukee.

Table of Contents

1 Introduction to Financial Statements 1-1

1.1 Business Organization and Accounting Information Uses 1-2

1.2 The Three Types of Business Activity 1-8

1.3 The Four Financial Statements 1-11

2 A Further Look at the Balance Sheet 2-1

2.1 The Classified Balance Sheet 2-2

2.2 Analyzing the Balance Sheet Using Ratios 2-8

3 The Accounting Information System 3-1

3.1 Financial Reporting Concepts 3-2

3.2 Using the Accounting Equation to Analyze Transactions 3-8

4 Accrual Accounting Concepts 4-1

4.1 Accrual-Basis Accounting and Adjustments 4-2

4.2 Adjustments for Deferrals 4-8

4.3 Adjustments for Accruals 4-15

4.4 Preparing Financial Statements 4-21

5 Fraud, Internal Control, and Cash 5-1

5.1 Fraud and Internal Control 5-3

5.2 Cash Controls 5-12

5.3 Control Features of a Bank Account 5-17

5.4 Reporting Cash 5-26

6 Merchandising Operations and the Multiple-Step Income Statement 6-1

6.1 Merchandising Operations and Inventory Purchases 6-2

6.2 Recording Sales Under a Perpetual Inventory System 6-9

6.3 Multiple-Step Income Statement 6-13

6.4 Gross Profit Rate and Profit Margin 6-17

7 Reporting and Analyzing Inventory and Receivables 7-1

7.1 Classifying and Determining Inventory 7-3

7.2 Inventory Methods and Financial Effects 7-6

7.3 Reporting Receivables 7-15

7.4 Inventory Presentation and Analysis 7-23

8 Reporting and Analyzing Long-Lived Assets 8-1

8.1 Plant Asset Expenditures 8-3

8.2 Depreciation Methods 8-8

8.3 Plant Asset Disposals 8-16

8.4 Intangible Assets 8-18

8.5 Statement Presentation and Analysis 8-23

9 Reporting and Analyzing Liabilities and Stockholders’ Equity 9-1

9.1 Accounting for Current Liabilities 9-3

9.2 Accounting for Bond Transactions 9-9

9.3 Accounting for Common, Preferred, and Treasury Stock 9-15

9.4 Accounting for Cash Dividends 9-24

9.5 Presentation and Analysis of Stockholders’ Equity 9-28

10 Financial Analysis: The Big Picture 10-1

10.1 Sustainable Income and Quality of Earnings 10-3

10.2 Horizontal Analysis and Vertical Analysis 10-9

10.3 Ratio Analysis 10-15

11 Managerial Accounting 11-1

11.1 Managerial Accounting Basics 11-3

11.2 Managerial Cost Concepts 11-7

11.3 Manufacturing Costs in Financial Statements 11-12

11.4 Managerial Accounting Today 11-16

12 Job Order Costing 12-1

12.1 Cost Accounting Systems 12-3

12.2 Assigning Manufacturing Costs 12-8

12.3 Predetermined Overhead Rates 12-13

12.4 Jobs Completed and Sold 12-16

12.5 Applied Manufacturing Overhead 12-22

13 Cost-Volume-Profit 13-1

13.1 Cost Behavior Analysis 13-3

13.2 Mixed Costs Analysis 13-8

13.3 Cost-Volume-Profit Analysis 13-11

13.4 Break-Even Analysis 13-16

13.5 Target Net Income and Margin of Safety 13-20

14 Incremental Analysis 14-1

14.1 Decision-Making and Incremental Analysis 14-3

14.2 Special Orders 14-6

14.3 Make or Buy 14-8

14.4 Sell or Process Further 14-11

14.5 Repair, Retain, or Replace Equipment 14-14

14.6 Eliminate Unprofitable Segment or Product 14-16

15 Budgetary Planning 15-1

15.1 Effective Budgeting and the Master Budget 15-3

15.2 Sales, Production, and Direct Materials Budgets 15-8

15.3 Direct Labor, Manufacturing Overhead, and S&A Expense Budgets 15-14

15.4 Cash Budget and Budgeted Balance Sheet 15-18

15.5 Budgeting in Nonmanufacturing Companies 15-23

16 Budgetary Control and Responsibility Accounting 16-1

16.1 Budgetary Control and Static Budget Reports 16-3

16.2 Flexible Budget Reports 16-7

16.3 Responsibility Accounting and Responsibility Centers 16-14

16.4 Investment Centers 16-24

17 Standard Costs and Balanced Scorecard 17-1

17.1 Overview of Standard Costs 17-3

17.2 Direct Materials Variances 17-8

17.3 Direct Labor and Manufacturing Overhead Variances 17-13

17.4 Variance Reports and Balanced Scorecards 17-18

18 Planning for Capital Investments 18-1

18.1 Capital Budgeting and Cash Payback 18-3

18.2 Net Present Value Method 18-6

18.3 Capital Budgeting Challenges and Refinements 18-12

18.4 Internal Rate of Return 18-17

18.5 Annual Rate of Return 18-20

Appendix A Specimen Financial Statements: Apple Inc. A-1

Appendix B Specimen Financial Statements: Columbia Sportswear Company B-1

Appendix C Specimen Financial Statements: Under Armour, Inc. C-1

Appendix D Double-Entry Accounting System D-1

Appendix E Time Value of Money E-1

Company Index / Subject Index I-1

Available in the Wiley Online Course and Wiley Custom:

19 Statement of Cash Flows 19-1

19.1 Usefulness and Format of the Statement of Cash Flows 19-3

19.2 Preparing the Statement of Cash Flows— Indirect Method 19-6

19.3 Analyzing the Statement of Cash Flows 19-18

Appendix F Activity-Based Costing F-1

F.2 ABC and Manufacturers F-6

F.3 ABC Benefits and Limitations F-10

F.4 ABC and Service Industries F-16

Appendix G

G.1 Basic CVP Concepts G-1

G.2 Sales Mix and Break-Even Sales G-5

G.3 Sales Mix with Limited Resources G-9

G.4 Operating Leverage and Profitability G-10

Appendix H Pricing H-1

H.1 Target Costing H-2

H.2 Cost-Plus and Variable-Cost Pricing H-3

H.3 Time-and-Material Pricing H-7

H.4 Transfer Prices H-9