Merchandising Operations and the Multiple-Step Income Statement
1. 2. 3. 4. 5. 6. Identify the differences between a service enterprise and a merchandising company. Explain the recording of purchases under a perpetual inven
Introduction to Financial Statements
1. 2. 3. 4. 5. 6. Describe the primary forms of business organization. Identify the users and uses of accounting information. Explain the three principal types of business activity. Desc
Reporting and Analyzing Stockholders' Equity
1. 2. 3. 4. 5. 6. 7. 8. Identify and discuss the major characteristics of a corporation. Record the issuance of common stock. Explain the accounting for the purchase of treasury
Reporting and Analyzing Receivables
1. 2. 3. 4. 5. 6. 7. 8. 9. Identify the different types of receivables. Explain how accounts receivable are recognized in the accounts. Describe the methods used to account for bad debts.
Financial Analysis: The Big Picture
1. 2. 3. 4. 5. 6. 7. Understand the concept of sustainable income. Indicate how irregular items are presented. Explain the concept of comprehensive income. Describe and apply horizontal
Statement of Cash Flows
1. 2. 3. 4. 5. Indicate the usefulness of the statement of cash flows. Distinguish among operating, investing, and financing activities. Explain the impact of the product life cycle on a company's c
Reporting and Analyzing Long-Lived Assets
1. Describe how the cost principle applies to plant assets. 2. Explain the concept of depreciation. 3. Compute periodic depreciation using the straight-line method, and contrast its
Internal Control and Cash
1. 2. 3. 4. 5. 6. 7. Identify the principles of internal control. Explain the applications of internal control to cash receipts. Explain the applications of internal control to cash disbursements.
Reporting and Analyzing Inventory
1. Describe the steps in determining inventory quantities. 2. Explain the basis of accounting for inventories and apply the inventory cost flow methods under a periodic inventory system. 3.
A Further Look at Financial Statements
1. 2. 3. 4. 5. 6. 7. Identify sections of a classified balance sheet. Identify and compute ratios for analyzing a company's profitability. Explain the relationship between a retained e