Financial Accounting, Sixth Canadian Edition, by Walter T. Harrison Jr. EBOOK PDF Instant Download




Financial Accounting, Sixth Canadian Edition, by Walter T. Harrison Jr. EBOOK PDF Instant Download

Table of Contents

Title Page
Copyright Page
About the Authors
Chapter 1: The Financial Statements
Spotlight: Canadian Tire
Using Accounting Information
Explain Why Accounting Is the Language of Business
Who Uses Accounting Information?
Two Kinds of Accounting: Financial Accounting and Management Accounting
Organizing a Business
Describe the Purpose of Each Financial Statement and Explain the Elements of Each One
Generally Accepted Accounting Principles
The Income Statement Measures Operating Performance
The Statement of Retained Earnings Reports Changes in Retained Earnings
The Balance Sheet Measures Financial Position
The Statement of Cash Flows Measures Cash Receipts and Payments
The Notes to the Financial Statements Provide Additional Information
Financial Reporting Responsibilities
Explain the Relationships Among the Financial Statements
Explain Accounting’s Conceptual Framework and Underlying Assumptions
Accounting’s Conceptual Framework
Fundamental Qualitative Characteristics
Enhancing Qualitative Characteristics
The Cost Constraint
Assumptions Underlying the Conceptual Framework
Make Ethical Business Decisions
Fraud and its Impact
End-of-Chapter Summary Problem
Chapter 2: Recording Business Transactions
Spotlight: Apple Inc.
Describe Common Types of Accounts
Asset Accounts
Liability Accounts
Shareholders’ Equity Accounts
Illustrate the Impact of Business Transactions on the Accounting Equation
Transactions and Financial Statements
Analyze Business Transactions Using T-Accounts
Chart of Accounts
The T-Account
Increases and Decreases in the Accounts: The Rules of Debit and Credit
The Expanded Accounting Equation
Analyzing Transactions Using Only T-Accounts
Record Business Transactions in the Journal and Post Them to the Ledger
Posting from the Journal to the Ledger
The Flow of Accounting Data
Accounts After Posting to the Ledger
Prepare and Use a Trial Balance
End-of-Chapter Summary Problem
Chapter 3: Accrual Accounting and the Financial Statements
Spotlight: Le Château
Explain How Accrual Accounting Differs from Cash-Basis Accounting
Apply the Revenue and Expense Recognition Principles
The Revenue Recognition Principle
The Expense Recognition Principle
Record Adjusting Journal Entries
Types of Adjusting Entries
Deferrals—Prepaid Expenses
Deferrals—Unearned Revenues
Depreciation of Property, Plant, and Equipment
Accruals—Accrued Expenses
Accruals—Accrued Revenues
Summary of the Adjusting Process
The Adjusted Trial Balance
Prepare the Financial Statements
Formats for the Financial Statements
Record Closing Journal Entries
Analyze and Evaluate a Company’s Debt-Paying Ability
Net Working Capital
Current Ratio
Debt Ratio
How Do Transactions Affect the Ratios?
End-of-Chapter Summary Problem
Chapter 4: Cash and Receivables
Spotlight: CGI Group Inc.
Account for Cash
Prepare and Use a Bank Reconciliation
Signature Card
Deposit Slip
Bank Statement
Bank Reconciliation
Preparing the Bank Reconciliation
Online Banking
Account for Receivables
Types of Receivables
How Do We Manage the Risk of Not Collecting?
Estimate and Account for Uncollectible Accounts Receivable
Allowance Method
Recovery of an Uncollectible Account
Summary of Transactions for Accounts Receivable
Computing Cash Collections from Customers
Account for Notes Receivable
Accounting for Notes Receivable
Explain How to Improve Cash Flows from Sales and Receivables
Reporting on the Statement of Cash Flows
Evaluate a Company’s Liquidity
Acid-Test (or Quick) Ratio
Days’ Sales in Receivables
End-of-Chapter Summary Problem
Chapter 5: Inventory and Cost of Goods Sold
Spotlight: Leon’s Furniture
Account for Inventory Using the Perpetual and Periodic Inventory Systems
Accounting for Inventory
Sales Price Versus Cost of Inventory
What Goes into Inventory Cost?
Accounting for Inventory in the Perpetual System
Apply and Compare Three Inventory Costing Methods
Inventory Costing Methods
The Effects of FIFO and Weighted-Average Cost on Cost of Goods Sold, Gross Profit, and Ending Invent
Comparison of the Inventory Methods
Explain How Accounting Standards Apply to Inventory
Lower of Cost and Net Realizable Value
Compute and Evaluate Gross Profit and Inventory Turnover
Gross Profit Percentage
Inventory Turnover
Analyze the Effects of Inventory Errors
Inventory Errors
Reporting on the Statement of Cash Flows
End-of-Chapter Summary Problem
Chapter 6: Property, Plant, and Equipment, and Intangible Assets
Spotlight: Canadian Tire
Measure and Account for the Cost of Property, Plant, and Equipment
Buildings, Machinery, and Equipment
Land Improvements and Leasehold Improvements
Lump-Sum (or Basket) Purchases of Assets
Capital Expenditure Versus an Immediate Expense
Measure and Record Depreciation on Property, Plant, and Equipment
How to Measure Depreciation
Depreciation Methods
Comparing Depreciation Methods
Explain Additional Topics in Accounting for Long-Lived Tangible Assets
Depreciation for Partial Years
Changing the Useful Life of a Depreciable Asset
Fully Depreciated Assets
Derecognition of Property, Plant, and Equipment
T-Accounts for Analyzing Property, Plant, and Equipment Transactions
Special Issues in Accounting for Property, Plant, and Equipment
Depreciation for Tax Purposes
Depreciating Significant Components
Revaluation Model
Account for Intangible Assets
Accounting for Specific Intangibles
Accounting for the Impairment of an Intangible Asset
Accounting for Research and Development Costs
Analyze a Company’s Return on Assets
Analyze the Cash Flow Impact of Long-Lived Asset Transactions
End-of-Chapter Summary Problem
Chapter 7: Investments and the Time Value of Money
Spotlight: ONEX Corp.
Share Investments: A Review
Share Prices
Reporting Investments on the Balance Sheet
Accounting for Investments in Shares
Analyze and Report Non-Strategic Investments
What Value of an Investment Is Most Relevant?
Selling a Non-Strategic Investment
Analyze and Report Strategic Investments
Accounting for Investments Using the Equity Method
Analyze and Report Controlling Interests in other Corporations Using Consolidated Financial Statemen
Why Buy Another Company?
Consolidation Accounting
The Consolidated Balance Sheet and the Related Work Sheet
Goodwill and Non-Controlling Interests
Income of a Consolidated Entity
Analyze and Report Long-Term Investments in Bonds
Report Investing Activities on the Statement of Cash Flows
Explain the Impact of the Time Value of Money on Certain Types of Investments
Future Value
Present Value
Present-Value Tables
Present Value of an Annuity
Using Present Value to Compute the Fair Value of Investments
Using Microsoft Excel to Calculate Present Value
Present Value of an Investment in Bonds
End-of-Chapter Summary Problem
Chapter 8: Liabilities
Spotlight: WestJet Airlines
Explain and Account for Current Liabilities
Current Liabilities of Known Amount
Current Liabilities That Must Be Estimated
Contingent Liabilities
Are All Liabilities Reported on the Balance Sheet or Disclosed in the Notes?
Summary of Current Liabilities
Explain the Types, Features, and Pricing of Bonds Payable
Bonds: An Introduction
Account for Bonds Payable
Issuing Bonds at Face Value
Issuing Bonds at a Discount
Calculate and Account for Interest Expense on Bonds Payable
Interest Expense on Bonds Issued at a Discount
Partial-Period Interest Amounts
Issuing Bonds at a Premium
The Straight-Line Amortization Method
Explain the Advantages and Disadvantages of Financing with Debt Versus Equity
Analyze and Evaluate a Company’s Debt-Paying Ability
The Leverage Ratio
The Times-Interest-Earned Ratio
Describe Other Types of Long-Term Liabilities
Term Loans
Post-Employment Benefits
Report Liabilities on the Balance Sheet
End-of-Chapter Summary Problem
Chapter 9: Shareholders’ Equity
Spotlight: Canadian Tire
Explain the Main Features of a Corporation
Controlling and Managing a Corporation
Shareholders’ Rights
Shareholders’ Equity
Classes of Shares
Account for the Issuance of Shares
Explain Why a Company Repurchases Shares
Account for Retained Earnings, Dividends, and Stock Splits
Declaring and Paying Dividends
Cash Dividends
Stock Dividends
Dividends on Preferred Shares
Stock Splits
Summary of the Effects on Assets, Liabilities, and Shareholders’ Equity
Distinguish Between Fair Value and Book Value per Share
Fair Value
Book Value
Evaluate a Company’s Return on Assets and Return on Equity
Return on Assets
Return on Equity
Report Equity Transactions and Events in the Financial Statements
Reporting Changes in Shareholders’ Equity
Reporting in the Balance Sheet and Notes
End-of-Chapter Summary Problem
Chapter 10: The Statement of Cash Flows
Spotlight: Canadian Tire
Explain the Uses of the Statement of Cash Flows
How Healthy Is a Company’s Cash Flow? Telltale Signs of Financial Difficulty
Explain and Classify Cash Flows from Operating, Investing, and Financing Activities
Classifying Interest and Dividends
Two Methods of Determining Cash Flows from Operating Activities
Prepare a Statement of Cash Flows Using the Indirect Method of Determining Cash Flows from Operating
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Non-Cash Investing and Financing Activities
Measuring Cash Adequacy: Free Cash Flow
End-of-Chapter Summary Problem
Chapter 11: Financial Statement Analysis
Spotlight: Empire Company Ltd.
How Is a Company Evaluated?
Perform Horizontal Analysis
Illustration: Empire Company Limited
Trend Percentages
Perform Vertical Analysis
Illustration: Empire Company Limited
Prepare Common-Size Financial Statements
Benchmarking Against a Key Competitor
Analyze the Statement of Cash Flows
Use Ratios to Make Business Decisions
Remember to Start at the Beginning: Company and Industry Information
Measuring the Ability to Pay Current Liabilities
Measuring Turnover and the Cash Conversion Cycle
Measuring Leverage: Overall Ability to Pay Debts
Measuring Profitability
Analyzing Shares as an Investment
The Limitations of Ratio Analysis
Red Flags in Financial Statement Analysis
End-of-Chapter Summary Problem
Appendix A: Financial Statements from Canadian Tire Annual Report 2014
Appendix B: Summary of Differences Between International Financial Reporting Standards and Accountin
Appendix C: Check Figures