Now with a FREE bonus supplement: The Global Financial Crisis: Implications for Australasian Business by John Forster. This work outlines how and why the crisis happened and explores its impact on Australasian organisations and business practices.The new edition of this widely used and respected introductory accounting textbook continues to provide students and academics with a well written and accessible resource, with ample illustrations and applications to business for a first study of accounting.
The text effectively maintains the balance between a 'user' and 'preparer' perspective by integrating real financial information and business decisions throughout. Through the use of real company information and financial statements students will quickly appreciate the use and users of accounting information. The textbook clearly outlines to students how a financial statement - such as a balance sheet, income statement, cash flow statement - communicates the financing, operating, and investing activities of a business. The text builds a strong conceptual understanding and develops skills in the application of accounting principles and techniques, providing students with a solid foundation for further studies in accounting. The integral role of financial statements for decision making is also emphasised in this text and is reinforced throughout by the Decision Toolkit in each chapter. Students are provided with an extensive set of tools necessary to make business decisions based on financial information.
The third edition will continue to engage, excite and educate students.
Chapter 1: An Introduction to Accounting.
Introduction to accounting.
Forms of business organisation.
Other forms of business organisation.
Users and uses of financial information.
Financial Statements.
Interrelationships of statements.
The financial reporting environment.
Concepts, principles and qualitative characteristics.
Analysing financial statements.
Chapter 2: The Accounting Information System.
The Accounting Information System.
Accounting Transactions and Events.
The Account.
Steps in the Recording Process.
The Recording Process Illustrated.
The Trial Balance.
Chapter 3: Accrual Accounting Concepts.
Timing Issues.
The Basics of Adjusting Entries.
The Adjusted Trial Balance and Financial Statements.
Closing the Books.
Summary of the Accounting Cycle.
Appendix: Adjusting Entries - Using a Work Sheet.
Chapter 4: Inventories.
Merchandising Operations.
Recording Purchases of Inventories.
Recording Sales of Inventories.
Income Statement Presentation.
Evaluating Profitability.
Appendix.
Overview of the GST Process.
Accounting for the Goods and Services Tax.
Chapter 5: Reporting and Analysing Inventory.
Classifying Inventory.
Periodic Inventory System.
Inventory Cost Flow Methods - Periodic system.
Valuing Inventory at the Lower of Cost and Net Realisable Value.
Analysis of Inventory.
Appendix 5A: Inventory Cost Flow Methods - Perpetual system.
First-in, First-out (FIFO).
Last-in, First-out (LIFO).
Average cost.
Appendix 5B: Inventory Errors.
Effects on profit.
Effects on assets and equity.
Appendix 5C: Closing entries for merchandising firms.
Chapter 6: Accounting Sub-Systems.
Basic Concepts of Accounting Information Systems.
Control Accounts and Subsidiary Ledgers.
Special Journals.
Computerised Accounting Information Systems.
Chapter 7: Internal control, Cash & Receivables.
Internal Control.
Cash.
Assessing Cash Adequacy.
Receivables.
Appendix A - Operation of the petty cash fund.
Chapter 8: Reporting & Analysing Non-current Assets.
Property, Plant and Equipment.
Intangible Assets.
Other Non-current Assets.
Reporting and Analysing Issues.
Chapter 9: Reporting & Analysing Liabilities.
Current Liabilities.
Non-current Liabilities.
Loans payable by instalment.
Provisions and contingent liabilities.
Financial Statement Analysis.
Chapter 10: Reporting and analysing equity.
The corporate forma of organisation.
Share issues.
Dividends.
Reporting on shareholder's equity.
Financial statement analysis and decision making.
Debt versus equity financing decisions.
Chapter 11: Statement of Cash Flows.
The Statement of Cash Flows: Purpose and Format.
Preparing the Statement of Cash Flows.
Using Cash Flows to Evaluate a Company.
Chapter 12: Financial Statement Analysis.
Earning Power and Irregular Items.
Comparative Analysis.
Ratio Analysis.
Limitations of Financial Statement Analysis.
Chapter 13: Introduction to Management Accounting.
Management Accounting Basics.
Management Cost Concepts.
Manufacturing Costs in Financial Statements.
Contemporary Developments in Management Accounting.
Chapter 14: Cost Accounting Systems.
Cost Accounting Systems.
Job Order Costing.
Process Costing.
Chapter 15: Cost Volume Profit Relationships.
Cost Behaviour Analysis.
Cost-Volume-Profit Analysis.
Break-even Analysis.
Chapter 16: Budgeting.
Budgeting Basics.
Preparing the Operating Budgets.
Preparing the Budgeted Financial Statements.
Budgeting in Non-manufacturing Entities.
Budgetary Control.
The Concept of Responsibility Accounting.
Types of Responsibility Centres.
Chapter 17: Incremental Analysis and Capital Budgeting.
Steps in Management Decision Making.
Incremental Analysis.
Types of Incremental Analysis.
Capital Budgeting.
