Raiborn arms accountants with the resources they need to understand key financial and managerial accounting concepts. Visual Recaps are provided to illustrate significant topics in a pictorial manner or summarized in a table. Each chapter contains a summary, key terms list, and a variety of questions, exercises, problems, and short cases. Accounting Information for Decision Making sections are designed to emphasize a user perspective of accounting information. Accountants will also find discussions of international financial reporting standards (IFRSs) to gain a global perspective.

Table of Contents:
Preface. About the Author. PART I ACCOUNTING FUNDAMENTALS. 1 An Introduction to the Role of Accounting in the Business World. INTRODUCTION. MAJOR TYPES OF BUSINESS ENTITIES. Common Legal Forms of Business Organizations . Internal Functions of Business Organizations . THE NATURE AND ROLE OF ACCOUNTING IN BUSINESS. Internal Decision Makers . External Decision Makers . FINANCIAL STATEMENT DEFINITIONS. Balance Sheet . Income Statement . Statement of Cash Flows . Statement of Stockholders' Equity . Financial Statement Footnotes . AN OVERVIEW OF THE ACCOUNTING PROFESSION. Private Accounting . Public Accounting . Certifications . Regulation of the Accounting Profession . Challenges Facing the Accounting Profession . Summary . Key Terms . Questions . Exercises . Problems . Cases . 2 Concepts and Elements Underlying Accounting. INTRODUCTION. COMPOSITION OF FINANCIAL STATEMENTS. Balance Sheet . Income Statement . OBJECTIVES OF FINANCIAL REPORTING. KEY ATTRIBUTES OF ACCOUNTING INFORMATION. Understandability . Relevance . Reliability . FUNDAMENTAL ACCOUNTING CONCEPTS. Accounting Period Concept . Historical Cost Principle . Unit of Measurement Concept . Going Concern Assumption . Entity Concept . Revenue Recognition Rules . Expense Recognition Rules . Full Disclosure Principle . AN INTRODUCTION TO THE ACCOUNTING SYSTEM. Accounts . The General Journal and General Ledger . Summary . Key Terms . Questions . Exercises . Problems . Cases . 3 The Mechanics of Double-Entry Accounting. INTRODUCTION. CAPTURING ACCOUNTING DATA. RECORDING TRANSACTIONS: DOUBLE-ENTRY BOOKKEEPING. Debits and Credits . Using Debits and Credits . Contra-Accounts . THE ACCOUNTING CYCLE. Step 1: Collect, Examine, and Process Transactions . Step 2: Adjust Account Balances as Necessary . Step 3: Prepare Financial Statements . Step 4: Close Temporary Accounts . Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . PART II ACCOUNTING FOR ASSETS. 4 Cash, Short-Term Investments, and Accounts Receivable. INTRODUCTION. CASH AND CASH EQUIVALENTS. Petty Cash . Bank Reconciliations . SHORT-TERM INVESTMENTS. ACCOUNTS RECEIVABLE. Accounting for Accounts Receivable . Credit Card Receivables . Notes Receivable . ACCOUNTING INFORMATION FOR DECISION MAKING. Quick Ratio . Age of Accounts Receivable . Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . 5 Inventory. INTRODUCTION. PERPETUAL AND PERIODIC INVENTORY SYSTEMS. ACCOUNTING FOR COMMON INVENTORY TRANSACTIONS. Purchasing Inventory from a Supplier . Paying for Freight-In on Purchases . Returning Inventory to a Supplier . Selling Inventory to a Customer . Accepting Returns of Inventory from a Customer . Paying on Account for Purchases of Inventory . INVENTORY COSTING METHODS. Specific Identification Method . FIFO Method . LIFO Method . Moving-Average Method . Comparison of Income Statements Effects of Inventory Costing Methods . Balance Sheet Valuation versus Income Determination . FIFO versus LIFO: Tax Consequences . VALUING INVENTORY AT OTHER THAN COST. Retail Inventory . Lower-of-Cost-or-Market . INVENTORY ERRORS. ACCOUNTING INFORMATION FOR DECISIONMAKING. Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . 6 Long-Term Assets: Property, Plant and Equipment, and Intangibles. INTRODUCTION. PROPERTY, PLANT AND EQUIPMENT. Acquisition of PP&E . Depreciation of PP&E . Disposal of PP&E . NATURAL RESOURCES. Intangible Assets . Goodwill . Disposal of Intangibles . ACCOUNTING INFORMATION FOR DECISIONMAKING. Valuation . Capitalization versus Expensing . Disclosures . Ratio Analysis . Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . PART III ACCOUNTING FOR LIABILITIES AND OWNERSHIP INTERESTS. 7 Liabilities. INTRODUCTION. CURRENT LIABILITIES. Accounts Payable . Notes Payable . Installment Notes Payable . Accrued Liabilities . Deferred Liabilities . Contingent Liabilities . LONG-TERM LIABILITIES. Bonds Payable . Long-Term Liabilities Other Than Bonds . ACCOUNTING INFORMATION FOR DECISIONMAKING. Completeness . Valuation Methods . Unusual Circumstances . Analyzing Liabilities . Summary . APPENDIX: ACCOUNTING FOR BONDS. Accounting for Bonds Issued at a Discount . Accounting for Bonds Issued at a Premium . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . 8 Stockholders' Equity. INTRODUCTION. THE CORPORATION. Key Advantages of the Corporation . Key Disadvantages of the Corporation . CORPORATE STOCK. Right and Privileges of Common Stockholders . Rights and Privileges of Preferred Stockholders . Par Value and No-Par Value Stock . STOCK ISSUANCES. TREASURY STOCK. DIVIDENDS. Cash Dividends . Stock Dividends . STOCK SPLITS. RETAINED EARNINGS. ACCOUNTING INFORMATION FOR DECISIONMAKING. Dividend Payouts . Ratios . Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . PART IV ANALYSIS OF ACCOUNTING DATA. 9 The Corporate Income Statement and Financial Statement Analysis. INTRODUCTION. INCOME STATEMENT. Earnings from Investments . Corporate Income Taxes . Nonrecurring Items . Earnings per Share . MAKING INFORMED ECONOMIC DECISIONS. Objectives of Financial Statement Analysis . Information Sources for Financial Statement Analysis . ANALYTICAL TECHNIQUES. Trend Analysis . Common-Sized Financial Statements . Ratio Analysis . ASSESSING EARNINGS QUALITY. Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . 10 Statement of Cash Flows. INTRODUCTION. THREE PRIMARY TYPES OF BUSINESS ACTIVITIES AND CASH FLOWS. DIRECT VERSUS INDIRECT METHOD OF PREPARING A STATEMENT OF CASH FLOWS. PREPARING A STATEMENT OF CASH FLOWS: INDIRECT METHOD. Analyzing Transactions for a SCF-Operating Activities . Analyzing Transactions for a SCF-Investing and Financing Activities . Completing the Analysis . Noncash Investing and Financing Activities . ACCOUNTING INFORMATION FOR DECISIONMAKING. Cash Flow Ratios . Cash Flow per Share . Free Cash Flow . Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . PART V MANAGERIAL ACCOUNTING. 11 Fundamental Managerial Accounting Concepts. INTRODUCTION. COMPARISON OF FINANCIAL AND MANAGERIAL ACCOUNTING. TYPES OF COSTS. Product and Period Costs . Direct and Indirect Costs . Controllable and Noncontrollable Costs . Variable and Fixed Costs . COMPONENTS OF PRODUCT COST FOR MANUFACTURING COMPANIES. Direct Material Cost . Direct Labor Cost . Overhead Cost . INVENTORY COSTING SYSTEMS. Job Order Costing . Processing Costing and Equivalent Units of Production . VALUING INVENTORY. Inventory Valuation Methods . Predetermined Overhead Rate . FLOW OF PRODUCT COSTS. COST OF GOODSMANUFACTURED AND SOLD. COSTS IN SERVICE COMPANIES. Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . 12 Cost-Volume-Profit Analysis. INTRODUCTION. ASSUMPTIONS OF BREAK-EVEN AND CVP ANALYSIS. BREAK-EVEN POINT. CVP ANALYSIS. Before-Tax Profit . After-Tax Profit . Other Considerations . USING INCREMENTAL ANALYSIS. Increase in Fixed Cost . Decrease in Selling Price . Increase in Sales Volume and Costs (1) . Increase in Sales Volume and Costs (2) . CVP ANALYSIS IN A MULTIPRODUCT ENVIRONMENT. GRAPHIC APPROACHES TO BEP AND CVP PROBLEMS. Break-Even Graph . Profit-Volume Graph . OPERATING ABOVE BREAK-EVEN. Margin of Safety . Degree of Operating Leverage . Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . 13 The Master Budget and Standard Costing. INTRODUCTION. THE BUDGETING PROCESS. THEMASTER BUDGET. Preparing a Master Budget . Sales Budget . Production Budget . Purchases Budget . Direct Labor Budget . Overhead Budget . Capital Budget . Cash Budget . Budgeted Financial Statements . THE ROLLING BUDGET. STANDARD COSTS. Material Variances . Labor Variances . Understanding Variances . Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . 14 Activity-Based Management and Performance Measurement. INTRODUCTION. ACTIVITY-BASED MANAGEMENT. Analyzing Activities . Value-Added and Non-Value-Added Activities . COST DRIVERS. LEVELS OF COST INCURRENCE. ACTIVITY-BASED COSTING. MEASURING SHORT-RUN PERFORMANCE. Cost Center . Profit Center . Investment Center . MEASURING LONG-RUN PERFORMANCE. Balanced Scorecard . Benchmarking . DECIDING ON PERFORMANCE MEASURES. REWARDING PERFORMANCE. Summary . Key Terms . Questions . Exercises . Problems . Cases . Supplemental Problems . Appendix. Glossary. Index.