Financial Accounting

Part 1: An Overview of Financial Accounting 1

1 Financial Accounting and Its Economic Context 2

2 A Closer Look at the Financial Statements 31

Part 2: Measurement, Mechanics, and Use of Financial Statements 75

3 The Measurement Fundamentals of Financial Accounting 76

4 The Mechanics of Financial Accounting 111

5 Using Financial Statement Information 173

Part 3: Assets: A Closer Look 231

6 The Current Asset Classification, Cash, and Accounts Receivable 232

7 Merchandise Inventory 271

8 Investments in Equity Securities 313

9 Long-Lived Assets 357

Part 4: Liabilities and Shareholders’ Equity: A Closer Look 401

10 Introduction to Liabilities: Economic Consequences, Current Liabilities, and Contingencies 402

11 Long-Term Liabilities: Notes, Bonds, and Leases 444

12 Shareholders’ Equity 492

13 The Complete Income Statement 542

14 The Statement of Cash Flows 578

Appendix A The Time Value of Money 633

Appendix B Predictive Data Analytics and Financial Accounting 661

Appendix C Quality of Earnings Cases: A Comprehensive Review 667

Glossary 698

Index 729