This document provides an overview of accounting concepts and terminology. It covers topics such as the accounting equation, accrual-based accounting, adjusting entries, the balance sheet, income statement, cash flow statement, manufacturing costs, depreciation, and financial statement analysis. The document is an alphabetical index that defines accounting terms and concepts.
This document provides an overview of accounting concepts and terminology. It covers topics such as the accounting equation, accrual-based accounting, adjusting entries, the balance sheet, income statement, cash flow statement, manufacturing costs, depreciation, and financial statement analysis. The document is an alphabetical index that defines accounting terms and concepts.
This document provides an overview of accounting concepts and terminology. It covers topics such as the accounting equation, accrual-based accounting, adjusting entries, the balance sheet, income statement, cash flow statement, manufacturing costs, depreciation, and financial statement analysis. The document is an alphabetical index that defines accounting terms and concepts.
This document provides an overview of accounting concepts and terminology. It covers topics such as the accounting equation, accrual-based accounting, adjusting entries, the balance sheet, income statement, cash flow statement, manufacturing costs, depreciation, and financial statement analysis. The document is an alphabetical index that defines accounting terms and concepts.
return on capital, 120–122, 304–306 about, 27–44, 204–221 statement of changes in owners’ adjusting and closing entries, 45–55, 221–233 CO
(shareholders’) equity, 263 borrowing, in installments, 154–155, 340
answers and explanations Boyd, Ken (author) accounting methods, 263–290 Cost Accounting For Dummies, 2 balance sheet, 238–255 break-even, compared with excess, 117–118, bookkeeping cycle, 204–233 299–302 cash flow, 255–261 break-even point, 113 elements of accounting, 181–194 building financial effects of transactions, 195–203 balance sheet, 65–66, 240–241 financial statement analysis, 348–356 on imputed cost of capital, 346–347 income statement, 246–255 business entities, types of, 6, 181 investment analysis, 334–348 business transactions manufacturing cost accounting, 317–334 about, 19–20, 196–197 profit, 233–238, 291–317 classifying, 18–19, 195 statement of changes in owners’ business valuation, role of balance sheet in, (shareholders’) equity, 261–263 70–71, 244–246 358 1,001 Accounting Practice Problems For Dummies �������������������������������
•C• cost of sales, 131
credit cards, 27 calculating. See also determining credits interest, 152, 334–335 about, 206–207 product cost, 147–149, 329–332 compared with debits, 30–32 profit from comparative balance sheets, 84–85, customer payments, posting, 17 255–257 capital recording transactions with debt sources of, •D• 40–42, 217–219 debits recording transactions with equity sources of, about, 27, 206–207 40–42, 219–221 compared with credits, 30–32 carry-through transactions, recording, 38–40, debt, 80, 253–254 214–217 debt sources of capital, recording transactions cash flow with, 40–42, 217–219 about, 14–16, 192–194 deferral of prepaid expenses, 50–51, 228 analysis of, 174–177, 354–356 depreciation reporting, 83–88, 255–261 about, 45 reporting from operating activities with direct adjusting for, 87–88, 260–261 method, 86, 258 choosing methods for, 105–107, 281–285 reporting from operating activities with depreciation expense, 17, 47–48, 77–78, 83, indirect method, 86, 258–259 223–225, 250–251 types of, 85, 257–258 determining. See also calculating cash-basis accounting, compared with financial effects of profit/loss, 202–203 accrual-basis accounting, 8–11, 185–188 future value, 160–161, 347–348 Cheat Sheet (website), 1 net present value, 160–161, 347–348 choosing present value, 160–161, 347–348 accounting methods, 93–111, 263–290 return on investment (ROI), 155, 340–341 depreciation methods, 105–107, 281–285 whether products are unique or fungible, classifying 94–95, 263–265 assets, 68–69, 243–244 direct method, reporting operating activities business transactions, 18–19, 195 from cash flow with, 86, 258 end-of-period adjusting entries, 47, 223 disclosure, in income statement, 60, 235 liabilities, 68–69, 243–244 discounting loans, 153, 337–338 manufacturing costs, 132–134, 317–319 distinguishing between return on and return of non-manufacturing costs, 132–134, 317–319 investment, 157–158 closing dividends, 73 books on the year, 51–53, 228–231 entries, 45–55, 221–233 comparative balance sheets, calculating profit •E• from, 84–85, 255–257 effective interest rates, 152–153, 336–337 comparing cost of goods sold expense methods, elements, of accounting, 5–16 95–96, 265–267 end-of-period adjusting entries, classifying, compound interest, 154, 339 47, 223 configuring average annual ROI over multiple entries, adjusting and closing, 45–55, 221–233 years, 159, 343–345 equity, 83 constructing accounts, 28, 204–205 equity balance, 63 contribution margin equity sources of capital, recording transactions about, 113 with, 43–44, 219–221 compared with fixed costs, 116–117, excess, compared with break-even, 117–118, 296–299 299–302 Cost Accounting For Dummies (Boyd), 2 expenses cost of goods sold expense, 76–77, 95–96, about, 22–23, 198–200 249–250, 265–267 accrual of unpaid, 49–50, 226–228 ������������������������������������������������������������������ Index 359 before and after transactions of, 23–24, 200–202 amortization, 48–49, 78, 225–226, 251–252 •H• changing assets/liabilities with, 236 Holtzman, Mark P. (author) cost of goods sold, 76–77, 95–96, 249–250, Managerial Accounting For Dummies, 2 265–267 deferral of prepaid, 50–51, 228 depreciation, 17, 47–48, 77–78, 83, 223–225, •I• 250–251 improving effect on assets and liabilities of, 60 margins, 125–127, 311–314 interest, 80, 253–254 profit performance, 122–123, 306–309 posting, 17 imputed cost of capital, 160, 346–347 recording, 36–38, 212–214 income, recording, 34–36, 209–212 explanations and answers income statement accounting methods, 263–290 about, 11–13 balance sheet, 238–255 combined with balance sheet, 73–81, 246–255 bookkeeping cycle, 204–233 disclosure in, 60, 235 cash flow, 255–261 formats for, 58–59, 233–235 elements of accounting, 181–194 period of time for, 63 financial effects of transactions, 195–203 profit activities and, 188–191 financial statement analysis, 348–356 income tax, 81, 254 income statement, 246–255 income tax payable, 81, 254 investment analysis, 334–348 indirect method, reporting cash flow from manufacturing cost accounting, 317–334 operating activities with, 86, 258–259 profit, 233–238, 291–317 installments, borrowing and investing in, statement of changes in owners’ 154–155, 340 (shareholders’) equity, 261–263 intangible assets, 45, 78, 251–252 interest, calculating, 152, 334–335 •F• interest expense, 80, 253–254 internal controls, testing, 53–55, 231–233 FIFO (first-in, first-out) method, 97–98, 267–269 internal rate of return (IRR), 151, 161, 348 Financial Accounting For Dummies (Loughran), 2 inventory, 17, 76–77, 131, 249–250 financial condition, 13–14, 191–192, 238–246 investing, in installments, 154–155, 340 financial effects investment analysis, 151–161, 334–348 of loss, 24–25, 202–203 of profit, 24–25, 61–62, 202–203, 236–238 of transactions, 17–25, 195–203 •J• financial statements, analyzing, 163–177, journal entries, 32–34, 208–209 348–356 finished goods, 131 first-in, first-out (FIFO) method, 97–98, 267–269 fixed assets, 73, 77–78, 250–251 •L• fixed costs last-in, first-out (LIFO) method, 98–100, compared with contribution margin, 116–117, 270–272 296–299 liabilities minimizing per unit, 119–120, 302–304 about, 79 fleshing out balance sheet, 66–68, 241–243 changing with sales and expenses, 236 formats, for income statement, 58–59 classifying, 68–69, 243–244 fungible products, 94–95, 263–265 effect of sales and expenses on, 60 future value, determining, 160–161, 347–348 operating, 87–88, 252–253, 259–260 LIFO (last-in, first-out) method, 98–100, 270–272 •G• liquidity, 63, 163 liquidity analysis, 165–169, 350–352 gross margin, 57, 113 loans, discounting, 153, 337–338 gross profit, 57 360 1,001 Accounting Practice Problems For Dummies �������������������������������
loss operating profit
financial effects of, 24–25, 202–203 about, 113 nature of, 58, 233 analyzing, 115–116, 292–296 recording, 36–38, 212–214 overhead costs, 131 Loughran, Maire (author) owners’ equity, reporting changes in, 89–92, Financial Accounting For Dummies, 2 261–263 lower of cost or market rule, 93, 103–104, 279–281 •P• •M• period costs compared with product costs, 138–141, Managerial Accounting For Dummies 322–324 (Holtzman), 2 recording, 142–144, 325–327 managers, mapping profit for, 114–115, 291–292 prepaid expenses, deferral of, 50–51, 228 manipulating reported profit, 109–111, 288–290 preparatory transactions, recording, 38–40, manufacturing cost accounting, 131–150, 214–217 317–334 present value, determining, 160–161, 347–348 manufacturing costs product costs about, 134–138, 319–322 about, 131 classifying, 132–134, 317–319 calculating, 147–149, 329–332 manufacturing entries, basic cycle of, 144–146, compared with period costs, 138–141, 327–329 322–324 mapping profit for managers, 114–115, 291–292 recording, 142–144, 325–327 margins, improving, 125–127, 311–314 production levels, syncing with sales levels, massaging the numbers, 109–111, 288–290 149–150, 332–334 minimizing fixed cost per unit, 119–120, products, unique compared with fungible, 302–304 94–95, 263–265 profit •N• about, 57–62, 233–238 calculating from comparative balance sheets, net income, 73, 81, 255 84–85, 255–257 net present value, determining, 160–161, financial effects of, 24–25, 61–62, 202–203, 347–348 236–238 net sales, 27 improving performance of, 122–123, 306–309 net worth, 83 manipulating reported, 288–290 nominal accounts, 27, 29–30, 205–206 mapping for managers, 114–115, 291–292 nominal interest rates, 152–153, 336–337 nature of, 58, 233 non-cash items, adjusting for, 87–88, 260–261 profit activities, 5, 11–13, 188–191 non-manufacturing costs, classifying, 132–134, profit behavior analysis, 113–129, 291–317 317–319 profitability analysis, 170–174, 352–354 non-operating profit, 113 numbers, massaging the, 109–111, 288–290 •Q• •O• questions accounting methods, 94–111 operating activities balance sheet, 64–71, 74–81 reporting cash flow from with direct method, bookkeeping cycle, 28–44, 46–55 86, 258 cash flows, 84–88 reporting cash flow from with indirect method, elements of accounting, 6–16 86, 258–259 financial effects of transactions, 18–25 operating assets, 79, 87, 252–253, 259 financial statement analysis, 164–177 operating income/expense, 57 income statement, 74–81 operating liabilities, 87–88, 252–253, 259–260 investment analysis, 152–161 ������������������������������������������������������������������ Index 361 manufacturing cost accounting, 132–150 profit, 58–62, 114–129 •S• statement of changes in owners’ sales (shareholders’) equity, 90–92 about, 20–22, 197–198 before and after transactions of, 23–24, •R• 200–202 changing assets/liabilities with, 236 ratios, usefulness of, 164–165, 348–350 effect on assets and liabilities of, 60 real accounts, compared with nominal syncing levels of with production levels, accounts, 29–30, 205–206 149–150, 332–334 recording sales revenue, 75, 247–249 amortization expense, 48–49, 225–226 Securities and Exchange Commission carry-through transactions, 38–40, 214–217 (SEC), 57 depreciation expense, 47–48, 223–225 selling, general, and administration (SG and A) expenses, 36–38, 212–214 expenses, 57 income, 34–36, 209–212 selling units, 124–125, 309–311 losses, 36–38, 212–214 solvency, 63, 163 period costs, 142–144, 325–327 solvency analysis, 165–169, 350–352 preparatory transactions, 38–40, 214–217 solving, for internal rate of return (IRR), 161, 348 product costs, 142–144, 325–327 statement of cash flows, 5, 14–16, 192–194 revenue, 34–36, 209–212 statement of changes in owners’ (shareholders’) transactions with debt sources of capital, equity, 90–92, 261–263 40–42, 217–219 synchronizing production and sales levels, transactions with equity sources of capital, 149–150, 332–334 43–44, 219–221 reported profit, manipulating, 109–111 reporting •T• balance sheet, 63–71 testing internal controls, 53–55, 231–233 cash flow, 83–88, 255–261 Tracy, John A. (author) cash flow from operating activities with direct Accounting For Dummies, 1 method, 86, 258 trade-offs, 127–129, 314–317 cash flow from operating activities with transactions indirect method, 86, 258–259 carry-through, 38–40, 214–217 changes in owners’ equity, 89–92, 261–263 financial effects of, 17–25, 195–203 financial conditions on balance sheet, 63–71, recording with debt sources of capital, 40–42, 238–246 217–219 retained earnings, 73, 81, 255 recording with equity sources of capital, return of investment, compared with return on 40–42, 219–221 investment (ROI), 157–158, 343 return on capital, analyzing, 120–122, 304–306 return on investment (ROI) •U• compared with return of investment, unique products, 94–95, 263–265 157–158, 343 units, selling, 124–125, 309–311 components of, 156, 342 unpaid expenses, accrual of, 49–50, 226–228 configuring average over multiple years, 159 determining, 155, 340–341 revenue about, 73 •W• recording, 34–36, 209–212 work-in-process goods, 131 rule of 72, 151, 159, 345–346 Workspace Workspace Workspace Workspace Workspace
