Preface
xiii
Business Transactions..........................................................................................................................................39
Financial Statements...........................................................................................................................................49
Ethics.........................................................................................................................................................................51
In Summary.............................................................................................................................................................52
Review Exercise.....................................................................................................................................................53
Chapter 3: The Accounting Framework
Users of Accounting Information....................................................................................................................57
Fields of Accounting............................................................................................................................................58
Financial Accounting....................................................................................................................................58
Managerial Accounting...............................................................................................................................58
Accounting Designations...........................................................................................................................58
Forms of Business Organization......................................................................................................................59
Sole Proprietorship.......................................................................................................................................59
Partnership.......................................................................................................................................................60
Corporation....................................................................................................................................................61
Not-for-Profit Organizations .....................................................................................................................63
The Conceptual Framework of Accounting................................................................................................63
Qualitative Characteristics of Financial Information.........................................................................65
Trade-Offs of Qualitative Characteristics..............................................................................................66
Basic Assumptions and Principles...........................................................................................................66
ASPE or IFRS?...................................................................................................................................................69
Ethics of Accounting............................................................................................................................................70
In Summary.............................................................................................................................................................72
Review Exercise.....................................................................................................................................................74
Chapter 4: The Accounting Cycle: Journals and Ledgers
Transition to Debits and Credits......................................................................................................................79
Debit and Credit Reference Guide...........................................................................................................80
The Accounting Cycle..........................................................................................................................................81
Analyze Transactions...........................................................................................................................................82
Journalize the Transaction.................................................................................................................................84
Post to Ledger Accounts....................................................................................................................................86
Prepare the Trial Balance....................................................................................................................................94
Ethics and Controls. .............................................................................................................................................95
In Summary.............................................................................................................................................................97
Review Exercise.....................................................................................................................................................98
