Index
451
cash.
See
cash controls
definition of, 315
implementing, 315–317
inventory, 191–193
payroll accounting, 338
petty cash, 314–315
.
See also
ethics
corporation, organizational form, 61–63
correcting entries, 132
cost constraint, 64
cost of goods sold (COGS)
defined, 172
gross profit and, 211–214, 233
periodic inventory system, 211–214
credit card transactions, 293
credits, 79–81
current assets, 150
current liabilities, 151
current ratio, 155, 364–365
D
debit card transactions, 293
debits, 79–81
debt-to-equity ratio, 373
deductions, payroll, 327–330
deposits in transit, 299–300
depreciation, 117–120
direct method closing, 140–144, 146
disclosure, 69
discontinued operations, 354–355
discounts
cash, 177–178
purchases, 177, 207–208
sales, 182–183
double entry, 79
E
employer payroll contributions, 329–330
Employment Insurance (EI), 328, 344–345
Enron, 51, 317
equipment, business account, 27
equity
debt-to-equity ratio, 373
defined, 28
net worth vs., 29
owner’s, 29, 49–50, 137–138
partner’s, 29
shareholders,’ 29, 352–353
errors
on bank statement, 302–303
computerized accounting and, 305
in inventory, 233–235
in ledger, 303–305
transposition, 95
estimating, inventory valuation, 237–240,
242–244
ethics
accounting software, 95–96
adjusting entries, 124
inventory estimation and evaluation,
242–244
revenue and expense reporting, 51
standards for accountants, 70–71
.
See also
controls
event, defined, 39
expenses
accrued, 108–112
classifying, 187
defined, 5
ethics of reporting, 51
function of, 186
interest, 111–112
nature of, 185
prepaid, 17–19, 114–116
recognizing, 36, 68
recording, 36–39
salaries, 109–110
external users, of accounting information, 57
F
financial accounting, 58
financial information, qualitative
characteristics of, 65–66
