Index
452
financial ratios
current ratio, 155, 364–365
debt-to-equity, 373
inventory days on hand, 241–242, 372
inventory turnover, 240–241, 371
quick ratio, 156, 365–366
financial statements
analyzing, 155–156, 362
formatting standards, 39
inventory impact on, 242
leverage analysis, 372–373
liquidity analysis, 364–366
manufacturing business, 33
merchandising business, 32–33
operations management analysis, 371–372
overview, 31
preparing, 135–139
pro forma
statements, 237
profitability analysis, 366–370
service business, 32
financing activities, cash from, 376–377
first-in, first-out (FIFO) inventory method,
226, 228–229, 250–251
fiscal year, 106
FOB and inventory counts, 211–213
FOB destination, 180–181
FOB shipping point, 179–180
fraud, inventory valuation methods, 243–244
.
See also
ethics
freight cost, 179
freight-in and freight out, 208
function, of expenses, 186
G
gains, 355–356
general journal, 84, 259
general ledger
defined, 86
example, 92–93
petty cash, 311–313
.
See also
subsidiary (subledgers) ledgers
general partnership, 61
generally accepted accounting principles
(GAAP), 63
gross pay, 325–327
gross profit
cost of goods sold and, 211–214, 233
defined, 32
estimating inventory method, 237–239
gross profit margin, 184, 368
H
horizontal analysis, 356–359
I
imprest bank account, 310, 338
income
classifying, 187
comprehensive, 355
net, 28
income statement
defined, 5
discontinued operations, 354–355
gains and losses, 355–356
other comprehensive income, 355
preparing, 136–137
reading, 353
.
See also
multistep income statement
income summary method, 144–146
income taxes, payroll deduction for, 329,
345–346
interest expenses, 111–112
internal users, of accounting information, 57
International Accounting Standards Board
(IASB), 63–64
International Financial Reporting Standards
(IFRS)
accounting adjustments, 123
classifying income and expenses, 187
LIFO valuation method, 231
overview, 63–64, 69
public companies, 69
statements of financial position, 139
