Basics of Accounting & Information Processing[RareAybss]

In Part 1, the reader is shown the difference between financial and managerial accounting, and introduced to professional ethics and the fundamental accounting equation (Assets = Liabilities + Owners’ Equity). Using concrete examples based on everyday scenarios, the text then outlines how a corporation collects account receivable, makes purchases using loan proceeds, and distinguishes between revenue and income. Additional topics covered include financial statements, retained earnings, articulation, debit and credit rules, asset and expenses dividends, the accounting journal, and T-accounting. Diagrams and charts are used throughout the text to help explain important concepts.

Content

Part 1: Welcome to the World of Accounting

1. Accounting Information
1.1 Accounting Defined
1.2 Financial Accounting
1.3 Managerial Accounting
1.4 A Quality Information System
1.5 Inherent Limitations

2. The Accounting Profession and Careers
2.1 Accounting and Professional Ethics

3. The Fundamental Accounting Equation
3.1 Assets
3.2 Liabilities
3.3 Owners’ Equity
3.4 Balance Sheet

4. How Transactions Impact the Accounting Equation
4.1 Edelweiss Collects an Account Receivable
4.2 Edelweiss Buys Equipment With Loan Proceeds
4.3 Edelweiss Provides Services to a Costumer on Account
4.4 Edelweiss Pays Expenses With Cash
4.5 Generalizing About the Impact of Transactions
4.6 Distinguishing Between Revenue and Income

5. The Core Financial Statements
5.1 Financial Statements
5.2 Income Statement
5.3 The Statement of Retained Earnings
5.4 Balance Sheet
5.5 Statement of Cash Flows
5.6 Articulation
5.7 Unlocking the Mystery of Articulation

Part 2: Information Processing

6. Accounts, Debits, and Credits
6.1 Accounts
6.2 Debits and Credits
6.3 The Fallacy of ”+/-“ Nomenclature
6.4 The Debit/Credit Rules
6.5 Assets/Expanses Dividends
6.6 Liabilities/Revenues/Equity
6.7 Analysis of Transactions and Events
6.8 Determining an Account’s Balance
6.9 A Common Misunderstanding About Credits

7. The Journal
7.1 Illustrating the Accounting Journal
7.2 Special Journals
7.3 Page Numbering
7.4 But, What are the Account Balances?

8. The General Ledger
8.1 Posting
8.2 To Review

9. The Trial Balance
9.1 Debits Equal Credits
9.2 Financial Statements From the Trial Balance

10. Computerized Processing Systems
10.1 What do they Look Like

11. T-accounts
11.1 Comprehensive T-Accounting Illustration
11.2 Chart of Account
11.3 Control and Subsidiary Accounts

About the Author

Larry M. Walther, Ph.D., CPA, CMA, is the Ernst & Young Professor and Head of the School of Accountancy at Utah State University. Dr. Walther has authored numerous accounting textbooks and articles, and has served as director and/or consultant to a number to a number of public and nonpublic companies. Dr. Walther obtained his Ph.D. in accounting from Oklahoma State University and has public accounting experience with Ernst & Young. He currently serves as the accounting accreditation committee of the AACSB and is past president for the federation of schools of accountancy.