Symbols
10-column worksheet4.5 Prepare Financial Statements Using the Adjusted Trial Balance
A
abnormal balance3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
accountants1.1 Explain the Importance of Accounting and Distinguish between Financial and Managerial Accounting
Accounting1.1 Explain the Importance of Accounting and Distinguish between Financial and Managerial Accounting
accounting entity concept14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
accounting equation2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses, 3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
accounting information system7.1 Define and Describe the Components of an Accounting Information System, 7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
accounting information system (AIS)7.1 Define and Describe the Components of an Accounting Information System
accounting period4.1 Explain the Concepts and Guidelines Affecting Adjusting Entries
accounts payable2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses, 12.1 Identify and Describe Current Liabilities
accounts payable subsidiary ledger7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders
accounts receivable2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses, 9.1 Explain the Revenue Recognition Principle and How It Relates to Current and Future Sales and Purchase Transactions, 9.3 Determine the Efficiency of Receivables Management Using Financial Ratios
accounts receivable control7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders
accounts receivable subsidiary ledger7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders
accounts receivable turnover ratio9.3 Determine the Efficiency of Receivables Management Using Financial Ratios
accrual accounting4.1 Explain the Concepts and Guidelines Affecting Adjusting Entries, 9.1 Explain the Revenue Recognition Principle and How It Relates to Current and Future Sales and Purchase Transactions
accrual basis accounting2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
Accrual-basis accounting5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity
accumulated depletion11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs
Accumulated depreciation11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs
additional medicare tax12.5 Record Transactions Incurred in Preparing Payroll
Additional paid-in capital14.2 Analyze and Record Transactions for the Issuance and Repurchase of Stock
adjusted trial balance4.4 Use the Ledger Balances to Prepare an Adjusted Trial Balance
Adjusting entries4.2 Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries
allowance for doubtful accounts9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
allowance method9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
amortization11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs, 13.2 Compute Amortization of Long-Term Liabilities Using the Effective-Interest Method
annual percentage rate13.4 Appendix: Special Topics Related to Long-Term Liabilities
appropriated retained earnings14.4 Compare and Contrast Owners’ Equity versus Retained Earnings
articles of incorporation14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
artificial intelligence7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
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Bad debts9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
balance sheet2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 4.5 Prepare Financial Statements Using the Adjusted Trial Balance
balance sheet aging of receivables method9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
balance sheet method9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
bank reconciliation8.6 Define the Purpose of a Bank Reconciliation, and Prepare a Bank Reconciliation and Its Associated Journal Entries
bank service fee8.6 Define the Purpose of a Bank Reconciliation, and Prepare a Bank Reconciliation and Its Associated Journal Entries
bond certificate13.1 Explain the Pricing of Long-Term Liabilities
bond indenture13.1 Explain the Pricing of Long-Term Liabilities
book of original entry3.3 Define and Describe the Initial Steps in the Accounting Cycle, 3.5 Use Journal Entries to Record Transactions and Post to T-Accounts
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callable bond13.1 Explain the Pricing of Long-Term Liabilities
Capital accounts15.3 Compute and Allocate Partners’ Share of Income and Loss
cash basis accounting2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
cash disbursements journal7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders, 7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders, 7.3 Analyze and Journalize Transactions Using Special Journals
cash payments journal7.3 Analyze and Journalize Transactions Using Special Journals
cash receipts journal7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders, 7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders, 7.3 Analyze and Journalize Transactions Using Special Journals
Cash-basis accounting5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity
Certified Financial Planner (CFP)1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
Certified Fraud Examiner (CFE)1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
Certified in Risk and Information System Controls (CRISC)7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
Certified Information Security Manager (CISM)7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
Certified Information Systems Auditor (CISA)7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
Certified Internal Auditor (CIA)1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
Certified Management Accountant (CMA)1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
Certified Public Accountant (CPA)1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
chart of accounts3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions
Chartered Financial Analyst (CFA)1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
chief executive officer (CEO)8.5 Discuss Management Responsibilities for Maintaining Internal Controls within an Organization
chief financial officer (CFO)8.5 Discuss Management Responsibilities for Maintaining Internal Controls within an Organization
classified balance sheet5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity
Closing entries5.1 Describe and Prepare Closing Entries for a Business
Committee of Sponsoring Organizations (COSO)8.2 Define and Explain Internal Controls and Their Purpose within an Organization
common stock2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
completed contract method9.5 Apply Revenue Recognition Principles to Long-Term Projects
Compound interest13.1 Explain the Pricing of Long-Term Liabilities
Comprehensive income2.3 Prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet
conceptual framework3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
Conservatism3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, 10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
Consigned goods10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
consistency10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
contingent liability12.3 Define and Apply Accounting Treatment for Contingent Liabilities
contra account4.2 Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries, 9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches, 11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs
contributed capital3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions, 14.4 Compare and Contrast Owners’ Equity versus Retained Earnings
convertible bond13.1 Explain the Pricing of Long-Term Liabilities
corporation2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
cost accounting1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
cost of goods sold (COGS)6.1 Compare and Contrast Merchandising versus Service Activities and Transactions
cost principle3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
cryptocurrency7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
current asset2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses
current expense11.2 Analyze and Classify Capitalized Costs versus Expenses
current liability2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses, 12.1 Identify and Describe Current Liabilities
current portion of a note payable12.1 Identify and Describe Current Liabilities
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data analytics7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
date of declaration14.3 Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits
debt-to-equity ratio14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
deferred revenue12.1 Identify and Describe Current Liabilities
deficit in retained earnings14.4 Compare and Contrast Owners’ Equity versus Retained Earnings
defined contribution plan12.5 Record Transactions Incurred in Preparing Payroll
deposit in transit8.6 Define the Purpose of a Bank Reconciliation, and Prepare a Bank Reconciliation and Its Associated Journal Entries
direct method16.1 Explain the Purpose of the Statement of Cash Flows, 16.6 Appendix: Prepare a Completed Statement of Cash Flows Using the Direct Method
direct write-off method9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
discount on bonds payable13.3 Prepare Journal Entries to Reflect the Life Cycle of Bonds
Dissolution15.1 Describe the Advantages and Disadvantages of Organizing as a Partnership, 15.5 Discuss and Record Entries for the Dissolution of a Partnership
distributions to owners2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
dividend smoothing14.3 Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits
double-declining-balance depreciation method11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs
double-entry accounting system3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
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Earnings management9.4 Discuss the Role of Accounting for Receivables in Earnings Management
Earnings manipulation 9.4 Discuss the Role of Accounting for Receivables in Earnings Management
Earnings per share (EPS)14.5 Discuss the Applicability of Earnings per Share as a Method to Measure Performance
effective-interest method13.2 Compute Amortization of Long-Term Liabilities Using the Effective-Interest Method
Electronic Data Gathering, Analysis, and Retrieval System (EDGAR)7.1 Define and Describe the Components of an Accounting Information System
electronic identifier10.3 Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method
elements of the financial statements2.3 Prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet
ending account balance3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
enterprise resource planning (ERP)7.1 Define and Describe the Components of an Accounting Information System, 7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
equity2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses
equity financing13.4 Appendix: Special Topics Related to Long-Term Liabilities
expanded accounting equation3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions
expense recognition principle3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, 9.1 Explain the Revenue Recognition Principle and How It Relates to Current and Future Sales and Purchase Transactions
expert system7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
external auditor8.1 Analyze Fraud in the Accounting Workplace
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federal income tax withholding12.5 Record Transactions Incurred in Preparing Payroll
Federal Insurance Contribution Act (FICA) taxes12.5 Record Transactions Incurred in Preparing Payroll
Federal Unemployment Tax Act (FUTA)12.5 Record Transactions Incurred in Preparing Payroll
financial accounting1.1 Explain the Importance of Accounting and Distinguish between Financial and Managerial Accounting
Financial Accounting Standards Board (FASB)1.2 Identify Users of Accounting Information and How They Apply Information, 3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
Financial statement fraud8.7 Describe Fraud in Financial Statements and Sarbanes-Oxley Act Requirements
Financial statements2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 4.5 Prepare Financial Statements Using the Adjusted Trial Balance
financing activities16.2 Differentiate between Operating, Investing, and Financing Activities
first-in, first-out method (FIFO)10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions, 10.2 Calculate the Cost of Goods Sold and Ending Inventory Using the Periodic Method, 10.3 Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method
FOB destination10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
FOB destination point6.5 Discuss and Record Transactions Applying the Two Commonly Used Freight-In Methods
FOB shipping point6.5 Discuss and Record Transactions Applying the Two Commonly Used Freight-In Methods, 10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
for-profit business1.3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities
Forensic accounting7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
fraud triangle8.1 Analyze Fraud in the Accounting Workplace
free cash flow16.5 Use Information from the Statement of Cash Flows to Prepare Ratios to Assess Liquidity and Solvency
free cash flow to assets ratio16.5 Use Information from the Statement of Cash Flows to Prepare Ratios to Assess Liquidity and Solvency
free cash flow to sales ratio16.5 Use Information from the Statement of Cash Flows to Prepare Ratios to Assess Liquidity and Solvency
full disclosure principle3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
fully amortized notes13.2 Compute Amortization of Long-Term Liabilities Using the Effective-Interest Method
Functional obsolescence 11.5 Describe Some Special Issues in Accounting for Long-Term Assets
G
GAAP3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, 9.1 Explain the Revenue Recognition Principle and How It Relates to Current and Future Sales and Purchase Transactions, 9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
general journal3.3 Define and Describe the Initial Steps in the Accounting Cycle, 7.3 Analyze and Journalize Transactions Using Special Journals
general ledger3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
generally accepted accounting principles (GAAP)1.2 Identify Users of Accounting Information and How They Apply Information, 3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, 16.5 Use Information from the Statement of Cash Flows to Prepare Ratios to Assess Liquidity and Solvency
going concern assumption3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, 14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
Goods available for sale10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
Goods in transit6.5 Discuss and Record Transactions Applying the Two Commonly Used Freight-In Methods
governmental accounting1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
Governmental Accounting Standards Board (GASB)1.3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities
governmental entity1.3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities
gross income (pay)12.5 Record Transactions Incurred in Preparing Payroll
gross margin6.6 Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies, 10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
gross profit margin ratio6.6 Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies
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IFRS for Small and Medium Sized Entities15.1 Describe the Advantages and Disadvantages of Organizing as a Partnership
imprest account8.4 Define the Purpose and Use of a Petty Cash Fund, and Prepare Petty Cash Journal Entries
income from operations6.6 Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies
income statement2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 4.5 Prepare Financial Statements Using the Adjusted Trial Balance
income statement method9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
income summary5.1 Describe and Prepare Closing Entries for a Business
indirect method16.1 Explain the Purpose of the Statement of Cash Flows, 16.3 Prepare the Statement of Cash Flows Using the Indirect Method, 16.4 Prepare the Completed Statement of Cash Flows Using the Indirect Method
Information Systems Audit and Control Association (ISACA)7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems
initial public offering (IPO)2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
installment sale9.5 Apply Revenue Recognition Principles to Long-Term Projects
intangible assets2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity, 11.1 Distinguish between Tangible and Intangible Assets
Interest9.6 Explain How Notes Receivable and Accounts Receivable Differ, 12.1 Identify and Describe Current Liabilities
interest-only loan13.1 Explain the Pricing of Long-Term Liabilities
internal auditor8.1 Analyze Fraud in the Accounting Workplace
internal control system8.2 Define and Explain Internal Controls and Their Purpose within an Organization
Internal controls8.2 Define and Explain Internal Controls and Their Purpose within an Organization, 8.2 Define and Explain Internal Controls and Their Purpose within an Organization
Internal Revenue Service12.5 Record Transactions Incurred in Preparing Payroll
International Financial Reporting Standards (IFRS)3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, 16.5 Use Information from the Statement of Cash Flows to Prepare Ratios to Assess Liquidity and Solvency
inventory accounting10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
Inventory turnover ratio10.5 Examine the Efficiency of Inventory Management Using Financial Ratios
investing activities16.2 Differentiate between Operating, Investing, and Financing Activities
investment bankers14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
Investments by owners2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
Involuntary deductions12.5 Record Transactions Incurred in Preparing Payroll
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large stock dividend14.3 Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits
last-in, first out method (LIFO)10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
last-in, first-out method (LIFO)10.2 Calculate the Cost of Goods Sold and Ending Inventory Using the Periodic Method, 10.3 Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method
likelihood of occurrence12.3 Define and Apply Accounting Treatment for Contingent Liabilities
limited liability14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock, 15.1 Describe the Advantages and Disadvantages of Organizing as a Partnership
limited liability partnership (LLP)15.1 Describe the Advantages and Disadvantages of Organizing as a Partnership
limited partnership (LP)15.1 Describe the Advantages and Disadvantages of Organizing as a Partnership
Liquidity2.3 Prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet, 5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity
local income tax withholding12.5 Record Transactions Incurred in Preparing Payroll
long-term asset2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
long-term assets11.1 Distinguish between Tangible and Intangible Assets
long-term investment5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity
long-term liability2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity, 13.1 Explain the Pricing of Long-Term Liabilities
lower-of-cost-or-market (LCM)10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
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managerial accounting1.1 Explain the Importance of Accounting and Distinguish between Financial and Managerial Accounting, 1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
manufacturing business1.3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities
market interest rate13.1 Explain the Pricing of Long-Term Liabilities
market value of stock14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
matching principle3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, 6.1 Compare and Contrast Merchandising versus Service Activities and Transactions, 9.1 Explain the Revenue Recognition Principle and How It Relates to Current and Future Sales and Purchase Transactions
maturity date9.6 Explain How Notes Receivable and Accounts Receivable Differ, 13.1 Explain the Pricing of Long-Term Liabilities
measurement requirement12.3 Define and Apply Accounting Treatment for Contingent Liabilities
Medicare tax rate12.5 Record Transactions Incurred in Preparing Payroll
merchandise inventory10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
merchandising business1.3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities
merchandising company6.1 Compare and Contrast Merchandising versus Service Activities and Transactions
modified accrual accounting4.1 Explain the Concepts and Guidelines Affecting Adjusting Entries
monetary measurement3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
multi-step income statement6.6 Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies
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net cash flows16.1 Explain the Purpose of the Statement of Cash Flows
Net income2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 6.6 Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies
net income (pay)12.5 Record Transactions Incurred in Preparing Payroll
Net Realizable Value9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
noncash expense16.1 Explain the Purpose of the Statement of Cash Flows
noncurrent asset2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses
Noncurrent liabilities12.1 Identify and Describe Current Liabilities
noncurrent liability2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses
nonprofit (not-for-profit) organization1.3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities
nonsufficient funds (NSF) check8.6 Define the Purpose of a Bank Reconciliation, and Prepare a Bank Reconciliation and Its Associated Journal Entries
normal balance3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
not-for-profit (NFP) accounting1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education
note payable12.1 Identify and Describe Current Liabilities, 13.1 Explain the Pricing of Long-Term Liabilities
notes receivable2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses, 9.6 Explain How Notes Receivable and Accounts Receivable Differ
Number of days’ sales in inventory ratio10.5 Examine the Efficiency of Inventory Management Using Financial Ratios
number of days’ sales in receivables ratio9.3 Determine the Efficiency of Receivables Management Using Financial Ratios
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operating activities16.2 Differentiate between Operating, Investing, and Financing Activities
operating cycle5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity, 6.1 Compare and Contrast Merchandising versus Service Activities and Transactions
Operating expenses6.6 Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies
organization costs14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
other revenue and expenses6.6 Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies
outstanding check8.6 Define the Purpose of a Bank Reconciliation, and Prepare a Bank Reconciliation and Its Associated Journal Entries
outstanding shares14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
Ownership of inventory6.5 Discuss and Record Transactions Applying the Two Commonly Used Freight-In Methods
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partnership2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 15.1 Describe the Advantages and Disadvantages of Organizing as a Partnership
partnership agreement15.2 Describe How a Partnership Is Created, Including the Associated Journal Entries
Perceived opportunity8.1 Analyze Fraud in the Accounting Workplace
percentage of accounts receivable method9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
percentage of completion method9.5 Apply Revenue Recognition Principles to Long-Term Projects
percentage of sales method9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
periodic inventory system6.2 Compare and Contrast Perpetual versus Periodic Inventory Systems, 6.7 Appendix: Analyze and Record Transactions for Merchandise Purchases and Sales Using the Periodic Inventory System, 10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
Permanent (real) accounts5.1 Describe and Prepare Closing Entries for a Business
perpetual inventory12.2 Analyze, Journalize, and Report Current Liabilities
perpetual inventory method7.4 Prepare a Subsidiary Ledger
perpetual inventory system6.2 Compare and Contrast Perpetual versus Periodic Inventory Systems, 6.3 Analyze and Record Transactions for Merchandise Purchases Using the Perpetual Inventory System, 6.4 Analyze and Record Transactions for the Sale of Merchandise Using the Perpetual Inventory System, 10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
petty cash fund8.4 Define the Purpose and Use of a Petty Cash Fund, and Prepare Petty Cash Journal Entries
physical inventory count6.2 Compare and Contrast Perpetual versus Periodic Inventory Systems
physical obsolescence11.5 Describe Some Special Issues in Accounting for Long-Term Assets
point of transfer6.5 Discuss and Record Transactions Applying the Two Commonly Used Freight-In Methods
point-of-sale system (POS)7.1 Define and Describe the Components of an Accounting Information System, 7.1 Define and Describe the Components of an Accounting Information System
post-closing trial balance5.1 Describe and Prepare Closing Entries for a Business
premium on bonds payable13.3 Prepare Journal Entries to Reflect the Life Cycle of Bonds
Prepaid expenses3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions, 4.2 Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries
principal9.6 Explain How Notes Receivable and Accounts Receivable Differ, 12.1 Identify and Describe Current Liabilities, 13.1 Explain the Pricing of Long-Term Liabilities
Prior period adjustments14.4 Compare and Contrast Owners’ Equity versus Retained Earnings
private corporation14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
privately held company1.4 Explain Why Accounting Is Important to Business Stakeholders
probable and estimable12.3 Define and Apply Accounting Treatment for Contingent Liabilities
probable and inestimable12.3 Define and Apply Accounting Treatment for Contingent Liabilities
promissory note13.1 Explain the Pricing of Long-Term Liabilities
property dividend14.3 Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits
Property, plant, and equipment5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity
Public Company Accounting Oversight Board (PCAOB)3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, 8.2 Define and Explain Internal Controls and Their Purpose within an Organization
publicly traded company1.4 Explain Why Accounting Is Important to Business Stakeholders, 2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 8.2 Define and Explain Internal Controls and Their Purpose within an Organization, 14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
purchase returns and allowances6.1 Compare and Contrast Merchandising versus Service Activities and Transactions
purchase transaction6.1 Compare and Contrast Merchandising versus Service Activities and Transactions
purchases10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
purchases journal7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders, 7.3 Analyze and Journalize Transactions Using Special Journals
Putable bonds13.1 Explain the Pricing of Long-Term Liabilities
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Rationalization8.1 Analyze Fraud in the Accounting Workplace
reasonably possible12.3 Define and Apply Accounting Treatment for Contingent Liabilities
redeemable bond13.1 Explain the Pricing of Long-Term Liabilities
Restricted retained earnings14.4 Compare and Contrast Owners’ Equity versus Retained Earnings
retail business1.3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities
retail inventory method10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
retained earnings2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses
revenue recognition principle3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, 6.1 Compare and Contrast Merchandising versus Service Activities and Transactions, 9.1 Explain the Revenue Recognition Principle and How It Relates to Current and Future Sales and Purchase Transactions
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sales journal7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders, 7.3 Analyze and Journalize Transactions Using Special Journals
sales returns and allowances6.1 Compare and Contrast Merchandising versus Service Activities and Transactions
Salvage (residual) value11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs
Sarbanes-Oxley Act (SOX)8.2 Define and Explain Internal Controls and Their Purpose within an Organization
secondary market13.1 Explain the Pricing of Long-Term Liabilities, 14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
Securities Act of 193314.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
Securities and Exchange Commission (SEC)1.4 Explain Why Accounting Is Important to Business Stakeholders, 2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, 7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems, 10.3 Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method, 14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock
separate entity concept3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
service business1.3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities
short-term asset2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
short-term liability2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
short-term note payable12.4 Prepare Journal Entries to Record Short-Term Notes Payable
simple income statement6.6 Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies
small stock dividend14.3 Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits
Social Security tax rate12.5 Record Transactions Incurred in Preparing Payroll
sole proprietorship2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
Sole proprietorships14.4 Compare and Contrast Owners’ Equity versus Retained Earnings
special dividend14.3 Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits
special journals7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders
special purpose entities8.7 Describe Fraud in Financial Statements and Sarbanes-Oxley Act Requirements
specific identification10.2 Calculate the Cost of Goods Sold and Ending Inventory Using the Periodic Method, 10.3 Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method
specific identification method10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
stakeholder1.4 Explain Why Accounting Is Important to Business Stakeholders, 2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
State income tax withholding12.5 Record Transactions Incurred in Preparing Payroll
State Unemployment Tax Act (SUTA)12.5 Record Transactions Incurred in Preparing Payroll
stated interest rate13.1 Explain the Pricing of Long-Term Liabilities
statement of cash flows2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, 16.1 Explain the Purpose of the Statement of Cash Flows, 16.3 Prepare the Statement of Cash Flows Using the Indirect Method
statement of owner’s equity2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
statement of retained earnings4.5 Prepare Financial Statements Using the Adjusted Trial Balance
statement of stockholders’ equity14.4 Compare and Contrast Owners’ Equity versus Retained Earnings
Stockholder’s equity3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions
Straight-line depreciation11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs
straight-line method13.2 Compute Amortization of Long-Term Liabilities Using the Effective-Interest Method
subsidiary ledger7.4 Prepare a Subsidiary Ledger
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tangible asset11.1 Distinguish between Tangible and Intangible Assets
Tangible assets2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate
tax basis accounting4.1 Explain the Concepts and Guidelines Affecting Adjusting Entries
Taxes payable12.1 Identify and Describe Current Liabilities
Temporary (nominal) accounts5.1 Describe and Prepare Closing Entries for a Business
time period assumption3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
transaction1.2 Identify Users of Accounting Information and How They Apply Information, 3.3 Define and Describe the Initial Steps in the Accounting Cycle
trial balance3.6 Prepare a Trial Balance, 4.2 Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries
turn-around document7.1 Define and Describe the Components of an Accounting Information System
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unadjusted trial balance3.6 Prepare a Trial Balance
Unearned revenue3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions, 4.2 Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries, 12.1 Identify and Describe Current Liabilities
units-of-production depreciation method11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs
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vacation compensation12.5 Record Transactions Incurred in Preparing Payroll
voluntary deductions12.5 Record Transactions Incurred in Preparing Payroll
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weighted-average (AVG)10.5 Examine the Efficiency of Inventory Management Using Financial Ratios
weighted-average cost method10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions