Accounting Text Cases
Text and Cases
Thirteenth Edition
Robert N. Anthony
Ross G. Walker Professor Emeritus Graduate School of Business Administration Harvard University
David F. Hawkins
Lovett-Learned Professor of Business Administration Graduate School of Business Administration Harvard University
Kenneth A. Merchant
Deloitte & Touche LLP Chair of Accountancy Leventhal School of Accounting University of Southern California
McGraw-Hill Irwin
Contents
PARTI
FINANCIAL ACCOUNTING 1 Chapter 1 The Nature and Purpose of Accounting 2
The Need for Information 2 Operating Information 3 Financial Accounting Information 4 Management Accounting Information 4 Tax Accounting Information 5 Definition of Accounting 6 The Profession of Accounting 6 Our Approach to Accounting 7 Preconceptions about Accounting 7 Plan of the Book 8 The Financial Accounting Framework' Accounting as a Language 9 Different Formats 9 Nature of Principles 9 Criteria 10 Source of Accounting Principles 11 Principles Vs. Rules 12 Financial Statements 13 The Balance Sheet 14 The Income Statement 16 "Package " of Financial Reports 17 Financial Statement Objectives 17 Sarbanes-Oxley Act 19 Income Tax Reporting 19 Summary 19 Problems 20 Cases 22 Case 1—1: Ribbons an'Bows, Inc. 22 Case 1-2: Kim Fuller 23 Case 1-3: Baron Coburg 24 The Balance Sheet 33 An Overall View 34 Account Categories 35 Assets 36 Liabilities 38 Owners 'Equity 39 Ratios 42 Current Ratio 42 Balance Sheet Changes 42 Original Capital Contribution 42 Bank Loan 43 Purchase of Merchandise 43 Sale of Merchandise 43 Concluding Comment 44 Summary 44 Problems 44 Cases 47 Case 2-1: Maynard Company (A) 47 Case 2-2: Music Mart, Inc. 48 Case 2-3: Lone Pine Cafe (A) 48
8
Chapter 3 Basic Accounting Concepts: The Income Statement 50
The Nature of Income 50 Basic Concepts 51 The Accounting Period Concept 51 The Conservatism Concept 54 The Realization Concept 56 The Matching Concept 57 Recognition of Expenses 58 Terminology 58 Criteria for Expense
Thirteenth Edition
Robert N. Anthony
Ross G. Walker Professor Emeritus Graduate School of Business Administration Harvard University
David F. Hawkins
Lovett-Learned Professor of Business Administration Graduate School of Business Administration Harvard University
Kenneth A. Merchant
Deloitte & Touche LLP Chair of Accountancy Leventhal School of Accounting University of Southern California
McGraw-Hill Irwin
Contents
PARTI
FINANCIAL ACCOUNTING 1 Chapter 1 The Nature and Purpose of Accounting 2
The Need for Information 2 Operating Information 3 Financial Accounting Information 4 Management Accounting Information 4 Tax Accounting Information 5 Definition of Accounting 6 The Profession of Accounting 6 Our Approach to Accounting 7 Preconceptions about Accounting 7 Plan of the Book 8 The Financial Accounting Framework' Accounting as a Language 9 Different Formats 9 Nature of Principles 9 Criteria 10 Source of Accounting Principles 11 Principles Vs. Rules 12 Financial Statements 13 The Balance Sheet 14 The Income Statement 16 "Package " of Financial Reports 17 Financial Statement Objectives 17 Sarbanes-Oxley Act 19 Income Tax Reporting 19 Summary 19 Problems 20 Cases 22 Case 1—1: Ribbons an'Bows, Inc. 22 Case 1-2: Kim Fuller 23 Case 1-3: Baron Coburg 24 The Balance Sheet 33 An Overall View 34 Account Categories 35 Assets 36 Liabilities 38 Owners 'Equity 39 Ratios 42 Current Ratio 42 Balance Sheet Changes 42 Original Capital Contribution 42 Bank Loan 43 Purchase of Merchandise 43 Sale of Merchandise 43 Concluding Comment 44 Summary 44 Problems 44 Cases 47 Case 2-1: Maynard Company (A) 47 Case 2-2: Music Mart, Inc. 48 Case 2-3: Lone Pine Cafe (A) 48
8
Chapter 3 Basic Accounting Concepts: The Income Statement 50
The Nature of Income 50 Basic Concepts 51 The Accounting Period Concept 51 The Conservatism Concept 54 The Realization Concept 56 The Matching Concept 57 Recognition of Expenses 58 Terminology 58 Criteria for Expense