Includes bibliographical references and index.

Part 1 An introduction to accounting: accounting - the language of business; changes in financial position; comprehensive problem one - Little Bear Railroad, Incorporated; measuring business income and completion of the accounting cycle; year end!. Part 2 The business world: accounting for merchandizing activities; introduction to financial statement analysis and the statement of cash flows. Part 3 Accounting for assets: financial assets; inventories and the cost of goods sold; plant assets and depreciation. Part 4 Accounting for liabilities and owners' equity: liabilities; owners' equity - forms of business organizations; reporting unusual events and special equity transactions. Part 5 A look back - and ahead: measuring cash flows; accounting concepts, professional judgment and ethical conduct. Appendices: annual report for Toys R Us, Incorporated; exploring the Internet accounting systems, internal control and audits; the time-value of money - future amounts and present values; international accounting and foreign currency transactions; income taxes and business decisions; analysis and interpretation of financial statements - a second look; not-for-profit organizations and governmental accounting.

An introductory text in financial accounting. This volume shows how to prepare and use financial accounting information. In this edition, accounting research and analysis has been increased to provide a greater user-orientation, while coverage of procedures has been reduced.