This textbook has been written to provide a concise but comprehensive introduction to fundamental accounting. It is suitable for beginners to this subject area and introduces to the major topics of fundamental accounting course. The textbook would be ideal for those studying for undergraduate degree courses, and professional accountancy qualifications.
The textbook is based on the International Financial Reporting Standards (IFRS) and the International Accounting Standards (IAS) framework, meaning it can be used by students across the world .
Each chapter begins with Learning Objectives which outline what skills and techniques will be acquired by completion of the chapter. The chapters will explore each topic in sufficient details accompanied by fully worked-out examples with explanations and reference to the relevant International Accounting Standards.
In contrast to traditional textbooks, this textbook aims to make accounting education more effective with the concepts approach that focuses on the big picture. Details are presented after a conceptual foundation has been established. This approach enables students to understand rather than memorize.
The textbook stresses the relationships between business events and financial statements using a horizontal financial statements model as the predominant teaching platform throughout this textbook. Financial statements are the scorecard for business activity. If you want to succeed in business, you must know how your business decisions affect your company's financial statements. The model arranges the balance sheet, income statement and statement of cash flows as shown below.
Table of Contents
Chapter 1 Introduction to the Financial Statements
Learning Objectives
Chapter Opening
1．1 Types of Business Organization
1．2 Several Key Accounting Principles
1．2．1 Measurement Rules
1．2．2 Reporting Entities
1．2．3 Historical Cost Principle
1．2．4 Reliability Principle
1．2．5 Conservatism Principle
1．2．6 Materiality Principle
1．2．7 Going Concern Assumption and Periodicity Assumption
1．2．8 Matching Principle
1．3 Elements of Financial Statements
1．3．1 Using Accounts to Gather Information
1．3．2 Assets， Income， and Claims on Assets
1．4 The Accounting Equation
1．5 The Horizontal Financial Statements Model
1．5．1 Transaction Analysis Using Financial Statements Effects Tables （FSET）
1．5．2 Types of Transactions
1．5．3 Summary of Transactions
1．6 Preparing Financial Statements
1．6．1 Income Statement
1．6．2 Statement of Changes in Stockholders' Equity
1．6．3 Balance Sheet
1．6．4 Statement of Cash Flows
1．6．5 How the Four Financial Statements Interrelate
1．6．6 The Closing Process
1．7 Summary
Self Study Review Problem
Solutions to Self-Study Problems
Exercises
Chapter 2 Accounting for Accrual Events
Learning Objectives
Chapter Opening
2．1 Accrual Accounting
2．1．1 Accounting for Accounts Receivable
2．1．2 Accounting for Accrued Salary Expense
2．1．3 Other Events
2．1．4 Summary of Events
2．2 The General Ledger
2．3 Vertical Statements Model
2．4 The Closing Process
2．5 Steps in an Accounting Cycle
2．6 The Matching Concept
2．7 Summary
Self-Study Review Problem
Solutions to Self-Study Problems
Exercises
Chapter 3 Accounting for Deferral Events
Learning Objectives
Chapter Opening
3．1 Deferral Accounting
3．1．1 Accounting for Receipt of Unearned Revenue
3．1．2 Accounting for Supplies Purchase
3．1．3 Prepaid Items
3．2 Adjusting Entries
3．2．1 Accounting for Depreciation Expense
3．2．2 Accounting for Supplies
3．2．3 Accounting for Prepaid Rent
3．2．4 Accounting for Unearned Revenue
3．3 The General Ledger
3．4 Vertical Statements Model
3．5 Summary
……
Chapter 4 Understanding the Debit-Credit System
Chapter 5 Accounting for Merchandising Events
Chapter 6 Accounting for Inventories
Chapter 7 Shat-Term Receivables and Payables
Chapter 8 Accounting for Long-Term Assets
Chapter 9 Bank Reconciliation Statements
