Financial Accounting

A Course for All Majors

David W. O'Bryan, Pittsburg State University

Published 2010

Financial Accounting: A Course for All Majors was written for general education classes that include students from all disciplines. Chapters are concise so that students will actually take the time to read them; the writing style is nontechnical and informal so that all majors can comprehend the material; the numerical examples stress the key concepts but avoid unnecessary complications that can be an impediment to learning.

Many financial accounting textbooks are user-oriented. This book is student-oriented. It was designed for students who may only take one financial accounting course; if they do not complete the course, financial accounting will always be a mystery to them and they will remain financially illiterate. This book strives to make financial accounting accessible to all majors so that they can improve their financial literacy and make better, more informed, financial decisions in their personal and professional lives.

This book can be used as the primary textbook in a survey course, or as a supplemental resource in any course that requires a solid foundation in financial accounting. It will also be a useful primer for any manager who needs to refresh their knowledge of financial accounting.

Foreword Overview of Textbook Acknowledgments 1. The Accounting Profession: An Overview 2. Three Basic Financial Statements 3. The Expanded Accounting Equation 4. Basic Transaction Analysis 5. Financial Statement Interrelationships 6. The Accrual Basis of Accounting 7. Accruals and Deferrals 8. Adjustments, Part I 9. Adjustments, Part II 10. The Accounting Cycle 11. The Classified Balance Sheet 12. The Multiple-Step Income Statement 13. Operating Activities: An Introduction to Bad Debts Expense 14. Operating Activities: The Allowance Method for Bad Debts 15. Operating Activities: The Revenue Recognition Principle 16. Operating Activities: Inventory, Part I 17. Operating Activities: Inventory, Part II 18. Investing Activities: Long-Term Assets and Cost Allocation 19. Financing Activities: Simple Interest and Amortized Loans 20. Financing Activities: The Time Value of Money 21. Financing Activities: Equity Transactions 22. An Introduction to Financial Statement Analysis 23. Financial Statement Analysis and Ratio Analysis 24. Internal Controls Appendix I: Debits and Credits Appendix II: Transaction Analysis Quick Reference Guide About the Author