1. Business, Accounting, and You Business, Accounting, and You What Is a Business, and Why Study Accounting? The Definition of a Business The General Concept of Value Business Owners and Other Stakeholders The Goal of a Business How Does a Business Operate? Resources Needed to Start and Operate a Business Operating the Business The Cost of Money How Are Businesses Organized? The Types of Businesses The Legal Forms of Businesses What Is Accounting, and What Are the Key Accounting Principles and Concepts? Generally Accepted Accounting Principles International Financial Reporting Standards The Business Entity Principle The Reliability (Objectivity) Principle The Cost Principle Accounting Ethics: A Matter of Trust What Is the Role of Accounting in a Business? How Do You Recognize a Business Transaction? Cash Accounting Accrual Accounting How Do You Measure a Business Transaction? How Do You Record Business Transactions Using the Accounting Equation? Transaction Analysis Stockholders Equity How Do You Report Business Transactions Using Financial Statements? The Income Statement The Statement of Retained Earnings The Balance Sheet The Statement of Cash Flows Relationships Among the Financial Statements Accounting, Business, and YouPutting It All Together Summary Accounting Practice Apply Your Knowledge Know Your Business   2. Analyzing and Recording Business Transactions Business, Accounting, and You How Are Accounts Used to Keep Business Transactions Organized? Organizing Accounts Assets Liabilities Stockholders Equity What Is Double-Entry Accounting? Normal Balance How Are the General Journal and General Ledger Used to Keep Track of Business Transactions? Transaction Analysis Applying Transaction Analysis Balancing the T-Accounts How Is a Trial Balance Prepared, and What Is It Used For? Correcting Errors Preparation of Financial Statements Summary Accounting Practice Apply Your Knowledge Know Your Business   3. Adjusting and Closing Entries Business, Accounting, and You How Does a Company Accurately Report Its Income? Revenue Recognition and Matching Principles What Is the Role of Adjusting Entries, and When Are They Prepared? Accruing Revenues Accruing Expenses Adjusting Deferred Revenues Adjusting Deferred Expenses How Are Financial Statements Prepared from an Adjusted Trial Balance? The Adjusted Trial Balance Preparing the Financial Statements How Does a Company Prepare for a New Accounting Period? Completing the Accounting Cycle The Three Closing Entries: Revenues, Expenses, and Dividends Post-Closing Trial Balance Summary of the Adjusting and Closing Processes Summary Accounting Practice Apply Your Knowledge Know Your Business Comprehensive Problem   4. Accounting for a Merchandising Business Business, Accounting, and You What Are the Relationships Among Manufacturers, Wholesalers, Retailers, and Customers? How Do Periodic and Perpetual Inventory Systems Differ? How Do You Account for the Purchase of Inventory? Cash and Credit Purchases Purchase Returns and Allowances Purchase Discounts How Do You Account for the Sale of Inventory? Cash Sales Credit Sales Sales Returns and Allowances Sales Returns Sales Allowances Sales Discounts How Do You Account for Freight Charges and Other Selling Expenses? Costs Related to the Receipt of Goods from Suppliers Costs Related to Delivering Goods to Customers Other Selling Costs How Do You Prepare