665
 
   Subject Index
   
  
A
Account
common types of, 152–154
defined, 395
entries in, 395
ledger account, 443
negative balance, 399
normal balance, 397, 429
numbering, 445
rules for increasing and
   decreasing, 397
Account form balance sheet, 300
Accounting cycle, 521
Accounting
conceptual framework of, 356, 362
defined, 218
ethics in, 223–227
objectives of, 357, 362
process of, Learning Goal 10
Accounting equation
analyze cumulative effects of
   transactions, Learning Goal 9
analyze individual transactions,
   Learning Goal 6
visualizing, 57, 59
Accounts payable, defined, 154
Accounts receivable, defined, 7, 152
Accumulated other comprehensive
         income, 624, 625
Added value, 11

Additional paid-in capital, 621,
         see also paid-in capital in
         excess of par

Advances from customers,
         see unearned revenue
Annual report, 280
American Institute of Certified Public
         Accountants (AICPA) 368
Arthur Andersen Company,
         227, 280
Articles of incorporation, 541
Articulation of financial
         statements, 317
Assets
accounting equation and, 59
balance sheet presentation, 300
characteristics of, 38
common types summarized,
   152–154
defined, 37
loan security, 50
monetary and non-monetary,
   39, 41
normal (natural) balance of, 429
recording rules, 399, 429
valuation of, 220
B
Balance sheet
account form, 300
compared to other financial    statements, 311, 312, 316, 320
connection to the income
   statement, 316
defined, 300
features of, 300-301
preparation procedures, 302-304
report form, 300
Basic earnings per share, see earnings
         per share
Board of directors, 540,
Bookkeeping, defined, 221
Book value, 641-642
Business
defined, 4
effects of management, 16, 53
types of, 5
using resources to add value, 9–11
visualizing picture of, 59
Bylaws, 541
C
Callable preferred stock, 570
Capital stock, 567
Capital, various financial
    meanings of, 559
Capital account,
elements of, 411–412
rules for recording changes
   in, 399, 412
Capital statement, see statement of
   owner’s equity
Capital surplus, 621, see also paid-in
   capital in excess of par
Cash
defined, 152
on balance sheet, 303
on statement of cash flows, 309
CEO, see chief executive officer
CFO, see chief financial officer
Certified management accountant
   (CMA), 223
Certified public accountant
   (CPA), 223
Change in accounting principle, 601
Charge an account, 428
Chart of accounts, 445
Charter, 541
Chief executive officer, defined 539
Chief financial officer, defined 539
Classification, valuation, and
   timing, 219-220
Common stock, 553, 559-560
Common stock distributable, 595
Common stock subscribed, 563
Common stock transactions,
   Learning Goals 29 and 30
Comparability of information, 283
Comprehensive income, 624
Computerized accounting, compared
   to manual, 522
Conceptual framework of
   accounting, 356, 362
Conservatism, 361
Contra equity accounts, 587, see also
   subscriptions receivable
Controller, 540
Consistency of information, 283
Cooper, Cynthia, 258, 276