CliffsQuickReview Accounting Principles II Book

	Fundamental Ideas	1
Chapter 1	Current Liabilities	3
	Accounts Payable	3
	Payroll Liabilities	3
	Net pay and withholding liabilities	4
	Employer payroll taxes	7
	Notes Payable	8
	Unearned revenues	10
	Contingent liabilities	11
	Warranty liabilities	11
Chapter 2	Long-Term Liabilities	13
	Notes Payable	13
	Mortgage Payable	16
	Lease Obligations	18
	Bonds Payable	19
	Types of bonds	19
	Bond prices	20
	Bonds issued at par	23
	Bonds issued at a discount	25
	Bonds issued at a premium	34
	Bonds issued between interest dates	42
	Deferred Income Taxes	43
Chapter 3	Partnerships	45
	Characteristics of a Partnership	45
	Limited life	45
	Mutual agency	46
	Unlimited liability	46
	Ease of formation	46
	Transfer of ownership	47
	Management structure and operations	47
	Relative lack of regulation	47
	Number of partners	47
	Partnership Accounting	47
	Asset contributions to partnerships	48
	Income allocations	48
	Changes in Partners	52
	New partner	52
	Retirement or withdrawal of a partner	56
	Liquidation of a Partnership	57
	The Statement of Partners' Capital	57
Chapter 4	Corporations	59
	Characteristics of a Corporation	60
	Unlimited life	60
	Limited liability	60
	Separate legal entity	60
	Relative ease of transferring ownership rights	60
	Professional management	61
	Ease of capital acquisition	61
	Government regulations	61
	Stock Terminology	62
	Accounting for Stock Transactions	64
	Stock issued for cash	64
	Stock issued in exchange for assets or services	66
	Treasury stock	68
	Dividends	71
	Cash dividends	72
	Stock dividends	74
	Stock Splits	76
	Stockholders' Equity Section of Balance Sheet	77
	Book value	78
	Income Statement	79
	Earnings per share	81
	Diluted earnings per share	83
Chapter 5	Investments	85
	Accounting for Debt Securities	85
	Accounting for Equity Securities	87
	Cost method	87
	Equity method	89
	Consolidated financial statements	91
	Balance Sheet Classification and Valuation	91
Chapter 6	Statement of Cash Flows	95
	Statement of Cash Flows Sections	95
	Operating activities	96
	Investing activities	96
	Financing activities	97
	Cash reconciliation	97
	Preparing the Statement of Cash Flows	99
	Direct Method	99
	Indirect Method	99
	Direct Method of Preparing the Statement of Cash Flows	104
	Operating activities	108
	Investing activities	112
	Financing activities	114
	Reconciliation of net income to cash provided by (used by) operating activities	115
	Indirect Method of Preparing the Statement of Cash Flows	115
	Operating activities	117
	Investing activities and financing activities	119
	Using the Statement of Cash Flow Information	120
Chapter 7	Financial Statement Analysis	123
	Need for Financial Statement Analysis	123
	Trend Analysis	123
	Percentage change	123
	Trend percentages	125
	Common-Size Analysis	127
	Ratio Analysis	130
	Liquidity ratios	130
	Profitability ratios	135
	Solvency ratios	141
	Limitations on Financial Statement Analysis	143
Chapter 8	Managerial and Cost Accounting Concepts	147
	Manufacturing Financial Statements	148
	Costing Terminology	149
	The Cost of Goods Manufactured Schedule	150
	Accounting by Manufacturing Companies	154
Chapter 9	Traditional Cost Systems	161
	Job Order Cost System	161
	Predetermined overhead rate	162
	Process Cost System	171
	Raw materials requisitioned	174
	Factory labor	175
	Factory overhead	177
	Work-in-process accounting	179
	Process costing summary	183
Chapter 10	Activity-Based Costing	187
	Activity-Based Costing Activities	187
	Activity categories	189
	Comparison of Activity-Based Costing and Traditional Cost System	190
Chapter 11	Cost-Volume-Profit Relationships	197
	Cost Behavior	197
	Fixed costs	197
	Variable costs	198
	Mixed costs	200
	Cost-Volume-Profit Analysis	202
	Contribution margin and contribution margin ratio	203
	Break-even point	204
	Targeted income	207
	Margin of Safety	209
	Sensitivity Analysis	210
Chapter 12	Budgets	211
	Operating Budgets	212
	Sales budget	212
	Manufacturing costs	213
	Selling expenses budget	221
	General and administrative expenses budget	224
	Capital Expenditures Budget	225
	Cash Budget	225
	Budgeted Income Statement	231
	Budgeted Balance Sheet	232
	Merchandising Company Budgets	236
Chapter 13	Flexible Budgets and Standard costs	239
	Flexible Budgets	239
	Preparation of a Flexible Budget	243
	Standard Costs	245
	Variance Analysis	248
	Direct Materials Variances	249
	Direct Labor Variances	253
	Overhead Variances	255
	Total Variance	264
Chapter 14	Incremental Analysis	265
	Examples of Incremental Analysis	267
	Accepting additional business	267
	Making or buying component parts or products	270
	Selling products or processing further	271
	Eliminating an unprofitable segment	273
	Allocating scarce resources (sales mix)	275
Chapter 15	Capital Budgeting	277
	Capital Budgeting Techniques	277
	Payback Technique	277
	Net present value	280
	Internal rate of return	284
	Annual rate of return method	285
Appendix A	Present Value of 1	287
Appendix B	Present Value Annuity of 1	289