Accounting: Tools for Business Decision Makers by Paul D. Kimmel

By Paul D. Kimmel

With this fourth version, accountants will gather a pragmatic set of instruments and the arrogance they should use them successfully in making company judgements. It greater displays a extra conceptual and decision-making method of the fabric. The authors persist with a "macro- to micro-" procedure by way of beginning with a dialogue of actual monetary statements first, instead of beginning with the Accounting Cycle. the target is to set up how a financial plan communicates the financing, making an investment, and working actions of a enterprise to clients of accounting details. This motivates accountants via grounding the dialogue within the genuine global, exhibiting them the relevance of the subjects lined to their careers.

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Let’s now look at how to account for new issues of common stock. The primary objectives in accounting for the issuance of common stock are (1) to identify the specific sources of paid-in capital and (2) to maintain the distinction between paid-in capital and retained earnings. As shown below, the issuance of common stock affects only paid-in capital accounts. As discussed earlier, par value does not indicate a stock’s market value. The cash proceeds from issuing par value stock may be equal to, greater than, or less than par value.

Qxd 6 7/26/10 1:09 PM Page 6 chapter 1 Introduction to Financial Statements Questions Asked by Internal Users ST ST RIK E ON RIK E r fai es Un ctic a Pr playlist itunes L. B. Brien's In Sgt. Pepper's Comes My Ship Cowboy? When Do Wia Gonna What is A Life Want All I MENU Snack ack ck k cch chi chips h hi Beve Beverages ev eve e ve errage rag age a ge g Stockholder Finance Is cash sufficient to pay dividends to Microsoft stockholders? Illustration 1-1 Questions that internal users ask Illustrations like this one convey information in pictorial form to help you visualize and apply the ideas as you study.

INTERNAL USERS Internal users of accounting information are managers who plan, organize, and run a business. These include marketing managers, production supervisors, finance directors, and company officers. In running a business, managers must answer many important questions, as shown in Illustration 1-1 (page 6). study objective 2 Identify the users and uses of accounting information. qxd 6 7/26/10 1:09 PM Page 6 chapter 1 Introduction to Financial Statements Questions Asked by Internal Users ST ST RIK E ON RIK E r fai es Un ctic a Pr playlist itunes L.

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