Full Download PDF of (Ebook PDF) Survey of Accounting 8th Edition by Carl S. Warren All Chapter
Full Download PDF of (Ebook PDF) Survey of Accounting 8th Edition by Carl S. Warren All Chapter
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vi Preface
5PUBM-JBCJMJUJFT 4UPDLIPMEFST&RVJUZ
Chapter 2 begins with an example format of the integrated framework used throughout
the financial chapters. Early in the course, students will gain a greater understanding of
how important trends or events can impact a company’s financial statements, which add
valuable insight into the financial condition and performance of a business.
BA L A N C E S H E E T
Assets = Liabilities + Stockholders' Equity
Assets = Liabilities + Capital Stock + Retained Earnings
Transaction XXX XXX XXX XXX
XXX
XXX XXX XXX XXX
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Preface vii
The primary focus in Chapter 2 is on cash transactions, which helps eliminate confu-
sion for students who may have difficulty determining whether an event or transaction
should be recorded.
Transaction (d)
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SFDFJWJOHUIFGFFTJODBTI
The effects of this transaction on Family Health Care’s financial statements are recorded
as follows:
1. Under the Statement of Cash Flows column, Cash from Operating activities is increased
by $5,500.
2. Under the Balance Sheet column, Cash under Assets is increased by $5,500. To bal-
ance the accounting equation, Retained Earnings under Stockholders’ Equity is also
increased by $5,500.
3. Under the Income Statement column, Fees earned is increased by $5,500.
This transaction illustrates an inflow of cash from operating activities by earning
revenues (fees earned) of $5,500. Retained Earnings is increased under Stockholders’
Equity by $5,500 because fees earned contribute to net income and net income increases
stockholders’ equity. Since fees earned are a type of revenue, Fees earned of $5,500 is
also entered under the Income Statement column.
The effects of this transaction on Family Health Care’s financial statements are shown
below.
BA L A N C E S H E E T
Assets = Liabilities + Stockholders' Equity
Notes Common Retained
Cash + Land = Payable + Stock + Earnings
Balances 4,000 12,000 10,000 6,000
d. Fees earned 5,500 5,500
Balances 9,500 12,000 10,000 6,000 5,500
L IQ U ID IT Y P R O F I TA B I L I T Y
Cash $5,500 Net Income – Cash Basis $5,500
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viii Preface
a company’s financial condition and performance. Metrics are assessed at three levels:
the Transaction Level, Financial Statement level, and Managerial Decision-Making Level.
To accompany the addition of Warren’s Metric Analyses, end-of-chapter problems have
been added to test the students knowledge and understanding of the concepts.
Metric Analyses are clearly identified wtih a separate screen of color. This allows for
quick identification of the analyses through the chapters and text. This separate screen
of color also identifies the end-of-chapter section for assigning homework.
:FBS :FBS
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"JSDSBGUSFMBUFE
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1. Prepare common-sized statements for Years 2 and 1. Round to one decimal place.
2. Using (1), analyze and comment on the performance of Southwest in Year 2.
Other Enhancements
▪ Retained Earnings Statement is REPLACED with Statement of Stockholders Equity
throughout the book. This will reflect what students will see in business and also
allows for real-world examples of statements of stockholder’s equity for in-class illus-
trations or homework.
▪ Each Financial Accounting Chapter now includes one financial statement metric at the
end of each chapter. In addition, each financial chapter transaction is analyzed using a
liquidity and profitability metric. Depending upon chapter content, a variety of liquidity
and profitability metrics are used throughout the financial accounting chapters.
▪ Each Managerial Accounting Chapter now includes one metric used by managers in
operating a business. Many of these metrics are operational in nature and include
margin of safety, cost per unit, process yield, and utilization rate.
▪ This edition includes updated or replaced chapter openers to feature recent, intrigu-
ing developments in accounting. The author has woven connections to the opening
company highlighted in each chapter throughout each chapter. This now promotes
a stronger connection for students, allowing them to gain additional insight into the
opening company and its relationship to the chapter content.
▪ For this edition, when Real Publicly Traded Companies appear through out the book,
their (TICKERS) symbol is also represented. This allows students to easily look up
company’s financial data on the internet.
Technology
What is CengageNOWv2?
CengageNOWv2 is a powerful course management and online homework tool that provides
robust intructor control and customization to optimize the student learning experience
and meet desired outcomes.
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Preface ix
CengageNOWv2 includes
▪ Integrated eBook
▪ End-of-Chapter homework with static and algorithmic version
▪ Adaptive Study Plan with quizzing and multimedia study tools
▪ Test Bank
▪ Course management tools and flexible assignment options
▪ Reporting and grade book options
▪ Mastery Problems
▪ Tell Me More eLectures
▪ Show Me How Demonstration Videos
▪ Animated Activities
CengageNOWv2 for Warren’s Survey of Accounting, 8e is designed to help students
learn more effectively by providing engaging resources at unique points in the learn-
ing process:
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
x Preface
Completing Homework
Students sometimes struggle with accounting
homework. By using CengageNOWv2’s powerful
instructor tools you can fine-tune the amount of
help that your students receive as they work on
their homework. Help your students succeed by
making the right amount of assistance available at
the right time!
Show Me How Videos are available for the most
commonly assigned end-of-chapter assignments.
Linked only to algorithms, these Videos provide stu-
dents with both a detailed walk-through of a similar
problem and problem-solving strategies.
Made without giving away the
answer.
CengageNOWv2 provides multiple
layers of guidance to keep students on
track and progressing.
▪ Check My Work Feedback provides
general guidance and hints as students
work through homework assignments.
▪ Check My Work Feedback in Cen-
gageNOWv2 only reports on what
students have attempted, which pre-
vents them from “guessing” their way
through assignments.
▪ Explanations are available after the
assignment has been submitted and
provide a detailed description of how
the student should have arrived at the
solution.
Going Further
Mastering accounting includes making connections between concepts and asking students
to apply what they’ve learned to different scenarios. CengageNOWv2 has the tools that
help you assess your students’ abilities in these key skill areas!
In CengageNOWv2, all of the special activities in Warren, Survey of Accounting, 8th Edition
are available for you to assign to your students. These Mastery Assignments do more than
test your students’ ability to recall, understand and apply. These assignments challenge your
students to go further by demonstrating their ability to analyze and evaluate accounting
information.
Conceptual Conversions are open-ended requirements from the end-of-chapter home-
work that have been converted into automatically gradable formats in CengageNOWv2. Now
you can assess your students’ understanding of more conceptual, open-ended questions
previously not available to assign in an online environment.
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Preface xi
Acknowledgments
Many people deserve thanks for their contributions to this text. For the Eighth edition
Amanda Farmer and Mark Sears provided a thorough technical review and verification of
the end-of-chapter materials. Robin Browning and Tomeika Williams did a thorough review
of the CNOWv2 content. Andrea Meyer, the Content Developer from Cengage who helped
to manage the timeline and development process for this edition. The comments from the
following reviewers also influenced recent edition of the text as well as the current edition:
Sharon Agee, Rollins College
Tim Alzheimer, Montana State University, Bozeman
Scott R. Berube, University of New Hampshire, Whittemore School of Business &
Economics
Jekabs Bikis, Dallas Baptist University
Jerold Braun, Daytona State College
Suzanne Lyn Cercone, Keystone College
H. Edward Gallatin, Indiana State University
Robert E. Holtfreter, Central Washington University
José Luis Hortensi, Miami Dade College
Daniel Kerch, Pennsylvania Highlands Community College
William J. Lavelle, Ave Maria University
Ann E. Martel, Marquette University
Edna C. Mitchell, Polk State College
Tami Park, University of Great Falls
Craig Pence, Highland Community College
Patricia G. Roshto, University of Louisiana at Monroe
Geeta Shankar, University of Dayton
Alice Sineath, Forsyth Technical Community College
Hans Sprohge, Wright State University
Gary Volk, Wayne State College
Your comments and suggestions as you use this text are sincerely appreciated.
Carl S. Warren
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
About the Author
Carl S. Warren
Dr. Carl S. Warren is Professor Emeritus of Accounting at
the University of Georgia, Athens. For over twenty-five years,
Professor Warren has taught all levels of accounting classes.
In recent years, Professor Warren has focused his teaching
efforts on principles of accounting and auditing courses.
Professor Warren has taught classes at the University of
Iowa, Michigan State University, and University of Chicago.
Professor Warren received his doctorate degree (PhD) from
Michigan State University and his undergraduate (BBA) and
master’s (MA) degrees from the University of Iowa. During his
career, Professor Warren published numerous articles in professional journals, including
The Accounting Review, Journal of Accounting Research, Journal of Accountancy, The CPA
Journal, and Auditing: A Journal of Practice & Theory. Professor Warren’s outside interests
include handball, skiing, hiking, fly-fishing, and golf. Professor Warren also spends time
backpacking U.S. national parks (Yellowstone and the Grand Canyon), playing with his
grandchildren, and riding ATVs and motorcycles.
xii
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Brief Contents
xiii
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contents
3
0CKFDUJWJUZ$PODFQU
6OJUPG.FBTVSF$PODFQU
Basic Accounting Systems:
"EFRVBUF%JTDMPTVSF$PODFQU Accrual Basis 86
"DDPVOUJOH1FSJPE$PODFQU
3FTQPOTJCMF3FQPSUJOH Accrual Accounting Concepts 87
Metric-Based Analysis: Return on Assets 22 Family Health Care’s November Transactions 88
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5SBOTBDUJPO E
2
5SBOTBDUJPO F
Basic Accounting Systems: 5SBOTBDUJPO G
Cash Basis 45 5SBOTBDUJPO H
5SBOTBDUJPO I
5SBOTBDUJPO J
Elements of an Accounting System 46 5SBOTBDUJPO K
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$POUSPMT
The Adjustment Process 99
Recording a Corporation’s First Period of Operations 49 %FGFSSBMTBOE"DDSVBMT
5SBOTBDUJPO B "EKVTUNFOUTGPS'BNJMZ)FBMUI$BSF
xiv
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contents xv
"EKVTUNFOUB 4JOHMF4UFQ*ODPNF4UBUFNFOU
"EKVTUNFOUB 4UBUFNFOUPG4UPDLIPMEFST&RVJUZ
"EKVTUNFOUB #BMBODF4IFFU
"EKVTUNFOUB 4UBUFNFOUPG$BTI'MPXT
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Metric-Based Analysis: Markup Percent 169
"EKVTUNFOUB
Appendix 170
Financial Statements 106 $BTI'MPXTGSPN0QFSBUJOH"DUJWJUJFT
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$BTI'MPXT6TFEGPS*OWFTUJOH"DUJWJUJFT
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5
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Internal Control
Accrual and Cash Bases of Accounting 113
$BTI#BTJTPG"DDPVOUJOH and Cash 190
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'BNJMZ)FBMUI$BSF5SBOTBDUJPOT Sarbanes-Oxley Act 191
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Internal Control 193
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Metric-Based Analysis: Quick Ratio 116 &MFNFOUTPG*OUFSOBM$POUSPM
Appendix 117 $POUSPM&OWJSPONFOU
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4
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Accounting for Retail *OGPSNBUJPOBOE$PNNVOJDBUJPO
Operations 142 -JNJUBUJPOTPG*OUFSOBM$POUSPM
Cash Controls Over Receipts and
Nature of Retail Operations 143 Payments 198
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'JOBODJBM4UBUFNFOUT $POUSPMPG$BTI1BZNFOUT
6
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Receivables and
Dual Nature of Merchandise Transactions 158
Inventories 229
Adjustments for Retail Operations 160
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Classification of Receivables 230
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Financial Statements for a Retail Business 163 /PUFT3FDFJWBCMF
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Uncollectible Receivables 232
(SPTT1SPGJU
0QFSBUJOH*ODPNF Direct Write-Off Method for Uncollectible
0UIFS3FWFOVFBOE&YQFOTF Accounts 233
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
xvi Contents
7
$BTI%JWJEFOET
Fixed Assets, Natural 4UPDL%JWJEFOET
Resources, and Intangible Stock Splits 334
Assets 274 Reporting Liabilities and Stockholders’ Equity 335
Financial Statement Metric-Analysis: Debt and
Nature of Fixed Assets 275 Price-Earnings Ratio 337
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Accounting for Depreciation 279
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9 Metric-Analysis of Financial
Statements 357
$PNQBSJOH%FQSFDJBUJPO.FUIPET Analysis of Financial Statements 358
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.BJOUFOBODF 3FQBJS BOE*NQSPWFNFOU$PTUT .FUIPETPG"OBMZTJT
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Global Analysis 359
Disposal of Fixed Assets 288 )PSJ[POUBM"OBMZTJT
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4FMMJOH'JYFE"TTFUT $PNNPO4J[FE4UBUFNFOUT
Natural Resources Assets 292 Component Analysis: Liquidity Metrics 364
Intangible Assets 294 $VSSFOU1PTJUJPO"OBMZTJT
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(PPEXJMM Component Analysis: Solvency Metrics 370
Financial Reporting for Fixed Assets /FU"TTFUT
and Intangible Assets 298 %FCU3BUJP
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Metric-Based Analysis: Asset Turnover 300 3BUJPPG'JYFE"TTFUTUP-POH5FSN-JBCJMJUJFT
5JNFT*OUFSFTU&BSOFE
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contents xvii
10 Accounting Systems
for Manufacturing
Operations 404
Special Relationships 480
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Cost-Volume-Profit Assumptions 484
Metric-Based Analysis: Margin of
Managerial Accounting 405 Safety 484
Manufacturing Operations and Costs 406
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12
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1SJNF$PTUTBOE$POWFSTJPO$PTUT and Product
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Pricing 505
Cost Accounting Systems 411
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Nature of Differential Analysis 506
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Applying Differential Analysis 508
Job Order Cost Systems for Manufacturing -FBTFPS4FMM
Operations 411 %JTDPOUJOVFB4FHNFOUPS1SPEVDU
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4BMFTBOE$PTUPG(PPET4PME Setting Normal Product Selling Prices 516
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7BSJBCMF$PTU$PODFQU
Job Order Cost Systems for Service $IPPTJOHB$PTU1MVT"QQSPBDI$PTU$PODFQU
Businesses 425 5BSHFU$PTUJOH
Just-in-Time Processing 426 Metric-Based Analysis: Contribution Margin per
5SBEJUJPOBM1SPEVDUJPO1SPDFTT Unit of Production Constraint 525
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Activity-Based Costing 429 1SPEVDUJPO$POTUSBJOUTBOE1SJDJOH
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
xviii Contents
13 Budgeting and
Standard Costs 546
Transfer Pricing 623
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Nature and Objectives of Budgeting 547 Metric-Based Analysis: Balanced Scorecard 628
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Master Budget 553
15
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Capital Investment
#BMBODF4IFFU#VEHFUT Analysis 651
#VEHFUFE#BMBODF4IFFU
Standards 564 Nature of Capital Investment Analysis 652
4FUUJOH4UBOEBSET Methods Not Using Present Values 653
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3FWJFXJOHBOE3FWJTJOH4UBOEBSET $BTI1BZCBDL.FUIPE
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Methods Using Present Values 656
Budgetary Performance Reporting 566 1SFTFOU7BMVF$PODFQUT
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.BOVGBDUVSJOH$PTU7BSJBODFT Factors That Complicate Capital
Investment Analysis 664
Direct Materials and Direct Labor Variances 569 *ODPNF5BY
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Metric-Based Analysis: Process Yield and 6ODFSUBJOUZ
Utilization Rate 574 $IBOHFTJO1SJDF-FWFMT
1SPDFTT:JFME 2VBMJUBUJWF$POTJEFSBUJPOT
6UJMJ[BUJPO3BUF Capital Rationing 668
Appendix 575 Metric-Based Analysis: Financial Leverage 669
5IF'BDUPSZ0WFSIFBE'MFYJCMF#VEHFU
7BSJBCMF'BDUPSZ0WFSIFBE$POUSPMMBCMF7BSJBODF
Appendix A: Double-Entry Accounting Systems 688
'JYFE'BDUPSZ0WFSIFBE7PMVNF7BSJBODF
3FQPSUJOH'BDUPSZ0WFSIFBE7BSJBODFT Rules of Debit and Credit 689
'BDUPSZ0WFSIFBE"DDPVOU The Journal 690
Illustration of Double-Entry Accounting 690
14 Decentralized
Operations 609
Posting to the Ledger 692
Trial Balance and Financial Statements 693
Review of Double-Entry Accounting 694
Operational Responsibility 610
$FOUSBMJ[FE0QFSBUJPOT Appendix B: Process Cost Systems 702
%FDFOUSBMJ[FE0QFSBUJPOT Comparing Job Order and Process Cost Systems 702
3FTQPOTJCJMJUZ"DDPVOUJOH
Cost Flows for a Process Manufacturer 704
Responsibility Accounting for Cost Centers 612
Weighted Average Cost Method 705
Responsibility Accounting for Profit Centers 614
Cost Flows for a Process Cost System 707
4FSWJDF%FQBSUNFOU$IBSHFT
1SPGJU $FOUFS3FQPSUJOH Using the Cost of Production Report for
Responsibility Accounting for Decision Making 709
Investment Centers 617 Glossary 715
3FUVSOPO*OWFTUNFOU Subject Index 725
3FTJEVBM*ODPNF
Company Index 734
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1
Chapter
The Role of Accounting
in Business
What's Covered:
Topics: The Role of Accounting in Business
Nature of Business Role of Accounting Metric-Based Analysis
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Learning Objectives
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Chapter Metrics
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T R ANSACTION S *
Liquidity: N/A
Profitability: N/A
F IN A N CIA L STAT E ME NT S
Return on Assets
1
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2 Chapter 1 The Role of Accounting in Business
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* In June 2016 Microsoft and LinkedIn entered into an agreement in which Microsoft (MSFT) would acquire LinkedIn for $196 per share.
Objective
Obj
Ob ject
jecti
tive
ive 1 Nature
Nature o
off B
Business
usiness a
and
nd Accounting
Accounting
Describe the
types and forms of A business1 is an organization in which basic resources (inputs), such as materials and
businesses, how labor, are assembled and processed to provide goods or services (outputs) to customers.
businesses make Businesses come in all sizes, from a local coffee house to Starbucks, which sells over
money, and business $19 billion of coffee and related products each year.
stakeholders. The objective of most businesses is to earn a profit. Profit is the difference between
the amounts received from customers for goods or services and the amounts paid for the
inputs used to provide the goods or services. In this text, we focus on businesses operat-
ing to earn a profit. However, many of the same concepts and principles also apply to
not-for-profit organizations such as hospitals, churches, and government agencies.
Types of Businesses
Three types of businesses operated for profit include service, merchandising, and manu-
facturing businesses. Each type of business and some examples are described below.
Service businesses provide services rather than products to customers.
Delta Air Lines (transportation services)
The Walt Disney Company (entertainment services)
Merchandising businesses sell products they purchase from other businesses to
customers.
Wal-Mart (general merchandise)
Amazon.com (books, music, videos)
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Chapter 1 The Role of Accounting in Business 3
Manufacturing businesses change basic inputs into products that are sold to customers.
General Motors Corporation (cars, trucks, vans)
Dell Inc. (personal computers)
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Forms of Business
A business is normally organized in one of the following four forms:
▪ proprietorship
▪ partnership
▪ corporation
▪ limited liability company
A proprietorship is owned by one individual. More than 70% of the businesses in
the United States are organized as proprietorships. The frequency of this form is due to
the ease and low cost of organizing. The primary disadvantage of proprietorships is that
the financial resources are limited to the individual owner’s resources. In addition, the
owner has unlimited liability to creditors for the debts of the company.
A partnership is owned by two or more individuals. About 10% of the businesses in
the United States are organized as partnerships. Like a proprietorship, a partnership may
outgrow the financial resources of its owners. Also, the partners have unlimited liability
to creditors for the debts of the company.
A corporation is organized under state or federal statutes as a separate legal entity.
The ownership of a corporation is divided into shares of stock. A corporation issues the
stock to individuals or other companies, who then become owners or stockholders of
the corporation. A primary advantage of the corporate form is the ability to obtain large
amounts of resources by issuing shares of stock. In addition, the stockholders’ liability to
creditors for the debts of the company is limited to their investment in the corporation.
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Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
4 Chapter 1 The Role of Accounting in Business
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Chapter 1 The Role of Accounting in Business 5
▪ Honda promotes the reliability and quality ratings of its automobiles and thus charges
premium prices. Similarly, Volvo promotes the safety characteristics of its automobiles.
In contrast, Kia uses a low-cost strategy.
▪ Harley-Davidson emphasizes that its motorcycles are “Made in America” and pro-
motes its “rebel” image as a means of charging higher prices than its competitors
Honda, Yamaha, or Suzuki.
Companies sometimes struggle to find a competitive advantage. For example,
JCPenney and Macy’s have difficulty competing on low costs against Wal-Mart,
Kohl’s, T.J. Maxx, and Target. At the same time, JCPenney and Sears have difficulty
charging premium prices against competitors such as The Gap, Eddie Bauer, and
Talbot’s. Likewise, Delta Air Lines and United Airlines have difficulty competing
against low-cost airlines such as Southwest. At the same time, Delta and United don’t
offer any unique services for which their passengers are willing to pay a premium price.
Exhibit 1 summarizes low-cost and premium-price strategies with common examples
of companies that employ each strategy.
Exhibit 1
Industry Business
Strategies and
Business Financial Industries
Strategy Airline Freight Automotive Retail Services Hotel
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Connection
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Business Stakeholders
A business stakeholder is a person or entity with an interest in the economic performance
and well-being of a company. For example, owners, suppliers, customers, and employees
are all stakeholders in a company.
Business stakeholders can be classified into one of the four categories illustrated in Exhibit 2.
Exhibit 2
Business Stakeholder Interest in the Business Examples Business
Stakeholders
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Capital market stakeholders provide the financing for a company to begin and continue
its operations. Banks and other long-term creditors have an economic interest in receiving the
amount loaned plus interest. Owners want to maximize the economic value of their investments.
Product or service market stakeholders purchase the company’s products or services
or sell their products or services to the company. Customers have an economic interest
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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4. “Shields shall ye choose there, | and shafts
made of ash-wood,
Gold-adorned helmets, | and slaves out of
Hunland, [484]
Silver-gilt saddle-cloths, | shirts of bright scarlet,
With lances and spears too, | and bit-champing
steeds.
Gunnar spake:
18. . . . . . . . . | . . . . . . . .
“Too late is it, sister, | to summon the Niflungs,
Long is it to come | to the throng of our comrades,
The heroes gallant, | from the hills of the Rhine.”
* * * * * *
21. . . . . . . . . | . . . . . . . .
. . . . . . . . | . . . . . . . .
The leader they asked | if his life he fain
With gold would buy, | the king of the Goths.
Gunnar spake:
23. . . . . . . . . | . . . . . . . .
They cut out the heart | from the breast of Hjalli,
On a platter they bore it, | and brought it to
Gunnar.
[492]
Atli spake:
* * * * * *
[494]
Guthrun spake:
[496]
44. With her sword she gave blood | for the bed to
drink, [498]
With her death-dealing hand, | and the hounds she
loosed,
The thralls she awakened, | and a firebrand threw
In the door of the hall; | so vengeance she had.
[Contents]
NOTES
[482]
Prose. On the marriage of Guthrun to Atli at the instigation of her
brothers, Gunnar and Hogni, and on the slaying of Atli and his two
sons, Erp and Eitil, cf. Drap Niflunga and note.
5. Gnitaheith: here the dragon Fafnir had his lair (cf. Gripisspo, 11).
Sigurth doubtless owned it after Fafnir’s death, and the Gjukungs
after they had killed Sigurth. Possibly they had given it to Atli in
recompense for the death of his sister, Brynhild, and he now offered
to restore it to them, or—as seems more likely—the poet was not
very clear about its ownership himself. Stems: i.e., the gilded stems
of ships, carved like dragons,—an evident northern touch, if the word
is correct, which is by no means certain. Danp: this name was early
applied to a mythical Danish king (cf. Rigsthula, 49 and note), but it
may have been fabricated by error out of the word “Danparstaþir”
(the phrase here used is “staþi Danpar”), used in the Hervararsaga
of a field of battle between the Goths and the Huns, and quite
possibly referring to the region of the Dnieper. The name seems to
have clung to the Atli tradition long after it had lost all definite
significance. Myrkwood: cf. note on stanza 3. [485]
8. The manuscript does not name the speaker. One editor gives the
first sentence to Gunnar. She, etc.: Guthrun, seeking to warn her
brothers of Atli’s treachery, sends them a ring with a wolf’s hair as a
sign of danger; in the Atlamol (stanza 4) she sends a message
written in runes; cf. Drap Niflunga. Heath-dweller: wolf. [486]
9. In line 1 the manuscript has “His comrades did not urge Gunnar,”
but the name, involving a metrical error, seems to have been
inserted through a scribal blunder.
10. The manuscript indicates no lacuna, but probably two lines have
dropped out, for the Volsungasaga paraphrase runs: “Give us to
drink in great cups, for it may well be that this shall be our last feast.”
Fjornir: Gunnar’s cup-bearer.
13. Myrkwood: cf. stanza 3 and note; the journey is here made by
land, whereas in the Atlamol it is made partly by boat; cf. Atlamol, 34
and note. Whip-fearers: horses, but there is some uncertainty as to
the word.
18. The manuscript indicates no lacuna and does not name the
speaker; perhaps a line similar to line 1 of stanza 24 (or 26) should
be inserted here. Rhine: Gunnar’s Burgundian home is here clearly
localized. After this stanza it is probable that a passage describing
the battle has been lost.
19. These two lines, apparently the remains of a full stanza, [490]may
belong after stanza 20. Burgundians’ king: the phrase may mean
“Burgundians’ men,” i.e., they bound all the Burgundians who were
left alive after the battle. This is the only place in the poems in which
the name “Burgundian” appears; that the poet had no very clear
conception of its meaning is indicated by the fact that in stanza 21 he
calls Gunnar “king of the Goths.”
22. The manuscript does not indicate the speaker; perhaps a first
line similar to line 1 of stanza 24 should appear here. Some editors,
however, assume that a line is missing after line 3. [491]Gunnar
demands proof that Hogni is dead because, as stanza 28 shows, he
is unwilling to die himself until he is assured that the secret of the
treasure will perish with him. He did not, of course, intend that the
heart should be cut from the living Hogni.
23. Most editions assume a gap (lines 1–2, 2–3 or 3–4). Hjalli: Atli’s
cook, killed to deceive Gunnar, as Atli hoped to wring the secret of
the hoard from Hogni if Gunnar remained silent. In the Atlamol
(stanzas 59–60) Atli’s men prepare to kill Hjalli, but he is spared at
Hogni’s intercession.
29. The manuscript marks line 3, and not line 1, as the beginning of
a stanza. Rhine, etc.: the stanza shows the blending of [493]three
different traditions with regard to the treasure: the German tradition
of the gold of the Rhine (cf. Völundarkvitha, 16, and Sigurtharkvitha
en skamma, 16), the tradition, likewise German, of the hoard of the
Nibelungen (Niflungs), early blended with the first one, and finally the
northern tradition of the theft of Andvari’s treasure by Othin, Hönir,
and Loki (cf. Reginsmol, 1–9).
30. Apparently all that is left of a full stanza. The manuscript does
not name Atli as the speaker, and Grundtvig inserts: “Then Atli
called, | the king of the Huns,” as a first line. Some editors
combine this line with the two lines of stanza 33. Wagon: in Brot, 16,
Gunnar is led to his death in the serpents’ den on horseback, not in a
wagon.
32. The manuscript does not indicate the speaker. Sigtyr (“Victory-
God”): Othin; what particular mountain (if any) is meant is unknown.
Horse of the rest-bed: probably this means “bedpost,” i.e., the
support of the marriage-bed. Ull: the archer-god, cf. Grimnismol, 5
and note. Nothing is known of his ring.
36. Young beasts: Guthrun means Atli’s sons, Erp and Eitil, but of
course he thinks she refers to newly slaughtered beasts; cf.
Guthrunarkvitha II, 41–45.
38. No gap indicated in the manuscript, but the two fragments cannot
be fitted together as one line. The shining one: Guthrun.
41. The text of the whole stanza has required a considerable amount
of emendation. Lines 3–5 may have been expanded out of two lines,
or line 5 may be an interpolation, possibly from stanza [497]12 of the
Guthrunarhvot. Weapons: the word literally means “good-weaving,”
and may refer to silken garments, but this hardly fits the noun here
rendered “clashing.” Wept not: cf. stanza 31 and note.
42. Line 1 appears to be in Fornyrthislag. Guthrun distributes Atli’s
treasures among his followers apparently to prevent their wrath at
the slaying of Erp and Eitil from turning against her; Atli, as stanza
43 shows, is too drunk to realize or prevent what she is doing.
43. The second half of line 4 is apparently an error, but none of the
editorial suggestions have improved it.
44. Guthrun allows the dogs and the house-thralls, who had no part
in Gunnar’s death, to escape before she burns the dwelling [498]with
all who are left therein. In Atlamol, stanzas 83–84, Atli is slain by a
son of Hogni (Hniflung?) with Guthrun’s help.
45. Some editions transfer line 2 to stanza 37; others reject line 3 as
interpolated. Myrkheim (“Dark-Home”): probably identical with
Myrkwood; cf. stanza 3. Temple: probably both here and in stanza 42
the word means little more than the place where Atli’s treasures were
kept; the poet was by no means literal in his use of terms connected
with the heathen religion. Buthlungs: sons of Buthli, i.e., Atli and his
family. Shield-maids: cf. stanza 17 and note.
46. The entire stanza is very likely a later addition. Three kings: Atli
and his two sons, Erp and Eitil. [499]
[Contents]