Accounting Principles II

• Liability Defined
• Accounts Payable
• Payroll Liabilities
• Understanding Notes Payable

• Long‐Term Liabilities Defined
• Notes Payable
• Mortgage Payable
• Lease Obligations
• Bonds Payable
• Deferred Income Taxes

• Characteristics of a Partnership
• Partnership Accounting
• Changes in Partners
• Liquidation of a Partnership
• The Statement of Partners' Capital

• Characteristics of a Corporation
• Stock Terminology
• Accounting for Stock Transactions
• Dividends
• Stock Splits
• The Balance Sheet: Stockholders' Equity
• Income Statement

• Introduction to Investments
• Accounting for Debt Securities
• Accounting for Equity Securities
• Balance Sheet: Classification, Valuation

• Statement Sections
• Preparing the Statement
• Preparing the Statement: Direct Method
• Preparing the Statement: Indirect Method
• Using the Statement Information

• Need for Financial Statement Analysis
• Trend Analysis
• Common‐Size Analysis
• Ratio Analysis
• Financial Statement Analysis Limitations

• Managerial versus Financial Accounting
• Manufacturing Financial Statements
• Costing Terminology
• The Cost of Goods Manufactured Schedule
• Accounting by Manufacturing Companies

• Job Order Cost System
• Process Cost System

• Activity-Based Costing Activities
• Activity-Based vs. Traditional Costing

• Cost Behavior
• Cost-Volume-Profit Analysis
• Margin of Safety
• Sensitivity Analysis

• Introduction to Budgets
• Operating Budgets
• Capital Expenditures Budget
• Cash Budget
• Budgeted Income Statement
• Budgeted Balance Sheet
• Merchandising Company Budgets

• Flexible Budgets
• Standard Costs

• Introduction to Incremental Analysis
• Examples of Incremental Analysis

• Capital Budgeting Techniques