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Project One - Part A & B, Business Admin & Eng Lit
Project 1 Question 1 - Answer the prospects completely,
professionally and competently?
Understanding the writing process, essay structure and language
of literary criticism make a single comment consisting of 200 –
400 words of expectations that will include the referencing in
those 200 – 400 words, each of the listed readings that
complete a comment of understanding of the whole of the
project by including each of the works listed below, referencing
how used in the 3 listed capacities? Hint: the answer is in the
definition of the scope of the project, break it down in 200 -400
relevant word content that stays on topic, professionally written
non-plagiarized content?
Eng Literature of the 19th Century
WORKS,
1. Cunningham’s Victorian Poetry
2. Dickens’ Hard Times
3. Greenbalt’s Norton Anthology of English Lit. Vol. E
(Victorian Age)
4. Ibsen’s A Doll’s House5. Moran’s Victorian Literature
and Culture
6. Ashley's Nineteenth Century British Drama
A survey of British literature written during the period
extending from 1800 through 1900, with emphasis on
traditional 19th century poets and prose writers and on
rediscovered authors.
Briefly survey the works of writers during the 19th Century,
with special attention to the concepts of Victorianism. Close
readings of the more important works by major poets, critics,
novelists, and dramatists will be dealt with. Attention will be
paid to historical context and on how 19th Century writers
influenced and were influenced by the social, political, cultural,
and economic facets of their era.
· be conversant with major writers of the 19th Century period
· enjoy and to closely engage Victorian poetry, drama and
prose within their historical and cultural contexts
· view the extent to which the world of literature converges and
diverges with the real world
· examine the principles of thinking logically and creatively,
analytically and synthetically, and abstractly and concretely,
and to express such thoughts in appropriate oral and written
forms
· Analyze the ways in which language and literature are related
to social class, culture, ethnicity, gender, histories, race, and
sexuality.
· Interpret texts from various perspectives by using close
readings supported by textual evidence, and informed by critical
theory.
The above Listed Readings cover Victorian poetry, prose,
drama, and essays.
Project 1 Question 2 – In 5-7 paragraphs discuss the
intersection between British literature and culture?
PART B
Project 1 Part B - Business Admin, Purple Project Business Plan
Intro –Produce a line by line Edit of this business proposal
introduction, prototype prospectus business plan document with
professionally written and edited content as part of the business
plan. Must remain loyal to the concept as defined and described
in the original, with a professionally written polish that presents
it is the best possible light in its whole totality, completely and
competently?
PURPLE PROJECT Proposal: FOR A Shhh – A live-in Hosted
Home Sharing Handbook & Guide
START CONTENT EDITING For document HERE:
CONTENT TEXT BEGINS: Please start HERE to EDIT
CONTENT TEXT:
START!
Actor focus is to attract professional writing and publishing
talent to assist in the development of writing and editing an
interactive handbook on the discipline of live-in hosting home
sharing. Actor has a completed critical research of the social
and psychological benefits of home sharing and has professional
background in Real-Estate Development, Property Management,
Interior Design, each proving to be valuable assets in the
gateway role in the discipline of that as a professional live-in
home sharing hosting specialist, sharing a comfortable living
space but not a personal life with mutually compatible,
respectably reciprocated behaviors while sharing living space
together as temporary alternative home sharing housing
partners. With 20 years plus experience actor has blended the
best of both of professional and personal experiences into a
concept that will promote advocate and support, collating a
wide variety of necessities, resources and essentials that
promote, inspire and prepare potential professional hosting
specialist as to what to expect from recycling, re-inventing and
restoration potential from becoming actively involved in this
exciting venture.
The live-in shared home hosting porotype is intended to give
major critical and insightful perception of how we live today in
the non-traditional housing genre, by presenting verbal as well
as non-verbal communication tools, essentials and positive
sociological initiates now popular in a social community both
professionally and privately, that has become less likely to
participate in one on one human contact, once deemed necessary
to polish, nurture and develop social skill sets. Behaviors that
are now controlled by internet and digital media options.
The concept of this resource manual/ handbook on professional
live-in home sharing hosting is to begin cultivating branding
that will permanently establish this newly popular housing
alternative as a newly modernized certified and recognized
brand of discipline of professional hosting, in concert with the
hospitality industry, certifying the discipline of Shared Live-in
Home Hosting specialists, by introducing platforms that attract
and invite memberships, with support, resources and
accreditation options, in the vast field of the homemaking,
home entertaining & hospitality industry. This specialized
niche will extend tools that marry features such as Online
training, surveys, opt-in forums sharing experiences, reviews &
support for active and the curious perspective potential
candidates interested in becoming live in hosting specialists.
PROJECT DESCRIPTION and BACKGROUND
The purposed Handbook will opening which stipulates a
documented factual communal tenant/ housing history,
beginning with a brief historiography introduction of early 19th
century alternative housing and shelter solutions from the turn
of the century, popular with the immigration community in
North Eastern American cities such as New York with the influx
of immigrants from foreign lands, while adapting to a new life
in North America. The history of rooming houses, communal
sheltering for factory workers. The psychology of comfort and
convenience in the like-minded community and affordability of
the most basic of human needs, shelter, security and comfort.
Transitional housing is not new, it has just been redefined into
the modern fabric of how we live today.
The Shared Home Hosting Handbook, consisting of 25/25 Do’s
& Ooh’s Pointers, essentials & necessities is designed to
successfully cultivate a successful experience for potential
professional live-in hosting specialist, sharing resources and
advice. “Hostpitality” specialist as a career option and their
clients. Hostology is becoming the modernized discipline of
live-in Shared Home Hosting agents. The concept is to create,
advocate and support the concept with A beginners Handbook
featuring insights by seasoned veterans’, by sharing insider’
veted information, featuring experiences and insights for
beginners contemplating becoming professional shared home
live-in hosting specialist.
The Author’s goal through this publication is to establish this
alternative housing remedy and establish a role as an expert
and foremost authority in this newly revised untitled discipline
by sharing the information and resources available in user
friendly communication tools by linking and unifying other
likeminded professionals who have experiences to share and are
also involved in professional hosting services and making their
indelible marks in publishing and social media platforms on
non-traditional housing initiatives of hosting home sharing
alternative advising options. Actor feels dedicated as an activist
who supports and seeks to unify the phenomenon of the home
sharing community.
Actors’s mantra for Shhh is to promote and advocate the
phenomenon of comfort and convenience as the primary focus in
the now resurging popular shared housing alternative, where
you share a space, not a personal life!
Format
The author proposes a useable interactive, user friendly
practical interactive handbook, in lieu of a traditional book.
Approximately consisting of 100 pages with visuals, taglines,
tips and strategies for enjoying the essentials, necessities, codes
of behavior, tools and necessities valued in providing support
and advocating the positive rewards in the live-in hosting
home sharing lifestyle. Featuring easily absorbed attention
grabbing content, written in plan approachable content. The
handbook will contain all of the tools, essentials, resources,
suggestions and insights necessary to assist those who wish to
successfully enter and succeed as professional live-in home
hosting specialist. The handbook initiative would offer an
online tutorial and membership offer on completion of the
survey.
Target Audience
Potential candidates interested in repurposing, reinventing by
sharing a physical home space for the purpose of recycling the
edifice of their personal space to accommodate partners in a
private, not personal home sharing non-traditional temporary
transitional housing option, sharing a space but not a life.
Conceding that each of these situations and rationales require
different approaches, this project is intended to establish the
language of live-in home sharing as the discussion comes into
greater focus as an option, given the socio-economic trends
which are fuelinf the growth and expansion of home sharing.
Not excluding this publication will serve all those associated
with this movement as a valuable asset. STOP!
Accounting Principles:
A Business Perspective,
Financial Accounting (Chapters 9 – 18)
A Textbook Equity Open College Textbook
originally by
Hermanson, Edwards, and Maher
Fearless copy, print, remix(tm)
www.textbookequity.com
www.opencollegetextbooks.org
License: CC-BY-NC-SA
ISBN-13: 978-1461160861
ISBN-10: 1461160863
1
About This Publication
Simply put, you may copy, print, redistribute, and re-purpose
this textbook or parts of this
textbook provided that you give attribution (credit) to Textbook
Equity, and provided
that any derivative work has the same Creative Commons
license (CC-BY-NC-SA). That’s
it.
Textbook Equity, in turn, provides attribution, with thanks, to
the Global Text Project,
who provided the source textbook.
Consistent with it’s strategic mission to provide free and low-
cost textbooks, this is
Textbook Equity’s derivative work based on “Accounting
Principles: A Business
Perspective, First Global Text Edition, Volume 1, Financial
Accounting”, utilizing the
permissions granted by it’s Creative Commons license. Global
Text Project nor the original
authors endorse or are responsible in any way for this printing
or it’s contents.
Textbook Provenance (1998 - 2011)
1998 Edition
Accounting: A Business Perspective (Irwin/Mcgraw-Hill Series
in Principles of
Accounting) [Hardcover] Roger H. Hermanson (Author), James
Don Edwards (Author),
Michael W. Maher (Author) Eighth Edition
Hardcover: 944 pages
Publisher: Richard D Irwin; 7 Sub edition (April 1998)
Language: English
ISBN-10: 0075615851
ISBN-13: 978-0075615859
Product Dimensions: 11.1 x 8.7 x 1.8 inches
Current Hardbound Price $140.00 (Amazon.com)
2010 Editions (http://globaltext.terry.uga.edu/books/)
Global Text Project Conversion to Creative Commons License
CC-BY
“Accounting Principles: A Business Perspective First Global
Text Edition, Volume 1
Financial Accounting”, Revision Editor: Donald J. McCubbrey,
PhD.
PDF Version, 817 pages, Free Download
“Accounting Principles: A Business Perspective First Global
Text Edition, Volume 2
Managerial Accounting”, Revision Editor: Donald J.
McCubbrey, PhD.
PDF Version Volume 2, 262 pages, Free Download
2011 Editions (http://opencollegetextbooks.org)
Textbook Equity publishes this soft cover version using a the
CC-BY-NC-SA license. They
divided Volume 1 into two sections to fit paperback publishing
requirements and made
other formatting changes. No content changes were made to
Global Text’s version.
Versions available at the Open College Textbook repository:
2
• PDF Version, Section 1 of Volume 1 (Chapters 1 – 8), 436
pages, Free Download
• Textbook Equity Paperback, Volume 1 Financial Accounting
(Chapters 1 – 8), 436
pages, List Price $24.95
• PDF Version, Volume 1 Financial Accounting (Chapters 9 –
18), Free Download
• Textbook Equity Paperback, Volume 1 Financial Accounting
(Chapters 9 – 18), List Price
$24.95
• PDF Version Volume 2, (Chapters 19 – 26), Free Download
• Textbook Equity Paperback, Volume 2 Managerial
Accounting (Chapters 19 – 24), List
Price $24.95
For original author information and acknowledgments see
opencollegetextbooks.org
3
Table of Contents
9 Receivables and
payables............................................................................. 11
9.1 Learning
objectives................................................................................
.......................... 11
9.2 A career in litigation
support....................................................................................
....... 11
9.3 Accounts
receivable...............................................................................
.......................... 13
9.4 Current
liabilities................................................................................
............................ 26
9.5 Notes receivable and notes
payable................................................................................
35
9.6 Short-term financing through notes
payable................................................................. 42
9.7 Analyzing and using the financial results—Accounts
receivable turnover....................45
9.8 Key
terms......................................................................................
.................................. 50
9.9 Self
test.........................................................................................
................................... 52
9.10
Questions................................................................................
....................................... 54
9.11
Exercises.................................................................................
....................................... 56
9.12
Problems.................................................................................
....................................... 58
9.13 Alternate
problems.................................................................................
....................... 61
9.14 Beyond the numbers—Critical
thinking........................................................................ 63
9.15 Using the Internet—A view of the real
world................................................................ 65
9.16 Answers to self
test.........................................................................................
............... 66
10 Property, plant, and
equipment.................................................................68
10.1 Learning
objectives................................................................................
........................ 68
10.2 A company accountant's role in managing plant
assets...............................................68
10.3 Nature of plant
assets......................................................................................
............. 69
10.4 Initial recording of plant
assets.............................................................................. .......
71
10.5 Depreciation of plant
assets......................................................................................
.... 77
10.6 Subsequent expenditures (capital and revenue) on
assets..........................................90
10.7 Subsidiary records used to control plant
assets...........................................................94
10.8 Analyzing and using the financial results—Rate of return
on operating assets...........97
10.9 Key
terms......................................................................................
............................... 101
10.10 Self-
test.........................................................................................
............................. 102
10.11
Exercises.................................................................................
.................................... 106
4
10.12
Problems.................................................................................
................................... 109
10.13 Alternate
problems.................................................................................
.................... 112
10.14 Beyond the numbers—Critical
thinking..................................................................... 115
10.15 Using the Internet—A view of the real
world.............................................................118
10.16 Answers to self-
test.........................................................................................
........... 118
11 Plant asset disposals, natural resources, and intangible
assets.................120
11.1 Learning
objectives................................................................................
....................... 120
11.2 A company accountant's role in measuring
intangibles..............................................120
11.3 Disposal of plant
assets......................................................................................
.......... 122
11.4 Sale of plant
assets......................................................................................
................. 122
11.5 Natural
resources.................................................................................
........................ 133
11.6 Intangible
assets......................................................................................
..................... 138
11.7 Analyzing and using the financial results—Total assets
turnover...............................147
11.8 Key
terms......................................................................................
................................ 155
11.9 Self-
test.........................................................................................
................................ 156
11.10
Problems.................................................................................
.................................... 162
11.11 Alternate
problems.................................................................................
.................... 166
11.12 Beyond the numbers-Critical
thinking....................................................................... 170
11.13 Using the Internet—A view of the real
world.............................................................173
11.14 Answers to self-
test.........................................................................................
............ 173
12 Stockholders' equity: Classes of capital
stock............................................175
12.1 Learning
objectives................................................................................
....................... 175
12.2 The accountant as a corporate
treasurer..................................................................... 175
12.3 The
corporation..............................................................................
.............................. 176
12.4 Analyzing and using the financial results—Return on
average common stockholders'
equity.....................................................................................
.................................................. 202
12.5 Key
Terms.....................................................................................
............................... 209
12.6 Self-
test.........................................................................................
............................... 212
12.7
Exercises.................................................................................
...................................... 215
12.8
Problems.................................................................................
..................................... 216
12.9 Alternate
problems.................................................................................
.................... 220
12.10 Beyond the numbers—Critical
thinking.................................................................... 225
5
12.11 Using the Internet—A view of the real
world.............................................................227
12.12 Answers to self-
test.........................................................................................
........... 228
13 Corporations: Paid-in capital, retained earnings, dividends,
and treasury
stock.......................................................................................
......................... 230
13.1 Learning
objectives................................................................................
...................... 230
13.2 The accountant as a financial
analyst......................................................................... 230
13.3 Paid-in (or contributed)
capital...................................................................................
231
13.4 Paid-in capital—Stock
dividends........................................................................ ........
232
13.5 Paid-in capital—Treasury stock
transactions.............................................................233
13.6 Paid-in capital—
Donations................................................................................
......... 233
13.7 Retained
earnings..................................................................................
...................... 233
13.8 Paid-in capital and retained earnings on the balance
sheet.......................................234
13.9 Retained earnings
appropriations.........................................................................
..... 244
13.10 Statement of retained
earnings.................................................................................
246
13.11 Statement of stockholders'
equity.............................................................................. 247
13.12 Treasury
stock.......................................................................................
.................... 248
13.13 Net income inclusions and
exclusions.......................................................................253
13.14 Analyzing and using the financial results—Earnings per
share and price-earnings
ratio........................................................................................
.................................................. 259
13.15 Key
terms......................................................................................
............................. 265
13.16 Self-
test.........................................................................................
............................. 267
13.17
Exercises.................................................................................
.................................... 271
13.18
Problems.................................................................................
................................... 273
13.19 Alternate
problems.................................................................................
................... 278
13.20 Beyond the numbers—Critical
thinking................................................................... 282
13.21 Using the Internet—A view of the real
world............................................................286
13.22 Answers to self-
test.........................................................................................
.......... 286
14 Stock
investments.............................................................................
....... 288
14.1 Learning
objectives................................................................................
...................... 288
14.2 The role of accountants in business
acquisitions.......................................................288
14.3 Cost and equity
methods..................................................................................
.......... 290
14.4 Accounting for short-term stock investments and for long-
term stock investments of
less than 20 percent
...............................................................................................
................. 291
6
14.5 Cost method for short-term investments and for long-term
investments of less than
20 percent
...............................................................................................
................................ 291
14.6 The equity method for long-term investments of between
20 percent and 50 percent
...............................................................................................
.................................................. 297
14.7 Reporting for stock investments of more than 50 percent
........................................298
14.8 Consolidated balance sheet at time of
acquisition.....................................................302
14.9 Accounting for income, losses, and dividends of a
subsidiary...................................308
14.10 Consolidated financial statements at a date after
acquisition..................................309
14.11 Uses and limitations of consolidated
statements......................................................313
14.12 Analyzing and using the financial results—Dividend
yield on common stock and
payout
ratios......................................................................................
...................................... 314
14.13 Key
terms......................................................................................
.............................. 321
14.14 Self-
test...................................................................................... ...
............................. 322
14.15
Exercises.................................................................................
................................... 325
14.16
Problems.................................................................................
................................... 327
14.17 Alternate
problems.................................................................................
.................... 331
14.18 Beyond the numbers—Critical
thinking....................................................................334
14.19 Using the Internet—A view of the real
world............................................................336
14.20 Answers to self-
test.........................................................................................
.......... 336
15 Long-term financing:
Bonds.....................................................................337
15.1 Learning
objectives................................................................................
...................... 337
15.2 The accountant's role in financial
institutions...........................................................338
15.3 Bonds
payable...................................................................................
.......................... 339
15.4 Comparison with
stock.......................................................................................
......... 340
15.5 Selling (issuing)
bonds.................................................................................. ....
.......... 340
15.6 Bond prices and interest
rates....................................................................................
348
15.7 Redeeming bonds
payable................................................................................. ..
........ 359
15.8 Analyzing and using the financial results—Times interest
earned ratio....................365
15.9 Appendix: Future value and present
value................................................................. 370
15.10 Demonstration
problem...................................................................................
......... 377
15.11
Solution
to demonstration
problem........................................................................... 377
15.12 Key
terms......................................................................................
............................. 378
15.13 Self-
test.........................................................................................
............................. 380
7
15.14
Exercises.................................................................................
................................... 383
15.15
Problems.................................................................................
................................... 385
15.16 Alternate
problems.................................................................................
................... 387
15.17 Beyond the numbers—Critical
thinking.................................................................... 389
15.18 Using the Internet—A view of the real
world............................................................392
15.19 Answers to self-
test.........................................................................................
........... 393
16 Analysis using the statement of cash
flows...............................................394
16.1 Learning
objectives................................................................................
...................... 394
16.2 A career in external
auditing..................................................................................
..... 394
16.3 Purposes of the statement of cash
flows.....................................................................396
16.4 Uses of the statement of cash
flows............................................................................ 397
16.5 Information in the statement of cash
flows................................................................ 398
16.6 Cash flows from operating
activities.......................................................................... 400
16.7 Steps in preparing statement of cash
flows................................................................ 404
16.8 Analysis of the statement of cash
flows.......................................................................412
16.9 Liquidity and capital
resources.................................................................................
.. 412
16.10 Analyzing and using the financial results—Cash flow per
share of common stock,
cash flow margin, and cash flow liquidity
ratios..................................................................... 421
16.11 Appendix: Use of a working paper to prepare a statement
of cash flows.................424
16.12 Key
terms......................................................................................
............................. 431
16.13 Self-
test.........................................................................................
............................. 432
16.14
Questions................................................................................
................................... 434
16.15
Exercises.................................................................................
................................... 435
16.16
Problems.................................................................................
................................... 437
16.17 Alternate
problems.................................................................................
................... 446
16.18 Management's discussion and analysis -
Capital......................................................449
16.19 Management's discussion and analysis -
Financial*.................................................453
16.20 Beyond the numbers—Critical
thinking.................................................................... 457
16.21 Using the Internet—A view of the real
world............................................................461
16.22 Answers to self-
test.........................................................................................
.......... 462
17 Analysis and interpretation of financial
statements..................................463
17.1 Learning
objectives................................................................................
...................... 463
8
17.2 Accountants as investment
analysts........................................................................... 463
17.3 Objectives of financial statement
analysis..................................................................464
17.4 Sources of
information.............................................................................
................... 467
17.5 Horizontal analysis and vertical analysis: An
illustration..........................................469
17.6 Trend
percentages.............................................................................
.......................... 473
17.7 Ratio
analysis...................................................................................
............................ 475
17.8 Understanding the learning
objectives....................................................................... 505
17.9 Demonstration problem
.............................................................................................
508
17.10
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  • 3. Actor focus is to attract professional writing and publishing talent to assist in the development of writing and editing an interactive handbook on the discipline of live-in hosting home sharing. Actor has a completed critical research of the social and psychological benefits of home sharing and has professional background in Real-Estate Development, Property Management, Interior Design, each proving to be valuable assets in the gateway role in the discipline of that as a professional live-in home sharing hosting specialist, sharing a comfortable living space but not a personal life with mutually compatible, respectably reciprocated behaviors while sharing living space together as temporary alternative home sharing housing partners. With 20 years plus experience actor has blended the best of both of professional and personal experiences into a concept that will promote advocate and support, collating a wide variety of necessities, resources and essentials that promote, inspire and prepare potential professional hosting specialist as to what to expect from recycling, re-inventing and restoration potential from becoming actively involved in this exciting venture. The live-in shared home hosting porotype is intended to give major critical and insightful perception of how we live today in the non-traditional housing genre, by presenting verbal as well as non-verbal communication tools, essentials and positive sociological initiates now popular in a social community both professionally and privately, that has become less likely to participate in one on one human contact, once deemed necessary to polish, nurture and develop social skill sets. Behaviors that are now controlled by internet and digital media options. The concept of this resource manual/ handbook on professional live-in home sharing hosting is to begin cultivating branding that will permanently establish this newly popular housing alternative as a newly modernized certified and recognized brand of discipline of professional hosting, in concert with the hospitality industry, certifying the discipline of Shared Live-in Home Hosting specialists, by introducing platforms that attract
  • 4. and invite memberships, with support, resources and accreditation options, in the vast field of the homemaking, home entertaining & hospitality industry. This specialized niche will extend tools that marry features such as Online training, surveys, opt-in forums sharing experiences, reviews & support for active and the curious perspective potential candidates interested in becoming live in hosting specialists. PROJECT DESCRIPTION and BACKGROUND The purposed Handbook will opening which stipulates a documented factual communal tenant/ housing history, beginning with a brief historiography introduction of early 19th century alternative housing and shelter solutions from the turn of the century, popular with the immigration community in North Eastern American cities such as New York with the influx of immigrants from foreign lands, while adapting to a new life in North America. The history of rooming houses, communal sheltering for factory workers. The psychology of comfort and convenience in the like-minded community and affordability of the most basic of human needs, shelter, security and comfort. Transitional housing is not new, it has just been redefined into the modern fabric of how we live today. The Shared Home Hosting Handbook, consisting of 25/25 Do’s & Ooh’s Pointers, essentials & necessities is designed to successfully cultivate a successful experience for potential professional live-in hosting specialist, sharing resources and advice. “Hostpitality” specialist as a career option and their clients. Hostology is becoming the modernized discipline of live-in Shared Home Hosting agents. The concept is to create, advocate and support the concept with A beginners Handbook featuring insights by seasoned veterans’, by sharing insider’ veted information, featuring experiences and insights for beginners contemplating becoming professional shared home live-in hosting specialist. The Author’s goal through this publication is to establish this alternative housing remedy and establish a role as an expert and foremost authority in this newly revised untitled discipline
  • 5. by sharing the information and resources available in user friendly communication tools by linking and unifying other likeminded professionals who have experiences to share and are also involved in professional hosting services and making their indelible marks in publishing and social media platforms on non-traditional housing initiatives of hosting home sharing alternative advising options. Actor feels dedicated as an activist who supports and seeks to unify the phenomenon of the home sharing community. Actors’s mantra for Shhh is to promote and advocate the phenomenon of comfort and convenience as the primary focus in the now resurging popular shared housing alternative, where you share a space, not a personal life! Format The author proposes a useable interactive, user friendly practical interactive handbook, in lieu of a traditional book. Approximately consisting of 100 pages with visuals, taglines, tips and strategies for enjoying the essentials, necessities, codes of behavior, tools and necessities valued in providing support and advocating the positive rewards in the live-in hosting home sharing lifestyle. Featuring easily absorbed attention grabbing content, written in plan approachable content. The handbook will contain all of the tools, essentials, resources, suggestions and insights necessary to assist those who wish to successfully enter and succeed as professional live-in home hosting specialist. The handbook initiative would offer an online tutorial and membership offer on completion of the survey. Target Audience Potential candidates interested in repurposing, reinventing by sharing a physical home space for the purpose of recycling the edifice of their personal space to accommodate partners in a private, not personal home sharing non-traditional temporary transitional housing option, sharing a space but not a life. Conceding that each of these situations and rationales require different approaches, this project is intended to establish the
  • 6. language of live-in home sharing as the discussion comes into greater focus as an option, given the socio-economic trends which are fuelinf the growth and expansion of home sharing. Not excluding this publication will serve all those associated with this movement as a valuable asset. STOP! Accounting Principles: A Business Perspective, Financial Accounting (Chapters 9 – 18) A Textbook Equity Open College Textbook originally by Hermanson, Edwards, and Maher Fearless copy, print, remix(tm) www.textbookequity.com www.opencollegetextbooks.org License: CC-BY-NC-SA ISBN-13: 978-1461160861 ISBN-10: 1461160863 1
  • 7. About This Publication Simply put, you may copy, print, redistribute, and re-purpose this textbook or parts of this textbook provided that you give attribution (credit) to Textbook Equity, and provided that any derivative work has the same Creative Commons license (CC-BY-NC-SA). That’s it. Textbook Equity, in turn, provides attribution, with thanks, to the Global Text Project, who provided the source textbook. Consistent with it’s strategic mission to provide free and low- cost textbooks, this is Textbook Equity’s derivative work based on “Accounting Principles: A Business Perspective, First Global Text Edition, Volume 1, Financial Accounting”, utilizing the permissions granted by it’s Creative Commons license. Global Text Project nor the original authors endorse or are responsible in any way for this printing or it’s contents. Textbook Provenance (1998 - 2011) 1998 Edition Accounting: A Business Perspective (Irwin/Mcgraw-Hill Series in Principles of Accounting) [Hardcover] Roger H. Hermanson (Author), James Don Edwards (Author), Michael W. Maher (Author) Eighth Edition Hardcover: 944 pages Publisher: Richard D Irwin; 7 Sub edition (April 1998)
  • 8. Language: English ISBN-10: 0075615851 ISBN-13: 978-0075615859 Product Dimensions: 11.1 x 8.7 x 1.8 inches Current Hardbound Price $140.00 (Amazon.com) 2010 Editions (http://globaltext.terry.uga.edu/books/) Global Text Project Conversion to Creative Commons License CC-BY “Accounting Principles: A Business Perspective First Global Text Edition, Volume 1 Financial Accounting”, Revision Editor: Donald J. McCubbrey, PhD. PDF Version, 817 pages, Free Download “Accounting Principles: A Business Perspective First Global Text Edition, Volume 2 Managerial Accounting”, Revision Editor: Donald J. McCubbrey, PhD. PDF Version Volume 2, 262 pages, Free Download 2011 Editions (http://opencollegetextbooks.org) Textbook Equity publishes this soft cover version using a the CC-BY-NC-SA license. They divided Volume 1 into two sections to fit paperback publishing requirements and made other formatting changes. No content changes were made to Global Text’s version. Versions available at the Open College Textbook repository:
  • 9. 2 • PDF Version, Section 1 of Volume 1 (Chapters 1 – 8), 436 pages, Free Download • Textbook Equity Paperback, Volume 1 Financial Accounting (Chapters 1 – 8), 436 pages, List Price $24.95 • PDF Version, Volume 1 Financial Accounting (Chapters 9 – 18), Free Download • Textbook Equity Paperback, Volume 1 Financial Accounting (Chapters 9 – 18), List Price $24.95 • PDF Version Volume 2, (Chapters 19 – 26), Free Download • Textbook Equity Paperback, Volume 2 Managerial Accounting (Chapters 19 – 24), List Price $24.95 For original author information and acknowledgments see opencollegetextbooks.org 3 Table of Contents
  • 10. 9 Receivables and payables............................................................................. 11 9.1 Learning objectives................................................................................ .......................... 11 9.2 A career in litigation support.................................................................................... ....... 11 9.3 Accounts receivable............................................................................... .......................... 13 9.4 Current liabilities................................................................................ ............................ 26 9.5 Notes receivable and notes payable................................................................................ 35 9.6 Short-term financing through notes payable................................................................. 42 9.7 Analyzing and using the financial results—Accounts receivable turnover....................45 9.8 Key terms...................................................................................... .................................. 50 9.9 Self test......................................................................................... ................................... 52
  • 11. 9.10 Questions................................................................................ ....................................... 54 9.11 Exercises................................................................................. ....................................... 56 9.12 Problems................................................................................. ....................................... 58 9.13 Alternate problems................................................................................. ....................... 61 9.14 Beyond the numbers—Critical thinking........................................................................ 63 9.15 Using the Internet—A view of the real world................................................................ 65 9.16 Answers to self test......................................................................................... ............... 66 10 Property, plant, and equipment.................................................................68 10.1 Learning objectives................................................................................ ........................ 68 10.2 A company accountant's role in managing plant assets...............................................68
  • 12. 10.3 Nature of plant assets...................................................................................... ............. 69 10.4 Initial recording of plant assets.............................................................................. ....... 71 10.5 Depreciation of plant assets...................................................................................... .... 77 10.6 Subsequent expenditures (capital and revenue) on assets..........................................90 10.7 Subsidiary records used to control plant assets...........................................................94 10.8 Analyzing and using the financial results—Rate of return on operating assets...........97 10.9 Key terms...................................................................................... ............................... 101 10.10 Self- test......................................................................................... ............................. 102 10.11 Exercises................................................................................. .................................... 106 4
  • 13. 10.12 Problems................................................................................. ................................... 109 10.13 Alternate problems................................................................................. .................... 112 10.14 Beyond the numbers—Critical thinking..................................................................... 115 10.15 Using the Internet—A view of the real world.............................................................118 10.16 Answers to self- test......................................................................................... ........... 118 11 Plant asset disposals, natural resources, and intangible assets.................120 11.1 Learning objectives................................................................................ ....................... 120 11.2 A company accountant's role in measuring intangibles..............................................120 11.3 Disposal of plant assets...................................................................................... .......... 122 11.4 Sale of plant assets......................................................................................
  • 14. ................. 122 11.5 Natural resources................................................................................. ........................ 133 11.6 Intangible assets...................................................................................... ..................... 138 11.7 Analyzing and using the financial results—Total assets turnover...............................147 11.8 Key terms...................................................................................... ................................ 155 11.9 Self- test......................................................................................... ................................ 156 11.10 Problems................................................................................. .................................... 162 11.11 Alternate problems................................................................................. .................... 166 11.12 Beyond the numbers-Critical thinking....................................................................... 170 11.13 Using the Internet—A view of the real world.............................................................173 11.14 Answers to self-
  • 15. test......................................................................................... ............ 173 12 Stockholders' equity: Classes of capital stock............................................175 12.1 Learning objectives................................................................................ ....................... 175 12.2 The accountant as a corporate treasurer..................................................................... 175 12.3 The corporation.............................................................................. .............................. 176 12.4 Analyzing and using the financial results—Return on average common stockholders' equity..................................................................................... .................................................. 202 12.5 Key Terms..................................................................................... ............................... 209 12.6 Self- test......................................................................................... ............................... 212 12.7 Exercises................................................................................. ...................................... 215 12.8 Problems.................................................................................
  • 16. ..................................... 216 12.9 Alternate problems................................................................................. .................... 220 12.10 Beyond the numbers—Critical thinking.................................................................... 225 5 12.11 Using the Internet—A view of the real world.............................................................227 12.12 Answers to self- test......................................................................................... ........... 228 13 Corporations: Paid-in capital, retained earnings, dividends, and treasury stock....................................................................................... ......................... 230 13.1 Learning objectives................................................................................ ...................... 230 13.2 The accountant as a financial analyst......................................................................... 230 13.3 Paid-in (or contributed) capital................................................................................... 231
  • 17. 13.4 Paid-in capital—Stock dividends........................................................................ ........ 232 13.5 Paid-in capital—Treasury stock transactions.............................................................233 13.6 Paid-in capital— Donations................................................................................ ......... 233 13.7 Retained earnings.................................................................................. ...................... 233 13.8 Paid-in capital and retained earnings on the balance sheet.......................................234 13.9 Retained earnings appropriations......................................................................... ..... 244 13.10 Statement of retained earnings................................................................................. 246 13.11 Statement of stockholders' equity.............................................................................. 247 13.12 Treasury stock....................................................................................... .................... 248 13.13 Net income inclusions and exclusions.......................................................................253
  • 18. 13.14 Analyzing and using the financial results—Earnings per share and price-earnings ratio........................................................................................ .................................................. 259 13.15 Key terms...................................................................................... ............................. 265 13.16 Self- test......................................................................................... ............................. 267 13.17 Exercises................................................................................. .................................... 271 13.18 Problems................................................................................. ................................... 273 13.19 Alternate problems................................................................................. ................... 278 13.20 Beyond the numbers—Critical thinking................................................................... 282 13.21 Using the Internet—A view of the real world............................................................286 13.22 Answers to self- test......................................................................................... .......... 286 14 Stock
  • 19. investments............................................................................. ....... 288 14.1 Learning objectives................................................................................ ...................... 288 14.2 The role of accountants in business acquisitions.......................................................288 14.3 Cost and equity methods.................................................................................. .......... 290 14.4 Accounting for short-term stock investments and for long- term stock investments of less than 20 percent ............................................................................................... ................. 291 6 14.5 Cost method for short-term investments and for long-term investments of less than 20 percent ............................................................................................... ................................ 291 14.6 The equity method for long-term investments of between 20 percent and 50 percent ............................................................................................... .................................................. 297 14.7 Reporting for stock investments of more than 50 percent
  • 20. ........................................298 14.8 Consolidated balance sheet at time of acquisition.....................................................302 14.9 Accounting for income, losses, and dividends of a subsidiary...................................308 14.10 Consolidated financial statements at a date after acquisition..................................309 14.11 Uses and limitations of consolidated statements......................................................313 14.12 Analyzing and using the financial results—Dividend yield on common stock and payout ratios...................................................................................... ...................................... 314 14.13 Key terms...................................................................................... .............................. 321 14.14 Self- test...................................................................................... ... ............................. 322 14.15 Exercises................................................................................. ................................... 325 14.16 Problems................................................................................. ................................... 327
  • 21. 14.17 Alternate problems................................................................................. .................... 331 14.18 Beyond the numbers—Critical thinking....................................................................334 14.19 Using the Internet—A view of the real world............................................................336 14.20 Answers to self- test......................................................................................... .......... 336 15 Long-term financing: Bonds.....................................................................337 15.1 Learning objectives................................................................................ ...................... 337 15.2 The accountant's role in financial institutions...........................................................338 15.3 Bonds payable................................................................................... .......................... 339 15.4 Comparison with stock....................................................................................... ......... 340 15.5 Selling (issuing) bonds.................................................................................. .... .......... 340
  • 22. 15.6 Bond prices and interest rates.................................................................................... 348 15.7 Redeeming bonds payable................................................................................. .. ........ 359 15.8 Analyzing and using the financial results—Times interest earned ratio....................365 15.9 Appendix: Future value and present value................................................................. 370 15.10 Demonstration problem................................................................................... ......... 377 15.11 Solution to demonstration problem........................................................................... 377 15.12 Key terms...................................................................................... ............................. 378 15.13 Self-
  • 23. test......................................................................................... ............................. 380 7 15.14 Exercises................................................................................. ................................... 383 15.15 Problems................................................................................. ................................... 385 15.16 Alternate problems................................................................................. ................... 387 15.17 Beyond the numbers—Critical thinking.................................................................... 389 15.18 Using the Internet—A view of the real world............................................................392
  • 24. 15.19 Answers to self- test......................................................................................... ........... 393 16 Analysis using the statement of cash flows...............................................394 16.1 Learning objectives................................................................................ ...................... 394 16.2 A career in external auditing.................................................................................. ..... 394 16.3 Purposes of the statement of cash flows.....................................................................396 16.4 Uses of the statement of cash flows............................................................................ 397 16.5 Information in the statement of cash flows................................................................ 398 16.6 Cash flows from operating
  • 25. activities.......................................................................... 400 16.7 Steps in preparing statement of cash flows................................................................ 404 16.8 Analysis of the statement of cash flows.......................................................................412 16.9 Liquidity and capital resources................................................................................. .. 412 16.10 Analyzing and using the financial results—Cash flow per share of common stock, cash flow margin, and cash flow liquidity ratios..................................................................... 421 16.11 Appendix: Use of a working paper to prepare a statement of cash flows.................424 16.12 Key terms...................................................................................... ............................. 431 16.13 Self-
  • 26. test......................................................................................... ............................. 432 16.14 Questions................................................................................ ................................... 434 16.15 Exercises................................................................................. ................................... 435 16.16 Problems................................................................................. ................................... 437 16.17 Alternate problems................................................................................. ................... 446 16.18 Management's discussion and analysis - Capital......................................................449 16.19 Management's discussion and analysis - Financial*.................................................453
  • 27. 16.20 Beyond the numbers—Critical thinking.................................................................... 457 16.21 Using the Internet—A view of the real world............................................................461 16.22 Answers to self- test......................................................................................... .......... 462 17 Analysis and interpretation of financial statements..................................463 17.1 Learning objectives................................................................................ ...................... 463 8 17.2 Accountants as investment analysts........................................................................... 463 17.3 Objectives of financial statement
  • 28. analysis..................................................................464 17.4 Sources of information............................................................................. ................... 467 17.5 Horizontal analysis and vertical analysis: An illustration..........................................469 17.6 Trend percentages............................................................................. .......................... 473 17.7 Ratio analysis................................................................................... ............................ 475 17.8 Understanding the learning objectives....................................................................... 505 17.9 Demonstration problem ............................................................................................. 508 17.10