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The main purpose of financial accounting is to prepare financial reports that provide information about a firm's performance to external parties such as investors, creditors, and tax authorities. 15 1, 2 3 Topic Objectives Deferred expenses and revenue 5 OVERVIEW OF BRIEF EXERCISES, EXERCISES, PROBLEMS, AND CRITICAL THINKING CASES Learning Skills Accrued interest 5 Unearned revenue 4 Accrued salaries 5 CHAPTER 4 THE ACCOUNTING CYCLE: ACCRUALS AND DEFERRALS Exercises 6 Chapter 4 Accounting for a Merchandising Business 159 Chapter 5 Inventory 212 Chapter 6 The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics 260 Chapter 7 Cash and Receivables 293 Chapter 8 Long-Term and Other Assets 355 Chapter 9 Current Liabilities and Long-Term Debt 406 ACCT 201 Principles of Financial Accounting Practice Exam - Chapter 1 Accounting Information For Business Decisions Dr. The introduction of accounting helps the decision-makers of a company to make effective choices, by providing information on the financial status of the business. 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Explain what an account is, then apply debits and credits to those accounts (journal entries) Examination advice 6 List of abbreviations used in this subject guide 8 Chapter 1:Accounting in context 11 Aims and learning objectives 11 Essential reading 11 Further reading 11 Introduction 11 What is accounting? 12 Accounting theory and practice 15 Accounting information and its uses 16 Financial accounting 16 Management accounting 17 Summary 17 Chapter 5 — Consolidation Chapter 6 — Contingencies Chapter 7 — Statement of Cash Flows Chapter 8 — Income Taxes Chapter 9 — Compensation Chapter 10 — Financial Instruments Chapter 11 — Leases Chapter 12 — Initial Public Offerings Chapter 13 — Other Accounting and Financial Reporting Topics Financial Accounting Theory and Analysis 11th Edition continues to focus on showing readers how accounting standards directly affect daily decision making on the job. 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