Index

• Author: Vern Krishna
• Pages: 497-514

497

Index

T after a page number indi cates a table

“Accelerating the booking of contracts”

jargon, 303

Accounting. See also Financial state-

ments; Tax accounting

about, 1–4

accrual basis met hod, 42–45, 75–76,

248–50, 253–54

annual report ing, 74–75

cash basis meth od, 42–45, 75, 366– 68

characterization and classi fication,

17–18

communication language, 18–19

concepts, 68–86

conservatism, 79–81

consistency, 78–79

equation, 3, 37, 207, 241

expanded formula , 241

expense recognition, 253–56

fair value principle , 85–86, 250–51

finance principles, vs, 122

fines and penalties, 100

forensic, 10, 12

fraud cases, 2 48, 252, 253, 334–37,

339–44

full disclosure principle, 84

his tory, 2–4

informational vs stewardship report-

ing, 16–17

installment sal es accrual method,

248–49

jargon language, 302–5

management role, 91–92

matching principle, 77–78, 253–54

materiality, 82–84, 265–69

methods, 42–45

misconceptions, 86

mixed-attribute model, 140–41

paper gains recognition, 250

percentage of completion method,

249–50

principles and st andards, 14–15,

79–84, 87–101, 122 , 250

public accountants, 16

regulatory agencies, 90–91

reverse stock split s, 219–20

roles, 16

three Cs, 17 –19

timing, 74–77

unreasonable exp enses, 100

Accounting firms. See also Auditors;

Securities fraud

duty of care st andards, 349–50

legal settlements, 333–34

misrepresentation, 350–51

reputation, 9, 92 , 352

Accounting Principles Board, 80

498 Financial Skills for Professionals

Accounting statements. See Financial

statements

Accounts payable, 1 81, 182, 274, 324

Accounts receivable, 143–47

about, 143–44

ageing, 145

assignment of, 146

bad debts, 145–46

cash vs accrual me thod, 43

examples, 145

notes receivable, 147

reporting, 14 4

tax accounting, 146–47

turnover ratio form ula, 328–29

Accrual basis accounting method

cash basis accounting method, vs,

42–45

examples, 44–45, 7 5–76

matching principles, 253–54

tax considerations, 366, 367, 368–69

variations, 248–50

Activit y ratios, 327–29

about, 327–28

summary list, 331–32

turnover, 327–29

Adjusted cost ba se (ACB), 206, 230,

232, 235, 413, 4 14

“Aggressive accounting” jargon, 303

Air Canada, 302

Air India, 13

Allied Crude Vegetabl e Oil and Refining

Corp fraud, 34 2

Amazon Inc, 177

American Inst itute of Certified Public

Accountants (AICPA), 15, 234–35

American Telephone & Telegraph

(AT&T ), 3 00

Amortizatio n, 178, 179, 195, 273,

280–81

Anaconda American Brass L td v MNR

case, 164–66, 37 5

Anns v Merton London Borough Council

case, 350–51

Annuities

about, 111

annuity cert ain, 112

annuity due, 113–14

education fund, 11 4

examples, 112–14 , 415–17, 418–19

forms of, 111–12

future value tabl e, 126T–27T

joint life, 112

ordinary, 112–13

present value, 125T, 418

rate of increase, 4 17

single life annuity, 111

tax considerations, 418–19

valuation, 415–17

Annuity cer tain, 112

Annuity due, 113–14

Antar, Eddie, 342–44

AOL Time Warner, 301

Apple Inc, 319

Archimedes (scientific fraud auditor),

338–39

Art (inventor y valuation), 163–64

Arthur Ander sen LLP, 9, 92, 336–37,

348–49

Assets, 1 40–79. See also Current assets

about, 22, 2 4–25, 130–31

amortization, 178, 179

balance sheet, 130–31, 140–79

categories, 135–36

constant dollar value, 71–72

copyright, 178

fixed, 135–36, 166–76

goodwill, 177–78, 300–1

historical costs accounting, 72–74

inta ngible , 176–77, 178–79

intellectual pr operty, 176–77, 178–79

long-term investments, 135–36

patents, 178, 179

return on invested c apital (ROIC),

120–21

trademarks, 179

turnover ratio form ula, 328

write-downs , 298–99, 300, 301

Audit report (auditor’s opinion), 286–95.

See also Financial statements

about, 35–36, 286