FINANCIAL & MANAGERIAL ACCOUNTING: THE BASIS FOR BUSINESS DECISIONS,

SEVENTEENTH EDITION

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Library of Congress Cataloging-in-Publication Data

Williams, Jan R.
Financial & managerial accounting : the basis for business decisions / JAN R. WILLIAMS, University
of Tennessee, SUSAN F. HAKA, Michigan State University, MARK S. BETTNER, Bucknell University,
JOSEPH V. CARCELLO, University of Tennessee.
—17th Edition.
pages cm
Includes index.
ISBN 978-0-07-802577-8 (alk. paper)—ISBN 0-07-802577-X (alk. paper)
1. Accounting. I. Haka, Susan F. (Susan Frances) II. Title. III. Title: Financial and managerial accounting.
HF5636.W725 2015
657—dc23 2013038204

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 Brief Contents
1 Accounting: Information for Decision Making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

2 Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

3 The Accounting Cycle: Capturing Economic Events . . . . . . . . . . . . . . . . . . . . . . . . . 86

4 The Accounting Cycle: Accruals and Deferrals . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

5 The Accounting Cycle: Reporting Financial Results . . . . . . . . . . . . . . . . . . . . . . . . 192

COMPREHENSIVE PROBLEM 1: Susquehanna Equipment Rentals . . . . . . . . . 243

6 Merchandising Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246

7 Financial Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288

8 Inventories and the Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340

COMPREHENSIVE PROBLEM 2: Music-Is-Us, Inc. . . . . . . . . . . . . . . . . . . . . . . 383

9 Plant and Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386

10 Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430

11 Stockholders’ Equity: Paid-In Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484

COMPREHENSIVE PROBLEM 3: Springdale Retail, Inc. . . . . . . . . . . . . . . . . . . 521

12 Income and Changes in Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522

13 Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564

14 Financial Statement Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622

COMPREHENSIVE PROBLEM 4: Home Depot, Inc. . . . . . . . . . . . . . . . . . . . . 682

15 Global Business and Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 684

16 Management Accounting: A Business Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722

17 Job Order Cost Systems and Overhead Allocations . . . . . . . . . . . . . . . . . . . . . . . 760

18 Process Costing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 804

19 Costing and The Value Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842

20 Cost-Volume-Profit Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 880

21 Incremental Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918

COMPREHENSIVE PROBLEM 5: The Gilster Company . . . . . . . . . . . . . . . . . 951

22 Responsibility Accounting and Transfer Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . 954

23 Operational Budgeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 992

24 Standard Cost Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1038

25 Rewarding Business Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1078

COMPREHENSIVE PROBLEM 6: Utease Corporation . . . . . . . . . . . . . . . . . . 1113

26 Capital Budgeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1116

APPENDIX A: Home Depot 2012 Financial Statements . . . . . . . . . . . . . . . . A

APPENDIX B: The Time Value of Money: Future Amounts and Present Values . . . . . . B
APPENDIX C: Forms of Business Organization . . . . . . . . . . . . . . . . . . . . C
INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I