This chapter has described the expanded role of the accounting department, as well as how it interacts with other parts of the organization, both from the perspective of providing financial information and of controlling the level of ethical integrity. In the next chapter, we will look in more detail at how transactions flow to and from the accounting department in relation to other parts of the company, and how the corporate structure can influence these transactions.
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It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products visit our Web site at www.wiley.com. ISBN: 0-471-39183-2 Printed in the United States of America. 10987654321 To the many adventures still to come with Melissa — and not all involving children vii ABOUT THE AUTHOR Steven Bragg, CPA, CMA, CIA, CPM, CPIM, has been the chief financial officer or con- troller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. Mr. Bragg resides in Englewood, Colorado. He has also written the following books: Accounting and Finance for Your Small Business (John Wiley & Sons) Accounting Best Practices (John Wiley & Sons) Advanced Accounting Systems Controllership (John Wiley & Sons) Cost Accounting (John Wiley & Sons) Financial Analysis (John Wiley & Sons) Just-in-Time Accounting (John Wiley & Sons) Managing Explosive Corporate Growth (John Wiley & Sons) Outsourcing (John Wiley & Sons) Sales and Operations for Your Small Business (John Wiley & Sons) The Controller’s Function (John Wiley & Sons) ACKNOWLEDGMENTS A special note of thanks to my managing editor, John DeRemigis, who requests new books faster than I can write them. ix [...]... Liabilities The Accounts Payable Transaction Flow Accounting for the Period-End Cutoff Accounting for Advance Payments from Customers Accounting for Accrued Expenses Accounting for Unclaimed Wages Accounting for Interest Payable Accounting for Dividends Accounting for Termination Benefits Accounting for Estimated Product Returns Accounting for Contingent Liabilities Accounting for Long-Term Payables Nearing... Bond Transactions Accounting for Bond Premium or Discount 18 2 2 2 2 179 179 179 181 181 181 182 182 199 199 200 200 200 201 202 xviii Contents Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter 2 2 2 2 2 2 2 2 2 2 18-5 18-6 18-7 18-8 18-9 18-10 18-11 18-12 18-13 18-14 Accounting Accounting Accounting Accounting Accounting Accounting Accounting Accounting Accounting Summary... the many accounting terms that are addressed in this book In short, the Accounting Reference Desktop is a complete source of information for the practicing accountant By using the table of contents, this introduction, and the index to locate information, one can find the answers to most everyday accounting questions in this book CHAPTER 2 2-1 2-2 2-3 AM FL Y The Role of Accounting TASKS OF THE ACCOUNTING. .. should know about its overall structure in order to locate information more easily The Accounting Reference Desktop is divided into eight parts, each of which deals with a different aspect of the accounting function The first part covers the role of accounting within the modern corporation Chapter 2, The Role of Accounting, describes the primary tasks for which the accountant is responsible, as well... 18 20 22 22 24 Part Two 3 ACCOUNTING RULES AND REGULATIONS Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter 4 2 2 2 2 2 2 2 2 Standard Setting Organizations 4-1 Introduction 4-2 The Committee on Accounting Procedure 4-3 The Accounting Principles Board 4-4 The Financial Accounting Foundation 4-5 The Financial Accounting Standards Board 4-6 The Government Accounting Standards Board... Government Accounting Standards Board 4-7 The International Accounting Standards Board 4-8 Summary 27 27 27 28 28 28 30 31 31 Chapter Chapter Chapter Chapter Chapter Chapter 5 2 2 2 2 2 Accounting Standards 5-1 Introduction 5-2 Accounting Research Bulletins 5-3 Opinions — Accounting Principles Board 5-4 Interpretations — FASB 5-5 Statements of Financial Accounting Standards — FASB 32 32 33 34 36 39 xiii xiv... Contents 15-3 15-4 15-5 15-6 15-7 15-8 15-9 15-10 The Accounts Receivable Transaction Flow Credit Card Accounts Receivable Accounting for Factored Accounts Receivable Accounting for Sales Returns Accounting for Early Payment Discounts Accounting for Long-Term Accounts Receivable Accounting for Bad Debts Summary xvii Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter 2 2 2 2 2 2 2 2 Chapter... Team-Fly® PREFACE The Accounting Reference Manual is designed to give the accountant the answers to all of the most important issues that arise during the typical business day It provides a comprehensive overview of all aspects of the accounting function, including accounting rules and regulations, transactions, control points, and internal and external reports It also itemizes a wide range of accounting management... requiring even greater skill by the accounting staff to be accomplished in an efficient and effective manner 2-2 ROLE OF THE ACCOUNTING FUNCTION Having noted the expanded number of tasks now undertaken by the modern accounting function, it is important to also note how the role of the accounting staff has changed in relation to the rest of the company When the number of accounting tasks was more closely... OVERVIEW OF ACCOUNTING AND ITS ROLE IN THE ORGANIZATION Chapter 1 Introduction Chapter Chapter Chapter Chapter Chapter Chapter 2 2 2 2 2 2 The Role of Accounting 2-1 Tasks of the Accounting Function 2-2 Role of the Accounting Function 2-3 Ethics 2-4 Accounting Job Descriptions 2-5 Summary 7 7 9 10 12 15 Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter 3 2 2 2 2 2 2 2 The Corporate Structure . 17-7 Accounting for Unclaimed Wages 197 Chapter 2 17-8 Accounting for Interest Payable 197 Chapter 2 17-9 Accounting for Dividends 197 Chapter 2 17-10 Accounting. Fax: (65) 463-4604 headoffice@jacwiley.com.au csd_ord@wiley.com.sg Accounting Reference Desktop Steven M. Bragg John Wiley & Sons, Inc. This book is