Chap002
CHAPTER 2
INVESTING AND FINANCING DECISIONS
AND THE BALANCE SHEET
CHAPTER CONTENTS
Brief Chapter Outline
2.2
What’s New in This Edition
2.2
Chapter Summary
2.3
Chapter Learning Objectives
2.4
Chapter Lecture Outline
2.4
Additional Teaching Notes
2.8
Teaching Resources Chart (Organized by Learning Objective)
2.10
Ideas for Incorporating the Study Guide
2.11
End of Chapter Materials Chart (Organized by Learning Objective)
2.12
End of Chapter Materials Comparison Chart (4th Edition with 3rd Edition)
2.13
Supplemental Enrichment Activities
2.14
Reading and Research Considerations
2.17
PowerPoint Slide Show
2.18
Note: Some instructors will choose to cover Appendix E, Formal Recordkeeping System, with this chapter. The appendix may be found on the textbook website at www.mhhe.com/libby4e.
BRIEF CHAPTER OUTLINE
I BUSINESS BACKGROUND
II OVERVIEW OF THE CONCEPTUAL FRAMEWORK (LO 1, 2) A. Concepts Emphasized in Chapter 2 B. Elements of the Balance Sheet
III WHAT BUSINESS ACTIVITIES CAUSE CHANGES IN FINANCIAL STATEMENT AMOUNTS? (LO 3) A. Nature of Business Transactions B. Accounts
IV HOW DO TRANSACTIONS AFFECT ACCOUNTS? (LO 4)
A. Principles of Transaction Analysis
B. Analyzing Papa John's Transactions
V HOW DO COMPANIES KEEP TRACK OF ACCOUNT BALANCES? (LO 5)
A. The Direction of Transaction Effects
B. Analytical Tool: The Journal Entry
C. Analytical Tool: The T-Account
D. Transaction Analysis Illustrated
VI HOW IS THE BALANCE SHEET PREPARED? (LO 6)
WHAT’S NEW IN THIS EDITION
Updated all information for Papa John’s International
Simplified account titles and amounts in the balance sheet and in transactions for Papa John’s and in the demonstration case
Included explanations of account titles on the balance sheet in Exhibit 2.2
Added more visual illustrations of key concepts
Shifted ratio analysis earlier to motivate the use of balance sheet information
Many new and revised end-of-chapter exercises and problems
CHAPTER SUMMARY
This
INVESTING AND FINANCING DECISIONS
AND THE BALANCE SHEET
CHAPTER CONTENTS
Brief Chapter Outline
2.2
What’s New in This Edition
2.2
Chapter Summary
2.3
Chapter Learning Objectives
2.4
Chapter Lecture Outline
2.4
Additional Teaching Notes
2.8
Teaching Resources Chart (Organized by Learning Objective)
2.10
Ideas for Incorporating the Study Guide
2.11
End of Chapter Materials Chart (Organized by Learning Objective)
2.12
End of Chapter Materials Comparison Chart (4th Edition with 3rd Edition)
2.13
Supplemental Enrichment Activities
2.14
Reading and Research Considerations
2.17
PowerPoint Slide Show
2.18
Note: Some instructors will choose to cover Appendix E, Formal Recordkeeping System, with this chapter. The appendix may be found on the textbook website at www.mhhe.com/libby4e.
BRIEF CHAPTER OUTLINE
I BUSINESS BACKGROUND
II OVERVIEW OF THE CONCEPTUAL FRAMEWORK (LO 1, 2) A. Concepts Emphasized in Chapter 2 B. Elements of the Balance Sheet
III WHAT BUSINESS ACTIVITIES CAUSE CHANGES IN FINANCIAL STATEMENT AMOUNTS? (LO 3) A. Nature of Business Transactions B. Accounts
IV HOW DO TRANSACTIONS AFFECT ACCOUNTS? (LO 4)
A. Principles of Transaction Analysis
B. Analyzing Papa John's Transactions
V HOW DO COMPANIES KEEP TRACK OF ACCOUNT BALANCES? (LO 5)
A. The Direction of Transaction Effects
B. Analytical Tool: The Journal Entry
C. Analytical Tool: The T-Account
D. Transaction Analysis Illustrated
VI HOW IS THE BALANCE SHEET PREPARED? (LO 6)
WHAT’S NEW IN THIS EDITION
Updated all information for Papa John’s International
Simplified account titles and amounts in the balance sheet and in transactions for Papa John’s and in the demonstration case
Included explanations of account titles on the balance sheet in Exhibit 2.2
Added more visual illustrations of key concepts
Shifted ratio analysis earlier to motivate the use of balance sheet information
Many new and revised end-of-chapter exercises and problems
CHAPTER SUMMARY
This