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vi Preface
Exhibit 10 Integrated Financial Statements
The Hershey Company

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The Hershey Company The Hershey Company The Hershey Company

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Chapter 2 begins with an example format of the integrated framework used throughout
the financial chapters. Early in the course, students will gain a greater understanding of
how important trends or events can impact a company’s financial statements, which add
valuable insight into the financial condition and performance of a business.
Exhibit 1 Integrated Financial Statement Framework
Integrated Financial Statement Framework
BA L A N C E S H E E T
Assets = Liabilities + Stockholders' Equity
Assets = Liabilities + Capital Stock + Retained Earnings
Transaction XXX XXX XXX XXX
XXX
XXX XXX XXX XXX
STATEMENT OF CASH FLOWS I N CO M E STAT E M E N T

+/– Operating activities XXX Revenues XXX
+/– Investing activities XXX Expenses XXX
+/– Financing activities XXX Net income or loss XXX
Increase or decrease in cash XXX
Beginning cash XXX
Ending cash XXX
Preface vii
The primary focus in Chapter 2 is on cash transactions, which helps eliminate confu-
sion for students who may have difficulty determining whether an event or transaction
should be recorded.
Transaction (d)
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The effects of this transaction on Family Health Care’s financial statements are recorded
as follows:
1. Under the Statement of Cash Flows column, Cash from Operating activities is increased
by $5,500.
2. Under the Balance Sheet column, Cash under Assets is increased by $5,500. To bal-
ance the accounting equation, Retained Earnings under Stockholders’ Equity is also
increased by $5,500.
3. Under the Income Statement column, Fees earned is increased by $5,500.
This transaction illustrates an inflow of cash from operating activities by earning
revenues (fees earned) of $5,500. Retained Earnings is increased under Stockholders’
Equity by $5,500 because fees earned contribute to net income and net income increases
stockholders’ equity. Since fees earned are a type of revenue, Fees earned of $5,500 is
also entered under the Income Statement column.
The effects of this transaction on Family Health Care’s financial statements are shown
below.
Financial Statement Effects
BA L A N C E S H E E T
Assets = Liabilities + Stockholders' Equity
Notes Common Retained
Cash + Land = Payable + Stock + Earnings
Balances 4,000 12,000 10,000 6,000
d. Fees earned 5,500 5,500
Balances 9,500 12,000 10,000 6,000 5,500
STATEMENT OF CASH FLOWS I N CO M E STAT E M E N T

d. Operating 5,500 d. Fees earned 5,500
Transaction Metric Effects

The effects of receiving $5,500 of patient fees on Family Health Care’s liquidity and profitability metrics are as follows:
L IQ U ID IT Y P R O F I TA B I L I T Y
Cash $5,500 Net Income – Cash Basis $5,500
Eighth Edition: Changes and Enhancements

NEW! Warren’s Metric Analyses
As illustrated above, the Eighth Edition of Survey of Accounting introduces and incor-
porates Warren’s Metric Analyses throughout. It uses common business metrics to assess
viii Preface
a company’s financial condition and performance. Metrics are assessed at three levels:
the Transaction Level, Financial Statement level, and Managerial Decision-Making Level.
To accompany the addition of Warren’s Metric Analyses, end-of-chapter problems have
been added to test the students knowledge and understanding of the concepts.
Metric Analyses are clearly identified wtih a separate screen of color. This allows for
quick identification of the analyses through the chapters and text. This separate screen
of color also identifies the end-of-chapter section for assigning homework.
MBA 2-4 $PNNPO4J[FE4UBUFNFOUT Obj. 6

Southwest Airlines Co. (LUV) provides passenger services throughout the United States,
Mexico, Jamaica, The Bahamas, Aruba, and the Dominican Republic. The following operat-
ing data (in millions) were adapted from recent financial statements of Southwest.
:FBS :FBS
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1. Prepare common-sized statements for Years 2 and 1. Round to one decimal place.
2. Using (1), analyze and comment on the performance of Southwest in Year 2.
Other Enhancements
▪ Retained Earnings Statement is REPLACED with Statement of Stockholders Equity
throughout the book. This will reflect what students will see in business and also
allows for real-world examples of statements of stockholder’s equity for in-class illus-
trations or homework.
▪ Each Financial Accounting Chapter now includes one financial statement metric at the
end of each chapter. In addition, each financial chapter transaction is analyzed using a
liquidity and profitability metric. Depending upon chapter content, a variety of liquidity
and profitability metrics are used throughout the financial accounting chapters.
▪ Each Managerial Accounting Chapter now includes one metric used by managers in
operating a business. Many of these metrics are operational in nature and include
margin of safety, cost per unit, process yield, and utilization rate.
▪ This edition includes updated or replaced chapter openers to feature recent, intrigu-
ing developments in accounting. The author has woven connections to the opening
company highlighted in each chapter throughout each chapter. This now promotes
a stronger connection for students, allowing them to gain additional insight into the
opening company and its relationship to the chapter content.
▪ For this edition, when Real Publicly Traded Companies appear through out the book,
their (TICKERS) symbol is also represented. This allows students to easily look up
company’s financial data on the internet.
Technology
What is CengageNOWv2?
CengageNOWv2 is a powerful course management and online homework tool that provides
robust intructor control and customization to optimize the student learning experience
and meet desired outcomes.
Preface ix
CengageNOWv2 includes
▪ Integrated eBook
▪ End-of-Chapter homework with static and algorithmic version
▪ Adaptive Study Plan with quizzing and multimedia study tools
▪ Test Bank
▪ Course management tools and flexible assignment options
▪ Reporting and grade book options
▪ Mastery Problems
▪ Tell Me More eLectures
▪ Show Me How Demonstration Videos
▪ Animated Activities
CengageNOWv2 for Warren’s Survey of Accounting, 8e is designed to help students
learn more effectively by providing engaging resources at unique points in the learn-
ing process:
When to use it? What to use? How will it help?

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"OJNBUFE"DUJWJUJFT 6OEFSTUBOE
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&OIBODFE'FFECBDL
(PJOH'VSUIFS .BTUFSZ"TTJHONFOUT "OBMZ[F
$PODFQUVBM$POWFSTJPOT &WBMVBUF
Preparing for Class

CengageNOWv2 helps you motivate students and prepare them for class with a
host of resources. These resources were developed with visual learners and those
that don’t like to read textbooks in mind. Available in the Study Tools tab in Cen-
gageNOWv2, students may access these resources on demand. Each resource is
fully assignable and gradable!
Tell Me More Lecture Activities are available and correlate to each Learning Objective
(LO). These Lecture Assignments review the material covered in each LO, giving students
a way to review what is covered in each objective in a digestible video activity format so
they come to class more prepared and ready to participate.
Animated Activities are available on a
chapter-by-chapter basis. Animated Activi-
ties are assignable/gradable illustrations that
visually explain and guide students through
selected core topics. Each activity uses a real-
istic company example to illustrate how the
concepts relate to the everyday activities of
a business. After finishing the video, a stu-
dent is expected to answer questions based
on what they’ve seen. These activities offer
excellent resources for students prior to com-
ing to lecture and will especially appeal to
visual learners.
By using these resources, you have a power-
ful suite of content to help you ensure students
can familiarize themselves with content prior to
coming to class, which is an excellent way to
help you flip the classroom!
x Preface
Completing Homework
Students sometimes struggle with accounting
homework. By using CengageNOWv2’s powerful
instructor tools you can fine-tune the amount of
help that your students receive as they work on
their homework. Help your students succeed by
making the right amount of assistance available at
the right time!
Show Me How Videos are available for the most
commonly assigned end-of-chapter assignments.
Linked only to algorithms, these Videos provide stu-
dents with both a detailed walk-through of a similar
problem and problem-solving strategies.
Made without giving away the
answer.
CengageNOWv2 provides multiple
layers of guidance to keep students on
track and progressing.
▪ Check My Work Feedback provides
general guidance and hints as students
work through homework assignments.
▪ Check My Work Feedback in Cen-
gageNOWv2 only reports on what
students have attempted, which pre-
vents them from “guessing” their way
through assignments.
▪ Explanations are available after the
assignment has been submitted and
provide a detailed description of how
the student should have arrived at the
solution.
Going Further
Mastering accounting includes making connections between concepts and asking students
to apply what they’ve learned to different scenarios. CengageNOWv2 has the tools that
help you assess your students’ abilities in these key skill areas!
In CengageNOWv2, all of the special activities in Warren, Survey of Accounting, 8th Edition
are available for you to assign to your students. These Mastery Assignments do more than
test your students’ ability to recall, understand and apply. These assignments challenge your
students to go further by demonstrating their ability to analyze and evaluate accounting
information.
Conceptual Conversions are open-ended requirements from the end-of-chapter home-
work that have been converted into automatically gradable formats in CengageNOWv2. Now
you can assess your students’ understanding of more conceptual, open-ended questions
previously not available to assign in an online environment.
To view a demo of CengageNOWv2, please visit: http://services.cengage.com/dcs/

cengagenowv2/learn/
Preface xi
Supplements for the Instructor

▪ Product Companion Site includes convenient downloads of the instructor supple-
ments, including PowerPoint presentations, Instructor’s Manual, Solutions Manual, and
Excel® template solutions. Log in at www.cengage.com/login.
▪ Test Bank Available with Cengage Learning Testing Powered by Cognero is a
flexible, online system that allows you to:
▪ author, edit, and manage test bank content from multiple Cengage Learning solutions
▪ create multiple test versions in an instant
▪ deliver tests from your LMS, your classroom, or wherever you want.
▪ PowerPoint® Presentation Slides Included on the product companion site. Each
presentation enhances lectures and simplifies class preparation.
▪ Instructor Excel® Templates This resource provides the solutions for the problems
and exercises that have enhanced Excel® templates for students.
▪ Instructor’s Manual Each chapter contains a number of resources designed to aid instruc-
tors as they prepare lectures, assign homework, and teach in the classroom.
▪ Solutions Manual The Solutions Manual contains answers to all exercises, problems,
and cases that appear in the text. As always, the solutions are author-written and veri-
fied multiple times for numerical accuracy and consistency with the core text.
Acknowledgments
Many people deserve thanks for their contributions to this text. For the Eighth edition
Amanda Farmer and Mark Sears provided a thorough technical review and verification of
the end-of-chapter materials. Robin Browning and Tomeika Williams did a thorough review
of the CNOWv2 content. Andrea Meyer, the Content Developer from Cengage who helped
to manage the timeline and development process for this edition. The comments from the
following reviewers also influenced recent edition of the text as well as the current edition:
Sharon Agee, Rollins College
Tim Alzheimer, Montana State University, Bozeman
Scott R. Berube, University of New Hampshire, Whittemore School of Business &
Economics
Jekabs Bikis, Dallas Baptist University
Jerold Braun, Daytona State College
Suzanne Lyn Cercone, Keystone College
H. Edward Gallatin, Indiana State University
Robert E. Holtfreter, Central Washington University
José Luis Hortensi, Miami Dade College
Daniel Kerch, Pennsylvania Highlands Community College
William J. Lavelle, Ave Maria University
Ann E. Martel, Marquette University
Edna C. Mitchell, Polk State College
Tami Park, University of Great Falls
Craig Pence, Highland Community College
Patricia G. Roshto, University of Louisiana at Monroe
Geeta Shankar, University of Dayton
Alice Sineath, Forsyth Technical Community College
Hans Sprohge, Wright State University
Gary Volk, Wayne State College
Your comments and suggestions as you use this text are sincerely appreciated.
Carl S. Warren
About the Author
Carl S. Warren
Dr. Carl S. Warren is Professor Emeritus of Accounting at
the University of Georgia, Athens. For over twenty-five years,
Professor Warren has taught all levels of accounting classes.
In recent years, Professor Warren has focused his teaching
efforts on principles of accounting and auditing courses.
Professor Warren has taught classes at the University of
Iowa, Michigan State University, and University of Chicago.
Professor Warren received his doctorate degree (PhD) from
Michigan State University and his undergraduate (BBA) and
master’s (MA) degrees from the University of Iowa. During his
career, Professor Warren published numerous articles in professional journals, including
The Accounting Review, Journal of Accounting Research, Journal of Accountancy, The CPA
Journal, and Auditing: A Journal of Practice & Theory. Professor Warren’s outside interests
include handball, skiing, hiking, fly-fishing, and golf. Professor Warren also spends time
backpacking U.S. national parks (Yellowstone and the Grand Canyon), playing with his
grandchildren, and riding ATVs and motorcycles.
xii
Brief Contents
1 The Role of Accounting in Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Basic Accounting Systems: Cash Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
3 Basic Accounting Systems: Accrual Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
4 Accounting for Retail Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

5 Internal Control and Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
6 Receivables and Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
7 Fixed Assets, Natural Resources, and Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
8 Liabilities and Stockholders’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315
9 Metric Analysis of Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357
10 Accounting Systems for Manufacturing Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404
11 Cost-Volume-Profit Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459
12 Differential Analysis and Product Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505
13 Budgeting and Standard Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 546
14 Decentralized Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 609
15 Capital Investment Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 651
Appendix A Double-Entry Accounting Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 688

Appendix B Process Cost Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 702
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715
Subject Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725
Company Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 734
xiii
Contents
1 The Role of Accounting

in Business 1
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D
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Nature of Business and Accounting 2 5SBOTBDUJPO G
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First Period of Operations 57
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Business Activities 7 #BMBODF4IFFU
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Recording a Corporation’s Second
What Is Accounting and Its Role in Business? 9 Period of Operations 60
Financial Statements 10 Financial Statements for a Corporation’s Second
*ODPNF4UBUFNFOU Period of Operations 62
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Accounting Concepts 16 *OUFHSBUJPOPG'JOBODJBM4UBUFNFOUT
#VTJOFTT&OUJUZ$PODFQU Metric-Based Analysis: Common-Sized
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Basic Accounting Systems:
"EFRVBUF%JTDMPTVSF$PODFQU Accrual Basis 86
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Metric-Based Analysis: Return on Assets 22 Family Health Care’s November Transactions 88
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Cash Basis 45 5SBOTBDUJPO H
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Recording a Corporation’s First Period of Operations 49 %FGFSSBMTBOE"DDSVBMT
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xiv
Contents xv
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Metric-Based Analysis: Markup Percent 169
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Appendix 170
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Internal Control
Accrual and Cash Bases of Accounting 113
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Internal Control 193
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Metric-Based Analysis: Quick Ratio 116 &MFNFOUTPG*OUFSOBM$POUSPM
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Cash Controls Over Receipts and
Nature of Retail Operations 143 Payments 198
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Purchase Transactions 144 Bank Accounts 201

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Special-Purpose Cash Funds 207
Sales Transactions 151
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Freight and Sales Taxes 156
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Receivables and
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Inventories 229
Adjustments for Retail Operations 160
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Financial Statements for a Retail Business 163 /PUFT3FDFJWBCMF
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Uncollectible Receivables 232
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xvi Contents
Allowance Method for Uncollectible Accounts 236

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8 Liabilities and
Stockholders’ Equity 315
Inventory Classification for Retailers and
Financing Corporations 316
Manufacturers 244
Current Liabilities 318
Inventory Cost Flow Assumptions 246
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Comparing Inventory Costing Methods 248 /PUFT1BZBCMF
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Bonds 322
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Reporting Receivables and Inventory 251
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Metric-Based Analysis: Accounts Receivable
Stock 327
Turnover and Inventory Turnover 255 $PNNPOBOE1SFGFSSFE4UPDL
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Assets 274 Reporting Liabilities and Stockholders’ Equity 335
Financial Statement Metric-Analysis: Debt and
Nature of Fixed Assets 275 Price-Earnings Ratio 337
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Accounting for Depreciation 279
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9 Metric-Analysis of Financial
Statements 357
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Global Analysis 359
Disposal of Fixed Assets 288 )PSJ[POUBM"OBMZTJT
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Natural Resources Assets 292 Component Analysis: Liquidity Metrics 364
Intangible Assets 294 $VSSFOU1PTJUJPO"OBMZTJT
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Contents xvii
Component Analysis: Profitability Metrics 372

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11 Cost-Volume-Profit
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Appendix 381 #SFBL&WFO1PJOU
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10 Accounting Systems
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Operations 404
Special Relationships 480
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xviii Contents
13 Budgeting and
Standard Costs 546
Transfer Pricing 623
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Capital Investment
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Appendix 575 Metric-Based Analysis: Financial Leverage 669
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Appendix A: Double-Entry Accounting Systems 688
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14 Decentralized
Operations 609
Posting to the Ledger 692
Trial Balance and Financial Statements 693
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Operational Responsibility 610
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Cost Flows for a Process Cost System 707
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Responsibility Accounting for Decision Making 709
Investment Centers 617 Glossary 715
3FUVSOPO*OWFTUNFOU Subject Index 725
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Company Index 734
1
Chapter
The Role of Accounting
in Business
What's Covered:
Topics: The Role of Accounting in Business
Nature of Business Role of Accounting Metric-Based Analysis
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F IN A N CIA L STAT E ME NT S
Return on Assets
* There are no transactions in this chapter

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2 Chapter 1 The Role of Accounting in Business
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Objective
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Accounting
Describe the
types and forms of A business1 is an organization in which basic resources (inputs), such as materials and
businesses, how labor, are assembled and processed to provide goods or services (outputs) to customers.
businesses make Businesses come in all sizes, from a local coffee house to Starbucks, which sells over
money, and business $19 billion of coffee and related products each year.
stakeholders. The objective of most businesses is to earn a profit. Profit is the difference between
the amounts received from customers for goods or services and the amounts paid for the
inputs used to provide the goods or services. In this text, we focus on businesses operat-
ing to earn a profit. However, many of the same concepts and principles also apply to
not-for-profit organizations such as hospitals, churches, and government agencies.
Types of Businesses
Three types of businesses operated for profit include service, merchandising, and manu-
facturing businesses. Each type of business and some examples are described below.
Service businesses provide services rather than products to customers.
Delta Air Lines (transportation services)
The Walt Disney Company (entertainment services)
Merchandising businesses sell products they purchase from other businesses to
customers.
Wal-Mart (general merchandise)
Amazon.com (books, music, videos)
1. A complete glossary of terms appears at the end of the text.
Chapter 1 The Role of Accounting in Business 3
Manufacturing businesses change basic inputs into products that are sold to customers.
General Motors Corporation (cars, trucks, vans)
Dell Inc. (personal computers)
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Forms of Business
A business is normally organized in one of the following four forms:
▪ proprietorship
▪ partnership
▪ corporation
▪ limited liability company
A proprietorship is owned by one individual. More than 70% of the businesses in
the United States are organized as proprietorships. The frequency of this form is due to
the ease and low cost of organizing. The primary disadvantage of proprietorships is that
the financial resources are limited to the individual owner’s resources. In addition, the
owner has unlimited liability to creditors for the debts of the company.
A partnership is owned by two or more individuals. About 10% of the businesses in
the United States are organized as partnerships. Like a proprietorship, a partnership may
outgrow the financial resources of its owners. Also, the partners have unlimited liability
to creditors for the debts of the company.
A corporation is organized under state or federal statutes as a separate legal entity.
The ownership of a corporation is divided into shares of stock. A corporation issues the
stock to individuals or other companies, who then become owners or stockholders of
the corporation. A primary advantage of the corporate form is the ability to obtain large
amounts of resources by issuing shares of stock. In addition, the stockholders’ liability to
creditors for the debts of the company is limited to their investment in the corporation.
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A limited liability company (LLC) combines attributes of a partnership and a cor-

poration. The primary advantage of the limited liability company form is that it operates
similar to a partnership, but its owners’ (or members’) liability for the debts of the com-
pany is limited to their investment. Many professional practices such as, lawyers, doctors,
and accountants are organized as limited liability companies.
In addition to the ease of formation, ability to raise capital, and liability for
the debts of the business, other factors such as taxes and legal life of the business
should be considered when forming a business. For example, corporations are taxed
as separate legal entities, while the income of sole proprietorships, partnerships, and
limited liability companies is passed through to the owners and taxed on the own-
ers’ tax returns. As separate legal entities, corporations also continue on, regardless
of the lives of the individual owners. In contrast, sole proprietorships, partnerships,
and limited liability companies may terminate their existence with the death of an
individual owner.
The characteristics of sole proprietorships, partnerships, corporations, and limited
liability companies are summarized below.
4 Chapter 1 The Role of Accounting in Business
Organizational Ease of Limitation on Access to

Form Formation Legal Liability Taxation Life of Entity Capital
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The three types of businesses we discussed earlier—manufacturing, merchandising,

and service—may be proprietorships, partnerships, corporations, or limited liability com-
panies. However, businesses that require a large amount of resources, such as many
manufacturing businesses, are corporations. Likewise, most large retailers such as Wal-
Mart, Target, and Macy’s are corporations.
Because most large businesses are corporations, they tend to dominate the economic
activity in the United States. For this reason, this text focuses on the corporate form of
organization. However, many of the concepts and principles discussed also apply to pro-
prietorships, partnerships, and limited liability companies.
How Do Businesses Make Money?

The objective of a business is to earn a profit by providing goods or services to customers.
How does a company decide which products or services to offer its customers? Many fac-
tors influence this decision. Ultimately, however, the decision is based on how the company
plans to gain an advantage over its competitors and, in doing so, maximize its profits.
Companies try to maximize their profits by generating high revenues while maintain-
ing low costs, which results in high profits. However, a company’s competitors are also
trying to do the same, and thus, a company can only maximize its profits by gaining an
advantage over its competitors.
Generally, companies gain an advantage over their competitors by using one of the
following strategies:
▪ A low-cost strategy, where a company designs and produces products or services
at a lower cost than its competitors. Such companies often sell no-frills, standardized
products and services.
▪ A premium-price strategy, where a company tries to design and produce products or
services that serve unique market needs, allowing it to charge premium prices. Such
companies often design and market their products so that customers perceive their
products or services as having a unique quality, reliability, or image.
Wal-Mart and Southwest Airlines are examples of companies using a low-cost
strategy. John Deere, Tommy Hilfiger, and BMW are examples of companies using
a premium-price strategy.
Since business is highly competitive, it is difficult for a company to sustain a com-
petitive advantage over time. For example, a competitor of a company using a low-cost
strategy may copy the company’s low-cost methods or develop new methods that achieve
even lower costs. Likewise, a competitor of a company using a premium-price strategy
may develop products that are perceived as more desirable by customers.
Examples of companies utilizing low-cost and premium-price strategies include:
▪ Local pharmacies who develop personalized relationships with their customers. By
doing so, they are able to charge premium (higher) prices. In contrast, Wal-Mart’s
pharmacies use the low-cost emphasis and compete on cost.
▪ Grocery stores such as Kroger and Safeway develop relationships with their custom-
ers by issuing preferred customer cards. These cards allow the stores to track consumer
preferences and buying habits for use in purchasing and advertising campaigns.
Chapter 1 The Role of Accounting in Business 5
▪ Honda promotes the reliability and quality ratings of its automobiles and thus charges
premium prices. Similarly, Volvo promotes the safety characteristics of its automobiles.
In contrast, Kia uses a low-cost strategy.
▪ Harley-Davidson emphasizes that its motorcycles are “Made in America” and pro-
motes its “rebel” image as a means of charging higher prices than its competitors
Honda, Yamaha, or Suzuki.
Companies sometimes struggle to find a competitive advantage. For example,
JCPenney and Macy’s have difficulty competing on low costs against Wal-Mart,
Kohl’s, T.J. Maxx, and Target. At the same time, JCPenney and Sears have difficulty
charging premium prices against competitors such as The Gap, Eddie Bauer, and
Talbot’s. Likewise, Delta Air Lines and United Airlines have difficulty competing
against low-cost airlines such as Southwest. At the same time, Delta and United don’t
offer any unique services for which their passengers are willing to pay a premium price.
Exhibit 1 summarizes low-cost and premium-price strategies with common examples
of companies that employ each strategy.
Exhibit 1
Industry Business
Strategies and
Business Financial Industries
Strategy Airline Freight Automotive Retail Services Hotel
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Business Stakeholders
A business stakeholder is a person or entity with an interest in the economic performance
and well-being of a company. For example, owners, suppliers, customers, and employees
are all stakeholders in a company.
Business stakeholders can be classified into one of the four categories illustrated in Exhibit 2.
Exhibit 2
Business Stakeholder Interest in the Business Examples Business
Stakeholders
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Capital market stakeholders provide the financing for a company to begin and continue
its operations. Banks and other long-term creditors have an economic interest in receiving the
amount loaned plus interest. Owners want to maximize the economic value of their investments.
Product or service market stakeholders purchase the company’s products or services
or sell their products or services to the company. Customers have an economic interest
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Gnitaheith,
With loud-ringing lances, | and stems gold-o’erlaid,
Treasures full huge, | and the home of Danp,
And the mighty forest | that Myrkwood is called.”
6. His head turned Gunnar, | and to Hogni he said:

“What thy counsel, young hero, | when such things
we hear?
No gold do I know | on Gnitaheith lying
So fair that other | its equal we have not.
7. “We have seven halls, | each of swords is full,

[485]
(And all of gold | is the hilt of each;)
My steed is the swiftest, | my sword is sharpest,
My bows adorn benches, | my byrnies are golden,
My helm is the brightest | that came from Kjar’s
hall,
(Mine own is better | than all the Huns’ treasure.)”
Hogni spake:
8. “What seeks she to say, | that she sends us a

ring,
Woven with a wolf’s hair? | methinks it gives
warning;
In the red ring a hair | of the heath-dweller found I,
Wolf-like shall our road be | if we ride on this
journey.”
9. Not eager were his comrades, | nor the men of

his kin, [486]
The wise nor the wary, | nor the warriors bold.
But Gunnar spake forth | as befitted a king,
Noble in the beer-hall, | and bitter his scorn:
10. “Stand forth now, Fjornir! | and hither on the

floor
The beakers all golden | shalt thou bring to the
warriors.
. . . . . . . .
. . . . . . . .
11. “The wolves then shall rule | the wealth of the

Niflungs,
Wolves aged and grey-hued, | if Gunnar is lost,
And black-coated bears | with rending teeth bite,
And make glad the dogs, | if Gunnar returns not.”
[487]
12. A following gallant | fared forth with the ruler,

Yet they wept as their home | with the hero they
left;
And the little heir | of Hogni called loudly:
“Go safe now, ye wise ones, | wherever ye will!”
13. Then let the bold heroes | their bit-champing

horses
On the mountains gallop, | and through Myrkwood
the secret;
All Hunland was shaken | where the hard-souled
ones rode,
On the whip-fearers fared they | through fields that
were green.
14. Then they saw Atli’s halls, | and his watch-

towers high, [488]
On the walls so lofty | stood the warriors of Buthli;
The hall of the southrons | with seats was
surrounded,
With targets bound | and shields full bright.
15. Mid weapons and lances | did Atli his wine

In the war-hall drink, | without were his watchmen,
For Gunnar they waited, | if forth he should go,
With their ringing spears | they would fight with the
ruler.
16. This their sister saw, | as soon as her brothers

Had entered the hall,— | little ale had she drunk:
“Betrayed art thou, Gunnar! | what guard hast
thou, hero,
’Gainst the plots of the Huns? | from the hall flee
swiftly!
17. “Brother, ’twere far better | to have come in

byrnie,
With thy household helmed, | to see Atli’s home,
[489]
And to sit in the saddle | all day ’neath the sun,
(That the sword-norns might weep | for the death-
pale warriors,
And the Hunnish shield-maids | might shun not the
sword,)
And send Atli himself | to the den of the snakes;
(Now the den of the snakes | for thee is destined.)”
Gunnar spake:
18. . . . . . . . . | . . . . . . . .
“Too late is it, sister, | to summon the Niflungs,
Long is it to come | to the throng of our comrades,
The heroes gallant, | from the hills of the Rhine.”
* * * * * *
19. Then Gunnar they seized, | and they set him in

chains, [490]
The Burgundians’ king, | and fast they bound him.
20. Hogni slew seven | with sword so keen,

And an eighth he flung | in the fire hot;
A hero should fight | with his foemen thus,
As Hogni strove | in Gunnar’s behalf.
21. . . . . . . . . | . . . . . . . .
. . . . . . . . | . . . . . . . .
The leader they asked | if his life he fain
With gold would buy, | the king of the Goths.
Gunnar spake:
22. “First the heart of Hogni | shall ye lay in my

hands, [491]
All bloody from the breast | of the bold one cut
With keen-biting sword, | from the son of the king.”
23. . . . . . . . . | . . . . . . . .
They cut out the heart | from the breast of Hjalli,
On a platter they bore it, | and brought it to
Gunnar.
24. Then Gunnar spake forth, | the lord of the folk:

“Here have I the heart | of Hjalli the craven,
Unlike to the heart | of Hogni the valiant,
For it trembles still | as it stands on the platter;
Twice more did it tremble | in the breast of the
man.”
25. Then Hogni laughed | when they cut out the

heart
Of the living helm-hammerer; | tears he had not.
. . . . . . . . | . . . . . . . .
On a platter they bore it, | and brought it to
Gunnar.
[492]
26. Then Gunnar spake forth, | the spear of the

Niflungs:
“Here have I the heart | of Hogni the valiant,
Unlike to the heart | of Hjalli the craven,
Little it trembles | as it lies on the platter,
Still less did it tremble | when it lay in his breast.
27. “So distant, Atli, | from all men’s eyes,

Shalt thou be as thou | . . . . . from the gold.
. . . . . . . . | . . . . . . . .
. . . . . . . . | . . . . . . . .
28. “To no one save me | is the secret known

Of the Niflungs’ hoard, | now Hogni is dead;
Of old there were two, | while we twain were alive,
Now is none but I, | for I only am living.
29. “The swift Rhine shall hold | the strife-gold of

heroes,
That once was the gods’, | the wealth of the
Niflungs, [493]
In the depths of the waters | the death-rings shall
glitter,
And not shine on the hands | of the Hunnish men.”
Atli spake:
30. “Ye shall bring the wagon, | for now is he

bound.”
* * * * * *
31. On the long-maned Glaum | rode Atli the great,

About him were warriors | . . . . . . . .
But Guthrun, akin | to the gods of slaughter,
Yielded not to her tears | in the hall of tumult.
[494]
Guthrun spake:
32. “It shall go with thee, Atli, | as with Gunnar

thou heldest
The oaths ofttimes sworn, | and of old made firm,
By the sun in the south, | by Sigtyr’s mountain,
By the horse of the rest-bed, | and the ring of Ull.”
33. Then the champer of bits | drew the chieftain

great,
The gold-guarder, down | to the place of death.
. . . . . . . . | . . . . . . . .
34. By the warriors’ host | was the living hero

Cast in the den | where crawling about
Within were serpents, | but soon did Gunnar
With his hand in wrath on | the harp-strings smite;
[495]
The strings resounded,— | so shall a hero,
A ring-breaker, gold | from his enemies guard.
35. Then Atli rode | on his earth-treading steed,

Seeking his home, | from the slaughter-place;
There was clatter of hoofs | of the steeds in the
court,
And the clashing of arms | as they came from the
field.
36. Out then came Guthrun | to meeting with Atli,

With a golden beaker | as gift to the monarch:
“Thou mayst eat now, chieftain, | within thy
dwelling,
Blithely with Guthrun | young beasts fresh
slaughtered.”
37. The wine-heavy ale-cups | of Atli resounded,

When there in the hall | the Hunnish youths
clamored,
And the warriors bearded, | the brave ones,
entered.
[496]
38. Then in came the shining one, | . . . . . . . .

. . . . . . . . | and drink she bore them;
Unwilling and bitter | brought she food to the
warrior,
Till in scorn to the white-faced | Atli did she speak:
39. “Thou giver of swords, | of thy sons the hearts

All heavy with blood | in honey thou hast eaten;
Thou shalt stomach, thou hero, | the flesh of the
slain,
To eat at thy feast, | and to send to thy followers.
40. “Thou shalt never call | to thy knees again

Erp or Eitil, | when merry with ale;
Thou shalt never see | in their seats again
The sharers of gold | their lances shaping,
(Clipping the manes | or minding their steeds.)”
41. There was clamor on the benches, | and the

cry of men, [497]
The clashing of weapons, | and weeping of the
Huns,
Save for Guthrun only, | she wept not ever
For her bear-fierce brothers, | or the boys so dear,
So young and so unhappy, | whom with Atli she
had.
42. Gold did she scatter, | the swan-white one,

And rings of red gold | to the followers gave she;
The fate she let grow, | and the shining wealth go,
Nor spared she the treasure | of the temple itself.
43. Unwise then was Atli, | he had drunk to

wildness,
No weapon did he have, | and of Guthrun bewared
not;
Oft their play was better | when both in gladness
Each other embraced | among princes all.
44. With her sword she gave blood | for the bed to
drink, [498]
With her death-dealing hand, | and the hounds she
loosed,
The thralls she awakened, | and a firebrand threw
In the door of the hall; | so vengeance she had.
45. To the flames she gave all | who yet were

within,
And from Myrkheim had come | from the murder of
Gunnar;
The timbers old fell, | the temple was in flames,
The dwelling of the Buthlungs, | and the shield-
maids burned,
They were slain in the house, | in the hot flames
they sank.
46. Now the tale is all told, | nor in later time

Will a woman in byrnie | avenge so her brothers;
The fair one to three | of the kings of the folk
Brought the doom of death | ere herself she died.
Still more is told in the Greenland ballad of Atli. [480]
[Contents]
NOTES
[482]
Prose. On the marriage of Guthrun to Atli at the instigation of her
brothers, Gunnar and Hogni, and on the slaying of Atli and his two
sons, Erp and Eitil, cf. Drap Niflunga and note.
1. Line 1 apparently is in Fornyrthislag. Knefröth (the name is spelt in

various ways, and its meaning is uncertain): in the Atlamol (stanza 4)
there are two messengers, one named Vingi and the other unnamed;
the annotator combines the two versions in the Drap Niflunga.
Benches, etc.: the adjective rendered “round the hearth,” which
etymologically it ought to mean, is made obscure by its application to
“helmets” in stanzas 3 and 17. [483]
2. Falseness: i.e., Gunnar’s followers concealed their fear and hatred

of the Huns at the feast; but the word may mean “fear of treachery.”
War-hall: the word used is “Valhall,” the name of Othin’s hall of slain
warriors.
3. Myrkwood the secret (the adjective is literally “unknown”): the

forest which divided Atli’s realm from that of the Gjukungs; cf.
Oddrunargratr, 23 and note. Around the hearth: the adjective is the
same one which is applied to “benches” in stanza 1 (cf. note); it may
be an error here, or it may possibly have the force of “of your
followers,” i.e., Gunnar is to arm the men of his household (those
who are round his hearth) for the journey.
4. Slaves, etc.: some editions have “swords in plenty.” Scarlet: the

word apparently means “slaughter-red,” “blood-red,” but it may mean
something entirely different. [484]
5. Gnitaheith: here the dragon Fafnir had his lair (cf. Gripisspo, 11).
Sigurth doubtless owned it after Fafnir’s death, and the Gjukungs
after they had killed Sigurth. Possibly they had given it to Atli in
recompense for the death of his sister, Brynhild, and he now offered
to restore it to them, or—as seems more likely—the poet was not
very clear about its ownership himself. Stems: i.e., the gilded stems
of ships, carved like dragons,—an evident northern touch, if the word
is correct, which is by no means certain. Danp: this name was early
applied to a mythical Danish king (cf. Rigsthula, 49 and note), but it
may have been fabricated by error out of the word “Danparstaþir”
(the phrase here used is “staþi Danpar”), used in the Hervararsaga
of a field of battle between the Goths and the Huns, and quite
possibly referring to the region of the Dnieper. The name seems to
have clung to the Atli tradition long after it had lost all definite
significance. Myrkwood: cf. note on stanza 3. [485]
7. The stanza is clearly in bad shape; the manuscript indicates line 5

as beginning a new stanza. In line 5 the manuscript has “and shield”
after “helm.” Kjar: Gering ingeniously identifies this Kjar with Kjar the
father of Olrun, mentioned in the Völundarkvitha, introductory prose
and stanza 2, on the basis of a genealogy in the Flateyjarbok, in
which Authi, the grandfather of Kjar (by no means certainly the same
man) and Buthli, father of Atli, are mentioned as making a raiding
voyage together. This identification, however, rests on slight
evidence.
8. The manuscript does not name the speaker. One editor gives the
first sentence to Gunnar. She, etc.: Guthrun, seeking to warn her
brothers of Atli’s treachery, sends them a ring with a wolf’s hair as a
sign of danger; in the Atlamol (stanza 4) she sends a message
written in runes; cf. Drap Niflunga. Heath-dweller: wolf. [486]
9. In line 1 the manuscript has “His comrades did not urge Gunnar,”
but the name, involving a metrical error, seems to have been
inserted through a scribal blunder.
10. The manuscript indicates no lacuna, but probably two lines have
dropped out, for the Volsungasaga paraphrase runs: “Give us to
drink in great cups, for it may well be that this shall be our last feast.”
Fjornir: Gunnar’s cup-bearer.
11. Bugge thinks this stanza is spoken by Gunnar’s terrified

followers; Grundtvig assigns it to Hogni. Apparently, however,
Gunnar means that if he and his men are not valiant enough to make
the journey and return safely, it matters little what may happen to
them. Niflungs: regarding the application of this name to Gunnar’s
Burgundians cf. Brot, 17 and note. Bears: these “black” bears have
been used as arguments against the Greenland origin of the poem.
And make glad the dogs: i.e., by giving them corpses to eat, but the
phrase in the original is more than doubtful. [487]
12. Some editions in line 2 read “home of the Niflungs” instead of

“their home,” and others “home of the Huns,” the manuscript reading
being “home of the men.” Heir: the Atlamol (stanza 28) names two
sons of Hogni, Snævar and Solar, both of whom make the journey
with their father and are killed. The Volsungasaga, combining the two
versions, says that Snævar and Solar went with their father, and
implies that it was a third and still younger son who said: “Farewell,
and have a good time” (thus literally).
13. Myrkwood: cf. stanza 3 and note; the journey is here made by
land, whereas in the Atlamol it is made partly by boat; cf. Atlamol, 34
and note. Whip-fearers: horses, but there is some uncertainty as to
the word.
14. In line 1 the manuscript has “land” instead of “halls,” which

involves a metrical error. Watch-towers: the word used is identical
with the name of Othin’s watch-tower, Hlithskjolf (cf. Grimnismol,
introductory prose). Buthli: the manuscript has “Bikki,” which has led
some editors to transfer this stanza to [488]the Hamthesmol, placing
it between stanzas 16 and 17; it seems more likely, however, that
“Bikki” was a scribal error for “Buthli.” Regarding Bikki cf.
Sigurtharkvitha en skamma, 63 and note. Line 4 is apparently in
Fornyrthislag.
15. Line 1 in the manuscript is apparently incorrectly copied, and

some editions omit “Mid weapons and lances” and assume a gap in
either line 1 or line 3.
17. This may be the remains of two stanzas; the manuscript marks
line 5 as beginning a new stanza. Editorial conjectures are
[489]numerous and varied. Household: the phrase is the same “helms
round the hearth” commented on in stanza 3. Some editions insert a
conjectural line after line 3. Sword-norns, etc.: the line is exceedingly
obscure, and the phrase rendered “sword-norns” may mean “corpse-
norns.” Apparently it refers to the warrior-women of the Huns, the
“shield-maids” of line 5 and of stanza 45. Roman writers refer to the
warrior-women among the early Germanic tribes, and the tradition,
closely allied to that of the Valkyries, attached itself readily to the
ferocious Huns. Den of snakes: concerning the manner of Gunnar’s
death cf. Drap Niflunga.
18. The manuscript indicates no lacuna and does not name the
speaker; perhaps a line similar to line 1 of stanza 24 (or 26) should
be inserted here. Rhine: Gunnar’s Burgundian home is here clearly
localized. After this stanza it is probable that a passage describing
the battle has been lost.
19. These two lines, apparently the remains of a full stanza, [490]may
belong after stanza 20. Burgundians’ king: the phrase may mean
“Burgundians’ men,” i.e., they bound all the Burgundians who were
left alive after the battle. This is the only place in the poems in which
the name “Burgundian” appears; that the poet had no very clear
conception of its meaning is indicated by the fact that in stanza 21 he
calls Gunnar “king of the Goths.”
20. Apparently a Fornyrthislag stanza, though most editions have

attempted to expand the lines into Malahattr. The exploits of Hogni
(Hagene), with the names of many of his victims, are told in the
Nibelungenlied. The fire: in the Nibelungenlied Kriemhild has the hall
set on fire, and the Burgundians fight amid the flames. Line 4 is
clearly defective, and some editors regard the name “Gunnar” as all
that is left of the first two lines of stanza 21.
21. Again apparently the remains of a Fornyrthislag stanza. Editors
have attempted various combinations of the lines. Gold: presumably
Sigurth’s treasure.
22. The manuscript does not indicate the speaker; perhaps a first
line similar to line 1 of stanza 24 should appear here. Some editors,
however, assume that a line is missing after line 3. [491]Gunnar
demands proof that Hogni is dead because, as stanza 28 shows, he
is unwilling to die himself until he is assured that the secret of the
treasure will perish with him. He did not, of course, intend that the
heart should be cut from the living Hogni.
23. Most editions assume a gap (lines 1–2, 2–3 or 3–4). Hjalli: Atli’s
cook, killed to deceive Gunnar, as Atli hoped to wring the secret of
the hoard from Hogni if Gunnar remained silent. In the Atlamol
(stanzas 59–60) Atli’s men prepare to kill Hjalli, but he is spared at
Hogni’s intercession.
25. Helm-hammerer (literally “helmet-smith”): warrior, i.e., Hogni. No

gap indicated in the manuscript. [492]
26. Line 1 may belong elsewhere (stanzas 18 or 22).
27. Apparently the remains of two Fornyrthislag lines; the manuscript

combines them with lines 1–2 of stanza 28. Gunnar foretells Atli’s
speedy death.
28. Apparently in Fornyrthislag. The manuscript indicates line 3 as

the beginning of a stanza, and many editions combine lines 3–4 with
stanza 29. This stanza explains Gunnar’s demand for Hogni’s heart
in stanza 22.
29. The manuscript marks line 3, and not line 1, as the beginning of
a stanza. Rhine, etc.: the stanza shows the blending of [493]three
different traditions with regard to the treasure: the German tradition
of the gold of the Rhine (cf. Völundarkvitha, 16, and Sigurtharkvitha
en skamma, 16), the tradition, likewise German, of the hoard of the
Nibelungen (Niflungs), early blended with the first one, and finally the
northern tradition of the theft of Andvari’s treasure by Othin, Hönir,
and Loki (cf. Reginsmol, 1–9).
30. Apparently all that is left of a full stanza. The manuscript does
not name Atli as the speaker, and Grundtvig inserts: “Then Atli
called, | the king of the Huns,” as a first line. Some editors
combine this line with the two lines of stanza 33. Wagon: in Brot, 16,
Gunnar is led to his death in the serpents’ den on horseback, not in a
wagon.
31. The stanza in the original is hopelessly confused. Glaum: this

horse of Atli’s is mentioned by name elsewhere. Long-maned:
uncertain. The manuscript indicates no gap, but something has
evidently been lost. Gods of slaughter: perhaps the phrase, usually
applied to Othin and the other gods, is here used simply to mean
“heroes,” i.e., Atli, Gunnar, and Hogni. Line 4 suggests Guthrun’s
tearlessness after Sigurth’s death (cf. Guthrunarkvitha II, 11). [494]
32. The manuscript does not indicate the speaker. Sigtyr (“Victory-
God”): Othin; what particular mountain (if any) is meant is unknown.
Horse of the rest-bed: probably this means “bedpost,” i.e., the
support of the marriage-bed. Ull: the archer-god, cf. Grimnismol, 5
and note. Nothing is known of his ring.
33. Apparently the remains of a Fornyrthislag stanza. Some editors

combine the two lines with the line here indicated as stanza 30.
Champer of bits: horse. The manuscript indicates no gap.
34. Six Fornyrthislag lines which editors have tried to reconstruct in

all sorts of ways. The manuscript marks line 5 as the beginning of a
new stanza. Regarding the serpents’ den, Gunnar’s harp-playing,
and the manner of his death, cf. Drap Niflunga and Oddrunargratr,
27–30, and notes. In Atlamol, 62, Gunnar plays the harp with his
feet, his hands being bound, and some editors change hand in line 4
to “foot.” Lines 5–6 may be interpolated, or, as Bugge maintains,
lines 1–4 may have been expanded out of two lines. [495]
35. The manuscript marks line 3 as beginning a new stanza. Two

(possibly three) of the lines appear to be in Fornyrthislag. Field: so
the manuscript, involving a metrical error; many editions have
“wood.”
36. Young beasts: Guthrun means Atli’s sons, Erp and Eitil, but of
course he thinks she refers to newly slaughtered beasts; cf.
Guthrunarkvitha II, 41–45.
37. Youths: a conjectural addition. The brave ones is also

conjectural, the manuscript having “each.” No gap indicated in the
manuscript; some editions insert as line 3 or line 4 a slightly altered
version of line 2 of stanza 45. [496]
38. No gap indicated in the manuscript, but the two fragments cannot
be fitted together as one line. The shining one: Guthrun.
39. Giver of swords: generous prince, i.e., Atli. Honey: cf.

Guthrunarkvitha II, 42. To send to thy followers: literally, “to send
from thy high seat.”
40. Apparently a Fornyrthislag stanza. Merry with ale: presumably

this refers to Atli, but the manuscript reading makes it apply to the
two boys. Sharers of gold: princes. Line 5 is either interpolated or all
that is left of a separate stanza.
41. The text of the whole stanza has required a considerable amount
of emendation. Lines 3–5 may have been expanded out of two lines,
or line 5 may be an interpolation, possibly from stanza [497]12 of the
Guthrunarhvot. Weapons: the word literally means “good-weaving,”
and may refer to silken garments, but this hardly fits the noun here
rendered “clashing.” Wept not: cf. stanza 31 and note.
42. Line 1 appears to be in Fornyrthislag. Guthrun distributes Atli’s
treasures among his followers apparently to prevent their wrath at
the slaying of Erp and Eitil from turning against her; Atli, as stanza
43 shows, is too drunk to realize or prevent what she is doing.
43. The second half of line 4 is apparently an error, but none of the
editorial suggestions have improved it.
44. Guthrun allows the dogs and the house-thralls, who had no part
in Gunnar’s death, to escape before she burns the dwelling [498]with
all who are left therein. In Atlamol, stanzas 83–84, Atli is slain by a
son of Hogni (Hniflung?) with Guthrun’s help.
45. Some editions transfer line 2 to stanza 37; others reject line 3 as
interpolated. Myrkheim (“Dark-Home”): probably identical with
Myrkwood; cf. stanza 3. Temple: probably both here and in stanza 42
the word means little more than the place where Atli’s treasures were
kept; the poet was by no means literal in his use of terms connected
with the heathen religion. Buthlungs: sons of Buthli, i.e., Atli and his
family. Shield-maids: cf. stanza 17 and note.
46. The entire stanza is very likely a later addition. Three kings: Atli
and his two sons, Erp and Eitil. [499]
[Contents]

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Exhibit 10 Integrated Financial Statements

The Hershey Company

"TTFUT  -JBCJMJUJFT 4UPDLIPMEFST&RVJUZ

The Hershey Company The Hershey Company The Hershey Company

0QFSBUJOHBDU   ➌ 3FWFOVFT   $PNNPO 3FUBJOFE 0UIFS

Exhibit 1 Integrated Financial Statement Framework

Integrated Financial Statement Framework

STATEMENT OF CASH FLOWS I N CO M E STAT E M E N T

Financial Statement Effects

STATEMENT OF CASH FLOWS I N CO M E STAT E M E N T

Transaction Metric Effects

Eighth Edition: Changes and Enhancements

MBA 2-4 $PNNPO4J[FE4UBUFNFOUT Obj. 6

When to use it? What to use? How will it help?

Preparing for Class

To view a demo of CengageNOWv2, please visit: http://services.cengage.com/dcs/

Supplements for the Instructor

1 The Role of Accounting in Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Basic Accounting Systems: Cash Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

3 Basic Accounting Systems: Accrual Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

4 Accounting for Retail Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

Appendix A Double-Entry Accounting Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 688

1 The Role of Accounting

Purchase Transactions 144 Bank Accounts 201

Allowance Method for Uncollectible Accounts 236

Component Analysis: Profitability Metrics 372

Metric-Based Analysis: Cost per Unit 433

* There are no transactions in this chapter

1. A complete glossary of terms appears at the end of the text.

A limited liability company (LLC) combines attributes of a partnership and a cor-

Organizational Ease of Limitation on Access to

The three types of businesses we discussed earlier—manufacturing, merchandising,

How Do Businesses Make Money?

5. “The field shall be given you | of wide

6. His head turned Gunnar, | and to Hogni he said:

7. “We have seven halls, | each of swords is full,

8. “What seeks she to say, | that she sends us a

9. Not eager were his comrades, | nor the men of

10. “Stand forth now, Fjornir! | and hither on the

11. “The wolves then shall rule | the wealth of the

12. A following gallant | fared forth with the ruler,

13. Then let the bold heroes | their bit-champing

14. Then they saw Atli’s halls, | and his watch-

15. Mid weapons and lances | did Atli his wine

16. This their sister saw, | as soon as her brothers

17. “Brother, ’twere far better | to have come in

19. Then Gunnar they seized, | and they set him in

20. Hogni slew seven | with sword so keen,

22. “First the heart of Hogni | shall ye lay in my

24. Then Gunnar spake forth, | the lord of the folk:

25. Then Hogni laughed | when they cut out the

26. Then Gunnar spake forth, | the spear of the

27. “So distant, Atli, | from all men’s eyes,

28. “To no one save me | is the secret known

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