Chapter 01 Introduction to Accounting

· 1.1 The meaning of accounting
1.
What is accounting?
2.
The social function of accounting
3.
Classification of Accounting
· 1.2 Corporate management activities
· 1.3 Introduction to Financial Statements
1.
financial statements
2.
Comprehensive Income Statement
3.
Statement of changes in equity
4.
Cash flow statement
5.
annotation
· 1.4 Interrelationship of financial statements
· 1.5 Accounting standards in our country
1.
Changes in accounting standards
2.
Background of the establishment of international accounting standards
3.
Background of the establishment of sustainability disclosure standards

Chapter 02 Accounting Cycle I (Accounting Treatment during Period)

· 2.1 Transaction Records
1.
The duality of trade and transaction
2.
Accounts and Account Entry
· 2.2 Recognition of the basic elements of financial statements
1.
Recognition of assets and liabilities
2.
Recognition of revenue and expenses
· 2.3 Accounting Cycle
Step 1: Identify and Measure Transactions
Step 2: Indignation
Step 3: Electricity
Step 4: Pre-Revised Trial Balance Sheet

Chapter 03 Accounting Cycle II (End-of-Period Accounting)

· 3.1 Amendment of financial statements and posting (Step 5)
1.
Accrued expenses: Recognition of expenses incurred in the current period
2.
Accrued revenue: Recognition of revenue accrued in the current period
3.
Prepaid expenses: deferral of expenses to be incurred in the next period
4.
Player earnings: Deferral of earnings attributable to the next season
5.
Consumables: Consumables used in the current period are recognized as consumables costs.
· 3.2 Trial Balance after Modification (Step 6)
· 3.3 Preparation of financial statements (Step 7)
· 3.4 Preparation of settlement table
· 3.5 Closing of the ledger (8 steps)
1.
Closing of the comprehensive income statement account
2.
Closing of financial statements accounts
· 3.6 Summary of the accounting cycle

Chapter 04 Conceptual Framework for Financial Reporting and Financial Statement Presentation

· 4.1 Conceptual Framework for Financial Reporting
1.
Purpose of Financial Reporting
2.
Basic assumptions of financial statements
3.
Qualitative characteristics of useful financial information
· 4.2 Principles for preparing financial statements
1.
Presentation of financial statements
2.
Account titles in the financial statements
· 4.3 Principles for preparing the statement of comprehensive income
1.
Presentation of the statement of comprehensive income
2.
Earnings per share and price-to-earnings ratio
· 4.4 Separate and Consolidated Financial Statements
[Boron] Changes in the format of financial statements

Chapter 05 Cash, Receivables, and Payables

· 5.1 Cash and cash equivalents
1.
Composition of cash and cash equivalents
2.
Petty Cash System and Cash Shortage
3.
Internal control system
· 5.2 Accounts Receivable and Accounts Payable
1.
Accounts Receivable
2.
Impairment (bad debt) and valuation of accounts receivable
3.
Accounts Payable
· 5.3 Other current assets and other current liabilities
1.
Loans and borrowings
2.
Accounts receivable and accounts payable
3.
Accrued revenue and accrued expenses
4.
Advance payment and down payment
5.
Prepaid expenses and unearned revenue
6.
Deposit
7.
short-term financial products
[Boron 1] Bank Account Reconciliation Statement
[Boron 2] Using Accounts Receivable in Cash Shortages

Chapter 06 Inventory Assets

· 6.1 Significance of inventory assets and acquisition cost
1.
The meaning and types of inventory assets
2.
Acquisition cost of inventory assets
· 6.2 Recording method of inventory assets
1.
Continuous Recording Method
2.
Actual Inventory Investigation Method
· 6.3 Cost allocation method for inventory assets
1.
Individual method using actual cost flow
2.
How to Use Cost Flow Assumptions
· 6.4 Undervaluation of inventory assets

Chapter 07 Tangible and Intangible Assets

· 7.1 Tangible assets
1.
Definition and types of tangible assets
2.
Acquisition cost and post-acquisition expenditures of tangible assets
3.
Depreciation
4.
Measurement after Recognition: Cost Model and Revaluation Model
5.
Disposal of tangible assets
· 7.2 Intangible assets
1.
Definition and Types of Intangible Assets
2.
Amortization and post-recognition measurement of intangible assets
3.
Goodwill

Chapter 08 Debt and Non-Current Liabilities

· 8.1 Time Value of Money
1.
Simple interest calculation and compound interest calculation
2.
Future value
3.
present value
· 8.2 Meaning and classification of non-current liabilities
· 8.3 Accounting for private debt
1.
Determination of the issuance amount of private bonds
2.
Amortization of proceeds from issuance of bonds and interest expenses
3.
repayment of private debt
· 8.4 Reserve liabilities
1.
The meaning of reserve liabilities
2.
Examples of reserve liabilities

Chapter 09 Financial Assets (Equity Investment and Bond Investment)

· 9.1 Definition, purpose of holding, and classification of financial assets
1.
Definition of financial assets
2.
Purpose of holding financial assets
3.
Classification of financial assets
· 9.2 Financial assets measured at amortized cost
1.
Acquisition of financial assets measured at amortized cost
2.
Valuation of financial assets measured at amortized cost
3.
Disposal of financial assets measured at amortized cost
· 9.3 Other comprehensive income - Financial assets measured at fair value
1.
Other comprehensive income - Acquisition of financial assets measured at fair value
2.
Other comprehensive income - Valuation of financial assets measured at fair value
3.
Other comprehensive income - Disposal of financial assets measured at fair value
· 9.4 Profit and Loss - Financial Assets Measured at Fair Value
1.
Current Profit and Loss - Acquisition of Financial Assets Measured at Fair Value
2.
Profit and Loss - Valuation of Financial Assets Measured at Fair Value
3.
Profit and Loss for the Period - Disposal of Financial Assets Measured at Fair Value and Dividend Income
· 9.5 Reclassification of categories of financial assets
· 9.6 Investments in affiliates and subsidiaries
1.
Investment in related companies
2.
Investment in subsidiary

Chapter 10 Capital

· 10.1 The meaning and composition of capital
1.
The meaning of capital
2.
Composition of capital
· 10.2 Paid-in capital
1.
System of types and number of shares
2.
Paid-in capital
3.
Issuance of stocks
4.
Increase and decrease of capital
· 10.3 Retained earnings
1.
The meaning of retained earnings
2.
Disposal of retained earnings
3.
Dividend
· 10.4 Capital adjustments and accumulated other comprehensive income
1.
Nature and types of capital adjustments
2.
Treasury stock
3.
Accumulated other comprehensive income
· 10.5 Statement of Changes in Equity
1.
Definition and significance of the statement of changes in equity
2.
Structure of the statement of changes in equity

Chapter 11 Statement of Cash Flows

· 11.1 Significance of the Cash Flow Statement
1.
The Importance of Cash Flow Information
2.
Definition of cash in the statement of cash flows
· 11.2 Classification of Cash Flows
1.
Cash flow from operating activities
2.
Cash flow from investing activities
3.
Cash flow from financing activities
· 11.3 Analysis of transactions for preparing a statement of cash flows
· 11.4 Preparation of cash flow statement
1.
Cash Flow from Operating Activities - Indirect Method
2.
Cash flow from investing activities
3.
Cash flow from financing activities
4.
Preparation of a statement of cash flows - summary
[Boron] Cash Flow from Operating Activities Using the Direct Method

Chapter 12 Financial Statement Analysis

· 12.1 Significance of Financial Statement Analysis
· 12.2 Analysis techniques
1.
Trend analysis
2.
Composition analysis
3.
ratio analysis
· 12.3 Ratio Analysis
1.
Profitability
2.
Activity
3.
liquidity
4.
Safety
· 12.4 Considerations when Analyzing Financial Statements

· Answer
· Appendix (value calculation table)
· Search

Almost all business activities are closely related to accounting knowledge.
The higher the rank, the greater its importance.
Top management without professional accounting knowledge cannot grasp the current status of the numerous activities taking place in the company.
Because accounting is the language of business.
Just as you cannot understand reality without knowing how to speak and write, you cannot understand what is happening in a business without knowing accounting.
Even from an individual's perspective, accounting knowledge is important for making investment decisions in the stock or bond markets.
Even if you don't invest directly, accounting knowledge is essential to understanding current events in the capital markets and corporate world.

Despite the fact that accounting is a discipline that teaches important knowledge that forms the basis of management and is closely related to our lives, the reality is that many students studying accounting find it boring or difficult.
This may be because accounting requires more time to study than other fields of business administration, and it is a field that requires logical thinking in particular.
There may also be a reason why Korean accounting education is biased towards accurately recording transactions in accounting books rather than understanding principles or cases.
Against this backdrop, this book was launched with the aim of alleviating the regrettable reality of accounting education, where many students lose interest and give up on accounting studies from the very beginning.

The most important features of this book that distinguish it from other textbooks are that it introduces interesting historical backgrounds and related stories in each chapter, and presents background information on the knowledge explained in each chapter or recent cases related to it.
This has helped readers become more interested in accounting and connect the content they learn with real-world business practices and management cases.
In addition, there are many other features that enable readers to study accounting easily and enjoyably.

· Complex content is explained as concisely as possible to make it easy to study.
· Numerous pictures and tables were used to help readers easily grasp the key points at a glance.
· At the end of each chapter, a summary of learning objectives, key terms, comprehensive review examples, subjective practice questions, and objective practice questions are arranged in that order to ensure a solid understanding of the content learned in each chapter.
· Mini-cases are included to help you apply the accounting knowledge you've learned by looking at the financial statements and notes of famous Korean companies and interpret the information contained in the financial statements.

A textbook that captures the importance of accounting and the joy of learning.

The revised edition (5th edition) of “Accounting Principles with Case Studies,” which received great acclaim from readers, has been published.
This book, which redefines the importance and appeal of accounting, contains various elements that allow readers to acquire accounting knowledge in a fun and engaging way.


This book introduces the interesting historical background and related stories of accounting, and provides background and real-life examples of topics related to each chapter.
This will enable students to develop the ability to connect accounting knowledge with practical applications, and will stimulate readers' curiosity and interest in accounting.

This book explains complex accounting concepts concisely and easily.
By providing a variety of tables and figures to help readers grasp key content at a glance, you can more easily understand difficult parts.


The back of each chapter includes a summary of learning objectives, key terms, comprehensive review examples, and multiple-choice and essay questions.
This allows students to learn accounting systematically.

Additionally, mini-cases are included to help students apply and interpret what they've learned by directly examining companies' financial statements and notes, effectively connecting theory and practice.

In this revised edition, we have revised the explanations to make the content easier to understand and strengthened the “Accounting Story” in each chapter.
Additionally, the importance of accounting has been further highlighted by the addition of a new chapter titled “History of Accounting,” which covers the role of accounting in world history.


It also includes ESG-related disclosures and the latest accounting standard revisions, allowing students to stay abreast of the latest accounting trends.
The terms "bad debt expense" and "allowance for bad debts" have been revised to "impairment loss on accounts receivable" and "loss allowance", and practical information has been updated, such as adding information related to the cancellation of treasury stock profits.

And we've revised the mini-cases at the end of each chapter to help students understand accounting through more practical examples.
Some content has been deleted or moved to supplementary material to allow for more focused study as needed.

This book, which makes learning accounting easier and more enjoyable, will convey the value and enjoyment of learning accounting to all readers.
For instructors, it will be an excellent tool to effectively convey the importance and practical application of accounting to students.
It will provide students with an opportunity to learn complex and challenging accounting in a fun and engaging way, helping them understand accounting and achieve academic success.