2. Financial Accounting, Seventh Edition4
ACCRUAL
ACCOUNTING
CONCEPTS
Financial Accounting, Seventh Edition

3. Learning Objectives
After studying this chapter, you should be able to:
Explain the revenue recognition principle and the expense recognition principle.
Differentiate between the cash basis and the accrual basis of accounting.
Explain why adjusting entries are needed, and identify the major types of adjusting entries.
Prepare adjusting entries for deferrals.
Prepare adjusting entries for accruals.
Describe the nature and purpose of the adjusted trial balance.
Explain the purpose of closing entries.
Describe the required steps in the accounting cycle.
Understand the causes of differences between net income and cash provided by operating activities.

4. Preview of Chapter 4 Financial Accounting Seventh Edition
Kimmel Weygandt Kieso

5. Timing Issues
Accountants divide the economic life of a business into artificial time periods (Periodicity Assumption).
Jan.
Feb.
Mar.
Apr.
Dec.
Generally a month, a quarter, or a year.
Fiscal year vs. calendar year
LO 1 Explain the revenue recognition principle and the expense recognition principle.

6. Timing Issues Review Question What is the periodicity assumption?
a. Companies should recognize revenue in the accounting period in which it is earned.
b. Companies should match expenses with revenues.
c. The economic life of a business can be divided into artificial time periods.
d. The fiscal year should correspond with the calendar year.
LO 1 Explain the revenue recognition principle and the expense recognition principle.

7. Timing Issues The Revenue Recognition Principle
Companies recognize revenue in the accounting period in which the performance obligation is satisfied.
TEACHING TIP
Service businesses recognize revenue when the services are performed, although many customers may have been billed for the services (on account). The cash has not been received; however, the services have been performed. Therefore, revenue should be recognized.
LO 1 Explain the revenue recognition principle and the expense recognition principle.

8. Timing Issues
Illustration: Assume Conrad Dry Cleaners cleans clothing on June 30, but customers do not claim and pay for their clothes until the first week of July. The journal entries for June and July would be:
LO 1 Explain the revenue recognition principle and the expense recognition principle.

9. “Let the expenses follow the revenues.”
Timing Issues
Illustration 4-1 (Partial)
“Let the expenses follow the revenues.”
LO 1 Explain the revenue recognition principle and the expense recognition principle.

10. Timing Issues
Illustration 4-1 GAAP
relationships in revenue
and expense recognition
LO 1 Explain the revenue recognition principle and the expense recognition principle.

12. Timing Issues Accrual versus Cash Basis of Accounting
Accrual-Basis Accounting
Transactions recorded in the periods in which the events occur.
Revenues are recognized when services performed, even if cash was not received.
Expenses are recognized when incurred, even if cash was not paid.
LO 2 Differentiate between the cash basis and the accrual basis of accounting.

13. Timing Issues Accrual versus Cash Basis of Accounting
Cash-Basis Accounting
Revenues are recognized only when cash is received.
Expenses are recognized only when cash is paid.
Prohibited under generally accepted accounting principles (GAAP).
TEACHING TIP
Explain to students that many businesses use the cash basis of accounting. These businesses outgrow the method when accounts receivable and accounts payable become substantial. Also, if the businesses need audited financial statements, they must comply with GAAP and use the accrual basis. Remind them that companies can use the cash method and that its use does not mean that income is being manipulated. Without this discussion, some students may unfairly criticize an employer, relative or friend who is using the cash basis of accounting.
LO 2 Differentiate between the cash basis and the accrual basis of accounting.

14. Timing Issues
Illustration: Suppose that Fresh Colors paints a large building in In 2013, it incurs and pays total expenses (salaries and paint costs) of $50,000. It bills the customer $80,000, but does not receive payment until 2014.
Illustration 4-2 (Partial)
2013
2014
LO 2 Differentiate between the cash basis and the accrual basis of accounting.

15. Timing Issues Review Question
Which one of these statements about the accrual basis of accounting is false?
Companies record events that change their financial statements in the period in which events occur, even if cash was not exchanged.
Companies recognize revenue in the period in which the performance obligation is satisfied.
This basis is in accord with generally accepted accounting principles.
Companies record revenue only when they receive cash, and record expense only when they pay out cash.
LO 2 Differentiate between the cash basis and the accrual basis of accounting.

17. The Basics of Adjusting Entries
ensure that the revenue recognition and expense recognition principles are followed.
are required every time a company prepares financial statements.
includes one income statement account and one balance sheet account.
never include cash.
LO 3 Explain why adjusting entries are needed, and identify the major types of adjusting entries

18. The Basics of Adjusting Entries
Review Question
Adjusting entries are made to ensure that:
a. expenses are recognized in the period in which they are incurred.
b. revenues are recognized in the period in which the performance obligation is satisfied.
c. balance sheet and income statement accounts have correct balances at the end of an accounting period.
d. All of the above.
LO 3 Explain why adjusting entries are needed, and identify the major types of adjusting entries

19. Types of Adjusting Entries
Illustration 4-3
Categories of adjusting entries
Deferrals:
1. Prepaid expenses: Expenses paid in cash and recorded as assets before they are used or consumed.
2. Unearned revenues: Cash received before service are performed.
Accruals:
1. Accrued revenues: Revenues for services performed but not yet received in cash or recorded.
2. Accrued expenses: Expenses incurred but not yet paid in cash or recorded.
LO 3 Explain why adjusting entries are needed, and identify the major types of adjusting entries

20. Types of Adjusting Entries
Trial Balance – Each account is analyzed to determine whether it is complete and up-to-date.
Illustration 4-4
LO 3 Explain why adjusting entries are needed, and identify the major types of adjusting entries

21. Adjusting Entries for Deferrals
Deferrals are either:
Prepaid expenses OR
Unearned revenues.
LO 4 Prepare adjusting entries for deferrals.

22. Adjusting Entries for “Prepaid Expenses”
Payment of cash, that is recorded as an asset because service or benefit will be received in the future.
Cash Payment
Expense Recorded
BEFORE
Prepayments often occur in regard to:
insurance
supplies
advertising
rent
equipment
buildings
LO 4 Prepare adjusting entries for deferrals.

23. Adjusting Entries for “Prepaid Expenses”
Costs that expire either with the passage of time or through use.
Adjusting entry results in an increase (a debit) to an expense account and a decrease (a credit) to an asset account.
LO 4 Prepare adjusting entries for deferrals.

24. Adjusting Entries for “Prepaid Expenses”
Illustration 4-5
Increases (debits) an expense account and
Decreases (credits) an asset account.
LO 4 Prepare adjusting entries for deferrals.

25. Adjusting Entries for “Prepaid Expenses”
Illustration: Sierra Corporation purchased supplies costing $2,500 on October 5. Sierra recorded the purchase by increasing (debiting) the asset Supplies. This account shows a balance of $2,500 in the October 31 trial balance. An inventory count at the close of business on October 31 reveals that $1,000 of supplies are still on hand.
Oct. 31
Supplies Expense
1,500
Supplies
1,500
($2,500 – 1,000 = $1,500)
Illustration 4-6 (Partial)
LO 4 Prepare adjusting entries for deferrals.

26. Adjusting Entries for “Prepaid Expenses”
Illustration: On October 4, Sierra Corporation paid $600 for a one-year fire insurance policy. Coverage began on October 1. Sierra recorded the payment by increasing (debiting) Prepaid Insurance. This account shows a balance of $600 in the October 31 trial balance. Insurance of $50 ($600 ÷ 12) expires each month.
Oct. 31
Insurance Expense 50
Prepaid Insurance 50
Illustration 4-7 (Partial)
LO 4 Prepare adjusting entries for deferrals.

27. Adjusting Entries for “Prepaid Expenses”
Depreciation
Buildings, equipment, and motor vehicles (long-lived assets) are recorded as assets, rather than an expense, in the year acquired.
Companies report a portion of the cost of a long-lived asset as an expense (depreciation) during each period of the asset’s useful life.
Depreciation does not attempt to report the actual change in the value of the asset.
LO 4 Prepare adjusting entries for deferrals.

28. Adjusting Entries for “Prepaid Expenses”
Illustration: For Sierra Corporation, assume that depreciation on the office equipment is $480 a year, or $40 per month.
Oct. 31
Depreciation Expense 40
Accumulated Depreciation-Equipment 40
Illustration 4-8 (Partial)
LO 4 Prepare adjusting entries for deferrals.

29. Adjusting Entries for “Prepaid Expenses”
Statement Presentation
Accumulated Depreciation- Equipment is a contra asset account.
Appears just after the account it offsets (Equipment) on the balance sheet.
Illustration 4-9
LO 4 Prepare adjusting entries for deferrals.

30. Adjusting Entries for “Prepaid Expenses”
Summary
Illustration 4-10
LO 4 Prepare adjusting entries for deferrals.

31. Adjusting Entries for “Unearned Revenues”
Receipt of cash recorded as a liability before services are performed.
Cash Receipt
Revenue Recorded
BEFORE
Unearned revenues often occur in regard to:
rent
airline tickets
magazine subscriptions
customer deposits
LO 4 Prepare adjusting entries for deferrals.

32. Adjusting Entries for “Unearned Revenues”
Adjusting entry to record the revenue that has been earned and to show the liability that remains.
Adjusting entry results in a decrease (a debit) to a liability account and an increase (a credit) to a revenue account.
LO 4 Prepare adjusting entries for deferrals.

33. Adjusting Entries for “Unearned Revenues”
Illustration 4-11
Decrease (a debit) to a liability account and
Increase (a credit) to a revenue account.
LO 4 Prepare adjusting entries for deferrals.

34. Adjusting Entries for “Unearned Revenues”
Illustration: Sierra Corporation received $1,200 on October 2 from R. Knox for guide services for multi-day trips expected to be completed by December 31. Unearned Service Revenue shows a balance of $1,200 in the October 31 trial balance. From an evaluation of the service Sierra performed for Knox during October, the company determines that it has earned $400 in October.
Oct. 31
Unearned Service Revenue
400
Service Revenue
400
Illustration 4-12 (Partial)
LO 4 Prepare adjusting entries for deferrals.

35. ACCOUNTING FOR UNEARNED REVENUES
Adjusting Entries for “Unearned Revenues”
Summary
Illustration 4-13
ACCOUNTING FOR UNEARNED REVENUES
Reason for
Adjustment
Accounts Before
Adjustment
Adjusting
Entry
Examples
Rent, magazine subscriptions, customer deposits for future service
Unearned Revenues recorded in liability accounts are now recognized as revenue for services performed
Liabilities overstated.
Revenues understated.
Dr. Liabilities
Cr. Revenues
LO 4 Prepare adjusting entries for deferrals.

37. Adjusting Entries for Accruals
Made to record:
Revenues earned and OR
Expenses incurred
in the current accounting period that have not been recognized through daily entries.
LO 5 Prepare adjusting entries for accruals.

38. Adjusting Entries for “Accrued Revenues”
Revenues for services performed but not yet received in cash or recorded.
Adjusting entry results in:
Revenue Recorded
Cash Receipt
BEFORE
Accrued revenues often occur in regard to:
rent
interest
services performed
LO 5 Prepare adjusting entries for accruals.

39. Adjusting Entries for “Accrued Revenues”
An adjusting entry serves two purposes:
(1) Shows the receivable that exists, and
(2) Records the revenues for services performed.
LO 5 Prepare adjusting entries for accruals.

40. Adjusting Entries for “Accrued Revenues”
Illustration 4-14
Increases (debits) an asset account and
Increases (credits) a revenue account.
LO 5 Prepare adjusting entries for accruals.

41. Adjusting Entries for “Accrued Revenues”
Illustration: In October, Sierra Corporation performed guide services for $200 that were not billed to clients before October 31.
Oct. 31
Accounts Receivable
200
Service Revenue
200
Illustration 4-15
LO 5 Prepare adjusting entries for accruals.

42. ACCOUNTING FOR ACCRUED REVENUES
Adjusting Entries for “Accrued Revenues”
Summary
Illustration 4-16
Illustration 4-16
ACCOUNTING FOR ACCRUED REVENUES
Reason for
Adjustment
Accounts Before
Adjustment
Adjusting
Entry
Examples
Interest, rent, services performed but not collected
Services performed but not yet received in cash or recorded
Assets understated.
Revenues understated.
Dr. Assets
Cr. Revenues
LO 5 Prepare adjusting entries for accruals.

43. Adjusting Entries for “Accrued Expenses”
Expenses incurred but not yet paid in cash or recorded.
Adjusting entry results in:
Expense Recorded
Cash Payment
BEFORE
Accrued expenses often occur in regard to:
rent
interest
taxes
salaries
LO 5 Prepare adjusting entries for accruals.

44. Adjusting Entries for “Accrued Expenses”
An adjusting entry serves two purposes:
(1) Records the obligations, and
(2) Recognizes the expenses.
LO 5 Prepare adjusting entries for accruals.

45. Adjusting Entries for “Accrued Expenses”
Illustration 4-17
Increases (debits) an expense account and
Increases (credits) a liability account.
LO 5 Prepare adjusting entries for accruals.

46. Adjusting Entries for “Accrued Expenses”
Illustration: Sierra Corporation signed a three-month note payable in the amount of $5,000 on October 1. The note requires Sierra to pay interest at an annual rate of 12%.
Illustration 4-18
Oct. 31
Interest Expense 50
Interest Payable 50
Illustration 4-19 (Partial)
LO 5 Prepare adjusting entries for accruals.

48. Adjusting Entries for “Accrued Expenses”
Illustration: Sierra Corporation last paid salaries on October 26; the next payment of salaries will not occur until November 9. The employees receive total salaries of $2,000 for a five-day work week, or $400 per day. Thus, accrued salaries at October 31 are $1,200 ($400 × 3 days).
Illustration 4-20
LO 5 Prepare adjusting entries for accruals.

49. Adjusting Entries for “Accrued Expenses”
Illustration: Sierra Corporation last paid salaries on October 26; the next payment of salaries will not occur until November 9. The employees receive total salaries of $2,000 for a five-day work week, or $400 per day. Thus, accrued salaries at October 31 are $1,200 ($400 x 3 days).
Oct. 31
Salaries and Wages Expense
1,200
Salaries and Wages Payable
1,200
Illustration 4-21
LO 5 Prepare adjusting entries for accruals.

50. Adjusting Entries for “Accrued Expenses”
Summary
Illustration 4-22
LO 5 Prepare adjusting entries for accruals.

51. Summary of Basic Relationships
Illustration 4-23
Summary of adjusting entries
LO 5 Prepare adjusting entries for accruals.

52. The Adjusted Trial Balance
After all adjusting entries are journalized and posted the company prepares another trial balance from the ledger accounts (Adjusted Trial Balance).
The adjusted trial balance’s purpose is to prove the equality of debit balances and credit balances in the ledger.
The adjusted trial balance is the primary basis for the preparation of the financial statements.
LO 6 Describe the nature and purpose of the adjusted trial balance.

53. The Adjusted Trial Balance
Illustration 4-26
Adjusted trial balance
LO 6

54. The Adjusted Trial Balance
Review Question
Which of the following statements is incorrect concerning the adjusted trial balance?
An adjusted trial balance proves the equality of the total debit balances and the total credit balances in the ledger after all adjustments are made.
The adjusted trial balance provides the primary basis for the preparation of financial statements.
The adjusted trial balance lists the account balances segregated by assets and liabilities.
The adjusted trial balance is prepared after the adjusting entries have been journalized and posted.
LO 6 Describe the nature and purpose of the adjusted trial balance.

55. Preparing Financial Statements
Financial statements are prepared directly from the Adjusted Trial Balance.
Income Statement
Retained Earnings Statement
Balance Sheet
LO 6 Describe the nature and purpose of the adjusted trial balance.

56. Preparing Financial Statements
Illustration 4-27
Tell students to look at the date on the income statement in Illustration The date is “For the Month Ending October 31, 2014.” How can one be sure the revenues and expenses reported on the income statement are just for that period? Closing entries transfer the temporary account balances to the stockholders’ equity account and reduce the balances in the temporary accounts to zero. Therefore, at the beginning of the period the temporary accounts have a balance of zero and the revenues and expenses accumulated are for that particular period.

57. Preparing Financial Statements
Illustration 4-28

58. Quality of Earnings
Quality of Earnings – company provides full and transparent information.
Earnings Management - the planned timing of revenues, expenses, gains, and losses to smooth out bumps in net income. Companies may manage earnings by:
one-time items to prop up earnings numbers.
inflate revenue numbers in the short-run.
improper adjusting entries.
As a result of the Sarbanes-Oxley Act, many companies are trying to improve the quality of their financial reporting.
LO 6 Describe the nature and purpose of the adjusted trial balance.

59. Closing the Books
At the end of the accounting period, companies transfer the temporary account balances to the permanent stockholders’ equity account—Retained Earnings.
Illustration 4-29
LO 7 Explain the purpose of closing entries.

60. Closing the Books
In addition to updating Retained Earnings to its correct ending balance, closing entries produce a zero balance in each temporary account.
Illustration 4-30
LO 7 Explain the purpose of closing entries.

61. Closing the Books
2014
Illustration 4-31

62. Closing the Books LO 7 Explain the purpose of closing entries.
Illustration 4-32
Posting of closing entries
LO 7 Explain the purpose of closing entries.

63. Preparing a Post-Closing Trial Balance
The purpose of the post-closing trial balance is to prove the equality of the permanent account balances that the company carries forward into the next accounting period.
All temporary accounts will have zero balances.
LO 7 Explain the purpose of closing entries.

64. Summary of the Accounting Cycle
Illustration 4-33
Required steps in the
accounting cycle
1. Analyze business transactions
9. Prepare a post-closing trial balance
2. Journalize the transactions
8. Journalize and post closing entries
3. Post to ledger accounts
7. Prepare financial statements
4. Prepare a trial balance
6. Prepare an adjusted trial balance
Journalize and post adjusting entries:
Deferrals/Accruals
LO 8 Describe the required steps in the accounting cycle.

65. Keep an Eye on Cash
Sierra Corporation’s income statement shows net income of $2,860. Net income and net cash provided by operating activities often differ.
Net income on a cash basis is referred to as “Net cash provided by operating activities.”
The statement of cash flows, reports net cash provided by operating activities.
Illustration 4-27
LO 9 Understand the causes of differences between net income and cash provided by operating activities.

66. Keep an Eye on Cash
The difference for Sierra is $2,840 ($5,700 - $2,860). The following summary shows the causes of this difference.
LO 9

67. Appendix 4A Adjusting Entries in an Automated World— Using a Worksheet
Trial Balance – Each account is analyzed to determine whether it is complete and up-to-date.
Illustration 4-4

68. Steps in Preparing a Worksheet
1. Prepare a Trial Balance on the Worksheet
Illustration 4A-1
LO 10 Describe the purpose and the basic form of a worksheet.

69. Steps in Preparing a Worksheet
1. Prepare a Trial Balance on the Worksheet
Illustration 4A-1
Trial balance amounts come directly from ledger accounts.
Include all accounts with balances.
LO 10 Describe the purpose and the basic form of a worksheet.

70. Adjusting Journal Entries
Using a Worksheet
Illustration 4-24
General journal showing adjusting entries
2012
Adjusting Journal Entries

71. Steps in Preparing a Worksheet
2. Enter the Adjustments in the Adjustments Columns
(a)
(b)
Adjustments Key:
(a) Supplies Used.
(b) Insurance Expired.
(c) Depreciation Expensed.
(d) Service Revenue Earned.
(e) Service Revenue Accrued.
(f) Interest Accrued.
(g) Salaries Accrued.
(d)
(d)
(e)
(g)
(a)
(b)
(c)
(c)
(e)
Enter adjustment amounts, total adjustments columns,
and check for equality.
(f)
(f)
(g)
Add additional accounts as needed.
LO 10 Describe the purpose and the basic form of a worksheet.

72. Total the adjusted trial balance columns and check for equality.
Steps in Preparing a Worksheet
3. Complete the Adjusted Trial Balance Columns
(a)
(b)
(d)
(d)
(e)
(g)
(a)
(b)
(c)
(c)
(e)
(f)
(f)
(g)
Total the adjusted trial balance columns and check for equality.
LO 10 Describe the purpose and the basic form of a worksheet.

73. Steps in Preparing a Worksheet
4. Extend Amounts to Financial Statement Columns
(a)
(b)
(d)
(d)
(e)
(g)
(a)
(b)
(c)
(c)
(e)
(f)
(f)
(g)
Extend all revenue and expense account balances to the income statement columns.
LO 10

74. Compute Net Income or Net Loss.
Steps in Preparing a Worksheet
5. Total Columns, Compute Net Income (Loss)
(a)
(b)
(d)
(d)
(e)
(g)
(a)
(b)
(c)
(c)
(e)
(f)
(f)
(g)
Compute Net Income or Net Loss.
LO 10

75. Key Points Companies applying IFRS use accrual-basis accounting.
Similar to GAAP, cash-basis accounting is not in accordance with IFRS.
IFRS also divides the economic life of companies into artificial time periods. Under both GAAP and IFRS, this is referred to as the periodicity assumption.
IFRS requires that companies present a complete set of financial statements, including comparative information annually.
LO 11 Compare the procedures for revenue recognition under GAAP and IFRS.

76. Key Points
GAAP has more than 100 rules dealing with revenue recognition. In contrast, revenue recognition under IFRS is determined primarily by a single standard.
Revenue recognition fraud is a major issue in U.S. financial reporting. The same situation occurs in other countries, as evidenced by revenue recognition breakdowns at Dutch software company Baan NV, Japanese electronics giant NEC, and Dutch grocer AHold NV.
LO 11 Compare the procedures for revenue recognition under GAAP and IFRS.

77. Key Points
A specific standard exists for revenue recognition under IFRS (IAS 18). In general, the standard is based on the probability that the economic benefits associated with the transaction will flow to the company selling the goods, providing the service, or receiving investment income. In addition, the revenues and costs must be capable of being measured reliably. GAAP uses concepts such as realized, realizable (that is, it is received, or expected to be received), and earned as a basis for revenue recognition.
Under IFRS, revaluation of items such as land and buildings is permitted. IFRS allows depreciation based on revaluation of assets, which is not permitted under GAAP.
LO 11 Compare the procedures for revenue recognition under GAAP and IFRS.

78. Key Points
The terminology used for revenues and gains, and expenses and losses, differs somewhat between IFRS and GAAP. For example, income is defined as:
Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from shareholders.
LO 11 Compare the procedures for revenue recognition under GAAP and IFRS.

79. Key Points
Income includes both revenues, which arise during the normal course of operating activities, and gains, which arise from activities outside of the normal sales of goods and services. Instead, under GAAP income refers to the net difference between revenues and expenses. Expenses are defined as: Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity other than those relating to distributions to shareholders.
Procedures of the closing process are applicable to all companies whether they are using IFRS or GAAP.
LO 11 Compare the procedures for revenue recognition under GAAP and IFRS.

80. Looking to the Future
The IASB and FASB are now involved in a joint project on revenue recognition. The purpose of this project is to develop comprehensive guidance on when to recognize revenue. Presently, the Boards are considering an approach that focuses on changes in assets and liabilities (rather than on earned and realized) as the basis for revenue recognition. It is hoped that this approach will lead to more consistent accounting in this area. For more on this topic, see
LO 11 Compare the procedures for revenue recognition under GAAP and IFRS.

81. IFRS Practice Which of the following statements is false?
IFRS employs the periodicity assumption.
IFRS employs accrual accounting.
IFRS requires that revenues and costs must be capable of being measured reliably.
IFRS uses the cash basis of accounting.
LO 11 Compare the procedures for revenue recognition under GAAP and IFRS.

82. IFRS Practice
As a result of the revenue recognition project being undertaken by the FASB and IASB:
revenue recognition will place more emphasis on when revenue is earned.
revenue recognition will place more emphasis on when revenue is realized.
revenue recognition will place more emphasis on when changes occur in assets and liabilities.
revenue will no longer be recorded unless cash has been received.
LO 11

83. IFRS Practice Accrual-basis accounting: is optional under IFRS.
results in companies recording transactions that change a company’s financial statements in the period in which events occur.
will likely be eliminated as a result of the IASB/FASB joint project on revenue recognition.
is not consistent with the IASB conceptual framework.
LO 11 Compare the procedures for revenue recognition under GAAP and IFRS.

84. Copyright
“Copyright © 2013 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.”