Why This Course?
Remember your biology course in high school? Did you have one of those “invisible man” models (or maybe something more high-tech than that) that gave you the opportunity to look “inside” the human body? This accounting course offers something similar. To understand a business, you have to understand the financial insides of a business organization. An accounting course will help you understand the essential financial components of businesses. Whether you are looking at a large multinational company like Apple or Starbucks or a single-owner software consulting business or coffee shop, knowing the fundamentals of accounting will help you understand what is happening. As an employee, a manager, an investor, a business owner, or a director of your own personal finances—any of which roles you will have at some point in your life—you will make better decisions for having taken this course.
Why This Book?
Hundreds of thousands of students have used this textbook. Your instructor has chosen it for you because of its trusted reputation. The authors have worked hard to keep the book fresh, timely, and accurate. This textbook contains features to help you learn best, whatever your learning style. We invite you to browse through pages xxvi–xxx. These pages describe the main features you will find in this textbook and explain their purpose.
How To Succeed?
We’ve asked many students and many instructors whether there is a secret for success in this course. The nearly unanimous answer turns out to be not much of a secret: “Do the homework.” This is one course where doing is learning. The more time you spend on the homework assignments—using the various tools that this textbook provides—the more likely you are to learn the essential concepts, techniques, and methods of accounting. Besides the textbook itself, the book’s companion website also offers various support resources.
1 Introduction to Financial Statements 2
2 A Further Look at Financial Statements 46
3 The Accounting Information System 100
4 Accrual Accounting Concepts 162
5 Merchandising Operations and the
Multiple-Step Income Statement 228
6 Reporting and Analyzing Inventory 282
7 Fraud, Internal Control, and Cash 334
8 Reporting and Analyzing Receivables 396
9 Reporting and Analyzing Long-Lived Assets 446
10 Reporting and Analyzing Liabilities 504
11 Reporting and Analyzing Stockholders’ Equity 568
12 Statement of Cash Flows 624
13 Financial Analysis: The Big Picture 688
14 Managerial Accounting 752
15 Job Order Costing 798
16 Process Costing 844
17 Activity-Based Costing 894
18 Cost-Volume-Profit 944
19 Cost-Volume-Profit Analysis: Additional Issues 984
20 Incremental Analysis 1040
21 Budgetary Planning 1080
22 Budgetary Control and Responsibility Accounting 1132
23 Standard Costs and Balanced Scorecard 1192
24 Planning for Capital Investments 1244