• LINKS AND REFERENCES INTEGRATED THROUGHOUT EACH CHAPTER FEATURE THE REAL-WORLD COMPANY THAT OPENS THE CHAPTER. The real company highlighted at the beginning of each chapter is linked to material throughout the chapter, further emphasizing the practical application of accounting principles that students are learning. These links exemplify how the specific topic affects or is applied by the opening company.
• AUTHOR-WRITTEN END-OF-CHAPTER MATERIALS PROVIDE AN ACCURACY YOU AND YOUR STUDENTS CAN TRUST. The authors apply their vast teaching and business experience to developing and revising this edition’s end-of-chapter materials. In addition, all end-of-chapter content is verified by dedicated Subject Matter Experts to further ensure accuracy.
• REVENUE RECOGNITION STANDARD COVERAGE KEEPS STUDENTS UP TO DATE. The latest coverage of revenue recognition integrates content with the chapter's illustration of NetSolutions, a realistic retail business.
• ACCOUNTING EQUATIONS IN THE MARGIN CORRELATE TO SPECIFIC SECTIONS OF CHAPTER CONTENT. For each journal entry within a chapter, the accounting equation’s impact, positive or negative, on assets, liabilities, and stockholders’ equity appears in the margin.
• PRESENTATION STYLE APPEALS TO CONTEMPORARY LEARNERS. Built for today's students, this edition presents content in an appealing presentation style that reflects how the current generation of students reads and assimilates information. Short paragraphs, concise bullets, stepwise progression, and meaningful Illustrations and graphs engage students and ensure retention.
• SIMPLE-TO-COMPLEX STUDENT-FOCUSED LEARNING FEATURES ENSURE COMPREHENSION. The book’s authors integrate their own business experience and professional knowledge with input from leading accounting faculty. This edition presents a proven simple-to-complex pedagogy that facilitates student learning as readers progress through the text.
• AUTHORS EMPHASIZE ETHICS WITH FOCUS ON PRACTICAL APPROACH. Actual ethical situations related to the chapter’s topics are integrated throughout each chapter. In "Ethics: Do It" features, the situation illustrates a positive ethical response, while "Ethics: Don’t Do It" features demonstrate a negative ethical response.
• IMPROVED DISCUSSION CLEARLY EXPLAINS THE NET AND GROSS METHODS IN CHAPTER 5. This presentation helps students better understand both the Net Method consistent with the revenue recognition standard, and the more complex Gross Method that many small businesses may still utilize. Differences between the two methods are illustrated. The authors also expose students to new accounts that they will see throughout the chapter, and the distinctions between a service and retail business.
• UPDATED CHAPTER 4 CONTENT CLARIFIES THE CLOSING PROCESS. The Closing Entry Process now uses two closing entries, rather than four, for consistency with today’s computerized accounting systems. The first closing entry closes revenues and expenses (net income or loss) to retained earnings. The second closing entry does not change and closes the dividends account to retained earnings. The temporary account, Income Summary, is no longer used, which simplifies the process. In addition, the first closing entry is similar to the income statement, which students prepare before the closing process.

• New PATHWAYS CHALLENGES PROMPT INTEREST AND HIGHLIGHT CRITICAL THINKING. A Pathways Challenge in each chapter encourages student interest in accounting and emphasizes the critical thinking aspects of accounting. A suggested answer to the Pathways Challenge is provided at the end of the chapter. This feature corresponds with the Pathways Commission's recommendations included in Charting a National Strategy for the Next Generation of Accountants.

1. Introduction to Accounting and Business.

2. Analyzing Transactions.

3. The Adjusting Process.

4. The Accounting Cycle.

5. Accounting for Retail Businesses.

6. Inventories.

7. Internal Control and Cash.

8. Receivables.

9. Long-Term Assets: Fixed and Intangible.

10. Liabilities: Current, Installment Notes, and Contingencies.

11. Liabilities: Bonds Payable.

12. Corporations: Organization, Stock Transactions, and Dividends.

13. Statement of Cash Flows.

14. Financial Statement Analysis.

15. Introduction to Managerial Accounting.

16. Job Order Costing.

17. Process Cost Systems.

18. Activity-Based Costing.

19. Support Department and Joint Cost Allocation.

20. Cost-Volume-Profit Analysis.

21. Variable Costing for Management Analysis.

22. Budgeting.

23. Evaluating Variances from Standard Costs.

24. Evaluating Decentralized Operations.

25. Differential Analysis and Product Pricing.

26. Capital Investment Analysis.

27. Lean Manufacturing and Activity Analysis.

28. The Balanced Scorecard and Corporate Social Responsibility.

Appendix A: Interest Tables.

Appendix B: Revenue Recognition.

Appendix C: International Financial Reporting Standards.

Appendix D: Investments.

Appendix E: Nike Inc., Form 10-K for the Fiscal Year Ended May 31, 2017.

Glossary.

Index.

Dr. Carl S. Warren

Dr. Carl S. Warren is professor emeritus of accounting at the University of Georgia, Athens. For more than 25 years, Dr. Warren has taught all levels of accounting courses with a primary focus on introductory of accounting and auditing. Dr. Warren has taught classes at the University of Iowa, Michigan State University and the University of Chicago. He received his Ph.D. from Michigan State University and his B.A.A. and M.A. from the University of Iowa. During his career, Dr. 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 and Theory. Dr. Warren’s outside interests include handball, backpacking, skiing, hiking, fly-fishing and golf. He also spends as much time as possible visiting with his five grandchildren (two sets of twins). Dr. Warren resides in Bozeman, Montana.

Dr. Jefferson P. Jones

Dr. Jefferson P. Jones is an associate professor of accounting in the school of accountancy at Auburn University, where he teaches financial accounting and applied financial research courses. He received his B.A. and M.A. degrees from Auburn University and his Ph.D. from Florida State University. Dr. Jones has received numerous teaching awards, including the Auburn University Beta Alpha Psi Outstanding Teaching Award (eleven times), the Auburn University Outstanding Master of Accountancy Professor Teaching Award (five times), the Auburn University Outstanding Distance Master of Accountancy Teaching Award (three times) and the Auburn University College of Business McCartney Teaching Award. In addition, he has made numerous presentations around the country on research and pedagogical issues. Dr. Jones has public accounting experience as an auditor with Deloitte and Touche; holds a C.P.A. certificate in the state of Alabama (inactive). He is a member of the American Accounting Association, the American Institute of Certified Public Accountants (AICPA) and the Alabama Society of CPAs (ASCPA). His research interests focus on financial accounting, specifically investigating the quality of reported accounting information and accounting education. He has published articles in numerous journals, including Advances in Accounting, Review of Quantitative Finance and Accounting, Issues in Accounting Education, International Journal of Forecasting and The CPA Journal. When not at work, Dr. Jones enjoys playing golf and watching college football.

Dr. William B. Tayler

Dr. William B. Tayler is the Robert J. Smith Professor of Accountancy in the Marriott School of Business at Brigham Young University (BYU). Dr. Tayler is an internationally renowned, award-winning accounting teacher and researcher. He has presented his work as an invited speaker at universities and conferences across the globe. Dr. Tayler earned a Ph.D. and a master’s degree at Cornell University, and a master’s and an undergraduate degree at Brigham Young University, graduating with honors. He teaches in BYU’s Executive M.B.A. Program and in BYU’s School of Accountancy, one of the top-ranked accounting programs in the world. Dr. Tayler has also taught at Cornell University and Emory University and has received multiple teaching awards. Dr. Tayler is a Certified Management Accountant and a consultant specializing in cost accounting, performance measurement, and incentive compensation. His work has been published in top journals, including Accounting Horizons, Accounting, Organizations and Society, The Accounting Review, Contemporary Accounting Research, Harvard Business Review, IMA Educational Case Journal, Journal of the American Medical Association-Internal Medicine, Journal of Accounting Research, Journal of Behavioral Finance, Journal of Finance, Journal of General Internal Medicine, Journal of Management Accounting Research, Review of Financial Studies and Strategic Finance. Dr. Tayler serves as an editor for Behavioral Research in Accounting and is on the editorial boards of The Accounting Review, Management Accounting Research and Accounting, Organizations and Society. He is also director of the Institute of Management Accountants Research Foundation.