Financial and Managerial Accounting eBook

Welcome to the Fourth Edition of Financial Accounting and, to adopters of the earlier editions, thank you for the great success those editions have enjoyed. We wrote this book to equip students with the accounting techniques and insights necessary to succeed in today's business environment.

It reflects our combined experience in teaching financial accounting to college students at all levels. For anyone who pursues a career in business, the ability to read, analyze, and interpret published financial reports is an essential skill. Financial Accounting is written for future business leaders who want to understand how financial statements are prepared and how the information in published financial reports is used by investors, creditors, financial analysts, and managers. Our goal is to provide the most engaging, relevant, and accessible textbook available.

Financial Accounting is intended for use in the first financial accounting course at either the undergraduate or graduate level; one that balances the preparation of financial statements with their analysis and interpretation. This book accommodates mini-courses lasting only a few days as well as extended courses lasting a full semester.

Financial Accounting is real-world oriented and focuses on the most salient aspects of accounting. It teaches students how to read, analyze, and interpret financial accounting data to make informed business decisions. To that end, it consistently incorporates real company data, both in the body of each chapter and throughout the assignment material.

New to the 4th Edition

• Chapter 4 on the statement of Cash Flows has been rewritten with a direct method focus company, Golden Enterprises. The chapter has a greater focus on the direct method and a new approach to facilitate students understanding of the adjustments needed for the indirect method.
• We have expanded the discussion of International Financial Reporting Standards (IFRS) and incorporated Global Perspective boxes throughout the text to introduce students to the similarities and differences between U.S. GAAP and iFrs.
• The Analyzing Financial statements sections of chapters have been expanded and now conform to a consistent presentation throughout the text.
• The real company data throughout the book has been updated to reflect the most current financial statements available at the time of publication.
• Golden enterprises replaces Walgreens as the focus company in Chapter 4, and Chapter 10 features Delta Air lines instead of American Airlines.
• The third edition introduced the financial calculator in Chapters 9 and 10 and Appendix A.