About the book

Coverage of the latest accounting trends and issues

· NEW! Discussion on:

o Why accounting is important to non-accounting majors;

o How to calculate interest for notes receivable and payable;

o How sensitivity analysis can be used and the differences between predicted cost behavior versus actual management behavior;

o Credit card sales;

o Future value, including determining the future value of a lump sum and of an annuity; and

o Types of budgets, including participative, zero-based, and continuous ones.

· UPDATED! and REVISED! Coverage on/presentation of:

o Managerial accounting to include the manager’s role in the organization and managerial accounting functions;

o How companies classify costs used in managerial accounting;

o Manufacturing cost flows, including a better explanation of how cost of goods manufactured and sold are calculated;

o Business trends affecting managerial accounting;

o Cost accounting systems, including why companies choose either process or job-order costing;

o The allocation and adjustment of manufacturing overhead;

o Equivalent units of production;

o Preparing a production cost report for the first department that realistically reflects beginning inventory;

o How the weighted-average method is different than the FIFO method when preparing the production cost report;

o How service companies can use activity-based management;

o The high-low method when determining a company’s variable and fixed costs;

o The differences between absorption and variable costing and the impact on operating income;

o The benefits of budgets, including benchmarking; and

o Performance reports using static budgets, including the advantages and disadvantages.

· NEW! Problem has students complete a trend analysis and ratios to analyze a company for its investment potential.

· NEW! Section to illustrate how companies record the payment of payroll liabilities.

· NEW! Appendix (5A) discusses multiple performance obligations.

Integrate pedagogy with concepts and practical applications

· NEW! Using Excel. This end-of-chapter problem introduces students to Excel to solve common accounting problems as they would in the business environment.

· NEW! Tying It All Together feature ties together key concepts from the chapter using the company highlighted in the chapter opener. The in-chapter box feature presents scenarios and questions that the company could face and focuses on the decision-making process. The end-of-chapter business case helps students synthesize the concepts of the chapter and reinforce critical thinking.

· NEW! A Continuing Problem starts in Chapter 1 and runs through the financial chapters. The managerial chapters’ continuing problem has been revised for this edition and emphasizes the relevant topics for that chapter using a continuous company.

· Effects on the Accounting Equation illustrations help students see connections between transactions, as well as how transactions fit into the big picture. Located next to every journal entry, they reinforce the connections between recording a transaction and the effect those transactions have on the accounting equation.

· Instructor Tips & Tricks throughout the text mimic the experience of having an experienced teacher walk a student through concepts on the board. Many include mnemonic devices or examples to help students remember the rules of accounting.

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About the book

Coverage of the latest accounting trends and issues

· Discussion on:

o Why accounting is important to non-accounting majors;

o How to calculate interest for notes receivable and payable;

o How sensitivity analysis can be used and the differences between predicted cost behavior versus actual management behavior;

o Credit card sales;

o Future value, including determining the future value of a lump sum and of an annuity; and

o Types of budgets, including participative, zero-based, and continuous ones.

· Coverage on/presentation of:

o Managerial accounting to include the manager’s role in the organization and managerial accounting functions;

o How companies classify costs used in managerial accounting;

o Manufacturing cost flows, including a better explanation of how cost of goods manufactured and sold are calculated;

o Business trends affecting managerial accounting;

o Cost accounting systems, including why companies choose either process or job-order costing;

o The allocation and adjustment of manufacturing overhead;

o Equivalent units of production;

o Preparing a production cost report for the first department that realistically reflects beginning inventory;

o How the weighted-average method is different than the FIFO method when preparing the production cost report;

o How service companies can use activity-based management;

o The high-low method when determining a company’s variable and fixed costs;

o The differences between absorption and variable costing and the impact on operating income;

o The benefits of budgets, including benchmarking; and

o Performance reports using static budgets, including the advantages and disadvantages.

· Problem has students complete a trend analysis and ratios to analyze a company for its investment potential.

· Section to illustrate how companies record the payment of payroll liabilities.

· Appendix (5A) discusses multiple performance obligations.

Integrate pedagogy with concepts and practical applications

· Using Excel. This end-of-chapter problem introduces students to Excel to solve common accounting problems as they would in the business environment.

· Tying It All Together feature ties together key concepts from the chapter using the company highlighted in the chapter opener. The in-chapter box feature presents scenarios and questions that the company could face and focuses on the decision-making process. The end-of-chapter business case helps students synthesize the concepts of the chapter and reinforce critical thinking.

· A Continuing Problem starts in Chapter 1 and runs through the financial chapters. The managerial chapters’ continuing problem has been revised for this edition and emphasizes the relevant topics for that chapter using a continuous company.

Also available with Pearson MyLab Accounting

Pearson MyLabTM Accounting is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.

· Accounting Cycle Tutorial. The Pearson MyLab Accounting interactive tutorial helps students master the Accounting Cycle for early and continued success in the Introduction to Accounting course. The tutorial, accessed by computer, smartpho