Accounting: With Supplement

by Horngren, Charles T; Harrison, Walter T; Bamber, Linda Smith

• ISBN13: 9780138486723
• ISBN10: 0138486727
• Edition: 4th
• Format: Hardcover
• Copyright: 1998-10-01
• Publisher: Pearson College Div

Summary

The Demo Docs System of instruction replicates the classroom experience by providing more "I get it" moments outside of class.We've talked to tons of POA instructors and our editors have even taken the accounting course (numerous times!) to figure out the following issue in this course that is consistent: & Students understand (or "get it") right after you do a problem in class, but as soon as they leave class, with each passing hour, their ability to do the problems again and complete their homework diminishes to the point of them either having to come to office hours to get help, or they just quit and get behind in the course.& On top of this, you can end up getting behind in the course as well, in order to keep everyone on track.& The Demo Docs system helps to recreate the "I get it" moments outside of class-keeping both you and the students on track.

Table of Contents

1. ACCOUNTING AND THE BUSINESS ENVIRONMENT.

1. NEW: Speedbumps throughout (“Thinking It Over” and “Working It Out” ).
2. Prologue on Careers in Accounting.
3. Expanded focus on the statement of cash flows.

2. RECORDING BUSINESS TRANSACTIONS.

1. NEW: The accounting equation has been added to show the link between the journal entry and the ledger accounts, and moved from Chapter 1 to Chapter 2.

3. MEASURING BUSINESS INCOME: THE ADJUSTING PROCESS.

1. NEW: T-accounts now include accounting equation identifications such as assets, revenues, expenses and liabilities, helping students see the link between T-accounts and the accounting equation.
2. NEW material on adjusting entries.
3. NEW section on ethical issues in accrual accounting.

4. COMPLETING THE ACCOUNTING CYCLE.

1. NEW visuals for the work sheet.
2. NEW classified balance sheet given for the sole proprietorship running example.

5. MERCHANDISING OPERATIONS AND THE ACCOUNTING CYCLE.

1. Clear separation of the perpetual and the periodic accounting systems.
2. NEW visuals, speedbumps, and learning tips.
3. NEW: section on accrual accounting and cash flows for a merchandising entity.

6. ACCOUNTING INFORMATION SYSTEMS: SPECIAL JOURNALS, CONTROL ACCOUNTS, AND SUBSIDIARY LEDGERS.

1. Streamlined coverage of accounting systems.
2. NEW section on the general journal's in the accounting information system.
3. NEW coverage of the credit memorandum and the debit memorandum.

7. INTERNAL CONTROL, MANAGING CASH, AND MAKING ETHICAL JUDGMENTS.

1. NEW focus on controlling and managing cash.
2. NEW section on how owners and managers use the bank reconciliation.
3. NEW section on using a budget to manage cash.

8. ACCOUNTS AND NOTES RECEIVABLE.

1. Streamlined section on accounting for uncollectible receivables.
2. NEW exhibit on discounting a note receivable.
3. NEW section on reporting receivables transactions on the statement of cash flows.

9. ACCOUNTING FOR MERCHANDISE INVENTORY.

1. NEW section on cost of goods sold (cost of sales) and gross margin (gross profit).
2. NEW section on ethical issues in inventory accounting.
3. NEW section on reporting inventory transactions on the statement of cash flows.

10. ACCOUNTING FOR PLANT ASSETS, INTANGIBLE ASSETS, AND RELATED EXPENSES.

1. NEW section on capitalizing the cost of interest.
2. NEW section on research and development costs.
3. NEW section on ethical issues in accounting for plant assets and intangibles.
4. NEW section on reporting plant asset transactions on the statement of cash flows.

11. CURRENT LIABILITIES AND PAYROLL ACCOUNTING.

1. NEW coverage of accounting for notes payable issued at a discount.
2. NEW coverage of unearned revenues.
3. NEW summary of payroll liabilities.
4. NEW section on ethical issues in reporting current and contingent liabilities.

12. ACCOUNTING FOR PARTNERSHIPS.

1. NEW section on the different types of partnerships: general, limited, and S corporations.
2. NEW visuals throughout the chapter.
3. NEW “Working It Out” speedbumps to help students learn the material.

13. CORPORATE ORGANIZATION, PAID-IN CAPITAL, AND THE BALANCE SHEET.

1. NEW section on ethical considerations in accounting for the issuance of stock.
2. Streamlined coverage of accounting for income taxes by corporations.

14. RETAINED EARNINGS, TREASURY STOCK, AND THE INCOME STATEMENT.

1. NEW: Accounting equation added to help students learn that stock dividends and stock splits do not affect total stockholder's equity.
2. NEW section on reporting comprehensive income covers FASB Statement 130.
3. NEW section on reporting stockholders' equity transactions on the statement of cash flows.

15. LONG-TERM LIABILITIES.

1. NEW graphs show the movements of interest expense and bond carrying amount over the life of a bond issue. For these difficult concepts, a picture is truly worth a thousand words.
2. NEW section on reporting long-term liability transactions on the statement of cash flows.

16. ACCOUNTING FOR INVESTMENTS AND INTERNATIONAL OPERATIONS.

1. NEW section on short-term trading investments.
2. Moved section on preparing consolidated financial statements to an appendix.
3. NEW section on reporting comprehensive income.
4. NEW section on reporting investment transactions on the statement of cash flows.

17. PREPARING AND USING THE STATEMENT OF CASH FLOWS.

1. NEW coverage of how the statement of cash flows is prepared from the income statement plus the comparative balance sheet.
2. NEW computations to enhance the T-account approach.
3. Expanded coverage of the indirect method of reporting cash flows from operating activities.
4. NEW section on using cash-flow information in investment and credit analysis.

18. FINANCIAL STATEMENT ANALYSIS.

1. NEW section on benchmarking versus an industry average and benchmarking versus a key competitor.
2. NEW section on Economic Value Added.

19. INTRODUCTION TO MANAGEMENT ACCOUNTING.

1. The previous introductory chapter in the management accounting portion of the text has been split into two chapters, one an introductory chapter and the other on job costing. This allows for a quicker introduction to management accounting and a more intuitive treatment of job costing.
2. The Merchandising versus Manufacturing discussion throughout the chapter now includes Service companies as well.
3. NEW section in the second half of the chapter on the Modern Business Environment includes topics such as the Shift Towards a Service Economy, Competing in the Global Marketplace, and Quality.
4. NEW section on Ethics, with two dilemmas for students to solve and inclusion of the Standards of Ethical Conduct for Management Accountants.

20. JOB COSTING.

1. NEW as a stand-alone chapter, providing a more intuitive treatment of job costing.
2. NEW introductory section contrasts job costing and process costing using the making of picante sauce as a running example.
3. NEW Work-in-process T-account and explanation facilitates understanding of the disposition of underallocated or overallocated manufacturing overhead.

21. PROCESS COSTING.

1. NEW inclusion of time lines improves student understanding of process cost accounting and of the difference between FIFO and the Weighted Average methods.

22. COST-VOLUME-PROFIT ANALYSIS AND THE CONTRIBUTION MARGIN APPROACH TO DECISION MAKING.

1. Introductory section on types of costs rewritten with the Grand Canyon Railway as a running example. Fixed costs, variable costs, and mixed costs are differentiated more clearly.
2. NEW: The comparison of variable costing and absorption costing now shows how variable costing income is less subject to managerial manipulation than is absorption costing income.
3. Formulas highlighted to help student understanding and review.

23. THE MASTER BUDGET AND RESPONSIBILITY ACCOUNTING.

1. NEW section and running example on budgeting for a service company.
2. In the running example, the cash budget was moved up from the appendix and appears as a step in the construction of a budgeted statement of cash flows.
3. NEW section on the allocation of indirect costs to departments.

24. FLEXIBLE BUDGETS AND STANDARD COSTS.

1. Greater emphasis on the difference between the static budget variance, the sales volume variance, and the flexible budget variance.
2. More intuitive treatment of price and efficiency variances, with a NEW section on common pitfalls to avoid in price and efficiency variance computations.
3. Simplified overhead variance analysis.

25. ACTIVITY-BASED COSTING AND OTHER TOOLS FOR COST MANAGEMENT.

1. Previous five-page treatment on activity-bases costing has been expanded to cover the first half of the chapter.
2. NEW elements to the discussion of activity-based costing includes a running example, a constant contrasting of the traditional systems and an activity-based costing system, a discussion of when activity-based costing is most likely to pass the cost-benefit test, and a NEW section on warning signs that a cost-system may be broken.
3. The quality discussion has been deepened with numerical examples and related numerical assignment material.

26. SPECIAL BUSINESS DECISIONS AND CAPITAL BUDGETING.

1. NEW: Two themes are now woven through the shorter-term decisions covered in the first half of the chapter: relevant information and contribution margin approach. These themes tie the material together.
2. Chapter-opening example of the Deer Valley Ski Resort appears in the capital-budgeting part of the chapter.