Introduction to Financial Accounting : A User Perspective

by Werner, Michael L.; Jones, Kumen H.

• ISBN13: 9780130327598
• ISBN10: 013032759X
• Edition: 3rd
• Format: Hardcover
• Copyright: 2003-05-13
• Publisher: Prentice Hall

Summary

Mike Werner and Kumen Jones have crafted an exciting series of texts designed to meet the needs of those faculty and students who are eager to embrace a user perspective in first-year accounting. Introduction to Financial Accounting: A User Perspective, Third Edition, covers the essential topics of financial accounting. Rather than rote memorization, the text first introduces a concept framework that emphasizes understanding of how all employees use accounting information to make effective business decisions. Additional features include: bull; bull;Optional Treatment of Debits and Credits. Starting with Chapter 7, the authors include optional appendices on debits and credits at the ends of chapters to complement the material in stand-alone Chapter 6, "Accumulating Accounting Data." This material may be included or omitted at the discretion of each faculty member. bull;Annual Report Project Included in Assignment Material. Faculty members can tailor the project to suit their needs by assigning all of it or selected parts. bull;NEW-Fewer Chapters. The financial portion of the text is now only 11 chapters. (Chapters 3 and 4 from the second edition are combined into a single Chapter 3 on the balance sheet.) bull;NEW-Distinctive Presentation of Accounting Procedures (Chapter 6). Part I describes each step of the accounting cycle. Part II introduces debits and credits and demonstrates each accounting cycle step from journalizing transactions to closing entries. bull;NEW-Integration of Financial Topics. Statement of Cash Flows and Key Financial Ratios are introduced now in Chapter 3 and are integrated throughout the text where appropriate. bull; bull;In-depth coverage of the direct method of the statement of cash flows is moved to an appendix. bull;Financial statement analysis chapter presents charts for each of the 17 ratios calculated for Pier 1 Imports and two peer companies. Also available Introduction to Management Accounting: A User Perspective, Second Edition, maintains the authors' well-received user approach and places a high emphasis on decision making. Other unique features include: bull; bull;NEW-Separate Chapter on Cost Allocation and ABC (Chapter 4). bull;User-Driven Approach to Cost Behavior (Chapters 5 and 6). bull;Unique Chapter on Evaluating Performance (Chapter 11) discusses evaluation methods; centralized and decentralized management styles, business segments, return on investment and residual income; nonfinancial measures, such as quality, customer satisfaction, employee morale, employee safety, efficiency, and just-in-time philosophy. bull;Distinctive Presentation of the Operating Budget (Chapter 9). Part I describes the importance and uses of the operating budget and compares/contrasts various approaches to preparation. Part II shows step-by-step preparation of the budgets that comprise the operating budget and details the use of the operating budget in the overall management process. Of course, if you want the best of both books, then Introduction to Accounting: A User Perspective, Second Edition, is the best solution because this single volume contains the full versions of both Introduction to Financial Accounting: A User Perspective, Third Edition, and Introduction to Management Accou

Table of Contents

Introduction To Business In The United States

Introduction To Decision Making

Economic Decision Making And Useful Accounting Information

Tools Of The Trade

The Balance Sheet: Initial Financing-Investment Buy Owners

The Balance Sheet (Continued): Additional Financing- Borrowing From Others

Tools Of The Trade

Income Statement And Statement Of Owners' Equity

Keeping Score: Bases of Economic Measurement

Challenging Issues Under Accrual Accounting: Long-Lived Depreciable Assets-A Close Look

Challenging Issues Under Accrual Accounting: Merchandise Inventory And Cost Of Goods Sold

The Balance Sheet And Income Statement: A Closer Look

Tools Of The Trade

The Statement Of Cash Flows: Bringing The Focus Back To Cash

Generally Accepted Accounting Principles And Forms Of Outside Assurance On Financial Statements

Financial Reporting: The Annual Report And The Form 10-K

Financial Statement Analysis

Appendix

Glossary

Index

Table of Contents provided by Publisher. All Rights Reserved.

Excerpts

The world is changing, accounting education is changing, and so are accounting textbooks. Our book is no exception. In this edition, we have incorporated a number of changes that we believe will make this book an even better teaching resource than previous editions. In addition to rewriting much of the material for improved clarity, we have integrated coverage of the statement of cash flows and key financial ratios throughout the text. We also consolidated the two balance sheet chapters into one. In this edition, we added significantly to the assignment material and improved its alignment with the topics covered in each chapter. We have revised the chapter opening vignettes to increase student interest and to suggest the need for the accounting applications covered in the chapters. You will find that these changes, along with many others, help make this text an easy-to-use tool to teach beginning accounting students. BASIC PHILOSOPHYBusinesspeople must be prepared to perform tasks that onlypeoplecan perform; in particular, they must be able to communicate, to think, and to make solid, well-informed decisions. Decision making isthecritical skill in today's business world, andIntroduction to Financial Accounting: A User Perspective, Third Edition,helps students to better use accounting information to improve their decision making skills.This text provides an introduction to accounting within the context of business and business decisions. Readers will explore accounting information's role in the decision making process and learn how to use the accounting information found in financial statements and annual reports. Seeing how accounting information can be used to make better business decisions will benefit all students, regardless of their major course of study or chosen career.We agree with the recommendations made by the Accounting Education Change Commission in its Position Statement No. Two: The First Course in Accounting. We believe the course should be a broad introduction to accounting, rather than introductory accounting as it has traditionally been taught. It should emphasize what accounting information is, why it is important, and how it is used by economic decision makers.This text is purposely written so students will find it easy to read and understand. In this edition, many passages have been rewritten to further enhance readability and student understanding. In addition; we include the exhibits necessary to get important points across, but we very intentionally do not include the array of glitz and graphics that can break up the flow and distract student attention. We do not generally segregate material into special presentation boxes that might be skipped by students attempting to focus on the most relevant points. All of the points of interest and examples we present are woven into the body of the text. SUPPORT FOR THE INTERACTIVE CLASSROOMWe believe this text provides tools to actively involve students in their learning processes. The conversational tone of the text, its user perspective, and the logical presentation of topics all contribute to the ability of this text to meet that goal. However, several features are particularly important in developing a classroom atmosphere in which students share ideas, ask questions, and relate their learning to the world around them.Throughout each chapter of the text, you will find Discussion Questions (DQs) that challenge students to reach beyond the surface of the written text to determine answers. Far from typical review questions, for which the students can scan a few pages of the text to locate an answer, many of the DQs provide relevant learning by relating students' personal experiences to the knowledge they gain through the text.The DQs provide a variety of classroom experiences: Many DQs provide the basis for lively classroom discussions, requiring students to thin