Chapter 1: Accounting in Action

• New Feature Story, on Clif Bar and its open-book management program.

Chapter 2: The Recording Process

• Heavily revised Feature Story, now on MF Global's failure to segregate company accounts from customer accounts.
• Added cash flow effects in transaction illustrations, to raise student awareness of how business activities also affect a company's cash.
• New Ethics Insight, on Credit Suisse Group's failure to properly write down the value of its securities.
• New BYP problems: Real-World Focus based on New York Times article discussing Green Bay Packers' annual report publication, Ethics Case on résumé fabrications, and Considering People, Planet, and Profit on the role of auditor certifications in the coffee business.

Chapter 3: Adjusting the Accounts

• New Feature Story, on Groupon and the complexity of accounting for its revenues.
• Updated Appendix 3B, Concepts in Action, to reflect current conceptual framework which only includes one constraint, that of cost. Materiality now discussed as an aspect of relevance.

Chapter 5: Accounting for Merchandising Operations

• New Feature Story, on REI and its unique business model.
• Revised Ethics Insight, on improving company clarity of financial disclosures, by citing eBay's sale of Skype.
• Significantly added material to Appendix 5B, Periodic Inventory System, to ensure comprehensive coverage and explanatory material.

Chapter 6: Inventories

• Revised the Accounting Across the Organization on JIT inventory, to illustrate how common events like snowstorms can seriously disrupt inventory levels.
• New Accounting Across the Organization, on Sony's inventory management practices.

Chapter 7: Fraud, Internal Control, and Cash

• New material about rising international economic crime in the A Look at IFRS section.
• Updated chapter throughout to include use of more recent technology, such as point-of-sale terminals instead of cash registers.

Chapter 8: Accounting for Receivables

• Added T-account in margin in Percentage-of-Receivables section to assist in student understanding.

Chapter 10: Liabilities

• Expanded discussion and new DO IT! in Payroll and Payroll Taxes Payable section.
• New Accounting Across the Organization, about advantages for companies of issuing 30-year bonds.
• Revised Analysis section, for improved discussion on debt to assets ratio and times interest earned.

Chapter 11: Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

• New Accounting Across the Organization, about Facebook's recent IPO.

Chapter 12: Investments

• Updated Categories of Securities section, to provide more specific information on account titles and debt/stock categories.

Chapter 13: Statement of Cash Flows

• Updated Feature Story, to include more recent information about Apple's cash flow status.
• New Accounting Across the Organization, about Kodak's need to sell plant assets to raise cash.
• Presented appendix on statement of cash flows—direct method before the appendix on preparing a worksheet for the statement of cash flows—indirect method, for improved presentation of topics.

Chapter 14: Financial Statement Analysis

• Revised Feature Story on Warren Buffett, to increase student engagement.
• Used Macy's as example company throughout chapter.

Appendices A-F: Specimen Financial Statements

Now include financial statements for five student-friendly companies—Apple, PepsiCo, Coca-Cola, Amazon.com, and Wal-Mart—as well as instructions for accessing and using their complete annual reports. Appendix F presents the financial statements for Zetar plc, a U.K. manufacturer of candy and natural snacks.