The Second Edition expands our emphasis on student learning and improves upon a teaching and learning package that instructors and students have rated the highest in customer satisfaction.

What's New?

The Accounting Cycle

For many students, success in an introductory accounting course hinges on developing a sound conceptual understanding of the accounting cycle. In the past, we have received positive feedback regarding the framework that we have employed to introduce the recording process in Chapter 2. In this edition, we have expanded our use of this framework to cover the entire accounting cycle in Chapters 1–4.

Chart of Accounts

It is important to always try to eliminate unnecessary barriers to student understanding. Sometimes, the accounting course can seem unnecessarily complicated to students because so many account titles are used. In order to reduce possible confusion and to keep students focused on those concepts that really matter, we undertook to streamline the number of accounts used in the textbook, supplements, and WileyPLUS. See inside the front cover of the textbook for a sample chart of accounts, which represents the majority of the account titles used.

Anatomy of a Fraud

Many users of our textbook have responded favorably to our Anatomy of a Fraud feature, previously only included in Chapter 7 (Fraud, Internal Control, and Cash). They have requested that we expand it throughout the textbook to demonstrate the importance of internal controls to all assets and liabilities. Accordingly, in this edition, we have expanded the Anatomy of a Fraud feature to all appropriate chapters.

People, Planet, and Profit

Today's companies are evaluating not just their profitability but also their corporate social responsibility. In this edition, we have profiled some of these companies to highlight their sustainable business practices.

Another Perspective

As we continue to strive to reflect the constant changes in the accounting environment, we have added a comprehensive new section at the end of each chapter, Another Perspective, which includes an overview section, addresses differences between IFRS and U.S. GAAP (Key Points), describes convergence efforts (Looking to the Future), and provides students with the opportunity to test their understanding through self-test questions and exercises (GAAP Practice).

Hallmark Features of the Second Edition

This edition was subject to an overall, comprehensive revision to ensure that it is technically accurate, relevant, and up-to-date. We have continued and enhanced many of the features of the First Edition, including the following:

Real-World Emphasis

One of the goals of the financial accounting course is to orient students to the application of accounting principles and techniques in practice. Accordingly, we have continued our practice of using numerous examples from real companies throughout the textbook. The names of these real companies are highlighted in red.

Also, throughout the chapters, Insight and Accounting Across the Organization boxes show how people, often in non-accounting functions, in actual companies make decisions using accounting information. These high-interest boxes focus on various themes—ethics, international, investor, and corporate social responsibility concerns. Guideline Answers to the critical thinking questions are provided near the end of each chapter.

Exercises

Brief exercises ask students to apply their newly acquired knowledge. The exercises include an Action Plan, which reviews the necessary steps to complete the exercise, as well as a Solution so students can have immediate feedback. A Comprehensive problem at the end of each chapter allows students a final check of their understanding before they do their homework. Review problems are part of the end-of-chapter homework material.

Accounting Equation Analyses

We include accounting equation analyses in the margin next to key journal entries. They will help students understand the impact of an accounting transaction on the components of the accounting equation, on the equity accounts, and on the company's cash flows.

Financial Statements

Students will be more willing to commit time and energy to a topic when they believe it is relevant to their future careers. There is no better way to demonstrate relevance than to ground discussions in the real world. To that end, we include financial statements from actual companies regularly throughout the textbook.

Marginal Notes

Helpful Hints in the margin further clarify concepts being discussed. Ethics Notes point out ethical points related to the nearby text discussion. Alternative Terminology lets students know about interchangeable words and phrases.

Comprehensive Homework Material

Each chapter concludes with revised Self-Test Questions, Questions, Brief Exercises, Review, Exercises, and Problems. A Comprehensive Problem is also included in many chapters. The Continuing Cookie Chronicle uses the business activities of a fictional company to help students apply accounting topics to a realistic entrepreneurial situation.

Broadening Your Perspective Section

We have revised and updated the Broadening Your Perspective section at the end of each chapter. Elements in this section include the following:

• Financial Reporting Problem: Samsung Electronics
• Comparative Analysis Problem: Nestlé vs. Zetar
• Real-World Focus
• Decision-Making Across the Organization
• Communication Activity
• Ethics Case
• All About You

These assignments are designed to help develop students' decision-making and critical-thinking skills.