Chapter 1

• Updated coverage of recent accounting scandals
• New exhibit (Exhibit 1.7) summarizing the four basic financial statements
• New International Perspective feature discussing International Accounting Standards Board
• Substantially revised end-of-chapter exercises and problems using new real-world companies and numbers
• New annual report cases and new fi nancial reporting cases

Chapter 2

• Updated opening discussion for Papa John’s International
• Moved financial leverage ratio later in the chapter
• Enhanced discussion and visuals within Key Ratio Analysis feature
• Updated articles and ratio comparisons
• Substantially revised end-of-chapter exercises and problems using new real-world companies and numbers
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• New annual report cases

Chapter 3

• Updated opening discussion for Papa John’s International
• New International Perspective discussing foreign financial statements
• Updated articles and ratio comparisons
• Added summary chart to enhance understanding of how statements are linked
• Clarified requirement and transactions
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• Substantially revised end-of-chapter exercises and problems using new real-world companies and numbers
• New annual report cases

Chapter 4

• Updated opening discussion for Papa John’s International
• Added new section on Analysis of Adjusting Entries
• New art integrated into discussion of deferrals and accruals
• Realigned discussion by Revenues (deferred and accrued) and Expenses (deferred and accrued) in fifth edition versus Deferrals (revenues and expenses) and Accruals (revenues and expenses) in fourth edition.
• Added summary exhibits— Exhibits 4.3 and 4.4—for deferrals and accruals to highlight the differences in the earning of revenue (or incurring of expense) versus cash receipts (or payments)
• Expanded introductory summary of accounts to be adjusted in the Papa John’s illustration to emphasize the identification of deferrals and accruals and the timing of cash receipts and payments
• Rearranged illustrations to follow revisions made to text
• Simplified account titles to follow more closely with end-of-chapter account titles (e.g., Supplies Expense instead of General and Administrative Expense)
• Updated articles and ratio comparisons
• Substantially revised end-of-chapter exercises and problems using new real-world companies and numbers
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• New annual report cases

Chapter 5

• Added coverage of recent accounting scandals and new Sarbanes-Oxley requirements
• Added new exhibits explaining the corporate governance and accounting communication process
• Introduced new discussion of common-size income statements
• Included new discussion of International Accounting Standards Board
• Added new self-study quizzes
• Simplified financial statement presentations
• Substantially revised end of chapter using new real companies and numbers
• Added new financial reporting and ethics cases
• New annual report cases

Chapter 6

• New focus company (Deckers Outdoors, maker of Teva sandals)
• New self-study quiz on accounting for doubtful accounts
• New self-study quiz on aging of accounts receivable
• Introduced new, simpler presentation of aging method for estimation of doubtful accounts
• Substantially revised end-of-chapter exercises and problems using new real-world companies and numbers
• New annual report cases

Chapter 7

• Reorganized discussion of effects of inventory methods on financial statement analysis moved to follow ratio discussions.
• Simplified presentation of cost of goods sold calculations
• Introduced new contrast company Ducati Motorcycles
• New step-by-step self-study quizzes
• Added new basic exercises on the effects of cost- flow assumptions on cost of goods sold and ending inventory added to end-of-chapter material
• Substantially revised end-of-chapter exercises and problems using new real-world company data (Ford, Kodak, Dell, American Eagle Outfitters, etc.)
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• New annual report cases

Chapter 8

• Updated all articles and real-world information
• Clarified discussions/ illustrations on revenue and capital expenditures, depreciation concepts, depreciation methods, and amortization
• Substantially revised end-of-chapter exercises and problems using new real-world companies and numbers
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• New annual report cases

Chapter 9

• New focus company (Starbucks)
• Introdcued new chapter supplements—using Excel and Future Value Concepts to compute present values
• Integrated Excel commands in discussion of present value computations
• Revised payroll accounting discussion
• Provided new discussion showing relationship between operating activities and the creation of current liabilities
• Expanded discussion of lease liabilities
• Substantially revised end-of-chapter exercises and problems using new real-world companies and numbers and expanded number of present value problems
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• New annual report cases

Chapter 10

• Moved discussion of bond basics into new section
• Focused discussion of types of bonds on only the most commonly used bonds
• New chapter supplement— using Excel to determine the present value of bonds
• Integrated Excel commands into discussion of computing the value of bonds
• Expanded amortization schedules to include full life of bonds
• Updated discussion of early retirement of bonds to include rule change
• Reorganized discussion of straight-line and effective interest amortization to permit users to easily cover either or both methods
• Changed all interest payments to an annual basis to reduce repetitive computations
• Expanded discussion of how interest expense is reported
• Substantially revised end-of-chapter exercises and problems
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• New annual report cases

Chapter 11

• Updated real-world excerpts
• Removed coverage of stock issued for noncash assets so focus is now on the most common transactions
• Substantially revised end-of-chapter exercises and problems using new real-world companies and numbers
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• New annual report cases

Chapter 12

• Significantly updated all real world excerpts and articles
• Added a marginal visual
• Substantially revised end-of-chapter exercises and problems using new real-world companies and numbers
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• New annual report cases

Chapter 13

• Revised chapter to be used any time after Chapter 4
• Revised chapter to be used to cover direct, indirect, or both methods for presenting the Operating section
• Simplified presentation of the steps involved in preparing the operating section using the indirect method
• Expanded use of T-accounts to explain indirect method
• Added new problems with data that can be assigned for direct and/or indirect method
• Added Enron-based ethics case
• Substantially revised end-of- chapter exercises and problems using new real-world companies and numbers
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• New annual report cases

Chapter 14

• Updated focus and comparison companies
• Revised financial analysis of focus and comparison companies
• Substantially revised end-of-chapter exercises and problems using new real-world companies and numbers
• Upgraded Team Project to follow concept of a continuous project from prior and subsequent chapters
• New annual report cases