John J. Wild,
University of Wisconsin-Madison Kermit D. Larson,
University of Texas-Austin Barbara Chiappetta,
Nassau Community College
ISBN: 0072996536 Copyright year: 2007
What's New
FAP's revisions are in response to feedback from both instructors and students. Many of these revisions are summarized below. Feedback suggests that FAP is the book instructors want to teach from and students want to learn from. Some overall revisions include:
New chapter-opening layout
Revised assignments throughout
Updated ratio analyses
New and revised entrepreneurial elements
New assignments using chapter openers
New multiple choice questions at each chapter-end
Revised serial problem running through nearly all chapters
New Circuit City annual report with comparisons to Best Buy, Dixons (UK), and the industry—including new assignments
New Apple financial statements and assignments
General: Revised assignments throughout; updated all end-of-chapter ratio analyses; new and revised entrepreneurial elements; new assignments based on the chapter openers; serial problem running through nearly all chapters; New Best Buy annual report and comparisons to Best Buy, Dixons (UK), and its industry; and Apple's financials
Chapter 1
Revised graphic on accounting activities
Enhanced introduction to accounting equation
Revised, early introduction to financial statements
Enhanced transaction analysis using expanded accounting equation
New material on frauds such as Tyco and WorldCom
Revised illustration on ethical decision making
Revised numbers on accounting career compensation
Updated graphic on Domini Social Index
New insight on principles-based accounting
New evidence on importance of small businesses
Additional materials on Sarbanes-Oxley
New multiple choice questions at chapter-end
Added new ethics questions to assignments
Chapter 2
Enhanced introduction to asset accounts
Streamlined introduction to double-entry accounting
New color coding and layout for transaction analysis
New insight on growth of women entrepreneurs
Revised insight on unearned revenues
Revised graphic on posting entry to ledger
New insight on CEO pay under Sarbanes-Oxley
New assignment accessing Amazon's annual report via EDGAR
New assignment on XBRL after Sarbanes-Oxley
Chapter 3
Revised graphic on net income reports
New graphics to illustrate prepaid (deferred) expenses
New graphic to illustrate unearned (deferred) revenues
New insight on gift card sales as unearned revenues
New assignment accessing Gap's annual report via EDGAR
New assignment on accounting estimates and manager ethics
Chapter 4
Streamline exhibit on preparing closing entries
Revised exhibit on permanent and temporary accounts
New assignment on aggressive accounting estimates
Revised Excel screen captures with acetates for work sheet
Streamlined discussion of accounting work sheet
New visual linkages from closing entries to the accounts
Chapter 5
Enhanced illustration on a merchandiser's operating cycle
Revised exhibit on closing entries for merchandisers
Streamlined multi-step income statement presentation
Updated acid-test presentation and discussion
Enhanced demonstration problem on merchandising transactions
Included work sheet in appendix for a merchandiser
Revised serial problem for merchandising activities
New assignment on accounting for gift cards
Chapter 6
Revised and improved exhibit on cost flow assumptions
Updated exhibit on inventory methods
Enhanced illustration on lower of cost or market
Revised demonstration problem
Revised serial problem and added section on lower of cost or market
New assignment on Office Depot's inventory management
Chapter 7
Enhanced diagrams involving special journals and ledgers
New assignments on identifying the special journal of entry
New insight on Sarbanes-Oxley and the Boeing CEO
New insight on credit-checks and recordkeeping
Updated materials on enterprise resource planning (ERP)
New insights on internet frauds and accounting controls
New assignment on enterprise-software and small businesses
Chapter 8
New discussion on E-commerce, its risks, its controls, and identity theft
New insight on credit card fraud
New illustration on “A Hacker's Guide to Cyberspace”
New diagram on controls for over-the-counter cash receipts
Updated data on entrepreneurial-friendly states
Updated data on the top internet frauds
New graphic on petty cash fund
New information on forms of check fraud
New data on fees for bank services
New assignments on limitations of internal controls
New assignment on internal controls for small businesses
Revised demonstration problem on petty cash
Added assignments on internal controls for cash
Chapter 9
New explanation on credit card vis-à-vis debit card
Simplified estimation of uncollectible accounts
New data on PayPal and credit card growth
Enhanced exhibit on aging of accounts receivable
New data on companies' bad debt percentages
Enhanced exhibit on computing maturity dates
New assignment on eBay's uncollectible accounts
New assignment on how to collect uncollectibles
Chapter 10
Revised exhibit on accounting for plant asset disposals
New data on asset lives for Hershey and Tootsie Roll
Updated data on depreciation methods used
Moved exchange of plant assets to the appendix
Updated text and assignments for new standard on asset exchanges
New assignments on asset disposals
New assignments on accounting for goodwill
New assignment examining Yahoo!'s accounting for intangibles
New assignment on accounting for brand values
Chapter 11
New insight on accounting for gift card liabilities
Updated IRS tax forms
Updated withholding table
New insight on liabilities for guaranteed salaries
New insight on liabilities for extended-warranty contracts
New 2006 payroll tax rates throughout
New diagram and explanation on accounting for contingent liabilities
Simplified payroll register and reports for better learning
New assignment on accounting for vacations
New assignment on liabilities for personal-injury lawsuits
Chapter 12
New insight on partnerships for Broadway
New assignment on limited partnerships
Enhanced explanation of limited liability companies
Chapter 13
Enhanced graphic on equity composition
‘Paid-in capital' used in lieu of ‘contributed capital'
Moved section on dividends ahead of preferred stock
Section on discontinued and extraordinary items to Chapter 17
Streamlined materials on computing weighted-average shares
Updated and streamlined materials on stock options
New assignments on stock terminology and meaning
New assignments on stock issuance and EPS
New serial problem involving stock versus debt financing
New ethics assignment involving inside information
New assignment on tax policy and dividend payments
Chapter 14
Enhanced exhibit on bond interest computation and entry
Revised serial problem on financing options
Moved debt features to decision analysis section
Streamlined bond-issuing procedures
Moved ‘issuing bonds between interest dates' to appendix
Streamlined illustrations on installment notes
New ratio analysis involving debt-to-equity
New assignments on mortgages and debt
Chapter 15
Streamlined and enhanced explanation of investments
New illustration on purchases listed in a foreign currency
New return on assets analysis of Gap, Inc
Chapter 16
New diagram on cash effects of changes in current assets and liabilities
Enhanced exhibit on summary adjustments for indirect method
New assignments on computed operating cash flows
New assignments computing financing and investing cash flows
New assignment on Amazon's cash flows
New insight on measuring free cash flow
Chapter 17
New horizontal and vertical analysis based on Best Buy
Enhanced common-size analysis of Circuit City and Best Buy
New ratio analysis of Best Buy and Circuit City
New debt-to-equity analyis
New appendix on ‘sustainable income,' including new requirements for changes in accounting principles
New, streamlined introduction to comprehensive income
New assignments supporting new materials in chapter
Chapter 18
New discussion and assignments on manufacturing cycle time and efficiency
Moved unit contribution margin to Chapter 22
New assignments on direct and indirect costs
New assignments on lean manufacturing and operating efficiencies
Revised visuals with streamlined flow of costs discussion
Expanded discussion of service businesses and cost controls
Chapter 19
New insight on target costing and how it is achieved
New illustrations and entries of cost flows in a job order system
New assignment on Ikea's costing strategy and success
Enhanced discussion of costing for service businesses
Chapter 20
New discussion on tracking costs in a process operation
New illustration and focus on weighted average costing
Moved FIFO costing to chapter appendix
Streamlined process costing illustration and exhibits
Simplified computation of equivalent units of production
Streamlined cost reconciliation and process cost summary
New assignments on process costing
Chapter 21
Streamlined presentation and revised illustration of activity-based costing
Enhanced illustration of performance measurement
New assignment on costing and control of off-site employees
Chapter 22
Enhanced illustration and computations for measuring cost behaviors
Expanded explanation and illustration of the high-low costing method
New description and illustration of unit contribution margin
Enhanced illustration of contribution margin income statement
Streamlined applications of cost-volume-profit analysis
New assignment on cost behavior estimation
New assignment on cost, profits, and product give-aways
Chapter 23
Enhanced section on budgeted financial reports
New assignment on benefits of budgeting for startups businesses
Chapter 24
Enhanced explanation of flexible budgets
Streamlined overhead cost variance analysis
Enhanced budgeting for service businesses
Chapter 25
Enhanced explanation of depreciation and cash flow
Simplified selected present value calculations
Expanded applications to service businesses
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2007 McGraw-Hill Higher Education