Financial and Managerial Accounting Information for Decisions, 3/e
John J. Wild,
University of Wisconsin - Madison Ken W. Shaw,
University of Missouri - Columbia Barbara Chiappetta,
Nassau Community College
ISBN: 0073379522 Copyright year: 2009
What's New
This edition's revisions are driven by feedback from instructors and students. Many of the revisions are summarized here. Feedback suggests that this is the book instructors want to teach from and students want to learn from. General revisions include:
Revised and updated assignments throughout
Updated ratio analyses for each chapter
New material on International Financial Reporting Standards (IFRSs) in most chapters
New and revised entrepreneurial elements
Revised serial problem through nearly all chapters
New art program, visual graphics, and text layout
New Best Buy Annual Report with comparisons to Circuit City, RadioShack, Apple, and DSG (UK) with new assignments
New graphics added to each chapter's analysis section
New iPod content integrated and referenced in book
Chapter 1
Life is Good NEW opener with new entrepreneurial assignment
Revised section on accounting principles and assumptions
New visual layout on building blocks for GAAP
New graphic listing recent publicized accounting scandals
Transaction analysis with expanded accounting equation
Updated compensation data in exhibit
New discussion of conceptual framework linked to IFRSs
Chapter 2
SPANX NEW opener with new entrepreneurial assignment
New 4-step process to learn accounting for transactions: Identify, Analyze, Record, and Post
New sequential art layout for visualizing transaction accounting
New arrow lines link journal entries to the ledger
New material on financial statements related to IFRSs
Chapter 3
Betty Rides NEW opener with new entrepreneurial assignment
New 3-step process for accounting adjustments: (1) Determine what is, (2) Determine what should be, (3) Record adjustment
New summary tables show the accounting adjustment AND account balances before and after adjustment
New adjustment tables for prepaid expenses, including insurance, supplies, and depreciation
New adjustment tables for unearned revenue, accured expenses, and accrued revenues
New graphic for learning the 4-step closing process
Chapter 4
BigBadToyStore NEW opener with new entrepreneurial assignment
Enhanced discussions on purchase allowances and purchase returns
Revised discussions on sales returns and sales allowances
Streamlined 4-step process for merchandisers' closing entries
New material on income statement formats for U.S. GAAP vis-a-vis IFRSs
Chapter 5
Surf Diva UPDATED opener with new entrepreneurial assignment
Specific Identification explanation revised for additional clarity
New explanation added to First-in, First-Out
Enhanced explanation to Last-in, First-Out
New description of weighted average
Enhanced explanations for LCM
New material on inventory methods for U.S. GAAP vis-a-vis IFRSs
Illustration of inventory errors is revised and enhanced
Revised exhibit on inventory errors for balance sheet
Appendix 5A, enhanced discussion of periodic inventory
Appendix 5A, expanded explanations of periodic FIFO, LIFO, and weighted average
Chapter 6
Dylan's Candy Bar NEW opener with new entrepreneurial assignment
New material added on Sarbanes-Oxley and internal controls required
New section on cash management
Additional description of electronic funds transfer
Enhanced explanation of bank reconciliation with new assignments
New discussion of internal controls for IFRSs conversion
Chapter 7
Under Armour NEW opener with new entrepreneurial assignment
Reorganized sections on valuing accounts receivable
Enhanced explanation of recovering a bad debt
New material on assessing the direct write-off method
Reorganized section on estimatintg bad debts using percent of receivables
New enhanced summary Exhibit 7.13 on methods to estimate bad debts
Added new exercises on bad debts estimation
Chapter 8
Sambazon NEW opener with new entrepreneurial assignment
Enhanced explanations on declining balance and impairments
New description of ordinary reparis and its journal entry
Reorganized discussion of betterments and extraordinary repairs
New material on depreciation estimates for U.S. GAAP vis-a-vis IFRSs
Enhanced illustration for depletion including journal entry
Reorganized section on types of intangibles
Enhanced material related to franchises, licenses, trademarks and other intangibles
Enhanced explanation of exchanging plant assets
Chapter 9
Noodles & Company NEW opener with new entrepreneurial assignment
Updated real world examples including those for Univision, Six Flags, AMF, and K2
New material on contingent liabilities for U.S. GAAP vis-a-vis IFRSs
Updated tax illustrations and assignments using the most recent rates
New section on "Who Pays What Payroll Taxes and Benefits"
Chapter 10
Rap Snacks NEW opener with new entrepreneurial assignment
Enhanced graphic and explanation of determining bond discount and premium
Revised bond illustration to use a 4-period bond
Streamlined bond illustration to show entire amortization process from issuance to maturity
Streamlined bond illustration for effective interest amortization
New material on bond interest computation for U.S. GAAP vis-a-vis IFRSs
Added new assignments that require accounting for bonds given an amortization table
Chapter 11
Garrison Guitars NEW opener with new entrepreneurial assignment
New info graphic on subcategories of authorized stock
Updated many real world examples
New info graphic on stock splits
New material on preferred stock classification for U.S. GAAP vis-a-vis IFRSs
Additional explanation on closing process for corporations
Updated statement of stockholders' equity
Chapter 12
Jungle Jim's NEW opener with new entrepreneurial assignment
Updated graphics for operating, investing and financing cash flows
Enhanced steps 1 through 5 for preparing the statement of cash flows
Simplified summary Exhibit 12.12 for indirect adjustments
Updated real world examples and graphics including that for Harley, Starbucks, and Nike
New info on indirect vs direct method for U.S. GAAP vis-a-vis IRFSs
Chapter 13
The Motley Fool UPDATED opener with new entrepreneurial assignment
New Best Buy, Circuit City and RadioShack data throughout chapter, exhibits, and illustrations with comparative analysis
Enhanced presentation on comparative financial statements
Chapter 14
Kernel Season's NEW opener with new entrepreneurial assignment
New section on fraud and the role of ethics in managerial accounting
Added discussion on Institute of Management
Accountants and its road-map for resolving ethical dilemmas
Updated real-world examples including that for Apple
Added balance sheet to exhibits that show cost flows across accounting reports
New discussion on role of nonfinancial information
Chapter 15
Sprinturf NEW opener with new entrepreneurial assignment
New info on custom design involving Nike
Enhanced exhibit on job order production activities
Added discussion linking accurate overhead application for jobs to both product pricing and performance evaluation
Streamlined explanation of closing over- and underapplied overhead
New discussion of employee payroll fraud schemes
Chapter 16
Hood River Juice Company NEW opener with new entrepreneurial assignment
New discussion on impact of automation for quality control and overhead application
Added explanation for use of a process cost summary in product pricing
Chapter 17
Oregon Ice Cream Company NEW opener with new entrepreneurial assignment
Simplified the steps of activity-based costing (ABC) allocations
New discussion on using ABC to allocate selling and administrative costs
Enhanced presentation of, and enhanced graphics for, ABC procedures
Chapter 18
Moe's Southwest Grill NEW opener with new entrepreneurial assignment
New section on working with changes in estimates for CVP analysis
New graphics illustrating how changes in estimates impact break-even analysis
New discussion on weighted average contribution margin in multiple product CVP analysis
New Appendix 18A on using Excel to estimate least squares regression
New assignments on break-even and changes in estimates
Chapter 19
Bonobos NEW opener with new entrepreneurial assignment
Streamlined discussion of contribution margin income statements
Improved graphics comparing income reporting under absorption versus variable costing
Enhanced explanation of controllable vs. uncontrollable costs
Expanded the Demonstration Problem to be more comprehensive
Chapter 20
Jibbitz NEW opener with new entrepreneurial assignment
Enhanced discussion of master budgets
New assignments on preparing budgets and budgeted financial statements
Chapter 21
Martin Guitar NEW opener with new entrepreneurial assignment
Reorganized discussion of overhead variance analysis
Revised graphics on framework for understanding overhead variances
New discussion of increased automation for overhead application
Revised explanation of journal entries for standard costing
Simplified discussion of closing variance accounts
New assignments on variance analysis
Added journal entries to chapter demonstration problem
Chapter 22
RockBottomGolf.com NEW opener with new entrepreneurial assignment
Enhanced explanation of evaluating investment center performance with financial treasures
New discussion of residual income
Added explanation of economic value added
New section on evaluating investment center performance with nonfinancial measures including balanced scorecard
New Appendix 22A on transfer pricing
Decision Analysis: new explanation of investment center profit margin and investment turnover with new assignments
Chapter 23
Prairie Sticks Bat Company NEW opener with new entrepreneurial assignment
Enhanced explanation of 'make or buy' decision
New discussion for 'segment elimination' decision
Enhanced presentation for managerial decision scenarios
Chapter 24
1-800-GOTJUNK NEW opener with new entrepreneurial assignment
New info graphic on cost of capital estimates across industries
Added discussion and example on use of profitability index to compare projects
New discussion on incorporating inflation in net present value calculations
Added explanation on conflicts between meeting analysts' forecasts and choosing profitable long-term projects
New Appendix 24A on using Excel to compute net present value and internal rate of return
New assignments on profitability index
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