Overall 2e Revisions Include:

• New multiple choice questions at each chapter-end
• Revised assignments throughout
• New chapter-opening content and layout
• Updated ratio analyses
• New and revised entrepreneurial elements
• New assignments using chapter openers
• Revised serial problem through nearly all chapters
• New Circuit City annual report with comparisons to
• Best Buy, Dixons (UK), and the industry
• New assignments using Best Buy, Circuit City , and Dixons
• New Apple financial statements and assignments
• New chapters: Activity-Based Costing (17) & Variable Costing (19)

Chapter 1

• LoveSac NEW opener with new entrepreneurial assignment
• Early introduction to financial statements
• Enhanced transaction analysis using expanded accounting equation
• New material on frauds such as Tyco and WorldCom
• Revised illustration and assignments on ethics
• New insight on principles-based accounting
• New evidence on small businesses
• Enhanced materials on Sarbanes-Oxley
• New multiple choice questions

Chapter 2

• Cake Love NEW opener with new entrepreneurial assignment
• Enhanced introduction to asset accounts
• Streamlined introduction to double-entry accounting
• New color layout for transaction analysis
• New insight on women entrepreneurs
• Revised insight on unearned revenues
• New insight on manager pay under Sarbanes-Oxley

Chapter 3

• Alienware NEW opener with new entrepreneurial assignment
• New graphics for prepaid expenses
• New graphic for unearned revenues
• New insight on gift card sales as unearned revenues
• New illustration of accrued revenues
• Revised exhibit on accounting adjustments
• Enhanced assignments for adjusting entries and ethics
• Streamlined exhibit for closing entries

Chapter 4

• CoCaLo NEW opener with new entrepreneurial assignment
• Enhanced illustration of operating cycle
• Revised exhibit on closing entries
• Streamlined multi-step income statement
• Merchandiser work sheet in appendix

Chapter 5

• Surf Diva NEW opener with new entrepreneurial assignment
• Improved exhibit on cost flow assumptions
• Updated exhibit on inventory methods
• Enhanced exhibit on lower of cost or market
• Revised serial problem to include LCM

Chapter 6

• Raising Cane's Chicken Fingers NEW opener
• with new entrepreneurial assignment
• New material on e-commerce, its risks, its controls, and identity theft
• New insight on credit card fraud
• New illustration on “Hacker” risks
• New diagram on controls for over-the-counter cash receipts
• Updated data on Internet frauds
• New information on check fraud
• New data on fees for bank services

Chapter 7

• Linditas' NEW opener with new entrepreneurial assignment
• New explanation of credit and debit cards
• Simplified estimation of uncollectibles
• New data on PayPal and credit card growth
• Enhanced exhibit on aging of receivables
• New data on bad debt percentages
• Enhanced exhibit on computing maturity date

Chapter 8

• Fairytale Brownies NEW opener with new entrepreneurial assignment
• Revised exhibit on plant asset disposals
• Updated data on depreciation methods used
• Moved plant asset exchanges to appendix
• Updated for new standard on asset exchanges
• New assignments on asset disposals, goodwill, and intangibles

Chapter 9

• Wildflower Linen NEW opener with new entrepreneurial assignment
• New insight on gift card liabilities
• Updated IRS tax forms
• Updated IRS withholding table
• New insight on guaranteed salary liabilities
• New insight on extended-warranty contracts
• Applied 2006 payroll tax rates throughout
• New diagram for contingent liabilities

Chapter 10

• Melton Franchise Systems NEW opener with new entrepreneurial assignment
• Enhanced exhibit on bond interest computation and journal entry
• Moved discussion of debt features to the
• decision analysis section
• Streamlined bond-issuing procedures
• Moved 'issuing bonds between interest dates' to appendix
• Streamlined installment notes
• New ratio analysis on debt-to-equity
• Revised serial problem through nearly all chapters
• New Circuit City annual report with comparisons to Best Buy, Dixons (UK), and the industry
• New assignments using Best Buy, Circuit City , and Dixons
• New Apple financial statements and assignments
• New chapters:Activity-Based Costing (17) & Variable Costing (19)

Chapter 11

• Medsite NEW opener with new entrepreneurial assignment
• Enhanced graphic on equity composition
• 'Paid-in capital' used in lieu of 'contributed capital'
• Moved section on dividends before preferred stock
• Streamlined computation of weighted-average shares
• Updated and streamlined stock options
• New assignments on stock, EPS, and ethics
• Moved discontinued and extraordinary items to Ch. 13

Chapter 12

• Ashtae Products NEW opener with new entrepreneurial assignment
• New diagram on cash effects of changes in current assets and liabilities
• Enhanced exhibit on summary adjustments for indirect method
• New insight on measuring free cash flow

Chapter 13

• The Motley Fool REVISED opener with new entrepreneurial assignment
• New horizontal and vertical analysis using 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 analysis
• New appendix on “sustainable income,” with new requirements for accounting changes
• Streamlined intro to comprehensive income

Chapter 14

• Urban Golf Gear NEW opener with new entrepreneurial assignment
• New discussion and assignments on manufacturing cycle time and efficiency
• Moved unit contribution margin to Ch. 18
• New assignments on direct and indirect costs
• New assignments on lean manufacturing and operating efficiencies
• Enhanced graphics and streamlined discussion of cost flows
• Expanded discussion of service businesses and cost controls

Chapter 15

• Antelope Valley Medical College NEW opener with new entrepreneurial assignment
• New insight on target costing
• New illustrations and entries for cost flows in a job order system
• Enhanced discussion for service businesses
• New assignment on Ikea's costing strategy

Chapter 16

• Duwop NEW opener with new entrepreneurial assignment
• New discussion on tracking costs in a process operation
• New focus on weighted average costing
• Moved FIFO costing to appendix
• Streamlined process costing illustrations
• Simplified computation of equivalent units
• Streamlined the cost reconciliation and process cost summary

Chapter 17

• Cloud Star NEW opener with new entrepreneurial assignment
• Seamless introduction to activity-based costing
• (ABC) using plantwide and multiple overhead rates as comparisons
• Continuing example in chapter illustrating all methods
• Accessible, student-friendly presentation of ABC
• Excellent assignments consistent with text

Chapter 18

• Chinasprout NEW opener with new entrepreneurial assignment
• Enhanced illustration and computations for measuring cost behaviors
• Expanded explanation and illustration of high-low costing method
• New illustration of unit contribution margin
• Enhanced illustration of contribution margin income statement
• New assignments on cost behavior estimation
• and on costs of product give-aways

Chapter 19

• Casauri NEW opener with new entrepreneurial assignment
• Variable and absorption costing introduced, illustrated, and compared
• Explain and illustrate performance reporting for both variable and absorption costing
• Continuing example in chapter illustrating both methods
• Superb assignments consistent with text

Chapter 20

• Cloudveil NEW opener with new entrepreneurial assignment
• Enhanced section on budgeted financial reports
• New assignment on benefits of budgeting for startups

Chapter 21

• Under Armour NEW opener with new entrepreneurial assignment
• Enhanced explanation of flexible budgets
• Streamlined overhead cost variance analysis
• Enhanced budgeting for service businesses

Chapter 22

• Jungle Jim's International Market NEW opener with entrepreneurial assignment
• Moved activity-based costing to Ch. 17
• Enhanced illustration of performance measurement
• New assignment on costing and control of off-site employees

Chapter 23

• Eleni's NEW opener with new entrepreneurial assignment
• Enhanced explanations of relevant costing
• and applications to managerial decisions
• Expanded applications to service businesses
• New assignments on several different topics

Chapter 24

• Progressive Telecom NEW opener with new entrepreneurial assignment
• Enhanced explanation of depreciation and cash flow
• Simplified selected present value calculations
• Expanded applications to service businesses