One reason Libby/ Libby/ Short’s Financial Accounting is a best-selling textbook is because instructors can trust the flexibility in key topical coverage, the simplified explanations of complex topics, and end-of-chapter material that relates directly to the chapter’s text and engages the students with concepts and decision making using details from the chapter. Eighty percent of the end-of-chapter material throughout the sixth edition has been thoroughly revised with new companies and numerical data. Previous users will find familiar problem structures, making transition into this edition easier.

Chapter 1

• Shortened and simplified “Correcting Maxidrive’s Statements” section.
• Updated material on Corporate Governance and IFRS.
• New demonstration case based on Apple Computer.
• Simplified cash flow self-study quiz.
• Substantial revision of end-of-chapter material: new numerical data for 75 percent of mini-exercises, exercises, and problems; three new alternate problems; and all new annual report cases.

Chapter 2

• New simplified Exhibit 2.1.
• Additional account title simplification in the balance sheet.
• Modified International Perspective to introduce IFRS.
• Updated Financial Analysis and Ethics features.
• Modified transaction analysis illustration to be clearer and more systematic.
• Revised Exhibits 2.4, 2.5, and 2.6 for improved clarity.
• Added explanation boxes for analytical tools (journal entries and T-accounts)
• Modified solutions to self-study quizzes to be consistent with presentation of journal entries and equation effects.
• Substantial revision of end-of-chapter material: multiple choice section now includes three computational questions, new numerical data for 60% of mini-exercises, exercises, and problems and all new annual report cases.

Chapter 3

• Updated International Perspective with another focus on IFRS.
• Continued simplification of the account titles in financial statements.
• New exhibit on revenue recognition with clearer explanation to follow exhibit.
• New exhibit on expense matching with clearer explanation to follow exhibit.
• Updated Question of Ethics feature.
• Clearer exhibit on the transaction analysis model.
• Clarified discussion on preparing the financial statements and their relationships.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 65% of mini-exercises, exercises, and problems; and all new annual report cases.

Chapter 4

• Reorganized discussion of the adjustment process.
• New visuals for adjusting entries.
• Clarified and simplified illustration of the adjustment process.
• Modified self-study quiz on adjusting entries.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 75 percent of mini-exercises, exercises, and problems; and all new annual report cases.

Chapter 5

• Updated focus and comparison companies.
• New graphic reflecting changes in accounting regulation.
• Updated coverage of the effects of accounting restatements and fraud on accountants, company management, and investors
• Updated coverage of the importance of international accounting standards.
• New Financial Analysis feature on stock market reaction to earnings announcements.
• New exhibit illustrating information on reuters.com.
• New ROE Self-Study Quiz based on Apple Computer and HP.
• Updated Microsoft Demonstration Case.
• Updated discussion and illustration of nonrecurring items.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 60 percent of mini-exercises, exercises, and problems; and all new annual report cases

Chapter 6

• Updated focus and comparison companies.
• Revised example of aging of accounts receivable.
• Updated coverage of electronic cash transactions.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 75 percent of mini-exercises, exercises, and problems; and all new annual report cases.

Chapter 7

• Updated focus and comparison companies.
• Modified inventory graphics illustrating cost flow assumptions.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 75 percent of mini-exercises, exercises, and problems; and all new annual report cases.

Chapter 8

• New focus company—Southwest Airlines replaces Delta Airlines—and comparison companies.
• New International Perspective feature on IFRS.
• Updated financial disclosure examples.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 75 percent of mini-exercises, exercises, and problems; and all new annual report cases.

Chapter 9

• New comparison companies.
• Expanded discussion of lease liabilities.
• Updated focus company information.
• Addition of fractional year interest.
• Addition of demonstration case.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 80 percent of mini-exercises, exercises, and problems; and all new annual report cases.

Chapter 10

• Updated information for focus company.
• Inclusion of fractional year interest.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 75 percent of mini-exercises, exercises, and problems; and all new annual report cases.

Chapter 11

• New focus company— Sonic Drive-in Restaurant replaces Outback Steakhouse—and comparison companies.
• Elimination of actual statement of stockholders’ equity due to increasing complexity of the statement.
• Elimination of discussion of restriction on retained earnings.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 75 percent of mini-exercises, exercises, and problems; and all new annual report cases.

Chapter 12

• New focus company—Washington Post Companies replaces Dow Jones—and comparison companies.
• New financial analysis feature on fair value for investments.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 75 percent of mini-exercises, exercises, and problems; and all new annual report cases.

Chapter 13

• Updated focus and comparison companies.
• Transfer of coverage of gains and losses on sale of property, plant and equipment from an end of chapter supplement to the chapter itself.
• Transfer of detailed discussion of preparation of the direct method operating activities section to end of chapter supplement.
• Addition of new exhibit at the end of the chapter summarizing the preparation process (indirect method).
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 75 percent of mini-exercises, exercises, and problems; additional exercise, problem, and alternate problem involving preparation of complete cash flow statement; and all new annual report cases.

Chapter 14

• Revised financial analysis for Home Depot and Lowe’s.
• Updated comparison companies and financial examples.
• Substantial revision of end-of-chapter material: three computational questions added to the multiple choice section; new numerical data for 75 percent of mini-exercises, exercises, and problems; and all new annual report cases.