Retained Features:

• Content in the Chapters 1-3 has been restructured to more clearly distinguish revenue, expense, and dividend accounts from the retained earnings account.



• Ethics coverage has been updated, and expanded to include corporate governance. A new pedagogical item, "Fraud Triangle", will cover ethical misconduct throughout the text.



• Replaced coverage of the Net Method for cash discounts with the Gross Method in Chapter 5.



• A full Financial Statement Analysis chapter is available online. The text continues to cover financial statement analysis within each chapter of the text, but this chapter will provide separate and more in-depth coverage for those who want it.



• Coverage of gains and losses moved from Chapter 3 to Chapter 5 and thereafter.



• Moved to appendices for Accounting for Investment Securities and for Time Value of Money. (Appendices E and F at end of book).



• Focus Company logo appears in the chapter. Each chapter introduces topics within the context of a realistic, though fictitious company. Students see the impact of accounting decision on the company as they work through the chapter.



• AACSB standards are applied to the test bank and tied to the text's learning objectives.



• Focus on Concepts—The text focuses on the fundamentals of financial accounting. Isolating concepts and presenting them in a logical sequence facilitates learning. The text also maintains a manageable length (12 chapters) by focusing on only the most important topics.



• Distinctive Financial Statements Model—This pedagogical tool helps students visualize the simultaneous impact of business events on all of the key financial statements (the income statement, the balance sheet, and the statement of cash flows).

Assets

=

Liab.

+

Equity

Rev.

–

Exp.

=

Net Inc.

Cash Flow

+ -

n/a

n/a

n/a

n/a

n/a

- Invest. Activity

• Business Transactions are Classified into 4 Logical Categories—Instead of attempting to memorize transactions, students learn to classify events as belonging to one of four conceptual categories. More specifically, students learn to classify transactions as being a 1) Asset source, 2) Asset use, 3) Asset exchange, or 4) Claims Exchange. This approach encourages students to think about the effects of events rather than the memorization of recording procedures.



• Coverage of Multi-Period Cycles—Typically, financial accounting texts focus only on one accounting cycle. Edmonds presents the key financial statements in such a way as to demonstrate the impact of related events over multiple accounting cycles. This benefits students by showing them the impact of business decisions over time. Managers of companies rarely make important decisions based on only one accounting cycle.



• Integrated Statement of Cash Flows—Coverage of the statement of cash flows begins in the first chapter and continues throughout the text. Students are first asked to analyze the cash account. When the cash account is used as the data source, preparing a statement of cash flows is simply a matter of learning how to classify events as operating, investing or financing activities. More complicated process of converting accrual based income to cash flow is covered in Ch. 12.



• Decision-Making Orientation—Concepts are introduced within a decision-making context. Features such as "Curious Accountant" highlight real world accounting issues and decisions.



• Check Yourself feature that asks students to stop and think about the concept discussed before moving to the next concept.



• A Look Back/A Look Forward – Each chapter ends with a summary of the main points and a preview of the next chapter with an emphasis on how they connect. This approach enhances the stepwise, logical organization of the book and helps students understand how everything connects together.



• The Financial Analyst highlights financial statement analysis in each chapter.



• Self-Study Review Problem at the end of each chapter is a representative problem with a detailed solution to be worked before attempting end of chapter problems.



• Comprehensive Problems – Chapters 4 through 11 include a comprehensive problem designed to integrate concepts across chapters. These problems help students understand interrelationships between various accounting concepts. The problem builds in each successive chapter, with the ending account balance in one chapter becoming the beginning account balance in the next chapter.

•  Extensive and Innovative Problem Material:

Analyze, Think, Communicate -- Updated for this edition. Problems in this section feature a strong critical thinking component and provide opportunities for writing and group assignments. ATC contains Annual Report Problems (featuring the Harley-Davidson and Topps Company annual reports), Financial Ratio Problems (using real data from actual companies), Writing Assignments, Ethical Dilemmas, EDGAR Cases, and Working With Excel and Mastering Excel problems. This section also includes an Ethics Case for each chapter.

- Working with Excel and Mastering Excel problems require students to create their own spreadsheets, using information from the text. These are at the end of each chapter. Screen captures and spreadsheet tips are provided to help guide students.

-Excel Templates –A logo identifies end-of-chapter problems that include an Excel template. These help students develop spreadsheet skills. The templates are on the OLC website.

o Questions, Exercises, and Problems from the previous edition have been thoroughly revised as well. The authors have included more exercises with a variety of lengths to give instructors more flexibility in making assignments and expanded problem materials by adding a B set of exercises that mirror the A set exercises.

o Check figures are included for Problems in Series A.

• Annual Report Integrated Throughout Text - Edmonds' includes the Target Corporation Annual portion of Form 10-k as an appendix. In the Annual Report and Financial Statement Analysis Projects section (Appendix D) projects for Target Corporation are included as well as a general purpose report project instructors can assign for any company's annual report.



• Pairs logically with Managerial Text—For believers in the Edmonds "fundamental concepts" approach, we can cover both introductory courses (financial and managerial) for a cohesive foundation in accounting.