• SPECIFIC CHAPTER CHANGES

Chapter 1 An Introduction to Accounting

• Revised learning objectives.
• Added a new Curious Accountant featuring new high-profile companies and products.
• Added a new Focus on International Issues textbox that includes IFRS coverage.
• Moved coverage of the price-earnings ratio to a subsequent chapter.
• Resequenced end-of-chapter materials to be consistent with the sequence of the learning objectives.
• Updated exercises, problems, and cases.

Chapter 2 Understanding the Accounting Cycle

• Combined what were formerly Chapters 2 and 3 into a single chapter that includes coverage of accruals and deferrals. Moved introduction of depreciation and the computation of interest to subsequent chapters.
• Revised learning objectives.
• Added a new Curious Accountant featuring new high-profile companies and products.
• Updated exercises, problems, and cases.
• Added coverage of corporate governance.
• Resequenced end-of-chapter materials to be consistent with the sequence of the learning objectives.
• Updated exercises, problems, and cases.

Chapter 3 The Double-Entry Accounting System (Formerly Chapter 4)

• Revised content to remove references to depreciation and the computation of interest.
• Revised learning objectives.
• Added a new Curious Accountant featuring new high-profile companies and products.
• Added a new Focus on International Issues textbox that includes IFRS coverage.
• Updated Reality Bytes.
• Resequenced end-of-chapter materials to be consistent with the sequence of the learning objectives.
• Added exercises related to IFRS.
• Updated exercises, problems, and cases.

Chapter 4 Accounting for Merchandising Businesses (Formerly Chapter 5)

• Added journal entries to content describing accounting events.
• Revised learning objectives.
• Updated Curious Accountant.
• Resequenced end-of-chapter materials to be consistent with the sequence of the learning objectives.
• Updated exercises, problems, and cases.

Chapter 5 Accounting for Inventories (Formerly Chapter 6)

• Added journal entries to content describing accounting events.
• Revised learning objectives.
• Updated Curious Accountant.
• Added a new Focus on International Issues textbox that includes IFRS coverage.
• Added a new Reality Bytes.
• Resequenced end-of-chapter materials to be consistent with the sequence of the learning objectives.
• Added exercises related to IFRS.
• Updated exercises, problems, and cases.

Chapter 6 Internal Control and Accounting for Cash (Formerly Chapter 7)

• Added a new Curious Accountant featuring new high-profile companies and products.
• Added journal entries to content describing accounting events.
• Added coverage of the audit function.
• Added a new Reality Bytes.
• Updated exercises, problems, and cases.

Chapter 7 Accounting for Receivables (Formerly Chapter 8)

• Added coverage of the percent of receivables method of accounting for uncollectible accounts.
• Added coverage of notes receivable and the computation of interest revenue.
• Added journal entries to content describing accounting events.
• Moved coverage of current liabilities (warranty obligations and notes payable) to a later chapter.
• Revised learning objectives.
• Added a new Curious Accountant featuring new high-profile companies and products.
• Added a new Focus on International Issues textbox that includes IFRS coverage.
• Updated Reality Bytes.
• Resequenced end-of-chapter materials to be consistent with the sequence of the learning objectives.
• Updated exercises, problems, and cases.

Chapter 8 Accounting for Long-Term Operational Assets (Formerly Chapter 9)

• Added introduction for the determination of depreciation expense.
• Added journal entries to content describing accounting events.
• Updated Curious Accountant.
• Added a new Focus on International Issues textbox that includes IFRS coverage.
• Updated Reality Bytes.
• Added exercises related to IFRS.
• Updated exercises, problems, and cases.

Chapter 9 Accounting for Current Liabilities and Payroll (New Chapter)

• Consolidated content related to current liabilities (warranty obligations and notes payable) to form the basis for this new chapter.
• Added content related to contingent liabilities.
• Added content related to sales tax liabilities.
• Added content related to payroll accounting.
• Added content related to the preparation of a classified balance sheet.
• Added a new Curious Accountant, Reality Bytes, and Focus on International Issues.
• Added a new exercises, problems, and cases.

Chapter 10 Accounting for Long-Term Debt

• Added journal entries to content describing accounting events.
• Moved the effective interest rate method of accounting for bond discounts and premiums from the appendix to the body of the chapter.
• Added a new Curious Accountant featuring new high-profile companies and products.
• Added a new Reality Bytes.
• Updated exercises, problems, and cases.

Chapter 11 Proprietorships, Partnerships, and Corporations

• Added journal entries to content describing accounting events.
• Revised learning objectives.
• Updated Curious Accountant.
• Added a new Focus on International Issues textbox that includes IFRS coverage.
• Added a new Reality Bytes.
• Resequenced end-of-chapter materials to be consistent with the sequence of the learning objectives.
• Added exercises related to IFRS.
• Updated exercises, problems, and cases.

Chapter 12 Statement of Cash Flows (New Chapter)

• Rewrote chapter to provide balanced coverage of the direct and indirect methods of reporting cash flow from operating activities.
• Rearranged end-of-chapter materials to allow independent coverage of the direct or indirect method.
• Added a new Curious Accountant, Reality Bytes, and Focus on International Issues.
• Added a new exercises, problems, and cases.

Chapter 13 Financial Statement Analysis

• Added a new Curious Accountant featuring new high-profile companies and products.
• Updated exercises, problems, and cases.