About the Book Use Consistency, Repetition, and a High Level of Detail Scaffolding Approach: Chapter content and end-of-chapter material build from a basic, short exercise featuring one basic single concept, to more advanced problems featuring multiple learning objectives, encouraging practice and skill development among students. UPDATED! Illustrations of electronic bank statements (Chapter 4). Teach with Better Coverage of Accounting Concepts and Standards UPDATED! Accounting cycle is now covered in a more chronological sequence: Chapter 1 introduces the accounting cycle with a brief financial statement overview, using the financial statements of The Walt Disney Company. This first exposure to accounting explores financial statements in depth, familiarizes students with using real business data, and points out basic relationships between the different types of statements. Chapter 2 continues the discussion of the accounting cycle by explaining how to journalize, post, and summarize basic transactions, and builds in repetition to ensure that students understand the fundamentals when they prepare the trial balance. Chapter 3 concludes the discussion of the accounting cycle with adjusting and closing entries, and preparation of the related trial balances to close the loop for students. Coverage of AICPA’s Code of Professional Conduct includes the code’s principles, explaining CPA’s responsibility to act in the public’s interest, to have integrity and objectivity, and to exercise due professional care. UPDATED! Up-to-the-minute coverage of the revised FASB accounting standard on revenue recognition, impacting accounting for sales returns and sales discounts, is included in Chapters 3, 5, and 11. UPDATED! The Days’ Sales Outstanding (DSO) ratio in Chapter 5 has been improved and made more consistent with the coverage of Days’ Inventory Outstanding (DIO) in Chapter 6 and Days’ Payable Outstanding (DPO) in Chapter 9. UPDATED! Coverage of inventory and cost of goods sold in Chapter 6 has been updated using Under Armour, Inc., a company highly familiar to college students, and one whose details makes the study of inventory more interesting. Ethics coverage is a vital part of accounting. Sound ethical judgment is important for every major financial decision—which is why this text provides consistent ethical reinforcement in every chapter. Several sections of the text are dedicated to discussing potential ethical problems that can arise when dealing with the corresponding topic, and how they should be properly handled. Additional End-of-Chapter questions allow for short open response questions and/or discussion. These End-of-Chapter questions connect back to AICPA’s Code of Professional Conduct and the overall topic of ethics. A self-contained section on straight-line amortization for bond premium or discount in Chapter 9 allows instructors to pick and choose what topics they want to cover. Reinforce Learning by Using Exercises UPDATED! Short exercises, exercises, and problems are more clearly labeled by learning objectives (LO). Short exercises have been condensed and simplified in this edition to explain only one learning objective each (to better cover single concepts as illustrations or class exercises) while exercises cover two or three LOs and problems cover multiple LOs. A hypothetical Case Study in Chapter 4 introduces fraud concepts and how fraud can be prevented by internal control. This fictionalized case study is based on an actual company in Texas whos