Financial Accounting (8th Edition)

This new edition continues to offer a user orientation to fundamental coverage of accounting principles within a traditional organizational framework. This text serves the needs both of the accounting and business undergraduate, providing a sound understanding of the uses and importance of accounting information in a wide range of business decisions. This 8th edition contains new introductory-level coverage of important emerging topics, such as mark-to-market and accounting for post-retirement benefits. Other topics covered include: financial assets; liabilities; reproting unusual events; and measuring cash flow.

New Co-authors, Sue Haka (Michigan State University) and Jan Williams (University of Tennessee), have joined the Meigs team, improving pedagogical features and content. Williams' background in financial accounting and Haka's experience in International accounting round out the author team.
The reorganization of chapter 1 gives students a more conceptual analysis of accounting. This chapter explores the role of accounting in business, and now provides a more balanced introduction to the roles of financial and managerial accounting.
Chapter 2 briefly introduces students to all financial statements, preparing them for concepts that will be covered in more depth in future chapters. This chapter acts as a road map to where the text will take them.
Chapter 3 on closing entries. The ninth edition's coverage of closing entries and adjusting entries in a single chapter was confusing for some students. Splitting these topics into two chapters will be less overwhelming and more manageable. Students will better comprehend this material because it does not confuse the adjusting process and closing process with the capturing of transactions during a specific period.
Chapter 4 incorporates all adjusting entries. Adjusting entries and closing entries are covered in chapter 4, allowing the authors to go into more detail without overwhelming students.
Chapter 10, Stock Holders Equity: Paid in Capital, more closely parallels how the structure of equity relates to the balance sheet, making it more digestible for the student.
Chapter 11, Income and Changes in Retained Earnings, flows naturally from chapter 10 because it follows the same organization as the balance sheet.
Chapter 12, Statement of Cash Flows, is more comprehensive in covering both direct and indirect methods. By providing students with a solid foundation of financial accounting in previous chapters, the authors are now able present this material in a more relevant and comprehensive manner without overwhelming the student. Students can now better understand the relationship between the income statement, balance sheet, and cash flow statement and how they are integrated.
Chapter 13, Financial Statement Analysis. This topic can be difficult for students and some faculty prefer to eliminate its coverage all together. Although covered towards the end, this topic was not just thrown into the text. Providing the foundation for this chapter, students are introduced to some aspects of Financial Statement Analysis in almost every chapter throughout the text. A capstone to financial accounting, this chapter enables students to pull all their knowledge together and apply it in a more relevant manner.
Chapter 14, Global Business Accounting, reflects the increasingly global nature of businesses and the fact that a student should not leave a course without having some understanding of how this affects accounting.
New Chapter opening vignettes apply the concepts in the chapter to real and current events.
'Cash Effect' boxes are intertwined throughout every chapter explain the economic impact of certain accounting procedures and help students understand the cash flow of a company.
Strategy and Financial Statement boxes are intertwined throughout every chapter explore how financial statements help businesses in making strategic decisions.
Ethics boxes will be integrated in every chapter throughout the text, highlighting ethical and social responsibilities in modern business.
International Case in Point Boxes are introduced throughout the text where appropriate and compare US accounting methods to International methods for the same industry. This feature uses actual business events to illustrate the relationship between accounting concepts and the real world.
Appendix A - Tootsie Roll Annual Report. There will be at least one question per chapter pertaining to the Tootsie Roll Annual Report that faculty can assign to their students.
Comprehensive Problem I - Located at the end of chapter 4, this comprehensive problem will relate to a service organization, allowing students to apply their knowledge from chapters 1-4.
Comprehensive Problem II - Located at the end of chapter 7, this comprehensive problem relates to a merchandising organization, and allows students to apply material covered in chapters 1-7. This comprehensive problem incorporates accounting marketable securities, cash, accounts receivable and inventories.
Increased End-of-Chapter material.
Student CD-ROM will include student tutorial, GLAS and SPATS. This CD-ROM will be available free of charge, shrink wrapped with text.
Introduces students to financial accounting within a real business context. Accounting concepts and procedures are always explained in terms of their relevance to business.
Varied and diverse end-of-chapter material offers ample opportunity for analysis and critical thinking. The exercises, problems, and cases include traditional material, research cases, ethics problems, spreadsheet problems, and Internet exercises.
'Case in Point' describes actual business events illustrating key accounting concepts.
Your Turn requires students to put themselves in the role of the decision maker.
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