Ideal for first-year accounting courses, this market dominating text presents balanced coverage of both financial and managerial topics. In this text, the authors refine their proven approach to accounting's expanding role in business. This text uses the preparation of financial statements as the framework for understanding what accounting is all about.

Benefits:

• NEW!-Reporting and Analysis: Financial Reporting and Disclosure or Managerial Disclosure and Analysis boxes in each chapter describe a real company's financial or managerial reports and analyses.
• Financial Analysis and Interpretation: At the end of each financial chapter, a section describes an important element of financial analysis to help students understand the information in financial statements and how that information is used.
• Critical-Thinking and Decision-Making Activities: Students need to develop analytical abilities, not just memorize rules. These activities focus on understanding and solving issues. Some are presented as dialogues - a conversation in which students can "observe" and "participate" when they respond to the issue being discussed.
• Team Building: Group Learning Activities let students learn accounting and business concepts while building teamwork skills.
• Communications Items: These activities help students develop communication skills that will be essential on the job, regardless of the fields they pursue.
• Questions & Answers in the margin of the text help students check whether they understand what they've just read.
• "Points of Interest": These margin notes offer insight into subjects of special interest to students, such as careers and current events.
• "Real World Notes": J.C. Penney Co. and General Electric are just a couple of the familiar examples that provide a close-up look at how accounting operates in the marketplace. These examples are highlighted in the margin of the text.
• "What Do You Think-": These exercises and activities let students speculate about the real-world effects of newly learned material.
• "What's Wrong With This-": These innovative exercises challenge students to analyze and discover what is wrong with a financial statement, a report, or a management decision.
• Mid-chapter Summaries: Margin notes within each chapter bring special attention to important points.
• NEW!-"Who Am I-": Each chapter includes a "Motley Fool" box with intriguing clues about a real company. Students are challenged to identify the company and check their answer against the answer provided later in the chapter.
• Self-Examination Questions: Consist of five multiple choice questions, with answers at the end of the chapter, to help students review and retain chapter concepts.
• Exercises: An average of 25 completely revised exercises at the end of each chapter - more than any other text on the market - can be assigned or used as examples in the classroom. Most of these exercises focus on only one specific chapter objective.
• Problems: Each chapter includes two full sets of completely revised problems for use as classroom illustrations, for assignments, for alternate assignments, or for independent studying. This edition features shortened problems to provide better focus on key chapter topics.
• Comprehensive Problems: At the end of Chs. 4, 5, 10, and 13, cumulative learning applications integrate and summarize the concepts of several chapters to test students' comprehension.
• NEW!-"Integrity in Business": Boxes in each chapter describe real-world situations in which ethics, or the lack there-of, play an important role in business decision-making and financial results.
• NEW!-"Spotlight on Strategy": Boxes at the end of each chapter utilize real business scenarios to illustrate the effects and importance of strategies for managers.
• Technology-Assisted Learning: Warren/Reeve/Fess features a technology-based system that provides teaching and learning solutions in an interactive environment. The learning system consists of three elements: Web Tutor Advantage (on WebCT, Blackboard and non-platformspecific), Personal Trainer and the Product Web Site. Internet Activities launch students into accounting-related areas of the Worldwide Web's ever-expanding universe.
• Continuing Case Study: A fictitious dot.com company, NetSolutions, is followed throughout Chapters 1-5 as the example company to demonstrate a variety of transactions. Continuing Problem: Chapters 1-4 have a continuing problem. The continuing problem provides a great opportunity for students to practice what they've learned and use the Power Accounting System Software (P.A.S.S.), formerly General Ledger Software, with the problem. As the students study each step of the accounting cycle, they can follow a single company - Dancin Music- from its transactions to the effect of those transactions on its financial statements.
• Illustrative Problem and Solution: A solved problem models one or more of a chapter's assignment problems, helping students make the most of the chapter and end-of-chapter materials.
• Relevant Chapter Openers: The beginning of each chapter connects the student's own experiences to the chapter's topic. This tangible link is a great motivator.
• "Business Transactions": In Chapters 1 and 2, students are introduced to business transactions through non-business events that help them better understand the nature of transactions.

1. Introduction to Accounting and Business.
2. Analyzing Transactions.
3. The Matching Concept and the Adjusting Process.
4. Completing the Accounting Cycle.
5. Accounting for Merchandising Businesses.
6. Accounting Systems, Internal Controls, and Cash.
7. Receivables.
8. Inventories.
9. Fixed Assets and Intangible Assets.
10. Current Liabilities.
11. Corporations: Organization, Capital Stock Transactions, and Dividends.
12. Corporations: Income and Taxes, Stockholders' Equity, and Investments in Stocks.
13. Bonds Payable and Investments in Bonds.
14. Statement of Cash Flows.
15. Financial Statement Analysis.
16. Introduction to Managerial Accounting and Job Order Cost Systems.
17. Process Cost Systems.
18. Cost Behavior and Cost-Volume-Profit Analysis.
19. Profit Reporting for Management Analysis.
20. Budgeting.
21. Performance Evaluation Using Variances from Standard Costs.
22. Performance Evaluation for Decentralized Operations.
23. Differential Analysis and Product Pricing.
24. Capital Investment Analysis.
25. Cost Allocation and Activity-BasedCosting.
26. Cost Management for Just-in-Time Environments.

Appendix A. Interest Tables.
Appendix B. Codes of Professional Ethics for Accountants.
Appendix C. Alternative Methods of Recording Deferrals.
Appendix D. Special Journals and Subsidiary Ledgers.
Appendix E. Periodic Inventory Systems for Merchandising Businesses.
Appendix F. Foreign Currency Transactions.
Appendix G. The Home Depot Annual Report.
Glossary.
Subject Index.
Company Index.