Higher Education

Financial Accounting: The Impact on Decision Makers, 9th Edition

  • Gary A. Porter Drake University
  • Curtis L. Norton Arizona State University
  • ISBN-10: 1285182952  |  ISBN-13: 9781285182957
  • 864 Pages
  • Previous Editions: 2013, 2011, 2009
  • © 2015 | Published
  • College Bookstore Wholesale Price = $283.25
  • Newer Edition Available
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About

Overview

FINANCIAL ACCOUNTING: THE IMPACT ON DECISION MAKERS, Ninth Edition, is packed with decades of academic and real-world accounting experience. This text provides the appropriate blend of academic rigor with step-by-step learning and decision-making models that reach today's students and equip them with the skills they need to be effective decision makers and future business leaders. Instead of an abstract approach to accounting, FINANCIAL ACCOUNTING: THE IMPACT ON DECISION MAKERS takes students through recognizable focus companies and their specific financial data and business strategies, imparting students with real-life experience and a model to hone the skills necessary to making important decisions. This edition features three key models that provide students with a more structured approach to understanding financial data and how it is used to make sound business decisions. The Transaction Analysis Model helps students see the effects an economic event has on the accounting equation and financial statements. The Financial Decision Framework focuses on ratio analysis and financial decisions, and the Ethical Decision Model helps students apply ethical judgment when applying accounting principles. FINANCIAL ACCOUNTING: THE IMPACT ON DECISION MAKERS, Ninth Edition, will not only help your students learn and understand core accounting rules and procedures but it will also give them a framework through which they can apply their knowledge to make effective business decisions.

Additional Product Information

Features and Benefits

  • The Transaction Model: The Transaction Model in FINANCIAL ACCOUNTING, Ninth Edition, helps students go beyond procedures to extend the decision-making framework into understanding the transactions and recording decisions that accountants regularly make. The model asks students to be able to state the event, understand the accounts used and how they're impacted, understand how to apply debit/credit rules to journalizing, know what effect transactions will have on the accounting equation and, ultimately, on the financial statements. This model is extended into CengageNOW™ with questions that measure students' understanding of the effects of transactions they're asked to record.
  • Extending the Financial Decision Framework's Ratio Decision and Business Decision Models into CengageNOW™: Author-created end-of-chapter questions written to require students to apply the models they've learned have been extended into the online experience in CengageNOW™. These interactive decision problems and cases further reinforce the Financial Decision Framework with a hands-on analysis and decision-making experience.
  • The Ethical Decision Model has been integrated into requirement steps in selected problems and Ethical Decision Cases in the end of chapter. Ethical issues are introduced within selected chapters, and end-of-chapter cases ask students to apply an Ethical Decision Model that is introduced in Chapter 1 in order to evaluate the situation and learn how to make ethical decisions. This integration follows through on the ethical model's stepped method of reaching ethical decisions through identification, analysis, and resolution.
  • UPDATED Financial Information: Included real-company financial statements have been updated to provide students and instructors with current financial reporting and business conditions as well as accurate company descriptions and ratios based on the latest 10-K financials.
  • Focus on Users: Ten interviews with selected businesspeople discussing the use of accounting in their careers are included in boxed vignettes within the text and available by video to help students understand the relevance of accounting to their future careers.
  • ENHANCEMENTS in CengageNOW™: CengageNOW™ includes a MindTap Reader for an enhanced eBook experience, additional algorithmic questions, new Excel® Problems, and updated Blueprint Problems. CengageNOW™ will also include "What If" Problems that ask students to modify the question data and observe and evaluate its effects.
  • "Working-backward" exercises in the end-of-chapter homework give students a "result": journal entries, account balances, balance sheet, income statement presentations/amounts, or ratios. With this information, students are then asked to work backward to arrive at an answer to the exercise. This type of problem solving will help students think critically about key accounting concepts.
  • Transaction-effects Equation Format: Transactions discussed in the text are notated using both journal entries and a Transaction-Effects Equation that graphically shows how the transaction affects the balance sheet, the income statement, and the relationship between changes in net income and changes in equity.
  • IFRS Coverage: Coverage appears in selected sections of the text, which are called out by an icon. These references provide a brief background for the upcoming changes in financial standards that are fully covered in the book's IFRS appendix.
  • Key annual report excerpts from Under Armour and Columbia Sportswear bring the role of accounting in business into focus for students and provide for an interesting industry comparison.
  • Early introduction of the statement of cash flows exposes students to the delicate balance between operations and a company's investing and financing activities, and how its management impacts an organization's viability.
  • Alternate Terms and Problems Sections: Found at the end of each chapter, the Alternate Terms Section illustrates variations in terminology across companies, regions, and users. Further, Alternate Problems Sections include additional problems to assign, which are modeled after problems in regular Problems Sections and designed to deepen students' understanding.

Table of Contents

1. Accounting as a Form of Communication.
2. Financial Statements and the Annual Report.
3. Processing Accounting Information.
4. Income Measurement and Accrual Accounting.
5. Inventories and Cost of Goods Sold.
6. Cash and Internal Control.
7. Receivables and Investments.
8. Operating Assets: Property, Plant, and Equipment, and Intangibles.
9. Current Liabilities, Contingencies, and the Time Value of Money.
10. Long-Term Liabilities.
11. Stockholders' Equity.
12. The Statement of Cash Flows.
13. Financial Statement Analysis.
Appendix A. International Financial Reporting Standards.
Appendix B. Excerpts from Under Armour's 10-K.
Appendix C. Excerpts from Columbia Sportswear's Form 10-K.
Glossary.
Index.

What's New

  • NEW: The Transaction Model: The Transaction Model in FINANCIAL ACCOUNTING, Ninth Edition, helps students go beyond procedures to extend the decision-making framework into understanding the transactions and recording decisions that accountants regularly make. The model asks students to be able to state the event, understand the accounts used and how they're impacted, understand how to apply debit/credit rules to journalizing, know what effect transactions will have on the accounting equation and, ultimately, on the financial statements. This model is extended into CengageNOW™ with questions that measure students' understanding of the effects of transactions they're asked to record.
  • NEW: Financial Decision Framework: New to the ninth edition, students are given a framework to teach them to identify relevant information, analyze it, and make better business decisions. The two-part Financial Decision Framework includes a Ratio Decision Model and a Business Decision Model. This framework, integrated throughout the text, provides students with models for honing their analysis and decision-making skills using real company information in a relevant, applicable context. The models are extended into the end-of-chapter questions so students not only learn these models for making financial decisions but they also then have a chance to apply them in practice.
  • NEW: Part of the Financial Decision Framework, the Ratio Decision Model guides students through formulating a question about a real company, and then calculating, comparing, and interpreting ratios.
  • NEW: Moving a step beyond the Ratio Decision Model, the Financial Decision Framework also guides students through a Business Decision Model. This model leads students through asking a question as a user of financial information, gathering and analyzing the necessary information, making a decision, and then monitoring that decision.
  • NEW: The Financial Decision Framework's Ratio Decision and Business Decision Models are extended into CengageNOW™. Author-created end-of-chapter questions written to require students to apply the models they've learned have been extended into the online experience in CengageNOW™. These interactive decision problems and cases further reinforce the Financial Decision Framework with a hands-on analysis and decision-making experience.
  • NEW: The Ethical Decision Model has been integrated into requirement steps in selected problems and Ethical Decision Cases in the end of chapter. Ethical issues are introduced within selected chapters, and end-of-chapter cases ask students to apply an Ethical Decision Model that is introduced in Chapter 1 in order to evaluate the situation and learn how to make ethical decisions. This integration follows through on the ethical model's stepped method of reaching ethical decisions through identification, analysis, and resolution.
  • NEW: Introducing two new flagship focus companies--Under Armour and Columbia Sportswear--are used as examples throughout the text, allowing students to apply the models they're learning to real financial data from two companies within the same industry.
  • NEW: Introducing new chapter focus companies--Walgreen Co. for Chapter 12 and lululemon athletica, inc., for Chapter 13.
  • NEW: The authors have streamlined the chapter text without oversimplifying or removing topics, so the presentation of the content is clearer, more concise, and easier for students to absorb.
  • NEW: Cognero online Test Bank. Cengage Learning Testing Powered by Cognero is a flexible online system that allows you to author, edit, and manage Test Bank content from multiple Cengage Learning solutions; create multiple test versions in an instant; deliver tests from your LMS, your classroom or wherever you want. Revised to reflect the ninth edition, the Cognero Test Bank contains the same questions that are in the Microsoft® Word Test Bank. All question content is tagged according to standards topic, Bloom's Taxonomy, and difficulty level.
  • NEW: At least 100 new algorithmic homework problems in CengageNOW™ allow instructors to be assured that students have plenty of chances to drill and practice, while applying what they're learning to different problems.

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    ISBN-10: 1285182960 | ISBN-13: 9781285182964

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Meet the Author

Author Bio

Gary A. Porter

Dr. Gary A. Porter earned his M.B.A. and Ph.D. degrees from the University of Colorado. Throughout his career, Dr. Porter has taught at several universities, including San Diego State; Loyola University Chicago; and the University of Montana. He has also served as a department chair. He is currently Distinguished Lecturer at Drake University. Widely published and the recipient of numerous teaching awards, Dr. Porter has conducted workshops on introductory accounting education and corporate financial reporting, has worked as a staff accountant with Deloitte & Touche, and has actively served the Illinois CPA Society, American Accounting Association, and Financial Executives International.

Curtis L. Norton

Dr. Curtis L. Norton received his Ph.D. from Arizona State University and an M.B.A. from the University of South Dakota. He is currently Clinical Professor of Accounting at Arizona State University. As Professor of Accounting at Northern Illinois University for more than 30 years, Dr. Norton earned the University Excellence Teaching Award and has published in The Accounting Review, The Journal of Accounting Education, CPA Journal, and many other professional journals. A member of the American Accounting Association and Financial Executives International, he also consults and conducts training for private and governmental authorities, banks, and utilities.