Higher Education

Cornerstones of Financial and Managerial Accounting, 2nd Edition

  • Jay Rich Illinois State University
  • Jeff Jones Auburn University
  • Dan L. Heitger Miami University - Oxford, Ohio
  • Maryanne Mowen Oklahoma State University
  • Don Hansen Oklahoma State University
  • ISBN-10: 0538473487  |  ISBN-13: 9780538473484
  • 1408 Pages
  • Previous Editions: 2010, 2010
  • © 2012 | Published
  • College Bookstore Wholesale Price = $309.00
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About

Overview

Get your students where they need to be with CORNERSTONES OF FINANCIAL AND MANAGERIAL ACCOUNTING. Cornerstones is the only text that delivers a truly unique learning system that is integrated through the entire introductory managerial accounting journey--ensuring they will leave the course with the needed elements to be future business leaders. Students are guided through: Building A Strong Foundation: Students learn the basic accounting concepts through clear and consistently-formatted Cornerstones Examples and Exercises. Understanding Relationships: Students see the relationships between the numbers & concepts and how variables impact each other. Seeing Real-World Connections: Student understanding is brought full circle as they see how these concepts are applied in real world situations. Making Decisions: Students practice actually making decisions based on the information they have now gathered and analyzed. Students love this approach because it presents materials the way they learn and professors love it because it gets students to master the foundations more quickly and allows more time to learn and apply the analysis and decision making of accounting. Get There with Cornerstones!

Additional Product Information

Features and Benefits

  • UNIQUE CORNERSTONES PEDAGOGY REFLECTS THE WAY STUDENTS LEARN BEST--Carefully crafted in response to studies on student reading behavior and market research, the innovative Cornerstones approach has been proven to increase student engagement and preparedness while improving grades. Each major concept is illustrated in a Cornerstone, which supports and amplifies accounting concepts with a compelling example, step-by-step calculations to solve a business problem, and a link to a brief video segment that reinforces and summarizes key concepts and procedures. In addition, end-of-chapter Cornerstones Exercises refer to Cornerstones in the chapter, allowing students to consider relevant examples when completing assignments, which can help them become more independent learners.
  • CORNERSTONES VIDEOS VISUALLY REINFORCE KEY ACCOUNTING PRINCIPLES --Each Cornerstone within this edition offers a brief three-to-five minute video segment that reinforces and summarizes the specific accounting concepts and procedures discussed in the text's Cornerstone. Students easily learn on-the-go by downloading the videos to any portable video player from the companion website at www.cengage.com/accounting/rich.
  • ENGAGING REAL WORLD VIGNETTES: Each Financial chapter opens with an Experience Financial Accounting vignette that shows how real companies like Apple, Verizon, and Google are using accounting information to make better decisions. Real financial statements from leading, recognizable companies are used to illustrate key concepts, and each chapter includes an assignment that requires students to analyze and interpret actual financial data for companies such as Abercrombie and Fitch and Aéropostale. Managerial Chapters also open with a real company vignette, which are then tied to the Experience Accounting Videos that are offered as free-when-bundled supplement or in the CengageNOW or Aplia online homework products. These videos show students the real-world context behind business decision making.
  • ETHICAL DECISION-MAKING: To succeed in today's business climate, students need to be able to analyze business situations thoughtfully and make informed, ethical decisions. The text weaves Ethical Decisions features throughout the chapters to encourage students to develop these essential skills and consider the ethical implications of their actions in every situation.
  • DECISION MAKING & ANALYSIS FEATURES EXPLORE HOW BUSINESSES USE ACCOUNTING: Students see, first-hand how today's successful businesses use accounting concepts and information to make key decisions and determine future plans. The book's powerful analytical features detail the impact of accounting in action.
  • CengageNOW is a powerful course management and online homework tool that provides control and customization to optimize the student learning experience and produce desired outcomes. CengageNOW offers a variety of advantages, including: Easy-to-use course management options that offer flexibility and continuity from one semester to another, Robust assignment options that allows for maximum instructor control, Smart Entry, which reduces typos and errors to help students do their best work and understand the concept behind each answer, The ability to analyze student work from the gradebook and generate reports on learning outcomes.
  • Aplia™ is a premier online homework tool that engages students and maximizes their effort, making them more efficient, focused learners. Aplia's advantages include: Conceptual problem sets to complement traditional end-of-chapter homework. Full solutions, unique detailed explanations and feedback. Grade It Now scoring philosophy designed to maximize student effort on each attempt and reduce cheating. Smart Entry which reduces typos and errors to help students do their best work and understand the concept behind each answer.

Table of Contents

1. Accounting and Financial Statements.
2. The Accounting Information System.
3. Accrual Accounting.
Making the Connection.
4. Internal Control and Cash.
5. Sales and Receivables.
6. Cost of Goods Sold and Inventory.
7. Operating Assets.
Making the Connection.
8. Current and Contingent Liabilities.
9. Long-Term Liabilities.
10. Stockholders' Equity.
Making the Connection.
11. The Statement of Cash Flows.
12. Financial Statement Analysis.
13. Managerial Accounting Concepts and Decision-Making Support.
14. Cost Behavior.
15. Cost-Volume-Profit Analysis: A Managerial Planning Tool.
Making the Connection.
16. Job-Order Costing.
17. Process Costing.
18. Activity-Based Costing and Management.
19. Profit Planning.
20. Standard Costing: A Managerial Control Tool.
Making the Connection.
21. Flexible Budgets and Overhead Analysis.
22. Performance Evaluation, Variable Costing, and Decentralization.
23. Short-Run Decision-Making: Relevant Costing and Inventory Management.
24. Capital Investment Decisions.
Making the Connection.
APPENDIX 1: International Financial Reporting Standards.
APPENDIX 2: Investments.
APPENDIX 3: Time Value of Money.
APPENDIX 4: Financial Statement Information: Abercrombie and Fitch.
APPENDIX 5: Financial Statement Information: Aeropostale.

What's New

  • Each chapter of the new Second Edition includes a variety of You Decide features, which put students into an active, decision-making role as the accountant or manager for a particular company, enabling them to move beyond learning basic concepts in order to analyze business situations and discover how accounting information informs key decisions. To assess students' critical thinking skills, each chapter also includes concluding assignments that relate to issues illustrated in the You Decide features.
  • The growing acceptance of International Federal Reporting Standards (IFRS) requires that future accountants understand what IFRS are, when they are expected to be adopted in the United States, and their potential impact on accounting. To ensure that your students are up to date with the latest changes, the Second Edition includes new marginal IFRS notes to highlight process differences between U.S. GAAP and IFRS. In addition, an appendix offers a general definition and overview of IFRS, including an outline of how IFRS changes could impact core accounting concepts, as well as multiple-choice questions to evaluate student comprehension.
  • Chapter 2 has been updated to reflect the revised objective of financial reporting and qualitative characteristics of financial information required by changes to the conceptual framework, including the use of faithful representation instead of relevance, reflecting materiality as a component of relevance.
  • End-of-chapter Discussion Questions, Multiple-Choice Exercises, Cornerstones Exercises, Exercises, Problems and Cases have been updated throughout the text to include new data, reflect the latest developments in accounting, and incorporate current company information. In addition, new Conceptual Connection analytical assignments involve going beyond basic computation to evaluate accounting information in a meaningful way, while Illustrating Relationships questions ask students to work backwards to provide missing data or identify how variables impact each other.
  • To be successful accountants or businesspeople, students need to understand accounting as an interrelated system rather than focusing on isolated chapter topics. In order to promote information retention and comprehension, this edition's financial chapters include a new continuing problem featuring a fictional company: Front Row Entertainment. Students can connect concepts from each chapter by following Front Row Entertainment as it engages in various business transactions, and three new chapter-spanning Making the Connection assignments present opportunities to analyze financial statement information in a broader context.
  • For instructors who wish to cover investments, the current edition expands on material previously included as an appendix to chapter 4 and presents this information in a special appendix, complete with homework assignments, at the end of the text.
  • In addition to the new Illustrating Relationships end-of-chapter questions, an in text feature called Illustrating Relationships shows students how different variables affect each other. Many have an interactive component found on the companion website that allows students to analyze the relationships of different variables further, arming them with this important skill to aid in decision making.
  • The chapter-opening vignettes in the managerial portion of the text featuring real companies have been updated to reflect the most recent information, and they are now complemented by material within the chapters, where appropriate, to reinforce the connections between key concepts and their applications to real-world business situations.
  • Based on hundreds of student interviews, the authors developed--and continue to refine--a proven pedagogical approach that appeals to today's students while addressing instructor needs. The Second Edition features numerous refinements to increase readability, including a more concise treatment of detailed information using shorter paragraphs and bullet lists, new subheads for easy navigation and reference, and equations and calculations set off from the text for convenience and emphasis.
  • A Standardized Chart of Accounts is used in the examples and end-of-chapter in the financial chapters to increase consistency and alleviate student confusion. Real-world statements are also included so that students will become familiar with alternative account names. Standardizing the chart of accounts also fosters consistency and ease-of-use in the CengageNOW and Aplia online homework systems.

Alternate Formats

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  • Looseleaf Edition

    ISBN-10: 1111529140 | ISBN-13: 9781111529147

    List Price = $262.95  | CengageBrain Price = $262.95  | College Bookstore Wholesale Price = $197.75

Learning Resource Bundles

Choose the textbook packaged with the resources that best meet your course and student needs. Contact your Learning Consultant for more information.

Bundle: Text + CengageNOW Printed Access Card

ISBN-10: 1111879079 | ISBN-13: 9781111879075

List Price = $430.95  | CengageBrain Price = $430.95  | College Bookstore Wholesale Price = $324.00

This Bundle Includes:

  • Cornerstones of Financial and Managerial Accounting
    List Price = $410.95  | CengageBrain Price = $410.95  | College Bookstore Wholesale Price = $309.00
  • CengageNOW Printed Access Card
    List Price = $165.00  | College Bookstore Wholesale Price = $123.75


Supplements

All supplements have been updated in coordination with the main title. Select the main title's "About" tab, then select "What's New" for updates specific to title's edition.

For more information about these supplements, or to obtain them, contact your Learning Consultant.

Instructor Supplements

Cornerstones of Financial and Managerial Accounting  (ISBN-10: 1111529140 | ISBN-13: 9781111529147)

Get your students where they need to be with CORNERSTONES OF FINANCIAL AND MANAGERIAL ACCOUNTING. Cornerstones is the only text that delivers a truly unique learning system that is integrated through the entire introductory managerial accounting journey--ensuring they will leave the course with the needed elements to be future business leaders. Students are guided through: Building A Strong Foundation: Students learn the basic accounting concepts through clear and consistently-formatted Cornerstones Examples and Exercises. Understanding Relationships: Students see the relationships between the numbers & concepts and how variables impact each other. Seeing Real-World Connections: Student understanding is brought full circle as they see how these concepts are applied in real world situations. Making Decisions: Students practice actually making decisions based on the information they have now gathered and analyzed. Students love this approach because it presents materials the way they learn and professors love it because it gets students to master the foundations more quickly and allows more time to learn and apply the analysis and decision making of accounting. Get There with Cornerstones!

List Price = $262.95  | CengageBrain Price = $262.95  | College Bookstore Wholesale Price = $197.75

Instructor's Resource CD-ROM  (ISBN-10: 0538476656 | ISBN-13: 9780538476652)

Place all of the key teaching resources you need at your fingertips with this all-in-one resource, which includes everything you need to plan, teach, grade, and assess student understanding and progress. This CD includes the Solutions Manual, Test Bank in Microsoft® Word and ExamView®, Microsoft PowerPoint® slides, Instructor's Manual, and Experience Accounting Video Integration Guide. NEW to the supplements for this edition! Solutions Manual: The Solutions Manual has been fully updated to reflect changes in the textbook and has been carefully verified multiple times to ensure accuracy and consistency with the text. Test Bank: Also new to this edition, the Test Bank has been expanded to include two new problem types: Fill-in-the-Blank questions and You Decide essays. These essays relate to the You Decide feature in the textbook and evaluate students' critical thinking and decision-making skills. In addition, more problems have been added for each chapter. Also, in addition to the AACSB and IMA tagging, this edition of the Test Bank now includes AICPA and ACBSP tags. This is particularly valuable during the accreditation process or when your school wants to standardize assessment. PowerPoint: The PowerPoint slides have been completely revised and now include new You Decide features to encourage lively classroom discussions. In addition, the Cornerstones for each chapter are included in a separate PowerPoint slide deck for inclusion as you deem appropriate.

Preview Guide  (ISBN-10: 1111531501 | ISBN-13: 9781111531508)

This guide will give you a sneak-peak of what is coming in the new Second Edition by showcasing Chapter 6: Cost of Goods Sold and Inventory. Interested in doing a class test? Use this chapter to try out the material with your students now! Contact your sales representative for more information.

Aplia™, 1 term Instant Access  (ISBN-10: 1111960577 | ISBN-13: 9781111960575)

List Price = $135.00  | CengageBrain Price = $135.00  | College Bookstore Wholesale Price = $135.00

CengageNOW Instant Access Code  (ISBN-10: 1111738637 | ISBN-13: 9781111738631)

Ensure that your students have the understanding they need of accounting procedures and concepts they need to know with CengageNOW. This integrated, online course management and learning system combines the best of current technology to save you time in planning and managing your course and assignments. You can reinforce comprehension with customized student learning paths and efficiently test and automatically grade assignments. This instant access code allows students to access CengageNOW.

List Price = $165.00  | CengageBrain Price = $165.00  | College Bookstore Wholesale Price = $165.00

Student Supplements

Cornerstones of Financial and Managerial Accounting  (ISBN-10: 1111529140 | ISBN-13: 9781111529147)

Get where you need to be with CORNERSTONES OF FINANCIAL AND MANAGERIAL ACCOUNTING. Cornerstones is the only text that delivers a truly unique learning system that is integrated through your entire introductory managerial accounting journey—ensuring you will leave the course with the needed elements to be a future business leader. You are guided through: Building A Strong Foundation: Students learn the basic accounting concepts through clear and consistently-formatted Cornerstones Examples and Exercises. Understanding Relationships: Students see the relationships between the numbers & concepts and how variables impact each other. Seeing Real-World Connections: Student understanding is brought full circle as they see how these concepts are applied in real world situations. Making Decisions: Students practice actually making decisions based on the information they have now gathered and analyzed. Get There with Cornerstones!

List Price = $262.95  | CengageBrain Price = $262.95  | College Bookstore Wholesale Price = $197.75

Aplia™, 1 term Instant Access  (ISBN-10: 1111960577 | ISBN-13: 9781111960575)

Succeed in your course with Aplia's interactive learning system--featuring practice problems with immediate feedback and tools developed specifically for CORNERSTONES OF FINANCIAL AND MANAGERIAL ACCOUNTING, 2nd Edition, including step-by-step explanations that help you improve your reasoning and skills, interactive assignments that help you understand difficult or counterintuitive concepts, and more. Aplia has already helped more than a million students succeed in college classes.

List Price = $135.00  | CengageBrain Price = $135.00  | College Bookstore Wholesale Price = $135.00

CengageNOW Instant Access Code  (ISBN-10: 1111738637 | ISBN-13: 9781111738631)

CengageNOW is an easy-to-use online resource that helps you study in less time to get the grade you want. This integrated system helps you efficiently manage and complete homework assignments from the text. Take pre-tests to determine the areas that require more practice and direct you to review tutorials, demonstration exercises, videos, eBook content, and fun accounting games to help learn the material, and get feedback on post-tests that check your comprehension afterward. This instant access code allows access to CengageNOW.

List Price = $165.00  | CengageBrain Price = $165.00  | College Bookstore Wholesale Price = $165.00

Meet the Author

Author Bio

Jay Rich

Jay Rich is a Professor of Accounting at Illinois State University. He received his B.S., M.S., and Ph.D. from the University of Illinois. Prior to entering the Ph.D. program, he worked as an auditor at Price Waterhouse & Co. in Chicago and earned his C.P.A. in 1985. He has published articles in The Accounting Review, Auditing: A Journal of Practice & Theory, Accounting Horizons, Organizational Behavior and Human Decision Processes, Accounting Organizations and Society, and others. He has also served on the editorial board of Auditing: A Journal of Practice & Theory and Current Issues in Auditing. Dr. Rich has received both the Outstanding Dissertation Award and Notable Contribution to the Literature Award from the Audit Section of the American Accounting Association. His primary teaching interest is financial accounting and he has taught numerous courses at the undergraduate, masters, and doctoral levels. His outside interests include his family, travel, reading, and watching sports, but he spends most of his free time driving his children to various activities. He also repeatedly develops plans to exercise and diet at some point in the future. By all accounts, he is a master at grilling meat, a mediocre skier, and a shameful golfer.

Jeff Jones

Jefferson P. Jones is the PricewaterhouseCoopers Associate Professor of Accounting in the School of Accountancy at Auburn University. He received his Bachelor's in Accounting and Master of Accountancy degrees from Auburn University and his Ph.D. from Florida State University. His research interests focus on financial accounting, specifically investigating the quality of reported accounting information. He has published articles in numerous journals, including ADVANCES IN ACCOUNTING, REVIEW OF QUANTITATIVE FINANCE AND ACCOUNTING, ISSUES IN ACCOUNTING EDUCATION, INTERNATIONAL JOURNAL OF FORECASTING, and THE CPA JOURNAL. Professor Jones has received numerous teaching awards, including the Outstanding Master of Accountancy Professor Award; the Beta Alpha Psi Outstanding Teaching Award (six times); the Auburn University College of Business McCartney Teaching Award; and the Auburn University School of Accountancy Teaching Award. In addition, he has made numerous presentations around the country on research and pedagogical issues. He holds a CPA certificate in the state of Alabama (inactive) and is a member of the American Accounting Association, the American Institute of Certified Public Accountants (AICPA), and the Alabama Society of CPAs (ASCPA). He has had public accounting experience as an auditor for Deloitte & Touche. Professor Jones is also a coauthor of Cornerstones of Financial Accounting. He is married, has two children, and enjoys playing golf and watching college football.

Dan L. Heitger

Dr. Dan L. Heitger is the Deloitte Professor of Accounting and Co-Director of the Center for Business Excellence at Miami University. He received his Ph.D. from Michigan State University and his undergraduate degree in accounting from Indiana University. He actively works with executives and students of all levels in developing and teaching courses in managerial accounting, business sustainability, risk management, stakeholder management, governance, and business reporting. He co-founded an organization that provides executive education for large international organizations. His interactions with business professionals, through executive education and the Center, allow him to bring a current and real-world perspective to his writing. His published research focuses on managerial accounting and risk management issues and has appeared in HARVARD BUSINESS REVIEW, BEHAVIORAL RESEARCH IN ACCOUNTING, ACCOUNTING HORIZONS, ISSUES IN ACCOUNTING EDUCATION, JOURNAL OF ACCOUNTANCY, and MANAGEMENT ACCOUNTING QUARTERLY. His outside interests include hiking with his family in the National Park system.

Maryanne Mowen

Maryanne M. Mowen is Associate Professor Emerita of Accounting at Oklahoma State University. She currently teaches online classes in cost and management accounting for Oklahoma State University. She received her Ph.D. from Arizona State University. She brings an interdisciplinary perspective to teaching and writing in cost and management accounting, with degrees in history and economics. She has taught classes in ethics and the impact of the Sarbanes-Oxley Act on accountants. Her scholarly research is in the areas of management accounting, behavioral decision theory, and compliance with the Sarbanes-Oxley Act. She has published articles in journals such as Decision Science, The Journal of Economics and Psychology, and The Journal of Management Accounting Research. Dr. Mowen has served as a consultant to mid-sized and Fortune 100 companies and works with corporate controllers on management accounting issues. She is a member of the Northern New Mexico chapter of SCORE and serves as a counselor, assisting small and start-up businesses. Outside the classroom, she enjoys hiking, traveling, reading mysteries, and working crossword puzzles.

Don Hansen

Don R. Hansen is Arthur Andersen Professor of Accounting and a Regents Service Professor at Oklahoma State University. He received his Ph.D. from the University of Arizona in 1977. He has an undergraduate degree in mathematics from Brigham Young University. His research interests include activity-based costing and mathematical modeling. He has published articles in both accounting and engineering journals including The Accounting Review, The Journal of Management Accounting Research, Accounting Horizons, and IIE Transactions. He has served on the editorial board of The Accounting Review. His outside interests include family, church activities, reading, movies, and watching sports.

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Based on our research, we determined that in addition to end-of-chapter homework and study resources, students need assignments to help them pull concepts together and bridge concepts with practice. Our Cornerstones titles now include unique activities to address needs for pre-lecture, lecture and post-lecture.

CengageNOW provides your students with:

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