Financial Accounting, Canadian Edition, 8th edition

Published by Pearson Canada (March 4, 2023) © 2024

  • C William Thomas Baylor University
  • Wendy M. Tietz Kent State University
  • Greg Berberich University of Waterloo
  • Catherine Seguin University of Toronto

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For courses in introductory financial accounting.

A student-centered approach to financial accounting

Financial Accounting has a long-standing reputation in the marketplace for being readable and easy to understand. It drives home fundamental concepts using relevant examples from real-world companies in a reader-friendly way without adding unnecessary complexity. While maintaining hallmark features of accuracy, readability, and ease of understanding, the Canadian Edition includes updated explanations, coverage, and ratio analysis with decision-making guidelines. These time-tested methodologies with the latest technology ensures that students learn basic concepts in accounting in a way that is relevant, stimulating, and fun, while exercises and examples from fictional and real-world companies help students gain a better grasp of the course material.

Hallmark features of this title

  • Critical Thinking questions in each chapter help students apply the chapter material to questions that are less directed and that require more thoughtful application of the chapter concepts in written answers. An icon highlights the Critical Thinking questions.
  • Comprehensive Cases give students the opportunity to apply the concepts from a number of chapters to one or two business situations to see how the accounting concepts work together in the real world. There are five Comprehensive Cases, which cover Chapters 1 to 3, Chapters 4 to 6, Chapters 7 to 8, Chapter 9, and Chapter 10.
  • The Chapter 10 Comprehensive Case appears on MyLab Accounting. Ethical Decisions The Ethical Decisions section in every chapter includes scenarios that require students to apply ethical principles from the CPA Canada Code of Professional Conduct.

New GenAI Study Tool

We’ve heard how important it is for students to use reliable AI tools in responsible and productive ways. To that end, Pearson is focused on creating tools that combine the power of generative AI with trusted Pearson content to provide students with a simplified study experience, delivering on-demand and personalised support that compliments your teaching and aligns with the text you’ve chosen. The Study Tool is available to students who access the Pearson eText on its own or through MyLab.

What can the AI Study Tool do?

  • Generate simplified explanations of challenging sections
  • Summarize material to help learners focus on key topics and ideas
  • Students can ask for multiple choice or short answer questions related to a specific chapter or section to help fill knowledge gaps
  • For extra practice, students can also generate flashcards and notes based on their chat interaction with the tool

New and updated features of this title

  • As the world shifts to a greater reliance on digital media, it is appropriate that this resource evolves as well. This Eighth Canadian Edition is the first fully digital version of  Financial Accounting. Instructors and students will find that, although the medium has changed, the content is fully consistent with prior editions.
  • NEW In response to instructor feedback, Chapter 5, which covers inventory and cost of goods sold, has been reorganized. The perpetual inventory system is the focus of the chapter, with full coverage of the periodic system provided in the chapter's new Appendix. Material to address the IFRS preference for accruing a liability for potential sales returns (net approach) is provided along with related end-of-chapter questions.
  • NEW Data Analytics Projects offer students hands-on practice in mining, analyzing, and reporting on data. Each project contains a list of requirements, a data set from a real company, a tutorial video, and instructions for using software such as Excel, Power BI, or Tableau. Using these tools, students learn how to extract and examine key information about a company related to its products, operations, and consumer buying habits. With this experience and knowledge, students are able to make smarter business decisions and are better prepared for the workforce.
  • The Accounting Cycle Tutorial now includes a comprehensive problem that allows students to work with the same set of transactions throughout the accounting cycle. The comprehensive problem, which can be assigned at the beginning or the end of the full cycle, reinforces the lessons learned in the Accounting Cycle Tutorial activities by emphasizing the connections between the accounting cycle concepts.

Important Digital Assets in MyLab Accounting

Digital Update 2024– New Mini Sims

  • Students act as business professionals as they apply course concepts to realistic business challenges they’re likely to experience in their future careers.
  • Mini Sim concepts center around key course topics such as product costing, cost behavior, cost-volume-profit analysis and budgeting. Tied to the text’s chapter learning objectives, they help students seamlessly transition from their text to the simulation - without breaking stride. Reflection Questions STATIC, Summary, References.

Digital Assets

  • New GenAI Study Tool. We’ve heard how important it is for students to use reliable AI tools in responsible and productive ways. To that end, Pearson is focused on creating tools that combine the power of generative AI with trusted Pearson content to provide students with a simplified study experience, delivering on-demand and personalised support that compliments your teaching and aligns with the text you’ve chosen.
  • Data Analytics Projects. New data analytics projects offer students hands-on practice in mining, analyzing, and reporting on data. Each project contains a list of requirements, a data set from a real company, a tutorial video, and instructions for using software such as Excel, Power BI, or Tableau. Using these tools, students learn how to extract and examine key information about a company related to its products, operations, and consumer buying habits. With this experience and knowledge, students are able to make smarter business decisions and are better prepared for the workforce.
  • Accounting Cycle Tutorial. Accounting Cycle Tutorial lets students practice each step of the accounting cycle using engaging, interactive content, helping them master the cycle for early and continued success in their course. 
  • ACT Comprehensive Problem. The Accounting Cycle Tutorial now includes a comprehensive problem that allows students to work with the same set of transactions throughout the accounting cycle. The comprehensive problem, which can be assigned at the beginning or the end of the full cycle, reinforces the lessons learned in the Accounting Cycle Tutorial activities by emphasizing the connections between the accounting cycle concepts. 
  • Time Value of Money Tutorial. The Time Value of Money Tutorial in MyLab Accounting ensures that students understand the basic theory and formulas of the TVM, while also helping test their ability to apply the TVM in the measurement of financial statement items. Students work through two sections. The first is to help them understand the theory using whatever method the instructors choose (manually, through Excel®, with tables, or via a calculator). The second is to give students the opportunity to apply the theory by giving them a number of scenarios regarding each financial statement
  • Dynamic Study Modules. Using a highly personalized, algorithmically driven process, Dynamic Study Modules continuously assess student performance and provide additional practice in the areas where they struggle the most. Each Dynamic Study Module, accessed by computer, smartphone or tablet, promotes fast learning and long-term retention.

  1. The Financial Statements
  2. Recording Business Transactions
  3. Accrual Accounting and the Financial Statements
  4. Cash and Receivables
  5. Inventory and Cost of Goods Sold
  6. Property, Plant, and Equipment, and Intangible Assets
  7. Liabilities
  8. Shareholders' Equity
  9. The Statement of Cash Flows
  10. Financial Statement Analysis

C. William (Bill) Thomas is the J. E. Bush Professor of Accounting and a Master Teacher at Baylor University. A Baylor University alumnus, he received both his BBA and MBA there and went on to earn his PhD from The University of Texas at Austin.

With primary interests in the areas of financial accounting and auditing, Bill Thomas has served as the J. E. Bush Professor of Accounting since 1995. He has been a member of the faculty of the Accounting and Business Law Department of the Hankamer School of Business since 1971, and served as chair of the department for 12 years. He has been recognized as an Outstanding Faculty Member of Baylor University as well as a and Distinguished Professor for the Hankamer School of Business. Dr. Thomas has received many awards for outstanding teaching, including the Outstanding Professor in the Executive MBA Programs as well as designation as Master Teacher.

Thomas is the author of textbooks in auditing and financial accounting, as well as many articles in auditing, financial accounting and reporting, taxation, ethics, and accounting education. His scholarly work focuses on the subject of fraud prevention and detection, as well as ethical issues among accountants in public practice. He presently serves as the accounting and auditing editor of Today’s CPA, the journal of the Texas Society of Certified Public Accountants, with a circulation of approximately 28,000.

Thomas is a certified public accountant in Texas. Prior to becoming a professor, Thomas was a practicing accountant with the firms of KPMG, LLP, and BDO Seidman, LLP. He is a member of the American Accounting Association, the American Institute of Certified Public Accountants, and the Texas Society of Certified Public Accountants.

Wendy M. Tietz is a professor for the Department of Accounting in the College of Business Administration at Kent State University, where she has taught since 2000. She teaches introductory financial and managerial accounting in a variety of formats, including large sections, small sections, and web-based sections. She has received numerous college and university teaching awards while at Kent State University. Most recently she was named the Beta Gamma Sigma Professor of the Year for the College of Business Administration.

Dr. Tietz is a Certified Public Accountant, a Certified Management Accountant, and a Chartered Global Management Accountant. She is a member of the American Accounting Association (AAA), the Institute of Management Accountants (IMA), and the American Institute of Certified Public Accountants (AICPA). She has published in Issues in Accounting Education, Accounting Education: An International Journal, and Journal of Accounting & Public Policy. She received the 2014 Bea Sanders/AICPA Innovation in Teaching Award for her accounting educator blog entitled, Accounting in the Headlines. She regularly presents at AAA regional and national meetings. Dr. Tietz is also the co-author of a managerial accounting textbook, Managerial Accounting, with Dr. Karen Braun.

Tietz received her PhD from Kent State University. She received both her MBA and BSA from the University of Akron. She worked in industry for several years, both as a controller for a financial institution and as the operations manager and controller for a recycled plastics manufacturer.

Tietz and her husband, Russ, have two grown sons. In her spare time, she enjoys walking, reading, and exploring new technology. She is passionate about using technology to expand the boundaries of the traditional classroom.

Greg Berberich, CPA, CA, PhD, is the Director of the Masters of Accounting program in the School of Accounting and Finance at the University of Waterloo, where he has been

a Lecturer since 2011. Before that, he was a faculty member at Wilfrid Laurier University for nine years. He obtained his BMath and PhD from the University of Waterloo and completed his CPA and CA in Ontario.

Berberich has taught financial accounting, auditing, and a variety of other courses at the undergraduate and graduate levels. He has presented papers at a variety of academic

conferences in Canada and the United States and has served on the editorial board of the journal Issues in Accounting Education. Berberich was also the Treasurer of the Society for

Teaching and Learning in Higher Education and the Associate Director of Teaching and Learning in Waterloo’s School of Accounting and Finance. He has written a number of cases for use in university courses and professional training programs.

Catherine I. Seguin, MBA, CGA, is an Associate Professor, Teaching Stream, at the University of Toronto Mississauga. She also acts as Dean’s Designate for academic offences

in the Social Sciences. She has written the following books: Understanding Accounting for Not-for-Profit Organizations and Accounting for Not-for-Profit Organizations for Carswell (Thomson-Reuters) and Not-for-Profit Accounting, published by CGA Canada. In the not-for-profit community, she has served as Treasurer on several different boards.

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