Horngren's Accounting, 12th edition

• Effect on the Accounting Equation illustrations help students see connections between transactions, as well as how transactions fit into the big picture. Located next to every journal entry, they reinforce the connections between recording a transaction and the effect those transactions have on the accounting equation.
• Instructor Tips & Tricks mimic the experience of having a seasoned teacher walk a student through concepts on the board. Many include mnemonic devices or examples to help students remember the rules of accounting.
• Rooted in the authors’ teaching experiences over the years, Common Questions, Answered offers additional help with patterns and rules that consistently confuse students. Located in the text’s margin next to where the answer or clarification can be found, they help students better understand difficult concepts.
• Try It! Exercises, found after each learning objective, give students the opportunity to apply the concept they’ve just learned by completing an accounting problem.
• Things You Should Know feature provides a brief review of each learning objective presented in a question and answer format, which is helpful when students are preparing for exams. Students can also link to multimedia materials from within the Enhanced eText.
• Chapter Openers present relatable stories that set up the concepts to be covered in the chapter. The implications of those concepts on a company’s reporting and decision-making processes are then discussed.
• Decisions boxes highlight common questions that business owners face, prompting students to determine the course of action they would take based on concepts covered in the chapter.
• IFRS icons provide guidance on how International Financial Reporting Standards (IFRS) differ from US GAAP throughout the financial chapters.
• REVISED! End-of-chapter short exercises, exercises, problems, and critical-thinking cases test students’ understanding of the material.
• NEW! Using Excel. This end-of-chapter problem introduces students to Excel to solve common accounting problems as they would in the business environment.
• NEW! Tying It All Together feature ties together key concepts from the chapter using the company highlighted in the chapter opener. The in-chapter box presents scenarios and questions that the company could face and focuses on the decision-making process. The end-of-chapter business case helps students synthesise the concepts of the chapter and reinforces critical thinking.

End-of-chapter continuing and comprehensive problems

• NEW! A Continuing Problem starts in Chapter 1 and runs through the financial chapters, exposing students to recording entries for a service company and a merchandiser. The managerial chapters’ continuing problem has been revised for this edition and emphasises the relevant topics for that chapter using a continuous company.
• A Practice Set starts in Chapter 2 and goes through the financial chapters, providing another opportunity for students to practice the entire accounting cycle. The practice set uses the same company in each chapter, but is often not as extensive as the continuing problem.
• Comprehensive Problem 1 for Chapters 1–4 covers the entire accounting cycle for a service company.
• Comprehensive Problem 2 for Chapters 1–4 is a continuation of Comprehensive Problem 1 and requires students to record transactions for the month after the closing process.
• NEW! Comprehensive Problem for Chapters 5 and 6 covers the entire accounting cycle for

Integrate pedagogy with concepts and practical applications

• End-of-chapter short exercises, exercises, problems, and critical-thinking cases test students’ understanding of the material.
• Using Excel. This end-of-chapter problem introduces students to Excel to solve common accounting problems as they would in the business environment.
• Tying It All Together feature ties together key concepts from the chapter using the company highlighted in the chapter opener. The in-chapter box presents scenarios and questions that the company could face and focuses on the decision-making process. The end-of-chapter business case helps students synthesize the concepts of the chapter and reinforces critical thinking.

End-of-chapter continuing and comprehensive problems

• A Continuing Problem starts in Chapter 1 and runs through the financial chapters, exposing students to recording entries for a service company and a merchandiser. The managerial chapters’ continuing problem has been revised for this edition and emphasizes the relevant topics for that chapter using a continuous company.
• Comprehensive Problem for Chapters 5 and 6 covers the entire accounting cycle for a merchandising company, including analysis.
• Comprehensive Problem for Chapters 8–10 covers cash, receivables, and long-term asset transactions and analysis.
• Comprehensive Problem for Chapters 11, 13, and 14 covers payroll, other current liabilities, long-term liabilities, and stockholders’ equity transactions and analysis.

Chapter-by-chapter changes

• Chapter 1: Discussion on why accounting is important to non-accounting majors.
• Chapter 3: Discussion of the revenue recognition principle for the newly released standard, new discussion on how to calculate interest for notes receivable and payable, and interest calculations that use a 365-day (vs. 360-yr) year to better reflect how actual lenders calculate interest.
• Chapter 4: Increased usage of the classified balance sheet as a requirement for end-of-chapter problems, and balance sheet presentation that reflects Property, Plant, and Equipment (vs. Plant Assets).

• Chapter 5: Discussion on sales of merchandise to reflect the newly released revenue recognition standard, income statement presentation that reflects Other Income and (Expenses) to better reflect how actual income statements are presented, and new Appendix 5A that discusses multiple performance obligations.
• Chapter 8: Coverage of credit card sales.
• Chapter 9: Coverage of estimating bad debts to help students understand why the Allowance for Bad Debts account may have either a debit/credit unadjusted balance due to previously overestimated/underestimated adjustments.
• Chapter 11: Payroll section for consistency with current payroll laws, and a new section that illustrates how companies record the payment of payroll liabilities.
• Chapter 13: Corporate income statement, including calculating earnings per share.
• Chapter 14: Discussion on future value, including determining the future value of a lump sum and of an annuity. Also, a new comprehensive problem for Chapters 10, 11, and 13 which includes payroll, other current liabilities, long-term liabilities, and stockholders’ equity transactions and analysis.
• Chapter 15: Discussion on debt and equity securities to reflect the newly released financial instrument standard including the elimination of trading investments (equity) and available-for-sale investments (equity).
• Chapter 17: Rearrangement of the liquidity ratios from most stringent to least stringent (cash ratio, acid-test ratio, current ratio), and a new trend analysis and ratios problem that students complete to analyze a company for its investment potential.
• Chapter 18: Discussion of managerial accounting to include the manager’s role in the organization and managerial accounting functions. Expanded discussion of how companies classify costs used in managerial accounting. Revised discussion on manufacturing cost flows, including better explanation of how cost of goods manufactured and cost of goods sold are calculated. Expanded discussion on business trends that affect managerial accounting.
• Chapter 19: Discussion on cost accounting systems, including why companies choose either process or job-order costing. Clarified discussion on the allocation and adjustment of manufacturing overhead.
• Chapter 20: Company examples now use the same company, Puzzle Me, for a) consistency and b) clarity on how costs flow through a process costing system and are reflected on the production cost report. Expanded discussion on equivalent units of production. Revised discussion on preparing a production cost report split into two learning objectives. Revised discussion on preparing a production cost report for the first department to realistically reflect beginning inventory. Updated discussion on how the weighted-average method is different than the FIFO method when preparing the production cost report.
• Chapter 21: Clarification of the high-low method when determining a company’s variable and fixed costs. Added discussion on how sensitivity analysis could be used and the differences between predicted cost behavior vs. actual management behavior. Expanded discussion on the differences between absorption and variable costing and the impact on operating income.
• Chapter 22: Discussion of the benefits of budgets, including benchmarking. Added discussion on types of budgets, including participative, zero-based, and continuous budgets, for better student understanding.
• Chapter 23: Discussion on performance reports using static budgets.
• Chapter 26: Discussion on future value, including determining the future value of a lump sum and an annuity.

Also available with MyLab Accounting

MyLab™ Accounting is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.

• 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 end of the full cycle, reinforces the lessons learned in the accounting cycle tutorial activities by emphasizing the connections between the accounting cycle concepts.
• Discussion Boards have a new design including a new nested layout and the ability to filter by Read/Unread, Date, and Name.