Horngren's Financial & Managerial Accounting, 6th edition

Coverage of the latest accounting trends and issues

• NEW! Discussion on:
• Why accounting is important to non-accounting majors;
• How to calculate interest for notes receivable and payable;
• How sensitivity analysis can be used and the differences between predicted cost behavior versus actual management behavior;
• Credit card sales;
• Future value, including determining the future value of a lump sum and of an annuity; and
• Types of budgets, including participative, zero-based, and continuous ones.
• UPDATED! and REVISED! Coverage on/presentation of:

• The revenue recognition principle for the newly released standard;
• Use of the classified balance sheet as a requirement for end-of-chapter problems;
• The balance sheet to reflect Property, Plant, and Equipment (vs. Plant Assets);
• Interest calculations that use a 365-day year (vs. 360) to better reflect how actual lenders calculate interest;
• An income statement to reflect Other Income and (Expenses)–better reflecting how actual income statements are presented;
• Estimating bad debts to help students understand why the Allowance for Bad Debts account may have either a debit or credit unadjusted balance due to previously overestimated/underestimated adjustments;
• Sales of merchandise to reflect the newly released revenue recognition standard, including reporting sales on account at the net amount and introduction of the Sales Discounts Forfeited account;
• Debt and equity securities to reflect newly released financial instrument standard including the elimination of trading investments (equity) and available-for-sale investments (equity);
• Payroll for consistency with current payroll laws;
• Managerial accounting to include the manager’s role in the organization and managerial accounting functions;
• How companies classify costs used in managerial accounting;
• Manufacturing cost flows, including a better explanation of how cost of goods manufactured and sold are calculated;
• Business trends affecting managerial accounting;
• Cost accounting systems, including why companies choose either process or job-order costing;
• The allocation and adjustment of manufacturing overhead;
• Equivalent units of production;
• Preparing a production cost report for the first department that realistically reflects beginning inventory;
• How the weighted-average method is different than the FIFO method when preparing the production cost report;
• How service companies can use activity-based management;
• The high-low method when determining a company’s variable and fixed costs;
• The differences between absorption and variable costing and the impact on operating income;
• The benefits of budgets, including benchmarking; and
• Performance reports using static budgets, including the advantages and disadvantages.
• NEW! Problem has students complete a trend analysis and ratios to analyze a company for its investment potential.
• NEW! Section to illustrate how companies record the payment of payroll liabilities.
• NEW! Appendix (5A) discusses multiple performance obligations.

Integrate pedagogy with concepts and practical applications

• 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 feature presents scenarios and questions that the c

Coverage of the latest accounting trends and issues

• Discussion on:
• Why accounting is important to non-accounting majors;
• How to calculate interest for notes receivable and payable;
• How sensitivity analysis can be used and the differences between predicted cost behavior versus actual management behavior;
• Credit card sales;
• Future value, including determining the future value of a lump sum and of an annuity; and
• Types of budgets, including participative, zero-based, and continuous ones.
• Coverage on/presentation of:

• The revenue recognition principle for the newly released standard;
• Use of the classified balance sheet as a requirement for end-of-chapter problems;
• The balance sheet to reflect Property, Plant, and Equipment (vs. Plant Assets);
• Interest calculations that use a (vs. 360) 365-day year to better reflect how actual lenders calculate interest;
• An income statement to reflect Other Income and (Expenses) -- better reflecting how actual income statements are presented;
• Estimating bad debts to help students understand why the Allowance for Bad Debts account may have either a debit or credit unadjusted balance due to previously overestimated/underestimated adjustments;
• Sales of merchandise to reflect the newly released revenue recognition standard, including reporting sales on account at the net amount and introduction of the Sales Discounts Forfeited account;
• Debt and equity securities to reflect newly released financial instrument standard including the elimination of trading investments (equity) and available-for-sale investments (equity);
• Payroll for consistency with current payroll laws;
• Managerial accounting to include the manager’s role in the organization and managerial accounting functions;
• How companies classify costs used in managerial accounting;
• Manufacturing cost flows, including a better explanation of how cost of goods manufactured and sold are calculated;
• Business trends affecting managerial accounting;
• Cost accounting systems, including why companies choose either process or job-order costing;
• The allocation and adjustment of manufacturing overhead;
• Equivalent units of production;
• Preparing a production cost report for the first department that realistically reflects beginning inventory;
• How the weighted-average method is different than the FIFO method when preparing the production cost report;
• How service companies can use activity-based management;
• The high-low method when determining a company’s variable and fixed costs;
• The differences between absorption and variable costing and the impact on operating income;
• The benefits of budgets, including benchmarking; and
• Performance reports using static budgets, including the advantages and disadvantages.
• Problem has students complete a trend analysis and ratios to analyze a company for its investment potential.
• Section to illustrate how companies record the payment of payroll liabilities.
• Appendix (5A) discusses multiple performance obligations.

Integrate pedagogy with concepts and practical applications

• 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 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 reinforce critical thinking.
• A Continuing Problem starts in Chapter 1 and runs through the financial chapters, exposing students to recording entries for a service company and then moving into recording transactions for a merchandiser later in the text. The managerial chapters’ continuing problem has been revised for this edition and emphasizes the relevant topics for that chapter using a continuous company.

End-of-chapter review and summary problems

• Comprehensive Problem for Chapters 5 and 6 covers the entire accounting cycle for a merchandise company, including analysis.
• Comprehensive Problem for Chapters 7-9 covers cash, receivables, and long-term assets transactions and analysis.
• Comprehensive Problem for Chapters 11-13 covers payroll, other current liabilities, long-term liabilities, and stockholders’ equity transactions and analysis.

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.

• Accounting Cycle Tutorial. The MyLab Accounting interactive tutorial helps students master the Accounting Cycle for early and continued success in the Introduction to Accounting course. The tutorial, accessed by computer, smartphone, or tablet, provides students with brief explanations of each concept of the Accounting Cycle through engaging, interactive activities. Students are immediately assessed on their understanding and their performance is recorded in the MyLab Accounting Gradebook. Whether the Accounting Cycle Tutorial is used as a remediation self-study tool or course assignment, students have yet another resource within MyLab Accounting to help them nail the accounting cycle.
• 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. Assignable at the beginning or end of the full cycle, comprehensive problems reinforce the lessons learned in the accounting cycle tutorial activities by emphasizing the connections between the accounting cycle concepts.
• The Enhanced eText keeps students engaged in learning on their own time, while helping them achieve greater conceptual understanding of course material. The worked examples, animations, and interactive tutorials bring learning to life, and algorithmic practice allows students to apply the very concepts they are reading about. Combining resources that illuminate content with accessible self-assessment, MyLab Accounting with Enhanced eText provides students with a complete digital learning experience -- all in one place.
• Try It! Solution Videos. Author-recorded and accompanying all Try It! Exercises, these videos walk students through the problem and solution.
• Interactive Exhibits allow students to engage with key exhibits within the enhanced eText. Students can work with journal entries, modify an exhibit’s data to see the resulting impact and effects, or watch a video explanation of key concepts.