About the book

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.

Horngren's Accounting, 12th edition

Access details

Features

Pearson+

Explore

Products & Services

Support

Extend Your Learning

About us