Financial Accounting for Undergraduates, 5e

by Wallace, Nelson, Christensen

| ISBN: 978-1-61853-441-5 | Copyright 2023

Tabs

Example of the Road Map & video features available for each chapter.

Click on a Chapter 3 eLecture or Guided Example to preview the related video.

Road Map
LO Learning Objective Page eLecture Guided Example Assignments
LO3.1

Explain the accrual basis of accounting and contrast it with the cash basis with reference to revenue and expense recognition.

120

SS4, SS7, SE2, E6A, E7A, E6B, E7B

LO3.2

Describe the adjusting process.

124

SS6, SE3

LO3.3

Illustrate deferral adjustments.

125

SS1, SE4, SE5, SE6, SE7, E2A, E3A, E9A, E10A, E2B, E3B, E9B, E10B, P1A, P2A, P3A, P4A, P5A, P6A, P7A, P12A, P13A, P1B, P2B, P3B, P4B, P5B, P6B, P7B, P12B, P13B

LO3.4

Illustrate accrual adjustments.

128

SS2, SE6, SE7, E1A, E2A, E3A, E9A, E10A, E1B, E2B, E3B, E9B, E10B, P1A, P2A, P3A, P4A, P5A, P6A, P7A, P12A, P13A, P1B, P2B, P3B, P4B, P5B, P6B, P7B, P12B, P13B

LO3.5

Explain the adjusted trial balance and use it to prepare financial statements.

132

SE8, SE10, E4A, E4B, P8A, P10A, P11A, P12A, P13A, P14A, P15A, P16A, P17A, P18A, P8B, P10B, P11B, P12B, P13B, P14B, P15B, P16B, P17B, P18B

LO3.6

Describe the closing process and summarize the accounting cycle.

136

SS3, SS1, SE9, E5A, E8A, E11A, E5B, E8B, E11B, P8A, P9A, P13A, P8B, P9B, P12A, P12B

LO3.7

Appendix 3A: Describe the process of closing to the Income Summary account and summarize the accounting cycle.

143

SE11, E12A, E13A, E15A, E12B, E13B, E15B, P18A, P19A, P18B, P19B

LO3.8

Appendix 3B: Explain how to use a worksheet in the adjusting and closing process.

147

SE12, E14A, E16A, E14B, E16B, P20A, P20B

Data Analytics & Excel Skill Development for Career Readiness

The basics of accounting havent changed much in hundreds of years, but businesses have experienced significant change in the last decade due to the increased use of new technologies ranging from data analytics and Blockchain to machine learning and artificial intelligence. Technology is rapidly altering how accounting is performed and what can be done with the data once they are collected. In response to the changing demands of the business world, the AACSB has incorporated data analytics requirements within its educational framework. More recently, the AICPA and NASBA have underscored the importance of data analytics by making it a significant element in the CPA Evolution Model Curriculum. The consensus suggests that todays business students need an understanding and working knowledge of data analytics and data visual- ization to compete for the best jobs.

In addition to data analytics skills, employers expect prospective employees to be proficient with Excel. In recognition of the increasing importance of data analytics and the need for Excel proficiency, the Fifth Edition includes several new features to enhance students’ career readiness.

  • We include Data Analytics boxes throughout the text to expose students to techniques that are used by businesses in areas related to the topic being discussed. The following box appears in the chapter on inventory.



  • Each chapter includes assignments that require students to use Excel and Tableau to hone data analysis and date visualization skills.




  • Appendix F  at the end of the book provides an overview of data analytics, data visualization, and best practices for the effective display of data.


  • MBC now contains a series of short videos that demonstrate the basic functions of Excel. These videos can be accessed within MBC as part of your MBC course.




Introducing myBusinessCourse

myBusinessCourse is a complete, secure, web-based training and e-Learning solution. There is nothing to download or install; it is accessible through any modern web browser and most mobile devices.

Request a One-on-One Demo


eLecture Videos

eLecture Videos

  • Created by the authors of the textbook
  • Consistent with the textbook's explanations and approach
  • Cover learning objectives and concepts from each chapter
  • Ideal for remediation
  • Ideal for online and hybrid classrooms

Narrated demonstration videos

Guided Example Videos

  • Created by the authors of the textbook
  • Provide problem solving strategies as well as solutions
  • Offer clear, step-by-step demonstrations of how to solve select problems from the textbook

Auto-graded assignments

Auto-graded Assignments

  • Provides immediate feedback
  • Create assignments using problems from the textbook
  • Additional randomized versions of assignments provide extra practice
  • Ideal for remediation
  • Include select questions from test banks

Respondus LockDown Browser

Respondus LockDown Browser®

  • Assessments are displayed full-screen and cannot be minimized
  • Browser menu and toolbar options are removed, except for Back, Forward, Refresh and Stop
  • Prevents access to other applications including messaging, screen-sharing, virtual machines, and remote desktops
  • Printing and screen capture functions are disabled
  • Copying and pasting anything to or from an assessment are prevented
  • Right-click menu options, function keys, keyboard shortcuts and task switching are disabled
  • An assessment cannot be exited until the student submits it for grading
  • Assessments set up with LockDown Browser cannot be accessed with other browsers
  • Students use their preferred device to take exams (iPad, Mac, Windows)
  • Students will be prompted to install LockDown Browser prior to accessing the exam

Detailed Reporting Tools

Detailed Reporting Tools

  • Quickly review the performance of individual students
  • Quickly review the performance of entire class
  • Use reports on student performance to customize your lectures to fit student needs

Enhanced eBook

  • Save money
  • Includes myBusinessCourse
  • Integrates eLecture and demonstration videos
  • Bookmarking
  • Note taking
  • Highlighting

Third Party Integrations

Third Party Integrations

  • Single sign-on
  • Link to assignments in myBusinessCourse from your third party course
  • Automatically sync gradebooks each night

Flashcards

  • Study, learn and master key terms.
  • With linear-mode, get full control over the deck. Go back and forth between cards, shuffle and auto-play the deck.
  • With certainty-mode, test how well you know each term. If you are not certain you have learned the term, it will display again later in the deck.

Support and Training

Support and Training

  • Technical support for students and faculty available daily
  • Faculty training conducted daily

Welcome to the Fifth Edition of Financial Accounting for Undergraduates!


"THE MOST COMPELLING VALUE PROPOSITION OFFERED IN THE FINANCIAL ACCOUNTING MARKET!"

That has been our goal since this products inception, and we have made that value proposition even more compelling with the Fifth Edition of Financial Accounting for Undergraduates. We created this product to satisfy the needs of students taking their first financial accounting course by providing a high-quality, contemporary, and engaging textbook and online learning system at an affordable price. With a suggested retail price of $85 for the paperback, full-color textbook that includes access to myBusinessCourse (MBC), we challenge faculty to find a better overall value for their students.

Financial Accounting for Undergraduates:

  • Follows a pedagogy that encourages student success
  • Includes Data Analytics and Excel skill development for career readiness
  • Covers Environmental, Social, and Governance (ESG)
  • Optional technology that improves learning and complements faculty instruction is available.


Pedagogy That Encourages Student Success

Financial accounting can be challenging—especially for students lacking business experience or previous exposure to business courses. To help students succeed in the course, we use a number of pedagogical devices throughout the textbook, and we provide a wealth of resources through our online learning and homework system, myBusinessCourse (MBC).

Past/Present/Future feature puts each chapter in context.


Road Maps outline each chapter and provide a quick reference table that summarizes the print and digital resources for that chapter.

Your Turns provide hands-on practice after each major concept to ensure mastery of a topic before proceeding to the next concept.


We use color and other visual cues pedagogically to help students learn and retain important concepts.


Margin notes provide hints and identify commonly used alternative terms.


Environmental, Social, and Governance (ESG)

Increasingly, companies have found that “doing good” leads to a more successful, profitable enterprise. Todays students are very engaged in the ESG movement, and we have incorporated ESG boxes and assignments to help students understand how corporate reporting on ESG is being embraced by forward-thinking enterprises as part of their long-term business models.




New to the Fifth Edition...

  • Data Analytics:  we have expanded Data Analytics coverage in this edition.
    • New Data Analytics boxes have been incorporated throughout the text. These boxes describe how Data Analytics is being used in business.
    • New Data Analytics assignments using Excel have been included in each chapter.
    • Appendix F on Data Analytics has been significantly expanded and includes assignments that utilize Tableau.
  • Environmental, Social, and Governance Reporting (ESG): Increasingly, companies have founded that "doing good" leads to a more sucessful, profitable enterprise. A new introduction to ESG reporting is included in Chapter 1, and ESG boxes are incorporatedMB throughout the text to help students understand how ESG is being embraced by forward-thinking enterprises as part of their long-term business models. New ESG reporting assignments have also been added to every chapter to reinforce the concepts presented.
  • Chapter 12 on the statement of cash flows has been revised to be more intuitive for students.
  • New graphics and illustrations have been incorporated to convey key concepts.
  • Updated financial data throughout the text and assignments where real data is used.
  • Expanded the number of guided example videos and assignments included in MBC.
  • MBC now includes short videos that show students how to use various features and functions in Excel
  • The focus companies for five chapters have been changed:
    • Salesforce replaces Krispy Kreme in Chapter 3.
    • Nike replaced Best Buy in Chapter 6.
    • Luckin Coffee is new to Chapter 7.
    • Tesla replaces MGM Resorts International in Chapter 8.
    • Lululemon replaces Facebook in Chapter 9. 


Supplement Package

  • myBusinessCourse: A web-based learning and assessment program intended to complement your textbook and classroom instruction. 
  • Solutions Manual: Created by the authors, the Solutions Manual contains complete solutions to all the assignment material in the text.
  • PowerPoint: The PowerPoint slides outline key elements of each chapter.
  • Test Bank: The Test Bank includes multiple-choice items, exercises, and problems. 
  • Excel Templates We provide Excel spreadsheets for assignments.  These spreadsheets will save time in data entry and allow students to dedicate additional time to learning the material.  The Excel spreadsheets are identified by the Excel icon.
James S. Wallace

James S. Wallace

Associate Professor at The Peter F. Drucker and Masatoshi Ito Graduate School of Management at The Claremont Graduate University.

He received his Bachelors of Arts from the University of California, Santa Barbara, his MBA from the University of California, Davis, and his PhD from the University of Washington. Professor Wallace also holds a CPA certification from the state of California. He previously served on the faculty of the University of California, Irvine and has served as a visiting professor at the University of California, San Diego. Professor Wallace's work has appeared in leading academic journals including the Journal of Accounting and Economics, the Journal of Corporate Finance, and Information Systems Research, along with leading applied journals such as the Journal of Applied Corporate Finance, the Journal of Accountancy, Issues in Accounting Education and Accounting Horizons. Prior to his career in academics, Professor Wallace worked in public accounting and in industry with a Fortune 500 company. He has done consulting work with numerous companies in multiple industries.

Karen K. Nelson

Karen K. Nelson

M.J. Neeley Professor of Accounting at TCU. Former Harmon Whittington Professor of Accounting and past Accounting Area Coordinator at the Jones Graduate School of Business at Rice University.

Karen previously served on the faculty at Rice University, the Stanford University Graduate School of Business, and as a visiting professor at the University of Michigan. She earned her Ph.D. at the University of Michigan and a bachelor’s degree (summa cum laude) from the University of Colorado. She also holds a CPA license from the state of Colorado. Professor Nelson’s research focuses on financial reporting and disclosure issues, including the role of regulators, auditors, and private securities litigation in monitoring financial reporting quality. She has held research seminars at over 50 leading business schools in the U.S. and abroad, and published in a variety of leading academic journals including The Accounting Review, Journal of Accounting and Economics, Journal of Accounting, and Review of Accounting Studies. Her research has been featured in the financial press in publications such as The Wall Street Journal, Business Week, and Forbes. She is an active member of the American Accounting Association and serves on the Editorial Board of The Accounting Review. She has taught financial accounting at all levels, and her students have honored her with numerous awards for teaching excellence. She currently teaches intermediate accounting to undergraduates and financial accounting to MBAs. She is a member of the Standing Advisory Group of the Public Company Accounting Oversight Board.

Theodore E. Christensen

Theodore E. Christensen

Director and Terry Distinguished Chair of Business in the J.M. Tull School of Accounting at the University of Georgia (UGA).

Prior to coming to UGA, he was on the faculty at Brigham Young University from 2000-2015 and at Case Western Reserve University from 1995-2000. He was a visiting professor at the University of Michigan (2013-2014) and the University of Utah (2012) and has taught at Santa Clara University in a summer program since 2005. He received a B.S. degree in accounting from San Jose State University, an M.Acc. degree in tax from Brigham Young University, and a Ph.D. in accounting from the University of Georgia. Professor Christensen has authored and coauthored articles published in many journals, including The Accounting Review; the Journal of Accounting and Economics; the Journal of Accounting Research; Review of Accounting Studies; Contemporary Accounting Research; Accounting Organizations and Society; the Journal of Business Finance & Accounting; the Journal of Accounting, Auditing, and Finance; Accounting Horizons; and Issues in Accounting Education.