Intermediate Accounting, 4e
by Hanlon, Hodder, Nelson, Roulstone, Dragoo
| ISBN: 9781618536761 | Copyright 2026
Instructor Requests
Welcome to the Fourth Edition of Intermediate Accounting
This product is the result of extensive market research that included both faculty and students. We created this learning system because, as educators, we didn’t feel that the existing textbooks in the intermediate market recognized how the study habits of today’s students have evolved, nor did we feel that existing textbooks fully embraced the power of technology in the learning process. This product is not so much a textbook as it is an integrated learning system. Although the print textbook can be used on its own, we created extensive digital resources that integrate with and complement the print book.
The emphasis in our approach is to provide students with a demonstration and review problem for each key learning objective. In this way, students see the application of concepts through a step-by-step illustration and then have the opportunity to immediately practice similar review problems electronically in myBusinessCourse (MBC), our online homework platform. In addition, MBC contains hundreds of instructional videos that were created by the authors. There are four general categories of videos: concept overviews, demonstration videos, worked-out review problems, and highlights & tips videos. With nearly 1,000 author-created videos, our text has broad appeal among the YouTube/TikTok generation as confirmed by our adopter feedback. The combination of textbook, videos, and online practice comprise an active learning system that recognizes and embraces how today’s students prefer to learn and provides students with the tools to master intermediate accounting.
Our approach steers away from dense text (which the average student is not reading) and moves to an active-learning approach where content is delivered in short bursts followed by immediate practice. Because each learning objective for every chapter is self-contained, faculty have the flexibility to pick and choose learning outcomes.
We note the need in the market for a direct incorporation of authoritative guidance. Although other intermediate accounting textbooks include some references to the FASB’s standards in a footnote to a chapter, direct citations are rarely included. In our approach, we provide succinct yet thorough, to-the-point explanations along with direct citations of the most relevant references from the Codification. Direct citations best prepare the intermediate accounting student, who will often reference and cite the authoritative standards in practice. This novel approach of combining active-learning with real-life authoritative guidance best prepares intermediate accounting students for life in practice.
Target Audience
As the title suggests, Intermediate Accounting is intended for use following the introductory financial accounting course at either the undergraduate or graduate level. This book supports an intermediate accounting series offered to accounting and finance majors, typically in a two-course sequence (three-course series in some cases). The topics in intermediate accounting are relevant to approximately 70% of the Financial Accounting Reporting (FAR) section of the current Uniform CPA Examination. In response to the recently updated CPA exam, we have provided the resources needed to prepare your students. We have mapped the learning objectives from each chapter to the learning objectives in the CPA Exam Blueprints. With this update, faculty and students will better understand how the topics in each chapter match up with the CPA exam learning objectives in the Financial Analysis and Reporting Section (FAR) and the Business Analysis and Reporting Section (BAR). This is useful for assessment purposes and will allow faculty and accounting departments the flexibility to separate FAR from BAR topics in the intermediate courses. Being current is important to our author team as we continually monitor updates to the CPA exam to provide the most up-to-date materials.
How Today's Accounting Students Learn
As we developed the concept for this Intermediate Accounting learning system, we conducted extensive research with accounting students and faculty to understand the changing learning and study behavior of accounting students. The findings of that research led to the development of the first three editions. We have continued to conduct research that focuses on how accounting students learn and how faculty teaching has evolved in the post-pandemic educational environment. In preparation for the 4th edition, we conducted 4 surveys of accounting students with over 5,000 student participants.
Findings of this research indicate that the vast majority of accounting students prefer:
- Attempting homework assignments before reading the textbook or using other course resources
- Watching videos that explain the accounting rather than reading the textbook
- Digestible chunks of information as opposed to lengthy multi-topic explanations
- Online learning system that they can access 24/7 from any type of device
Learning Style
Preferred Learning Materials
Students Value myBusinessCourse
We used these findings and others to create an intermediate accounting product that complements and facilitates how today’s students learn.
Author Amie Dragoo discusses some of the text's features below:
The active-learning approach:
The text is supported with over 800 author prepared videos!
We include the accounting
equation and T-accounts to help student understand the impact of the transactions and avoid rote
memorization of Journal Entries.
We incorporate Data Analytics in response to the AACSB curriculum outline, the AICPA/NASBA evolution
model curriculum, and the demands of employers.
We engage students through real examples that include topics of interest to them, including Environmental, Social, and Governance.
We provide direct
citations of the most relevant references from the Codification. This best prepares the typical
intermediate accounting student who will often reference and cite the
authoritative standards in practice.
Often students don't appreciate the judgments made in accounting, so we include Management & Judgment discussions and assignments in each chapter.
We have partnered with Gleim CPA Prep to provide your students with a head start on their journey to the profession.
NEW: MBC Boost Study App to Sharpen Learning
The 4th edition of Intermediate Accounting is accompanied by a new Boost Study App available on mobile devices running on iOS and Android operating systems. Students using myBusinessCourse for their homework assignments can download the study app from the Apple App Store and Google Play Store. Students can learn on the go and access additional study tools using their Apple and Android phones and mobile devices.
The MBC Boost Study App includes:
- Videos
- Flashcards
- Quizzing
- Matching
- Remediation path
Action Plan
To establish our active-learning approach and highlight its user friendly organization, each chapter opens with an Action Plan that identifies each learning objective for the chapter, the related page numbers, the demonstrations, the review applications, the assignments, and the learning objectives tied to the CPA Exam Blueprints. This table allows students and faculty to quickly grasp the chapter contents and to efficiently navigate to the desired topic.
Overview, Demo, and Review
We have adopted a straightforward, effective layout throughout every chapter of the book. We have included carefully crafted learning objectives that are not extraneous or all-encompassing. Each key learning objective is clearly identified with a distinct orange and blue banner and is followed by its own overview, demo, and review.
In fact, each learning objective represents a separate learning module, allowing students and faculty to break down complex topics into manageable subtopics. Our text is comprised of approximately 200 learning objectives and unlike other textbooks in the market, each learning objective is structured in the same way with a consistent layout and resources (in type and quality) associated with each learning objective. Students appreciate this style of learning uniquely adopted in Intermediate Accounting because of the current trend in learning preferences. Students prefer to learn by doing with convenient access to explanations and authoritative references for help in the process. For additional support, students have access to short videos for each Overview, Demo, and Review. The videos can be accessed in MBC.
To help students, we employ a 3-step process for each learning objective.
Market research indicates that students benefit from this consistent pedagogical approach to learning.
Following each learning objective is a brief explanation of the topic with visual references (diagrams) when helpful. We also include an overview box for each learning objective to provide students with a quick overview of key topics. For topics where relevant authoritative guidance is important, we included an excerpt from the Codification. This presentation of the accounting guidance minimizes authors’ biases and places both students and faculty in a unique authoritative position. Our approach incorporates ASC Glossary definitions whenever possible and terminology that is common in the Codification such as the terms recognition, measurement, derecognition, and disclosure. References to authoritative guidance are distinctly highlighted with black block text as shown below. While we take the text exactly as it is from the standard, we sometimes include only the main part of the standard and do not include more detailed portions in the interest of parsimony. Also, we include the most recently approved Codification references, even if the effective date is in the future.
The presentation of the Codification within the text makes our text unique within the marketplace. This aspect of the text is also relevant to students who are now expected to analyze sections of the Codification on the CPA exam so exposure to the Codification is critical to student success.
A presentation focused on demos inspires the contemporary college learner. Demos are included for each learning objective to illustrate the accounting concept discussed. We include color-coded solutions within the Demo (the blue text) because this is the student’s first exposure to the relevant topic. In older intermediate textbooks, it is common for an accounting concept or a variation to an accounting method to be explained in a page or more of text instead of through an illustration. In our approach, accounting concepts are predominantly demonstrated. The active learner can reconstruct the steps independently. In addition, each demo is accompanied by a short video clip (typically 3 minutes or less) that walks students through the solution to the demo.
At the conclusion of each learning objective, a review problem is provided with answers included at the end of the chapter. These review problems are presented to reinforce concepts presented in the section and to ensure student comprehension. By not providing the review solutions on the same page as the review, we are encouraging students to ‘learn by doing.’ The demo, along with the overview material, provides the foundation for students to complete the review problems. Students have the opportunity to practice the same problem online in myBusinessCourse. We believe that many students will take advantage of the opportunity to work through the problem online because they will gain instant feedback as to whether they completed the solution accurately—and frankly, a digital environment is more in line with how we all function every day. Further, each review is accompanied by a short video clip (typically 3 minutes or less) that walks students through the solution to the review. All reviews are included in MBC with algorithmic options, which means they can be assigned and auto-graded.
Integrated Videos in MBC Author-created videos are an integral part of our learning system. Time and again, our market research on student preferences and study habits indicates today’s students like and rely heavily on video instruction as they learn and apply accounting concepts to homework assignments and projects. Our videos are available through MBC and can be accessed 24/7 by students. To facilitate students’ use of the instructional videos while doing their homework, we identify the appropriate video in the margin next to many assignments.
Accounting Equation and T-Accounts
We have received overwhelmingly positive feedback on the inclusion of the accounting equation and use of T-accounts. Faculty recognize the value of these tools in explaining the impact transactions have on accounts and financial statements. Students typically encounter the accounting equation and T-accounts in their introductory financial accounting course, and they appreciate the continuity between courses that these tools create. An additional benefit of using the accounting equation is that Finance majors, who are more focused on the impact of transactions than the recording of them, leave the course with a better understanding of the affect transactions have on financial statements.
In the 4th edition, we expand our use of the accounting equation and T-accounts. In the margin adjacent to the journal entries, we show the impact of the accounting equation and T-accounts to aid in student comprehension.
Abbreviated Account Names and Cash Flow Identifier
New to this edition, abbreviated accounts names have been added to the accounting equation to increase usefulness to students. When a transaction affects cash, we also use notation to indicate if it is an operating cash flow (C:o), or an investing cash flow (C:i) or a financing cash flow (C:f).
New Assignments Requiring Use of the Accounting Equation
To complement the accounting equations shown in the text, a number of assignments are now offered in the accounting equation format in addition to the journal entry format. Faculty will have the flexibility to assign the traditional journal entry approach and/or the accounting equation approach for this set of problems. These questions will be well received by finance majors interested in the financial statement impact of transactions
Excel Skills & Integrated Excel
Proficiency with Excel continues to be one of the most sought-after skills among employers. To facilitate Excel skill development, MBC now includes short videos that show students how to use various features and functions in Excel. The videos can be accessed within myBusinessCourse as part of your MBC course.
In addition, Cambridge Business Publishers has a new relationship with Microsoft that allows for a seamless integration of Excel within myBusinessCourse. Faculty can assign homework through MBC that requires students to use Excel. These assignments are auto-graded and scores are captured in the MBC gradebook.
Learning in Context
Real World
Students appreciate and become more engaged when they see the real-world relevance of the content they are learning in class. We include current, real-world examples of financial reporting throughout each chapter in Real World boxes.
Sustainability Reporting
Companies continue to expand disclosures on different aspects of sustainability. In the fourth edition, we have expanded our Real World coverage of recent 10-K disclosures with sustainability considerations and added other sustainability content where appropriate to describe current financial statement reporting requirements (primarily SEC guidance). Also new to this edition, we have added assignments requiring students to review and analyze recent sustainability disclosures. These new assignments are available in MBC.
Management Judgement
In each chapter, we emphasize how management judgment is required to apply the authoritative guidance. We feel it is important for students to understand that applying accounting rules is often subjective and requires professional judgment.
Expanding Your Knowledge
Expanding Your Knowledge sections extend the coverage of a learning objective to novel situations that are illustrated with excerpts and examples from practice. These topics can enhance classroom discussions or simply allow the curious student to go beyond the usual coverage. A representative sample follows.
Chapter Assessment
The challenge in intermediate accounting is applying the concepts to different scenarios. Our assignment material consists of a wide variety of formats, varying levels of complexity, a thorough coverage of learning objectives, and selections with real world data. The materials increase in complexity as you move through the different categories: Questions, Multiple-Choice, Brief Exercises, Exercises, and Problems. The questions in each end of chapter section are numbered sequentially from start to finish to avoid confusion for students. All learning objectives are represented in the end of chapter materials.
Each chapter contains Questions, Multiple-Choice, Brief Exercises, Exercises, and Problems. The Multiple-Choice section is new to this edition. At least one question is provided for each learning objective of the text. The computational questions are included in MBC with algorithmic options.
We prepared a grid plotting each chapter’s content across the best competing texts in the marketplace, arranged by learning objective, to ensure that our coverage exceeds the competition. Importantly, our assignments correspond with the listed learning objective to ensure that students have the necessary foundational material to complete the corresponding problems. The last section (Accounting Decisions and Judgments) includes more application-type problems, which are identified as follows.
New to this edition, Integrated Excel questions have been added to MBC which allows for the auto-grading of student Excel formulas.
Data Analytics and Data Visualizations
The world in which we live has changed dramatically in recent years. Technology is rapidly altering how accounting is performed and what can be done with the data once they are collected. In this edition, we have incorporated data analytic and data visualization assignments tailored to each chapter’s content. An Excel solution is provided for instructors and all assignments have been added to MBC for an auto-grading option. Additional assignments are available in Appendix A which also provides an overview of the topic of data analytics.
Chapter Organization—Updated This Edition
Chapters in this text are organized into two parts.
Part 1: Chapters 1 through 6 offer a review of introductory financial reporting. We begin with the accounting environment and the underlying conceptual framework. We review the accounting double-entry system, including the preparation and presentation of the four financial statements: income statement (including comprehensive income), balance sheet, statement of equity, and statement of cash flows. We also introduce the DuPont framework, which is useful for analysis and interpretation of accounting reports. The first part of the book concludes with a review of time value of money.
Part 2: The second part launches with the chapter on revenue recognition. This chapter is helpful to understanding the remaining chapters, including when revenue (and assets) are recognized, and when expenses (and liabilities) are recognized. Chapters 8 through 23 loosely follow the accounting equation. Specifically, we begin with the chapters covering assets—Chapters 8 through 14, followed by chapters generally covering liabilities or equity (with some asset implications)—Chapters 15 through 20. The last part of part 2 includes a new chapter to the fourth edition, Chapter 21 on Accounting Changes and Error Analysis. Previously offered as an Appendix, we now offer this content in a dedicated chapter with supporting resources. Next, Chapter 23 revisits the statement of cash flows (from Chapter 5), addressing the cash flows related to some special topics introduced in part 2. New to this edition, we moved the content on Pensions and Postretirement Benefits to the final chapter (Chapter 23) in recognition of its elimination from topical coverage on the CPA exam. Finally, Appendix A introduces Data Analytics and Appendix B (Online) describes key areas of differences between U.S. GAAP and IFRS.
Book-Wide Changes to This Edition
In addition to the chapter-specific changes listed below, we have made several enhancements that affect the entire book.
General Updates to the Text
- Chapter organization was revised to now include a new chapter (Chapter 21) on Accounting Changes and Error Analysis and the chapter on pensions and postretirement benefits was moved to the end of the book (Chapter 23) to recognize its elimination on the CPA exam. (See the new flow of chapters from Chapter 19 to Chapter 23).
- The CPA column of the Action Plan was updated to now reference sections of the CPA Exam Blueprints (2025) which can help instructors with curriculum assessment.
- The balance sheet equation (BSE) included in the text margin next to each journal entry now includes abbreviated account name. One key benefit of incorporating the BSE with account names is that students can readily see the impact of each transaction on the financial statements.
- New real world sustainability reporting examples were added throughout the text.
- We have updated disclosures for real companies on the chapter opening pages, Real World boxes, and Management Judgment sections.
General Updates to End-of-Chapter Assignments and MBC
- A new multiple-choice section was added to every chapter of the text. At least one question is offered for each learning objective of the text.
- Many existing assignments are now offered in the balance sheet equation format in addition to the journal entry format.
- Overall, we assessed the coverage of assignments for each learning objective and added additional assignments as needed.
- A number of new assignments have been updated with current, real data.
- Additional questions in the problems and AD&J sections were added to MBC.
- New assignments asking students to analyze actual sustainability disclosures were added.
- Faculty will have the option to turn on relevant demo and review video resources that match numerous end-of-chapter assignments. This allows students convenient access to videos while solving similar problems in myBusinessCourse.
- Data Visualization assignments were added to the assignment offerings which allows students to analyze charts without creating them.
- New Integrated Excel assignments were also added which test students on the Excel formulas entered. This new auto-graded offering is completed by students within MBC, not requiring students to have Excel on their computers.
- Test Bank was updated to correspond with changes to the fourth edition and supplemented with additional questions.
- Additional videos were created for each chapter to align with new edition updates.
Chapter Specific Changes to Thisc
CHAPTER 1—Accounting Environment and the Conceptual Framework
- Updated assumptions and processes (some formerly called principles) to align with SFAC amendments.
- Added a new section to introduce financial statements.
- Moved a portion of the discussion on fair value from Chapter 4 to Chapter 1 for a more cohesive presentation.
- Added 15 new assignments including multiple-choice, overview of financial statements, Codification, sustainability reporting, and more.
CHAPTER 2—Accounting Information System
- Expanded introduction to revenue recognition, giving faculty the flexibility to cover Chapter 7 in a second course.
- Revised Demos 2-4C, 2-4D and 2-8 to show the related journal
entry in the following period.
- Added new discussion on regulatory reporting and revised exhibits to show explanations for the change in cash in LO2-8.
- Added 20 new assignments including multiple-choice, cash to accrual, introduction to revenue recognition, BSE, and more.
CHAPTER 3—Income Statement and Comprehensive Income
- Expanded income statement presentation to show how unusual items can be shown as operating or nonoperating.
- Added summary of disclosure requirements for disaggregation of expenses.
- Added a Real World example of disclosure of balance sheet items in discontinued operations.
- Separated single-step from multiple-step income statements questions in the assignment materials.
- Added new sustainability reporting discussion on risk factors.
- Simplified presentation on accounting changes and error analysis with more advanced topics moved to Chapter 21.
- Added 20 new assignments including multiple-choice, accounting equation, multi-year income statement, and more.
CHAPTER 4—Balance Sheet and Financial Reporting
- Updated chapter with recent Harley Davidson disclosures.
- Added 10-Q component content (included on CPA exam).
- Moved a portion of the fair value discussion to Chapter 1.
- Added discussion on SEC cybersecurity disclosures.
- Updated LO4-5 for segment disclosure updates (ASC 280) and added a new exhibit.
- Added 17 new or revised assignments including multiple-choice, comprehensive accounting cycle, sustainability reporting questions, separate single and multiple-step statement options, and more.
CHAPTER 5—Statement of Cash Flows and Financial Analysis
- Updated graphic on page 5-7.
- Added ASC 230-10-50-2A regarding disclosures of taxes paid.
- Linked Demo 5-2 to the balance sheet equation.
- Added new exhibit in Demo 5-8, reconciling the income statement to the direct method of cash flows.
- Updated Review 5-8 to now include a full cash flow statement following the direct method in the operating activities section.
- Added 17 new or revised assignments including multiple-choice, comprehensive problem with comparative statement of cash flows, reporting on environmental capital projects, direct method cash flow, and more.
CHAPTER 6—Time Value of Money
- Expanded PV and FV graphics to show discounting and accretion by year.
- Added 8 new multiple-choice questions.
CHAPTER 7—Revenue Recognition
- Added Demo 7-5C on transaction price allocation with customer options.
- Added 42 new assignments including multiple-choice, accounting equation, real world problems on revenue recognition, regulatory credits, and more.
CHAPTER 8—Cash and Receivables
- Expanded coverage of notes receivable.
- New content on SEC ruling on climate disclosure.
- Added part b to Demo 8-5C on the proration of interest under the effective interest method.
- Added Demo 8-5E on installment note receivable.
- LO8-7 updated for ASU 2022-02 on troubled debt restructuring for creditors (content moved from Chapter 16).
- Added or revised 48 assignments including multiple-choice,
net and gross method, note
receivable, accounting equation, sustainability reporting, debt restructuring, and more.
CHAPTER 9—Inventory: Measurement
- Added 27 new assignments including multiple-choice, accounting equation, environmental credits recognized as inventory, and more.
- Expanded discussion on accounting for renewable energy credits.
CHAPTER 10—Inventory: Additional Issues
- Simplified presentation and updated demos on accounting changes with more advanced topics moved to Chapter 21.
- Revised exhibit in Demo 10-7 to improve clarity for
students.
- Added 13 new assignments including multiple choice and accounting equation.
CHAPTER 11—Property, Plant & Equipment: Acquisition & Disposition
- Added new disclosure on capital expenditures with an environmental emphasis.
- In Demo 11-3A, added entries for the note holder to mirror the entries of the note issuer.
- Added 26 new assignments including multiple-choice, accounting equation, asset retirement obligation, and more.
CHAPTER 12—Depreciation, Impairments, and Depletion
- Simplified presentation of LO12-4, 12-5, and 12-6 on accounting changes and error analysis with more advanced topics moved to Chapter 21.
- Added 24 new assignments including multiple-choice, accounting equation, sustainability reporting, and more.
CHAPTER 13—Intangible Assets and Goodwill
- Former LO13-7 (R&D and software development) was separated into two separate learning objectives and the content was expanded.
- Added environmental credits to Exhibit 13-1.
- Updated presentation of crypto assets for GAAP updates; added related new Demo 13-5A.
- Simplified presentation and updated demos on accounting estimates (LO13-4) with more advanced topics moved to Chapter 21.
- Added 19 new assignments including multiple-choice, accounting equation, sustainability disclosure on renewable energy credits recognized as intangible assets, and more.
CHAPTER 14—Investments in Debt and Equity Securities
- The dual presentation on accounting for investments upon sale was changed from a side-by-side comparative approach to a separate LO presentation approach to improve the student learning experience. (The former accounting method one was moved to multiple appendices to the chapter.)
- HTM examples for the bondholder (company names and dollar amounts) were updated to mirror examples in Chapter 16 for the bond issuer. This update more easily allows faculty to show each side of a bond transaction.
- Dropped prior appendix 14B on special purpose funds and life insurance, with some discussion items moved to Chapter 4.
- Updated Demo 14-1A to include bond retirement.
- Added reclassification disclosure to Demo 14-3A and simplified reconciliation presentation.
- Added sustainability reporting topic of ESG classification of investment funds in the European Union.
- Added 31 new assignments including multiple-choice, accounting equation, and more plus additional appendix assignments to support alternative method to account for investments upon a sale.
CHAPTER 15—Current Liabilities and Contingencies
- Added Codification reference on commitment disclosures to LO15-6.
- Updated payroll rates in LO15-3.
- Added sustainability reporting content on environmental liabilities.
- Added 30 new assignments including multiple-choice, accounting equation, reporting of environmental liabilities, and more.
CHAPTER 16—Long-Term Liabilities
- Bond examples for the bond issuer (company names and dollar amounts) were updated to mirror examples in Chapter 14 for the bondholder. A new side-by-side comparison exhibit is also included in Chapter 16.
- Updated amortization schedules to include a column for the unamortized discount or premium
- Moved creditor section on troubled debt to Chapter 8.
- Added sustainability content on the issuance of green bonds.
- Added new Codification disclosure of unused commitments in LO16-10.
- Revised the content of LO16-8 to reflect ASU
2024-04 on induced conversions.
Added 33 new assignments including multiple choice, accounting equation, questions asking for debtor and investor entries, green bond issuance, and more.
CHAPTER 17—Accounting for Leases
- Added new Demo 17-8C on unguaranteed residual value in sales-type lease.
- Added part 5 to Demo 17-1 to illustrate the fifth lease classification criterion.
- Added part k to Demo 17-6 to account for a lease where the lessor determines payments by the lessee are not probable.
- Added more clarity to the distinction between the terms net investment in lease and lease receivable for a sales-type lease (LO17-6, LO17-8, and LO17-10).
- Added 28 new assignments including multiple-choice, accounting equation, and more.
CHAPTER 18—Income Taxes
- The tax chapter was revamped to improve the student experience. We now start with a broad introduction and then build on the example with more complexity in later learning objectives.
- In this update, some content was reordered and revised in the chapter to improve the flow and presentation of topical content.
- A number of demos and reviews were revised throughout the chapter.
- Show that the term “permanent” difference is referenced as nontaxable, nondeductible, and other differences in the Codification.
- Expanded examples of tax rate reconciliation disclosures under ASU 2023-09 showing nontaxable amounts, nondeductible amounts, and tax rate changes. Also discussed the effect on rate reconciliation for tax credits.
- Moved LO18-10 to Chapter 21.
CHAPTER 19—Stockholders' Equity (Formerly Chapter 20)
- Illustrated noncontrolling interest through Coca-Cola in LO19-1.
- Expanded LO19-7 to include the statement of stockholders’ equity.
- Added 27 new assignments including multiple-choice, accounting equation, diluted EPS, compensation expense, and more.
CHAPTER 20—Share-Based Compensation and Earnings per Share (Formerly Chapter 21)
- Added new Codification reference on EPS disclosures in LO20-9.
- Added new sustainability Real World box on executive compensation.
- Added 32 new assignments including multiple-choice, accounting equation, diluted EPS, compensation expense, and more.
CHAPTER 21—Accounting Changes and Error Analysis Revisited (Formerly Appendix A)
- Converted Appendix in prior edition to a new chapter complete with related chapter supplements.
- Includes a review of concepts covered in prior chapters along with expanded coverage.
- Significantly increased the number of end-of-chapter assignments.
CHAPTER 22—Statement of Cash Flows Revisited
- Added new Codification reference in LO22-5 related to disclosures.
- Moved pension references to Expanding Your Knowledge text
box.
- Added 10 new assignments including multiple-choice.
CHAPTER 23—Pensions and Postretirement Benefits (Formerly Chapter 19)
- The pension chapter has been moved to later in the book in recognition of its elimination from topical coverage on the CPA exam.
- New teaching notes were added to suggest coverage and related assignments for faculty who wish to provide a brief topical overview of defined benefit plans.
- Included a new Expanding Your Knowledge box on pension fund financial statements (content included on BAR exam).
- Added 16 new assignments including multiple-choice and more.
APPENDIX A—Data Analytics
- Expanded background discussion to include the analytics mindset and best practices in data visualization.
- Added additional assignments in Tableau and Excel.
| LO | Topic/Subtopic | Page | Demos | Reviews | Assignments | CPA* |
|---|---|---|---|---|---|---|
|
LO 8-1 |
Classify cash, cash equivalents, restricted cash, and compensating balances Cash::Cash Equivalents::Restricted Cash::Compensating Balances::Balance Sheet Classification |
8-3 |
17, 33, 34, 39, 59, 84, 85 |
CORE |
||
|
LO 8-2 |
Account for sales and collections on account including the impact of cash discounts Gross Method::Net Method::Cash Discount::Discount Period |
8-6 |
18, 19, 35, 36, 39, 59, 61, 62, 77, 80, 83, DA8-2 |
CORE |
||
|
LO 8-3 |
Account for impact of sales returns and allowances Sales Returns::Variable Consideration::Refund Liability::Estimated Returns Inventory |
8-10 |
20, 37, 38, 59, 61, 85 |
CORE |
||
|
LO 8-4 |
Measure and record accounts receivable at net amount expected to be collected |
8-12 |
21, 22, 23, 24, 39, 40, 41, 42, 43, 44, 45, 46, 59, 62, 63, 64, 65, 66, 75, 76, 79, 84, 85, DA8-1, DA8-3, DA8-4 |
CORE |
||
|
LO 8-5 |
Measure and record notes receivable Note Receivable::Face Value::Effective-Interest Method::Discount on Note Receivable |
8-20 |
25, 26, 46, 47, 48, 49, 50, 51, 59, 67, 68, 69, 78, 85, 86 |
CORE |
||
|
LO 8-6 |
Account for the sale of receivables and use as collateral for borrowing Secured Borrowing::Collateral::Sale with Recourse::Sale Without Recourse::Recourse Liability |
8-26 |
27, 28, 29, 30, 31, 52, 53, 54, 55, 56, 57, 59, 60, 70, 71, 72, 73, 81, 84 |
CORE |
||
|
LO 8-7 |
Describe receivable disclosures and ratio analyses Accounts Receivable Turnover::Average Days to Collect Receivables |
8-32 |
32, 58, 59, 60, 74, 78, 79 |
CORE |
||
LO 8-8 |
APPENDIX 8A Apply cash controls Cash Reconciliations::Bank Reconciliation::Accounting Controls(Coming Soon) |
8-35 |
59, 82, 91, 92, 93, 94, 95, 98, 99, 100, 101, 102, 105, 106, 107, 108 |
CORE |
||
LO 8-9 |
APPENDIX 8B Account for impairment of noncurrent receivables Bad Debt Expense::Allowance for Doubtful Accounts::Effective-Interest Method::Expected Credit Losses(Coming Soon) |
8-41 |
96, 97, 103, 104, 109 |
CORE |
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.
eLecture Videos
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Third Party Integrations
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- 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
- Technical support for students and faculty available daily
- Faculty training conducted daily
Additional Resources
Financial Accounting Bootcamp
This interactive tutorial is intended for use in programs that either require or would like to offer a tutorial that can be used as a refresher of topics introduced in the first financial accounting course. It is designed as an asynchronous, interactive, self-paced experience for students. Available Learning Modules (You Select) follow.
- Introducing Financial Accounting (approximate completion time 2 hours)
- Constructing Financial Statements (approximate completion time 4 hours)
- Adjusting Entries and Completing the Accounting Cycle (approximate completion time 4 hours)
- Reporting and Analyzing Cash Flows (approximate completion time 3.5 hours)
- Analyzing and Interpreting Financial Statements (approximate completion time 3.5 hours)
- Excel and Time-Value of Money Basics (approximate completion time 2 hours)
This is a separate, saleable item. Contact your sales representative to receive more information or email customerservice@cambridgepub.com.
Guide to Intermediate Accounting Research
The Guide to Intermediate Accounting Research, Third Edition, by Shelby Collins, is intended to serve as a supplement to the materials used in an intermediate accounting course. It includes many opportunities to apply Codification guidance to related accounting topics (including, for example, leases, investment accounting, revenue recognition, and consolidation). Students will learn to confidently address and communicate accounting research issues, from start to finish. Students will not only take away the ability to identify the accounting problem (the “researchable question”) but will gain experience locating and applying guidance within the FASB Codification. This is a separate, saleable text (ISBN: 978-1-61853-316-6). Contact your sales representative to receive a desk copy or email customerservice@cambridgepub.com.
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| About Our Team (pg. iii) | |
| How Today's Accounting Students Learn (pg. v) | |
| Preface (pg. viii) | |
| Brief Contents (pg. xxv) | |
| Contents (pg. xxvi) | |
| Chapter 1: Accounting Environment and the Conceptual Framework (pg. 1-1) | |
| Chapter 2: Accounting Information System (pg. 2-1) | |
Michelle L. Hanlon
Michelle L. Hanlon is the Howard W. Johnson Professor at the MIT Sloan School of Management. She earned her doctorate at the University of Washington.
Prior to joining MIT, she was a faculty member at the University of Michigan. Professor Hanlon has taught financial accounting to undergraduates, MBA students, executive MBA students, and Masters of Finance students. Professor Hanlon also teaches Taxes and Business Strategy to MBA students. She is the winner of the 2013 Jamieson Prize for Excellence in Teaching at MIT Sloan.
Professor Hanlon’s research focuses primarily on the intersection of taxation and financial accounting. Her recent work examines the capital market effects of the accounting for income tax, the reputational effects of corporate tax avoidance, and the economic consequences of U.S. international tax policies for multinational corporations. She has published research studies in the Journal of Accounting and Economics, the Journal of Accounting Research, The Accounting Review, the Review of Accounting Studies, the Journal of Finance, the Journal of Financial Economics, the Journal of Public Economics, and others. She has won several awards for her research and has presented her work at numerous universities and conferences. Professor Hanlon has served on several editorial boards and currently serves as an editor at the Journal of Accounting and Economics.
Professor Hanlon has testified in front of the U.S. Senate Committee on Finance and the U.S. House of Representatives Committee on Ways and Means about the interaction of financial accounting and tax policy. She served as a U.S. delegate to the American-Swiss Young Leaders Conference in 2010 and worked as an Academic Fellow at the U.S. House Ways and Means Committee in 2015.
Leslie Hodder
Professor and the Dean’s Faculty Fellow at Indiana University’s Kelley School of Business
Professor Hodder received her B.B.A and M.B.A./M.Acc from the University of New Mexico and her Ph.D. from the University of Texas at Austin. Prior to obtaining her Ph.D., Professor Hodder was Chief Financial Officer of a publicly traded commercial bank holding company in southern California. Professor Hodder was on faculty at Stanford University before joining the Indiana University faculty in 2003. Her research has appeared in top accounting journals, including The Accounting Review, Review of Accounting Studies, Contemporary Accounting Research, and Accounting Organizations and Society. She is the past winner of the American Accounting Association’s Wildman Award, is a past and present Editor at The Accounting Review, and is currently on the Executive Board of the American Accounting Association. Professor Hodder teaches financial-accounting-related topics in the undergraduate, master, and doctoral programs. Over her teaching career, she has developed or co-developed six courses in financial accounting, including Intermediate Financial Accounting I and II, Applied Audit and Accounting Research, and Detecting Earnings Management with a focus on data analytics. Professor Hodder currently teaches intermediate accounting to undergraduates.
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.
Darren Roulstone
Distinguished Professor of Accounting at the Ohio State University’s Fisher College of Business.
Professor Roulstone earned his doctorate at the University of Michigan’s Ross School of Business and BS and MAcc degrees from Brigham Young University’s Marriott School of Management. Professor Roulstone currently directs the Ph.D. program in Accounting and Management Information Systems at Fisher. He teaches a seminar on capital markets research and the core course in financial reporting in Fisher’s Master of Accounting program. He has extensive experience teaching intermediate accounting at both the undergraduate and graduate levels. Prior to joining Fisher, he was on the faculty at the University of Chicago’s Booth School of Business where he taught financial accounting and financial statement analysis in the full-time, evening, and weekend MBA programs. Professor Roulstone’s research focuses on information intermediaries, information acquisition by investors, and textual analysis of corporate disclosure. He serves on the editorial boards of several accounting journals and is currently an associate editor at Management Science. His research has been published in a variety of leading academic journals including The Accounting Review, Journal of Accounting and Economics, Journal of Accounting Research, Management Science, and Review of Accounting Studies. He is a past president of the American Accounting Association’s Financial Accounting and Reporting Section.
Amie L. Dragoo
Professor of Accounting and Educational Consultant
Former Accounting Department Chair at Edgewood College, Professor Dragoo earned her BA and MBA from Michigan State University, and her doctorate from Edgewood College. She holds a CPA license, and for nearly 15 years has been a Becker Professional Education faculty instructor. Prior to her experiences in higher education, Professor Dragoo was a senior business assurance associate with PricewaterhouseCoopers LLP (formerly Coopers & Lybrand L.L.P.). Professor Dragoo has extensive teaching experiences, including courses in Intermediate Accounting I and II, Cost Accounting, Advanced Cost Management, Strategic Financial Management, and other advanced courses in financial and managerial accounting. She has received a number of teaching awards including the School of Business Outstanding Faculty Award and the Estervig-Beaubien Excellence in Teaching and Mentoring Award. She has also worked as an independent consultant, including projects in higher education, and has worked with several corporate clients. Professor Dragoo’s research has been published in the Journal of Education for Business and the Journal of Continuing Higher Education and she has contributed to numerous articles published by organizations affiliated with the AICPA. She has been involved in many community-oriented programs including the Volunteer Income Tax Assistance (VITA) program.
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