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Brief Contents
Chapter 1 Business, Accounting, and You 1
Chapter 2 Analyzing and Recording Business Transactions 53
Chapter 3 Adjusting and Closing Entries 103
Chapter 4 Accounting for a Merchandising Business 160
Chapter 5 Inventory 211
Chapter 6 The Challenges of Accounting: Standards,

Internal Control, Audits, Fraud, and Ethics 259
Chapter 7 Cash and Receivables 291
Chapter 8 Long-Term and Other Assets 354
Chapter 9 Current Liabilities and Long-Term Debt 405
Chapter 10 Corporations: Paid-In Capital and Retained Earnings 453
Chapter 11 The Statement of Cash Flows 506
Chapter 12 Financial Statement Analysis 566
Appendix A Columbia Sportswear Company Annual Report 2014

to Shareholders 623
Appendix B Time Value of Money—Future and Present

Value Concepts 697
Appendix C FASB Update—Revenue Recognition 705
Company Index 707
Glindex 715
Credits 737
vii
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Contents
Chapter 1 Accounting, Business, and You—Putting It All Together 24

Business, Accounting, and You 1 SUMMARY 25
ACCOUNTING PRACTICE 28
Business, Accounting, and You 1
APPLY YOUR KNOWLEDGE 49
What Is a Business, and Why Study Accounting? 2
KNOW YOUR BUSINESS 50
The Definition of a Business 3
The General Concept of Value 3
Chapter 2
Business Owners and Other Stakeholders 4
The Goal of a Business 5 Analyzing and Recording Business
How Does a Business Operate? 5
Transactions 53
Resources Needed to Start and Operate a Business 5 Business, Accounting, and You 53
Operating the Business 5 How Are Accounts Used to Keep Business Transactions
The Cost of Money 6 Organized? 54
How Are Businesses Organized? 6 Organizing Accounts 54
The Types of Businesses 7 Assets 55
The Legal Forms of Businesses 7 Liabilities 55
Stockholders’ Equity 55
What Is Accounting, and What Are the Key Accounting
Principles and Concepts? 9 What Is Double-Entry Accounting? 56
Generally Accepted Accounting Principles (GAAP) 9 Normal Balance 57
International Financial Reporting Standards 10 How Are the General Journal and General Ledger
The Business Entity Principle 10 Used to Keep Track of Business Transactions? 58
The Reliability (Objectivity) Principle 10 Transaction Analysis 59
The Cost Principle 10 Applying Transaction Analysis 60
Accounting Ethics: A Matter of Trust 10 Balancing the T-Accounts 67
What Is the Role of Accounting in a Business? 11 How Is a Trial Balance Prepared, and What Is It Used For? 69
How Do You Recognize a Business Transaction? 12 Correcting Errors 70
Cash Accounting 12 Preparation of Financial Statements 71
Accrual Accounting 12 SUMMARY 74
How Do You Measure a Business Transaction? 12 ACCOUNTING PRACTICE 75
How Do You Record Business Transactions Using the Accounting APPLY YOUR KNOWLEDGE 99
Equation? 13 KNOW YOUR BUSINESS 100
Transaction Analysis 13
Stockholders’ Equity 13 Chapter 3
How Do You Report Business Transactions
Adjusting and Closing Entries 103
Using Financial Statements? 19
The Income Statement 19 Business, Accounting, and You 103
The Statement of Retained Earnings 20 How Does a Company Accurately Report Its Income? 105
The Balance Sheet 20 Revenue Recognition and Matching Principles 105
The Statement of Cash Flows 22 What Is the Role of Adjusting Entries,
Relationships Among the Financial Statements 22 and When Are They Prepared? 106
ix
x Contents
Accruing Revenues 108 SUMMARY 183

Accruing Expenses 108 ACCOUNTING PRACTICE 186
Adjusting Deferred Revenues 109 APPLY YOUR KNOWLEDGE 208
Adjusting Deferred Expenses 110 KNOW YOUR BUSINESS 208
How Are Financial Statements Prepared from an Adjusted
Trial Balance? 114 Chapter 5
The Adjusted Trial Balance 114
Inventory 211
Preparing the Financial Statements 116
How Does a Company Prepare for a New Accounting
Period? 118 What Inventory Costing Methods Are Allowed? 212
Completing the Accounting Cycle 118 Cost Flow Versus Physical Flow of Inventory 213
The Three Closing Entries: Revenues, Expenses, and Dividends 119 How Are the Four Inventory Costing Methods
Post-Closing Trial Balance 121 Applied? 215
Summary of the Adjusting and Closing Processes 121 Inventory Cost Flows 215
Specific-Identification Method 216
SUMMARY 124
First-In, First-Out (FIFO) Method 217
Last-In, First-Out (LIFO) Method 218
Average Cost Method 219
Journalizing Inventory Transactions 220
COMPREHENSIVE PROBLEM 158
What Effect Do the Different Costing Methods Have on Net
Income? 221
Chapter 4
What Else Determines How Inventory Is Valued? 223
Accounting for a Merchandising
Business 160 How Is Inventory Reported on the Balance Sheet? 225
Inventory Shrinkage 225
How Do Inventory Errors Affect the Financial
What Are the Relationships Among Manufacturers, Statements? 226
Wholesalers, Retailers, and Customers? 161
Is It Possible to Estimate the Value of Inventory If the
How Do Periodic and Perpetual Inventory Systems Inventory Is Accidentally Destroyed? 227
Differ? 162
SUMMARY 231
How Do You Account for the Purchase of Inventory? 162
Cash and Credit Purchases 163
Purchase Returns and Allowances 163
Purchase Discounts 164
COMPREHENSIVE PROBLEM 257
How Do You Account for the Sale of Inventory? 166
Cash Sales 166
Chapter 6
Credit Sales 167
Sales Returns and Allowances 168
The Challenges of Accounting:
Standards, Internal Control,
Sales Returns 168
Audits, Fraud, and Ethics 259
Sales Allowances 169
Sales Discounts 169 Business, Accounting and you 259
How Do You Account for Freight Charges and Other Selling What Are the Rules That Govern Accounting? 260
Expenses? 171 Understandable 260
Costs Related to the Receipt of Goods from Suppliers 172 Relevant 260
Costs Related to Delivering Goods to Customers 174 Reliable 261
Other Selling Costs 176 Generally Accepted Accounting Principles (GAAP) in the
How Do You Prepare a Merchandiser’s Financial United States 261
Statements? 176 Generally Accepted Accounting Principles Around the World: IFRS 262
The Income Statement 176 Differences Between FASB and IFRS 262
The Statement of Retained Earnings 179 What Is Internal Control? 264
The Balance Sheet 179 Elements of an Internal Control System 264
Contents xi
What Is Fraud, and Who Commits It? 267 Appendix 7A 348

Management Fraud 267 What Is a Petty Cash Fund? 348
Employee Embezzlement 268 Setting Up the Petty Cash Fund 348
Factors Usually Present When Fraud Is Committed 268
Replenishing the Petty Cash Fund 349
What Is a Certified Public Accountant (CPA)? 270
Changing the Petty Cash Fund 350
Audits 270
Audit Opinions 271
What Are the Legal and Ethical Responsibilities Chapter 8
of Accountants? 273
The Legal Responsibilities of Accountants 273 Long-Term and Other Assets 354
Ethical Responsibilities of Accountants 274 Business, Accounting, and You 354
SUMMARY 276 What Are the Different Types of Long-Term Assets? 355
ACCOUNTING PRACTICE 278 How Is the Cost of a Fixed Asset Calculated? 356
APPLY YOUR KNOWLEDGE 285 Land and Land Improvements 356
KNOW YOUR BUSINESS 288 Buildings 357
Machinery and Equipment 357
Chapter 7 Furniture and Fixtures 358
Cash and Receivables 291 Lump-Sum (Basket) Purchase of Assets 358
Business, Accounting, and You 291 How Are Fixed Assets Depreciated? 359
Measuring Depreciation 360
What Internal Control Procedures Should Be Used for Cash? 292
Depreciation Methods 361
Internal Controls over Cash Receipts 292
Comparing Depreciation Methods 365
Internal Control over Cash Payments 293
Partial Year Depreciation 365
Purchase and Payment Process 293
Changing the Useful Life of a Depreciable Asset 366
The Bank Reconciliation 295
Using Fully Depreciated Assets 367
Preparing the Bank Reconciliation 295
Online Banking 300 How Are Costs of Repairing Fixed Assets Recorded? 368
Ordinary Repairs 368
How Is Cash Reported on the Balance Sheet? 301
Extraordinary Repairs 368
How Do You Account for Receivables? 301
Betterments 369
Types of Receivables 301
Internal Control over Accounts Receivable 302 What Happens When a Fixed Asset Is Disposed? 369
Accounting for Uncollectible Accounts Receivable 302 How Do You Account for Intangible Assets? 372
How Do You Account for Uncollectible Accounts? 302 Specific Intangibles 372
The Direct Write-Off Method 302 Accounting for Research and Development Costs 374
Direct Write-Off Method: Recovery of Accounts Previously Written Off 303 How Are Natural Resources Accounted For? 374
The Allowance Method 304
What Are Other Assets? 375
Estimating the Amount of Uncollectible Accounts 304
Writing Off Uncollectible Accounts Under the Allowance Method 307
How Are Long-Term Assets Reported on the
Balance Sheet? 376
Allowance Method: Recovery of Accounts Previously Written Off 308
How Are Accounts Receivable Reported SUMMARY 379
on the Balance Sheet? 309 ACCOUNTING PRACTICE 382
How Do You Account for Notes Receivable? 310 APPLY YOUR KNOWLEDGE 402
Identifying the Maturity Date 310 KNOW YOUR BUSINESS 403
Origination of Notes Receivable 311
Computing Interest on a Note 311 Chapter 9
Accruing Interest Revenue 312 Current Liabilities and
SUMMARY 317 Long-Term Debt 405
ACCOUNTING PRACTICE 319 Business, Accounting, and You 405
APPLY YOUR KNOWLEDGE 345 What Are the Differences Among Known, Estimated,
KNOW YOUR BUSINESS 346 and Contingent Liabilities? 406
xii Contents
How Do You Account for Current Liabilities Purchase of Treasury Stock 469
of a Known Amount? 406 Sale of Treasury Stock 469
Accounts Payable 407
How Is Stockholders’ Equity Reported
Notes Payable 407 on the Balance Sheet? 472
Sales Tax Payable 409
SUMMARY 474
Accrued Expenses (Accrued Liabilities) 409
Unearned Revenues 409
Current Portion of Long-Term Debt 410
How Do You Account for Current Liabilities of an Uncertain
Amount? 410 Chapter 11
Estimated Warranty Liability 410
The Statement of Cash Flows 506
How Do You Account for a Contingent Liability? 412
How Do You Account for Long-Term Debt? 412 Business, Accounting, and You 506
Notes Payable 413 What Is the Statement of Cash Flows? 507
Bonds Payable 414 How Does a Business Create a Statement
Lease Liabilities 420 of Cash Flows? 509
How Are Liabilities Reported on the Balance Sheet? 422 The Logic of How the Statement of Cash Flows Is Prepared 509
Sources and Uses of Cash: Categorizing Changes as Operating,
SUMMARY 426 Investing, or Financing 510
ACCOUNTING PRACTICE 429 Statement of Cash Flows: Two Formats 512
How Is the Statement of Cash Flows Prepared Using the
KNOW YOUR BUSINESS 450 Indirect Method? 513
Cash Flows from Operating Activities 515
Chapter 10
Cash Flows from Investing Activities 517
Corporations: Paid-In Capital Cash Flows from Financing Activities 519
and Retained Earnings 453 Net Change in Cash and Cash Balances 521
Business, Accounting, and You 453 Noncash Investing and Financing Activities 521
How Are Corporations Organized? 454 How Is the Statement of Cash Flows Prepared Using the
What Makes Up the Stockholders’ Equity Direct Method? 524
of a Corporation? 455 Cash Flows from Operating Activities 525
Stockholders’ Rights 456 SUMMARY 531
Classes of Stock 456 ACCOUNTING PRACTICE 532
Par Value, Stated Value, and No-Par Stock 456 APPLY YOUR KNOWLEDGE 560
How Is the Issuance of Stock Recorded? 457 KNOW YOUR BUSINESS 561
Issuing Common Stock 457 COMPREHENSIVE PROBLEM 563
Issuing Preferred Stock 459
How Are Cash Dividends Accounted For? 459 Chapter 12
Dividend Dates 460 Financial Statement Analysis 566
Declaring and Paying Dividends 460 Business, Accounting, and You 566
Dividing Dividends between Preferred and Common Shareholders 461
What Is Financial Analysis? 567
Dividends on Cumulative and Noncumulative Preferred Stock 462
Step One: Understand a Business’s Model and Strategy 567
How Are Stock Dividends and Stock Splits Step Two: Understand the Environment in Which a
Accounted For? 463 Business Operates 568
Stock Dividends 463
Step Three: Analyze the Content of the Financial Statements
Recording Stock Dividends 464 and Other Information, Making Adjustments If Desired 569
Stock Splits 466 Step Four: Analyze the Business’s Operations 569
Stock Dividends and Stock Splits Compared 467 Step Five: Use the Financial Analysis to Make Decisions 570
How Is Treasury Stock Accounted For? 468 What Measures Does Someone Use to Analyze
Treasury Stock Basics 468 the Performance of a Business? 570
Contents xiii
The Techniques of Financial Analysis 571 APPLY YOUR KNOWLEDGE 619

Vertical Analysis 573 KNOW YOUR BUSINESS 620
Horizontal Analysis 574
Trend Percentages 576
Appendix A
Question 1: Is the Business a Going Concern? 576 Columbia Sportswear Company
An Example: Bello’s Bike Supply, Inc. 577 Annual Report 2014 to Shareholders 623
Question 2: How Is the Business Earning a Net Income
Appendix B
or Loss? 578
An Example: Bello’s Bike Supply, Inc. 580 Time Value of Money—Future
Question 3: Where Is the Business Getting Its Money, and Present Value Concepts 697
and Can It Pay Its Debt Obligations? 581 Future Value 697
An Example: Bello’s Bike Supply, Inc. 581 Future-Value Tables 698
Question 4: How Is the Business Investing Its Money, Future Value of an Annuity 699
and Is It Using Its Assets Efficiently? 582 Present Value 700
An Example: Bello’s Bike Supply, Inc. 583 Present-Value Tables 701
Question 5: Is the Business Generating Enough Net Income Present Value of an Annuity 701
to Reward the Stockholders for the Use of Their Money? 584
An Example: Bello’s Bike Supply, Inc. 585
Appendix C
How Do You Put Everything Together to Make Decisions? 587
Seeing the Impact of Decisions 589 FASB Update—Revenue Recognition 705
What Are Red Flags in Financial Statement Analysis? 589
Company Index 707
SUMMARY 592 Glindex 715
ACCOUNTING PRACTICE 594 Credits 737
Preface
Changes to This Edition

Chapter 1 Business, Accounting, and You
• Introduced business and the nature and importance of accounting with the Bold City
Brewery, a real-life, successful entrepreneurial venture
• Updated all of the A and B series exercises and problems to better reflect small business
• Updated the Continuing Exercise and Continuing Problem
• Updated the Continuing Financial Statement Analysis Problem featuring Dick’s Sporting
Goods using the 2014 annual report
• Updated end-of-chapter material related to Under Armour and Columbia Sportswear
using the 2014 annual reports
Chapter 2 Analyzing and Recording Business Transactions

• Changed chapter introduction company from Target to the Bold City Brewery
Chapter 3 Adjusting and Closing Entries

• Changed chapter introduction company from Disney to the Bold City Brewery
• Introduced the new FASB guidance related to the standardization of the revenue recogni-
tion rules
Chapter 4 Accounting for a Merchandising Business

• Changed chapter introduction company from Toys R Us to the Bold City Brewery
• Added chapter coverage of the new FASB guidance related to the revenue recognition
rules regarding accounting for sales returns and allowances and sales discounts
• Added chapter coverage of accounting for partial payments of invoices within the
discount period
xv
xvi Preface

Chapter 5 Inventory
• Changed chapter introduction company from Toys R Us to the Bold City Brewery
Chapter 6 The Challenges of Accounting: Standards, Internal

Control, Audits, Fraud, and Ethics
• Introduced the nature and importance of accounting standards with the Bold City Brewery
• Updated the status of the adoption of IFRS in the United States
Chapter 7 Cash and Receivables

• Changed chapter introduction company from Hershey to the Bold City Brewery
Chapter 8 Long-Term and Other Assets

• Changed chapter introduction company from AT&T to the Bold City Brewery
Chapter 9 Current Liabilities and Long-Term Debt

• Changed chapter introduction company from Ford to the Bold City Brewery
Preface xvii
Chapter 10 Corporations: Paid-In Capital and Retained Earnings

• Changed chapter introduction company from Apple to the Bold City Brewery
Chapter 11 The Statement of Cash Flows

• Changed chapter introduction company from Delta Airlines to the Bold City Brewery
Chapter 12 Financial Statement Analysis

• Added the Bold City Brewery to the introduction of financial analysis
• Updated the chapter coverage to reflect the new FASB rules related to accounting for
extraordinary items
Appendix C (new)
• Added coverage of Accounting Standards Update (ASU) number 2014–09 and the
five-step process for revenue recognition
Dear Colleagues,
We are very excited about the newest edition of Kemp and Waybright’s Financial Accounting.
After you have had a chance to look at this edition’s changes, we think you will be as excited
about our latest edition as we are.
Practical Approach: Accounting from a Business Perspective

As has been our goal in past editions, the fourth edition of Financial Accounting is all about
helping students learn. We believe the text and supporting materials tackle challenging top-
ics in a pragmatic, easily understood manner so that students understand not only accounting
but its critical role in the business world. We want to help you help your students master the
basic concepts of financial accounting and apply them to everyday business decisions.
To help with this goal, we’ve focused the fourth edition on businesses to which students can
better relate. First, we introduce the topic of each chapter with the Bold City Brewery—a
successful, entrepreneurial business. We conclude each chapter by showing the importance
of the chapter topic to the Bold City Brewery and larger firms. Second, throughout the
chapter and at the end of the chapter, we use examples and problems that reflect typical
businesses that students encounter in their real lives. This means smaller and more man-
ageable numbers.
Execution: Ensuring Student Success

Every feature in Financial Accounting is about helping you, the faculty, help your students
achieve this goal. Based on our years of teaching, we believe we have created a complete pack-
age of instructional materials, using traditional and digital methods. For example, examine
how each topic is introduced, explained, and demonstrated. Notice how students not only learn
the topic, but also see how it is applied in the real world. Moreover, the end-of-chapter exer-
cises, problems, and cases, prepared by us, create a progressive and appropriately challenging
learning experience. Included in this edition are more than 18 live examples, so that students
can test their understanding of the relationship between the general journal, journal entries,
and the impact on the accounting equation. These materials were all crafted carefully to help
you ensure that your students have more of those “I get it” moments.
Assessment: Ensuring Your Success

We are first and foremost teachers. It’s our passion. We understand the challenges you face as
teachers. For example, in order to assure continuity between the text and the assessments, we
prepared the solutions manual and contributed to and accuracy checked the algorithmic test
bank. In addition to these supplements, there are automatically graded homework assignments
in MyAccountingLab.
We believe in this text. Every day, we see how this text and supporting materials help students learn
in and out of the classroom. We believe you too will love this text. We believe you will quickly see
how Financial Accounting, with all of its supporting materials, creates success in your students.
Thank you for looking at Financial Accounting. We believe the fourth edition of Financial
Accounting is unique. It’s special. We hope you’ll look at it, compare it to other books, and think
about what is best for your students and you. If you do, we think there is one obvious choice. It’s
Kemp and Waybright’s Financial Accounting. It’s all about success for you and your students.
Best wishes,
Bob Kemp Jeffrey Waybright

Robert Kemp, DBA, CPA Jeffrey Waybright, CPA, MBA
Ramon W. Breeden Senior Research Professor Accounting Instructor
McIntire School of Commerce Spokane Community College
The University of Virginia
xix
Visual Walk-Through
Chapter Openers
The Bold City Brewery is discussed at the beginning of each chapter in the Business, Accounting, and You
feature. This feature motivates students by tying the business concept directly to the chapter’s accounting
topics and demonstrating the importance and usefulness of the chapter’s topics.
Adjusting and Closing Entries
How Does a Company Accurately Question-and-Answer Format mirrors

Report Its Income? those valuable, teachable moments in the
classroom when a student asks a question
Revenue Recognition and Matching Principles
that gets straight to the heart of the topic.
Live Examples Approach
The authors introduce unique live examples
to illustrate the connection between
the accounting equation and journalizing
transactions. In Chapters 2 and 3 of the
Pearson eText, students can journalize
transactions, create T-Accounts, and test their
understanding of the relationship between
journal entries and the accounting equation.
Eighteen live examples will allow students
to practice over and over again until they
comprehend these critical accounting
concepts.
The Perfect Balance of Small Business

Perspective and Corporate Coverage Not every
student will graduate and become part of a large
corporation, which is why it’s important for students
to understand how financial accounting applies in
small business scenarios as well as corporate ones.
Focus on Decision Making shows
Focus on Decision Making students how to make financially sound
“Who Owns Net Income and Where Does Net Income Go?”
business decisions and to evaluate risk
What is net income? You can’t touch it. You can’t see it. You can’t spend it. There’s and the impact of those decisions on a
not even an account in the general ledger called Net Income. You can touch, see, company.
and spend cash. But using accrual accounting, net income is not cash. So what is
net income? Net income is the net of revenues less expenses. But who gets the net
income? Who owns net income?
The answer is owners own net income. Think of revenues as something that
benefits owners. Think of expenses as something that takes away some of that
benefit that revenues provide. The net, whether net income or loss, belongs to the
owners.
At the end of each accounting period, we want to close out the old measures
and start new measures of revenues, expenses, and net income. We have closing
entries that zero out all the revenue and expense accounts so they start with a zero
balance. However, we do not zero out the impact that revenues and expenses had
on balance sheet accounts such as cash, accounts receivable, and accounts payable.
To get this to work, we take the net income and recognize that it belongs to the busi-
ness’s owners. It’s a part of the owners’ equity. If the business does not distribute it
to the owners, the net income is retained in the business. Earnings over time can be
retained in the business or distributed to owners.
How They Do It: A Look at Business

During a period of time, a business sells products and earns revenue. In doing so, a
business incurs expenses. Revenue less expenses is net income or net loss. Think
about a microbrewery such as the Bold City Brewery.2 Remember in Chapter 1 that
our dream brewery started with $1,500,000 in assets. It financed $1,500,000 in as-
sets with $750,000 in liabilities and $750,000 in stockholders’ equity. So what did it
do with its assets? During the year, it used the assets to make and sell beer. Sales
were $3,000,000. It incurred expenses in making and selling the beer of $2,700,000.
During the year, the brewery made its owners $300,000 in net income. The owners
started with $750,000 in stockholders’ equity. It increased its stockholders’ equity
by adding $300,000 in net income to retained earnings. Thus, at the end of the year,
the $300,000 in additional retained earnings increased stockholders’ equity from
$750,000 to $1,050,000. If the brewery does not pay a dividend to its owners, the
brewery will have ending stockholders’ equity of $1,050,000. The brewery will start
the next year with $1,050,000 in stockholders’ equity.
Now let’s look at the Walt Disney Company. Disney operates amusement
parks, makes movies, sells clothing, and a lot of other things related to the en-
tertainment business. Some years are very good. Some years are not as good.
Decision Guidelines focus students Decision Guidelines

on key business decisions that require
a firm understanding of the accounting
concepts in each chapter.
Try It! gives students the opportunity to

apply the concept they just learned to an
accounting problem.
Stop and Think includes a question-and-
answer snapshot asking students to apply
what they just learned.
End of Chapter 100 percent of

problems and exercises (A and B sets),
continuing exercises, and continuing
problems have been updated.
UPDATED!
Continuing Financial Statement
Analysis Problem uses Dick’s Sporting
Goods 2014 annual report to familiarize
students with reading and interpreting
financial statements in each chapter. By
the end of the text, they have completely
analyzed the financial statements.
Digital Walk-Through
Pearson eText NEW!
The Pearson eText, available through MyAccountingLab, gives students access to their textbook anytime, anywhere. In addition
to note taking, highlighting, and bookmarking, the Pearson eText offers interactive and sharing features. Rich media options let
students watch lecture and example videos as they read or do their homework. Instructors can share their comments or high-
lights, and students can add their own, creating a tight community of learners in your class.
The Pearson eText companion app (http://www.pearsonhighered.com/etextmobile/) allows existing subscribers to access
their titles on an iPad or Android tablet for either online or offline viewing.
• Now available on smartphones and tablets
• Seamlessly integrated videos and other rich media
• Accessible (screen-reader ready)
• Configurable reading settings, including resizable type and night-reading mode
• Instructor and student note taking, highlighting, bookmarking, and search
Accounting Cycle Tutorial (ACT) NEW!

MyAccountingLab’s new 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 stu-
dents with brief explanations of each concept
of the accounting cycle through engaging videos
and animations. Students are immediately as-
sessed on their understanding, and their perfor-
mance is recorded in the MyAccountingLab grade
book. Whether the Accounting Cycle Tutorial is
used as a remediation self-study tool or course
assignment, students have yet another resource
within MyAccountingLab to help them be suc-
cessful with the accounting cycle.
Learning Catalytics NEW!

Learning Catalytics, available through MyAccountingLab,
is a “bring your own device” assessment and classroom
activity system that expands the possibilities for student
engagement. Using Learning Catalytics, you can deliver a
wide range of automatically graded or open-ended ques-
tions that test content knowledge and build critical think-
ing skills. Eighteen different answer types provide great
flexibility, including graphical, numerical, textual input,
and more.
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Financial Accounting 4Th Edition by Robert Kemp Full Chapter

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Edition by Robert Kemp

Chapter 1 Business, Accounting, and You 1

Chapter 2 Analyzing and Recording Business Transactions 53

Chapter 3 Adjusting and Closing Entries 103

Chapter 4 Accounting for a Merchandising Business 160

Chapter 5 Inventory 211

Chapter 6 The Challenges of Accounting: Standards,

Chapter 7 Cash and Receivables 291

Chapter 8 Long-Term and Other Assets 354

Chapter 9 Current Liabilities and Long-Term Debt 405

Chapter 10 Corporations: Paid-In Capital and Retained Earnings 453

Chapter 11 The Statement of Cash Flows 506

Chapter 12 Financial Statement Analysis 566

Appendix A Columbia Sportswear Company Annual Report 2014

Appendix B Time Value of Money—Future and Present

Appendix C FASB Update—Revenue Recognition 705

Company Index 707

Chapter 1 Accounting, Business, and You—Putting It All Together 24

Accruing Revenues 108 SUMMARY 183

What Is Fraud, and Who Commits It? 267 Appendix 7A 348

The Techniques of Financial Analysis 571 APPLY YOUR KNOWLEDGE 619

Changes to This Edition

Chapter 2 Analyzing and Recording Business Transactions

Chapter 3 Adjusting and Closing Entries

Chapter 4 Accounting for a Merchandising Business

• Updated the Continuing Exercise and Continuing Problem

Chapter 6 The Challenges of Accounting: Standards, Internal

Chapter 7 Cash and Receivables

Chapter 8 Long-Term and Other Assets

Chapter 9 Current Liabilities and Long-Term Debt

Chapter 10 Corporations: Paid-In Capital and Retained Earnings

Chapter 11 The Statement of Cash Flows

Chapter 12 Financial Statement Analysis

Practical Approach: Accounting from a Business Perspective

Execution: Ensuring Student Success

Assessment: Ensuring Your Success

Bob Kemp Jeffrey Waybright

Adjusting and Closing Entries

How Does a Company Accurately Question-and-Answer Format mirrors

The Perfect Balance of Small Business

How They Do It: A Look at Business

Decision Guidelines focus students Decision Guidelines

Try It! gives students the opportunity to

End of Chapter 100 percent of

Accounting Cycle Tutorial (ACT) NEW!

Learning Catalytics NEW!

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