Understanding Financial Accounting

Understanding Financial Accounting, 4th Canadian Edition takes a student-centered, practical approach to introducing the foundations of financial accounting. Recognized for its clear, concise writing style and strong emphasis on conceptual understanding before procedural detail, this text focuses on helping students see accounting as a decision-making tool, rather than a set of mechanical steps. To develop a deeper understanding of course concepts, a deep bank of scaffolded end-of-chapter problems is also available. With integrated reviews, application questions, hands-on Excel and analytics activities, mini-cases, and more, this text provides countless opportunities for students to practice and actively learn by doing. With a dedication to real-world examples and applications, Understanding Financial Accounting connects theory to business practice, helping students understand the why behind critical accounting concepts and preparing them for wherever their future career may take them.

PREFACE vi 1 Overview of Corporate Financial Reporting 1-1 2 Analyzing Transactions and Their Effects on Financial Statements 2-1 3 Double-Entry Accounting and the Accounting Cycle 3-1 4 Revenue Recognition and the Statement of Income 4-1 5 The Statement of Cash Flows 5-1 6 Cash and Accounts Receivable 6-1 7 Inventory 7-1 8 Long-Term Assets 8-1 9 Current Liabilities 9-1 10 Long-Term Liabilities 10-1 11 Shareholders’ Equity 11-1 12 Financial Statement Analysis 12-1 APPENDIX A Specimen Financial Statements: Dollarama Inc. A-1 APPENDIX B Revenue Recognition and Long-Term Contracts B-1 APPENDIX C Long-Term Assets C-1 APPENDIX D Investments D-1 GLOSSARY G-1 COMPANY INDEX C-1 SUBJECT INDEX S-1