Description

Test Bank for Fundamentals of Financial Accounting, 8th Edition

By Fred Phillips

Book Overview

Fundamentals of Financial Accounting, 8th Edition by Fred Phillips is designed to provide students with the foundational knowledge and skills they need to understand financial accounting. The textbook is tailored for easy student engagement, offering a blend of real-world business stories, engaging videos, and simplified data analytics exercises. These resources help students grasp how accounting principles and business decisions impact financial outcomes.

This edition includes a wealth of learning tools, including coached problems, interactive videos, and real company examples. Students can easily see how fundamental accounting practices shape financial decisions in businesses today. Additionally, the textbook aligns with the natural progression of entrepreneurial decision-making, making it an ideal resource for those studying the accounting cycle in the context of starting and running a business.

Instructors benefit from Connect resources, which include Tableau Dashboard Activities, integrated Excel tasks, SmartBook, Guided Examples, and General Ledger Problems, all aimed at reinforcing the concepts covered in the book and enhancing students’ understanding.

Table of Contents

1. Business Decisions and Financial Accounting

This chapter introduces students to the relationship between business decisions and financial accounting, illustrating how these decisions influence the financial outcomes of companies.

2. The Balance Sheet

An exploration of the balance sheet and its key components: assets, liabilities, and stockholders’ equity. Students will learn how these elements reflect the financial health of a business.

3. The Income Statement

This chapter covers the income statement, which shows a company’s revenues, expenses, and profits. It is a key financial statement used to evaluate a company’s profitability over a given period.

4. Adjustments, Financial Statements, and Financial Results

Students learn how to adjust financial statements for accuracy and understand how adjustments impact the presentation of financial results.

5. Fraud, Internal Control, and Cash

This section highlights the importance of fraud prevention, internal controls, and cash management in maintaining the integrity of financial reporting.

6. Merchandising Operations and the Multistep Income Statement

Focuses on merchandising operations and the preparation of a multistep income statement, which provides a detailed breakdown of income sources and expenses.

7. Inventory and Cost of Goods Sold

Covers the principles of inventory management and the calculation of cost of goods sold (COGS), and how these elements affect a company’s profitability.

8. Receivables, Bad Debt Expense, and Interest Revenue

Discusses accounts receivable, bad debt expense, and how to recognize interest revenue in the context of financial accounting.

9. Long-Lived Tangible and Intangible Assets

Explores the accounting for long-lived tangible assets (such as buildings and equipment) and intangible assets (like patents and trademarks), including their valuation and depreciation.

10. Liabilities

This chapter covers how to account for liabilities, both current and long-term, and how they influence a company’s financial position and decision-making.

11. Stockholders’ Equity

Explains the concept of stockholders’ equity, including common stock, retained earnings, and the distribution of equity in a corporation.

12. Statement of Cash Flows

This section covers the statement of cash flows, showing how a company’s cash position is impacted by operating, investing, and financing activities.

13. Measuring and Evaluating Financial Performance

Students learn to use various financial ratios and performance metrics to evaluate a company’s financial health and performance over time.

Appendices

• Appendix A: Excerpts from the Fiscal 2021 10-K Annual Report of The Home Depot, Inc.
  Real-world examples from The Home Depot’s 10-K annual report, helping students understand how large corporations disclose financial information.

• Appendix B: Excerpts from the Fiscal 2021 10-K Annual Report of Lowe’s Companies, Inc.
  Similar excerpts from Lowe’s 10-K report, offering another case study for students to analyze and apply financial accounting principles.

• Appendix C: Present and Future Value Concepts
  An introduction to time value of money concepts, explaining the importance of present value and future value in financial decision-making.

• Appendix D: (Available in Connect) Investments in Other Corporations
  Covers how investments in other corporations are recorded and evaluated in financial accounting, with additional resources available through the Connect platform.

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