Description

Test Bank & Solution Manual for Fundamentals of Financial Accounting, 8th Edition

By Fred Phillips

Book Overview

The 8th Edition of Fundamentals of Financial Accounting by Fred Phillips is an essential resource designed to simplify financial accounting for students. With an approachable tone, the book guides learners through real-world company stories, engaging videos, and simplified data analytics exercises, helping them understand how fundamental accounting principles and business decisions impact financial results. This textbook is ideal for instructors looking for easy student engagement while providing resources that foster active learning and application of knowledge.

In this edition, students benefit from a variety of unique learning tools such as coached problems, simplified analytics exercises, and real-world company stories. The book offers a structured approach to the accounting cycle, making it easy to follow as it aligns with the natural decision-making process of entrepreneurs starting a new business. Additional resources available through Connect include Tableau Dashboard Activities, integrated Excel tasks, multiple video formats, guided examples, general ledger problems, and SmartBook.

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Table of Contents

1. Business Decisions and Financial Accounting

This chapter introduces the foundational principles of financial accounting, focusing on how business decisions directly influence financial reporting.

2. The Balance Sheet

Explains the components of the balance sheet, detailing assets, liabilities, and equity, and how they reflect a company’s financial position.

3. The Income Statement

Covers the structure of the income statement, focusing on how revenues and expenses are recorded and reported to determine profitability.

4. Adjustments, Financial Statements, and Financial Results

Focuses on the process of making adjustments to financial statements to ensure accuracy in reporting financial results.

5. Fraud, Internal Control, and Cash

Discusses internal controls in financial accounting, with a particular focus on fraud prevention and the management of cash flow.

6. Merchandising Operations and the Multistep Income Statement

Explains the complexities of merchandising operations and how to prepare a multistep income statement for detailed financial reporting.

7. Inventory and Cost of Goods Sold

Describes how inventory is accounted for and how the cost of goods sold is calculated, affecting the income statement and financial performance.

8. Receivables, Bad Debt Expense, and Interest Revenue

Covers how accounts receivable and bad debt expenses are handled in financial accounting, as well as the recognition of interest revenue.

9. Long-Lived Tangible and Intangible Assets

Explains the accounting principles for long-lived tangible assets (like property and equipment) and intangible assets (such as patents and goodwill).

10. Liabilities

Details the accounting for liabilities, both current and long-term, and their impact on a company’s financial position and cash flows.

11. Stockholders’ Equity

Focuses on the components of stockholders’ equity, including common stock, retained earnings, and other equity instruments.

12. Statement of Cash Flows

Explains the structure and significance of the statement of cash flows, helping students understand how cash movements affect a company’s financial health.

13. Measuring and Evaluating Financial Performance

Teaches students how to measure financial performance using key financial ratios and performance metrics to assess a company’s profitability and financial stability.

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Appendices

• Appendix A: Excerpts from the Fiscal 2021 10-K Annual Report of The Home Depot, Inc.
  Provides real-world examples from The Home Depot’s fiscal 2021 10-K annual report, giving students an insight into a company’s financial disclosures.

• Appendix B: Excerpts from the Fiscal 2021 10-K Annual Report of Lowe’s Companies, Inc.
  Features excerpts from Lowe’s 10-K report, offering further practical application of financial reporting concepts.

• Appendix C: Present and Future Value Concepts
  Introduces the concepts of present value and future value, explaining their significance in financial decision-making and time value of money calculations.

• Appendix D: (Available in Connect) Investments in Other Corporations
  Explores how investments in other corporations are accounted for in financial statements, with examples provided in the Connect platform.

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