By focusing on three elemental themes -- economic factors, measurement issues, and decision-making perspective -- Jamie Pratt's Financial Accounting in an Economic Context, 9th Edition provides a clear understanding of the relevance of principles applied in the real world. Virtually every concept refers to a real company, a real situation, or a real event. Pratt 9e takes an integrative look at accounting and finance by considering the impact of economics, internal controls, international standard, ethics, decision-making, and earnings management. A complete financial picture can be drawn using the tools presented in this text. This text enables MBA and undergraduate students to develop an understanding of the impact that economic events have on business.
Part 1: An Overview of Financial Accounting
1. Financial Accounting and its Economic Context
2. The Financial Statements
Part 2: Measurement, Mechanics, and Use of Financial Statements
3. The Measurement Fundamentals of Financial Accounting
4. The Mechanics of Financial Accounting
5. Using Financial Statement Information
Part 3: Assets: A Closer Look
6. The Current Asset Classification, Cash, and Accounts Receivable
7. Merchandise Inventory
8. Investments in Equity Securities
9. Long-Lived Assets
Part 4: Liabilities and Stockholder's Equity: A Closer Look
10. Introduction to Liabilities: Economic Consequences, Current Liabilities, and Contingencies.
11. Long-Term Liabilities: Notes, Bonds, and Leases
12. Stockholders' Equity
Part 5: Income and Flows
13. The Complete Income Statement
14. The Statement of Cash Flows
- Virtually all of the references and examples using real world companies have been updated to best reflect the current issues in financial markets and the global business environment.
- Updated "International Perspective" sections at the end of each chapter that explain the current and relevant differences between IFRS and GAAP.
- At the end of each chapter, students are directed to the Google SEC Form 10K to complete short case questions that are relevant to the chapter.
- Chapters 6-13 include special sections that discuss ROE analysis in terms of the chapter topic. Students are asked to analyze real company data with an ROE spreadsheet model, available through the book’s companion website.
- Integrated Questions for Discussion and Review: End of Chapter Questions for Discussion and Review are strategically placed in separate boxes within each chapter, immediately after the coverage of the concepts they refer to.
- Ethics In Action: Located at the end of each chapter, an ethical dilemma and relevant, open-ended questions drawn from the examples of actual companies challenge students' critical-thinking abilities.