For Principle of Accounting Courses

The winning combination of respected authors and a traditional framework has made the Horngren/Harrison, Accounting  text THE trusted choice for instructors and students for Principles of Accounting.  In the new Accounting 8th  Edition, Charles Horngren and Tom Harrison have invited Suzanne Oliver, a loyal Accounting  user and community college instructor, to join the already solid author team.  Suzanne Oliver's extensive knowledge of prior editions, varied classroom experience and authoring of MyAccountingLab content and instructor resources make her an invaluable asset to the team and the series.  Working together on the revision, the authors preserved the classic, solid foundation of the text while adding a modern Table of Contents and fresh new teaching approach to make accounting accessible to ALL of today’s students in ALL varied classrooms.  This NEW edition further strengthens the textbook component of the Student Learning System and provides consistency for students throughout the text, the study resources and MyAccountingLab.

Why OUR Student Learning System?

Students understand (or “get it”) right after you do a problem in class.  However, as soon as they leave class, their ability to do the problems and complete their homework diminishes with each passing hour.  Often, this results in students struggling to complete their homework on their own.  Even worse, the frustration can lead to students quitting on the material altogether and falling behind in the course.  As a result, an entire class can fall behind as instructors attempt to keep everyone on the same page.

With the Accounting 8e Student Learning System, all features of the student textbook, study resources and online homework system are designed to work together to provide students with more “I Get It!” moments, especially outside the classroom where they struggle the most.  The consistency, repetition and strong details throughout the entire student learning system replicate the classroom experience to allow students to achieve success both inside and outside the classroom while keeping both instructors and students on track.

What makes up our Student Learning System?

Accounting 8e Student Textbook, Student Study Resources including Demo Docs and MyAccountingLab

Each component of the Student Learning System was designed to work together to enhance students’ learning.  In addition, each component was created by the same team of authors to provide consistency in terminology and problem set-ups across all mediums (text to study guide to MyAccountingLab).

Textbook Component of our Student Learning System

 ***NEW*** Modern Restructured Table of Contents

The authors restructured the table of contents to respond to customers’ current level of coverage in the Principles of Accounting course.  Financial coverage has been consolidated into 14 chapters so it can be effectively covered in one semester.  This includes the Long Term Liabilities Chapter merging with the Bond Chapter and Partnership coverage condensed and covered within the Corporations Chapter.  Also, Process Costing is now an appendix to the Job Costing Chapter. 

**NEW** Success Keys/ Learning Objectives – To build cohesiveness, clearly defined learning objectives are labeled throughout the chapter sections, end-of-chapter questions and also in MyAccountingLab.  After a student finishes reading a section within a chapter, they can turn to the back of the chapter and complete the labeled questions in order to self-assess their understanding.  If the student doesn’t “get it,” they can sign on to MyAccountingLab for interactive learning resources to answer their questions and also to complete additional practice. 

Every learning Objective has at least one Starter, Exercise or Problem to teach and assess the students.

Clutter-Free Design - The reviewer-inspired design is built on the premise that “Less is More.”  Extraneous boxes and features, as well as non-essential bells and whistles, removed. The authors know that excess crowds out what really matters—the concepts, the problems, and the learning objectives.  In addition, the equations are called out in a blue box so students can quickly locate them when studying.

***NEW*** Consistent Examples.  Three different sets of ‘Company Facts’ carry through all “in chapter examples.”  As a result, students gain a sense of familiarity with the context of these examples throughout the text.  This consistency provides a level of comfort with the examples and allows students to focus on learning the accounting principles as they are presented.

**Consistent Transaction Details**.   For EVERY transaction, the same set of information is presented to the students in several different formats – in text, in journal entry, and in ledger accounts. These exact same formats are shown for EVERY transaction.  In repeating these formats, the authors eliminate the assumption that the student understands the concept completely.  As such, the chapter explains each detail for EVERY transaction to provide repetition and reinforcement of the concepts. 

**UPDATED** STOP and Think:  The ‘Stop and Think’ sections relate accounting concepts to students everyday lives by using examples that make sense to students.

**Updated** Decision Guidelines:  Decision Guidelines explain why the accounting concepts addressed in the chapter are important in business.  The left hand side of the table explains the decision or action being asked of the student in the simplest terms.  The right hand side of the table shows the accounting topics that will help them facilitate those decisions.  In accounting, good numbers equate to good decisions while inaccurate numbers can lead to poor decisions.  The Decision Guidelines help illustrate this concept for students.

**Naming of Ending of Chapter Material**  Every question in the End of Chapter material clearly lists the Learning Objective or Success Key  it is associated with along with a description of what is being asked of the student in the question which matches the subheadings in the chapter.  So if a student gets stuck on E2-26, they know that they need help “Correcting Errors in a Trail Balance”.  The students can then quickly look up that concept by finding the heading in the chapter or communicate to their instructor what exact concept they need assistance on.

**NEW** Completion Time for End-of-Chapter Material.   All Starters, Exercises and Problems in the textbook list the average completion time for students.

**NEW** Five Book-Match Sets of Problems and Exercises (A, B, C, D, E)

Problems:  Students will have access to A and B Problems within the text.  Static Problem Sets C, D and E can be assigned by the instructor and completed by students through MyAccountingLab. 

 Exercises:  Students will have access to exercise set A within the text.  Static exercise sets B, C, D, E can be assigned by the instructor and completed by the student through MyAccountingLab.

***NEW*** Continuing Exercise.  The unique ‘Continuing Exercise’ takes a single company and adds transactions or questions in each chapter to the existing fact pattern.  As students move throughout the text, they complete additional “steps” in this comprehensive exercise.  Students are able to see the ‘big picture’ and learn how the accounting topics build off one another.  Accounting is a process and the continuing exercise allows students to put it all together.

***NEW*** Continuing Problem.  For more detailed and in-depth practice, a ‘Continuing Problem’ is also available.  Like the Continuing Exercise, the Continuing Problems takes a single company and adds transactions or questions in each chapter to the existing fact pattern.  As students move throughout the text, they complete additional “steps” in completing this comprehensive problem.  Students are able to see the ‘big picture’ and learn how the accounting topics build off one another.  

***NEW*** Unique Practice Set Within Chapters 1-8  An in-text ‘Practice Set’ is built into Chapters 1-8 of the student text.  Students do not have to purchase any additional material for their practice sets and instructors no longer have to create their own.  Since the Practice Set is written by the same authors that write the student textbook, students will once again have consistency.  Students will also be able to complete the Practice Set within MyAccountingLab, for automatic grading and immediate feedback.

Study Resource Component of our Student Learning System

Demo Docs allows students to duplicate the classroom experience. Introductory accounting students consistently tell us “When doing homework, I get stuck trying to solve problems the way they were demonstrated in class.”  Likewise, instructors consistently tell us, “I have so much to cover in so little time; I can’t afford to go backward and review homework in class.”  Those challenges inspired us to develop Demo Docs.  Demo Docs are comprehensive, worked-through problems that are available for every chapter of our introductory accounting text.  Demo Docs will aid students when they are trying to solve exercises and problems on their own with the goal being to help students duplicate the classroom experience outside of class.  Entire problems, mirroring end-of-chapter material, are presented and then solved along with annotated explanations written in a conversational style; essentially imitating what an instructor might say if standing over a student’s shoulder.  All Demo Docs are in the textbook in print, in the study guide in print version as well as on CD in Flash, and online in MyAccountingLab so that students can easily refer to them as needed.

MyAccountingLab Component of our Student Learning System

MyAccountingLab is where “I get it!” moments meet the power of practice.  This online homework and assessment tool supports the text and resources by providing students “I get it!” moments at their teachable moment, whether that is 1 P.M. or 1 A.M.  MyAccountingLab is packed with algorithmic problems because practice makes perfect.  It is also includes the exact same end-of-chapter material in the text that instructors can assign for homework.  See www.myaccountinglab.com for additional information and a demo!

What makes up our Student Learning System?

Accounting 8e Student Textbook, Student Study Resources including Demo Docs and MyAccountingLab

Each component of the Student Learning System was designed to work together to enhance students’ learning.  In addition, each component was created by the same team of authors to provide consistency in terminology and problem set-ups across all mediums (text to study guide to MyAccountingLab).

The Textbook Component of our Student Learning System

**NEW** Modern Table of Contents

**NEW** Success Keys/ Learning Objectives – To build cohesiveness, clearly defined learning objectives are labeled throughout the chapter sections, end-of-chapter questions and also in MyAccountingLab.  After a student finishes reading a section within a chapter, they can turn to the back of the chapter and complete the labeled questions in order to self-assess their understanding.  If the student doesn’t “get it,” they can sign on to MyAccountingLab for interactive learning resources to answer their questions and also to complete additional practice. 

Every learning Objective has at least one Starter, Exercise or Problem to teach and assess the students.

**UPDATED ** Clutter-Free Design - The reviewer-inspired design is built on the premise that “Less is More.”  Extraneous boxes and features, as well as non-essential bells and whistles, removed. The authors know that excess crowds out what really matters—the concepts, the problems, and the learning objectives.  In addition, the equations are called out in a blue box so students can quickly locate them when studying.

***NEW*** Consistent Examples.  Three different sets of ‘Company Facts’ carry through all “in chapter examples.”  As a result, students gain a sense of familiarity with the context of these examples throughout the text.  This consistency provides a level of comfort with the examples and allows students to focus on learning the accounting principles as they are presented.

**NEW Consistent Transaction Details**.   For EVERY transaction, the same set of information is presented to the students in several different formats – in text, in journal entry, and in ledger accounts. These exact same formats are shown for EVERY transaction.  In repeating these formats, the authors eliminate the assumption that the student understands the concept completely.  As such, the chapter explains each detail for EVERY transaction to provide repetition and reinforcement of the concepts. 

**UPDATED** STOP and Think:  The ‘Stop and Think’ sections relate accounting concepts to students everyday lives by using examples that make sense to students.

**Updated** Decision Guidelines:  Decision Guidelines explain why the accounting concepts addressed in the chapter are important in business.  The left hand side of the table explains the decision or action being asked of the student in the simplest terms.  The right hand side of the table shows the accounting topics that will help them facilitate those decisions.  In accounting, good numbers equate to good decisions while inaccurate numbers can lead to poor decisions.  The Decision Guidelines help illustrate this concept for students.

**NEW Naming of Ending of Chapter Material**  Every question in the End of Chapter material clearly lists the Learning Objective or Success Key  it is associated with along with a description of what is being asked of the student in the question which matches the subheadings in the chapter.  So if a student gets stuck on E2-26, they know that they need help “Correcting Errors in a Trail Balance”.  The students can then quickly look up that concept by finding the heading in the chapter or communicate to their instructor what exact concept they need assistance on.

**NEW** Completion Time for End-of-Chapter Material.   All Starters, Exercises and Problems in the textbook list the average completion time for students.

**NEW** Five Book-Match Sets of Problems and Exercises (A, B, C, D, E)

Problems:  Students will have access to A and B Problems within the text.  Static Problem Sets C, D and E can be assigned by the instructor and completed by students through MyAccountingLab. 

 Exercises:  Students will have access to exercise set A within the text.  Static exercise sets B, C, D, E can be assigned by the instructor and completed by the student through MyAccountingLab.

**NEW** Continuing Exercise.  The unique ‘Continuing Exercise’ takes a single company and adds transactions or questions in each chapter to the existing fact pattern.  As students move throughout the text, they complete additional “steps” in this comprehensive exercise.  Students are able to see the ‘big picture’ and learn how the accounting topics build off one another.  Accounting is a process and the continuing exercise allows students to put it all together.

**NEW** Continuing Problem.  For more detailed and in-depth practice, a ‘Continuing Problem’ is also available.  Like the Continuing Exercise, the Continuing Problems takes a single company and adds transactions or questions in each chapter to the existing fact pattern.  As students move throughout the text, they complete additional “steps” in completing this comprehensive problem.  Students are able to see the ‘big picture’ and learn how the accounting topics build off one another.  

**NEW** Unique Practice Set Within Chapters 1-8  An in-text ‘Practice Set’ is built into Chapters 1-8 of the student text.  Students do not have to purchase any additional material for their practice sets and instructors no longer have to create their own.  Since the Practice Set is written by the same authors that write the student textbook, students will once again have consistency.  Students will also be able to complete the Practice Set within MyAccountingLab, for automatic grading and immediate feedback.

The Study Resource Component of our Student Learning System

Demo Docs allows students to duplicate the classroom experience. Introductory accounting students consistently tell us “When doing homework, I get stuck trying to solve problems the way they were demonstrated in class.”  Likewise, instructors consistently tell us, “I have so much to cover in so little time; I can’t afford to go backward and review homework in class.”  Those challenges inspired us to develop Demo Docs.  Demo Docs are comprehensive, worked-through problems that are available for every chapter of our introductory accounting text.  Demo Docs will aid students when they are trying to solve exercises and problems on their own with the goal being to help students duplicate the classroom experience outside of class.  Entire problems, mirroring end-of-chapter material, are presented and then solved along with annotated explanations written in a conversational style; essentially imitating what an instructor might say if standing over a student’s shoulder.  All Demo Docs are in the textbook in print, in the study guide in print version as well as on CD in Flash, and online in MyAccountingLab so that students can easily refer to them as needed.

MyAccountingLab Component of our Student Learning System

MyAccountingLab is where “I get it!” moments meet the power of practice.  This online homework and assessment tool supports the text and resources by providing students “I get it!” moments at their teachable moment, whether that is 1 P.M. or 1 A.M.  MyAccountingLab is packed with algorithmic problems because practice makes perfect.  It is also includes the exact same end-of-chapter material in the text that instructors can assign for homework.  See www.myaccountinglab.com for additional information and a demo!

CHAPTER 1 Accounting and the Business Environment

CHAPTER 2 Recording Business Transactions

CHAPTER 3 The Adjusting Process

Appendix 3A Alternative Treatment of Prepaid Expenses and Unearned Revenues

CHAPTER 4 Completing the Accounting Cycle

Appendix 4A Reversing Entries: An Optional Step

CHAPTER 5 Merchandising Operations

Appendix 5A Work Sheet for a Merchandising Business

Appendix 5B Accounting for Merchandise in a Periodic Inventory System

CHAPTER 6 Merchandise Inventory

Appendix 6A Accounting for Inventory in a Periodic System

CHAPTER 7 Internal Control and Cash

CHAPTER 8 Receivables

Appendix 8A Discounting a Note Receivable

CHAPTER 9 Plant Assets and Intangibles

CHAPTER 10 Current Liabilities, Payroll, and Long-Term Liabilities

Appendix 10A The Time Value of Money: Present Value of a Bond and Effective-Interest Amortization

Appendix 10B Retiring and Converting Bonds Payable

CHAPTER 11 Corporations: Paid-In Capital and the Balance Sheet

CHAPTER 12 Corporations: Effects on Retained Earnings and the Income Statement

CHAPTER 13 The Statement of Cash Flows

Appendix 13A Preparing the Statement of Cash Flows by the Direct Method

Appendix 13B Preparing the Indirect Statement of Cash Flows Using a Spreadsheet

CHAPTER 14 Financial Statement Analysis

CHAPTER 15 Introduction to Management Accounting

CHAPTER 16 Job Order and Process Costing

Appendix 16A Process Costing - Weighted-Average Method

CHAPTER 17 Activity-Based Costing and Other Cost Management Tools

CHAPTER 18 Cost-Volume-Profit Analysis

Appendix 18A Variable Costing and Absorption Costing

CHAPTER 19 Short-Term Business Decisions

CHAPTER 20 Capital Investment Decisions and the Time Value of Money

CHAPTER 21 The Master Budget and Responsibility Accounting

CHAPTER 22 Flexible Budgets and Standard Costs

CHAPTER 23 Performance Evaluation and the Balanced Scorecard

Appendix 23A Allocating Service Department Costs

APPENDIX A 2007 Amazon.com Annual Report  A-1

APPENDIX B Present Value Tables  B-1

APPENDIX C Check Figures C-1

Photo Credits   PC-1
Glindex   G-1
Company Index   I-1

The powerful author team of the Horngren/Harrison franchise is comprised of Charles Horngren and Tom Harrison.  Both highly respected professors in academia and in the accounting industry, they joined together to write a text to provide students with a solid foundation of the principles of accounting.   Accounting was the first text to tie accounting concepts to the business reasons behind them.  Charles and Tom recognized that most students will USE accounting information, not simply create it.  In Accounting, the authors talk to the business person or the USER of the accounting information, which engages the non-major, business student. Over the years, the Accounting  franchise became a trusted, tried and true choice for instructors who wanted their students to learn accounting with the traditional framework but with modern application.

For the 8th edition, Horngren and Harrison invited Suzanne Oliver to join the already solid author team.  Suzanne Oliver brings her detailed knowledge of the series from her years of active use of the text in her courses and also as an author of the MyAccountingLab content and instructor resources.  In addition, Suzanne contributes an invaluable element of her teaching experience at community colleges and in varied classroom environments (traditional, hybrid and online). Together, the author team’s goal was to retain the traditional, solid accounting foundation of the text while adding a modern Table of Contents and fresh new approach to reach today’s students.  This revision of the text further strengthens the textbook component of the Student Learning System and provides consistency for students throughout the text, the study resources and MyAccountingLab.

Charles Horngren

Edmund W. Littlefield Professor of Accounting, Emeritus, at Stanford University. A graduate of Marquette University, he received his M.B.A. from Harvard University and his Ph.D. from the University of Chicago. He is also the recipient of honorary doctorates from Marquette University and DePaul University.A Certified Public Accountant, Horngren served on the Accounting Principles Board for six years, the Financial Accounting Standards Board Advisory Council for five years, and the Council of the American Institute of Certified Public Accountants for three years. For six years, he served as a trustee of the Financial Accounting Foundation, which oversees the Financial Accounting Standards Board and the Government Accounting Standards Board.  Horngren is a member of the Accounting Hall of Fame.  A member of the American Accounting Association, Horngren has been its President and its Director of Research. He received its first annual Outstanding Accounting Educator Award.  The California Certified Public Accountants Foundation gave Horngren its Faculty Excellence Award and its Distinguished Professor Award. He is the first person

to have received both awards.  The American Institute of Certified Public Accountants presented its first Outstanding Educator Award to Horngren.  Horngren was named Accountant of the Year, Education, by the national professional accounting fraternity, Beta Alpha Psi.  Professor Horngren is also a member of the Institute of Management Accountants, from whom he has received its Distinguished Service Award. He was a member of the Institute’s Board of Regents, which administers the Certified Management Accountant examinations.

 Tom Harrison

Professor Emeritus of Accounting at the Hankamer School of Business, Baylor University. He received his B.B.A. degree from Baylor University, his M.S. from Oklahoma State University, and his Ph.D. from Michigan State University.  Professor Harrison, recipient of numerous teaching awards from student groups as well as from university administrators, has also taught at Cleveland State Community College, Michigan State University, the University of Texas, and Stanford University.  A member of the American Accounting Association and the American Institute of Certified Public Accountants, Professor Harrison has served as Chairman of the Financial Accounting Standards Committee of the American Accounting Association, on the Teaching/Curriculum Development Award Committee, on the Program Advisory Committee for Accounting Education and Teaching, and on the Notable Contributions to Accounting Literature Committee. Professor Harrison has lectured in several foreign countries and published articles in numerous journals, including Journal of Accounting Research, Journal of Accountancy, Journal of Accounting and Public Policy, Economic Consequences of Financial AccountingStandards, Accounting Horizons, Issues in Accounting Education, and Journal of Lawand Commerce.  Professor Harrison has received scholarships, fellowships, and research grants or awards from PriceWaterhouse Coopers, Deloitte & Touche, the Ernst & Young Foundation, and the KPMG Foundation

M Suzanne Oliver

M. Suzanne Oliver is an assistant professor of accounting at Northwest Florida State College in Niceville, Florida.  She received her B.A in Accounting Information Systems and her Masters in Accountancy from the University of West Florida.

Professor Oliver began her career in accounting in the tax department of a regional accounting firm, specializing in benefit plan administration.  She has served as a software analyst for a national software development firm (CPASoftware) and as the Oracle Fixed Assets Analyst for Spirit Energy, formerly part of Union Oil of California.(Unocal).  A Certified Public Accountant, Oliver is a member of the Florida Institute of Certified Public Accountants.

Professor Oliver has taught Financial Accounting, Managerial Accounting, Intermediate Accounting, Tax Accounting, Accounting Software Applications, Payroll Accounting, Auditing, Accounting Systems, Advanced Accounting, Managerial Finance, Business Math, and Supervision.  She has also taught Pension continuing education classes for CPAs and has developed and instructed online courses using myaccountinglab.com, WebCT, and other proprietary software. 

Professor Oliver lives in Niceville where she is a member if the First United Methodist Church with her husband Greg and son C.J..

View a Sample Chapter PDF:

Pearson Higher Education offers special pricing when you choose to package your text with other student resources. If you're interested in creating a cost-saving package for your students, contact your Pearson Higher Education representative for pricing and ordering information.

This package contains:

• Horngren, Harrison Jr. & Oliver, Accounting, Chapters 1-23, 8/E (2009)
• Prentice Hall, MyAccountingLab CourseCompass Student Access Code Card (2009)

Pearson Higher Education offers special pricing when you choose to package your text with other student resources. If you're interested in creating a cost-saving package for your students contact your Pearson Higher Education representative.