第18章 管理会计简介.........................................898
第19章 分批成本法...........................................942
第20章 分步成本法...........................................992
第21章 本量利分析..........................................1050
第22章 总预算与责任会计....................................1100
第23章 弹性预算与标准成本..................................1156
第24章 作业成本法与其他成本管理工具........................1202
第25章 特殊业务决策与资本预算..............................1250
附录C 现值表.................................................C-1
附录D 习题答案...............................................D-1
照片索引......................................................G-1
术语索引.......................................................G-1
公司索引.......................................................I-1
Brief Contents
I
CHAPTER 18 Introduction to Management Accounting 898
CHAPTER 19 lob Order Costing 942
,oh Order Costing 942
CHAPTER 20 Process Costing 992
CHAPTER 21 Cost-VOlume-Profit Analysis 1050
y6ls 1050
CHAPTER 22 The Master Budget and Responsibility Accounting 1100
CHAPTER 23 Flexible Budgets and Standard Costs 1156
CHAPTER 24 Activity-Based Costing and Other Cost Management TOols 1202
y-Based Costing and Other Cost Management TOols 1202
CHAPTER 25 Special Decisions and Capital Budgeting 1250
Appendix C: Present Value Tables C-1
Appendix D: Check Figures D-1
Photo Credits PC-1
Glindex G-1
Company index I-1
- -
VIII
Contents
1 8 Mt"M:,t,,,,^,,",,,,,, 898
8 7'
m l' P. v.
fodav's Business Environment 903
'. Business Environment 903
service ComDanies, Merchandising Companies, and Manufacturing
service Companies, Merchandising Companies, and Manufacturing
Companies 904
Merchandising Companies 905
k summary Problem 1 9o7
y Problem 1 9O7
Manufacturing Companies 909
Ethical Standards 915
. Decision Guidelines 917
* Summary Pro6lem 2 9t9
y Pro6lem 2 9t9
Review and Assignment Material 920
1 9 CCZ'o?n?o.2',,.,..,,..'.,....,., 944
pproaches 944
Job Order Costing for Manufacturing Products 945
Job Order Costing: Accounting for Material and Labor 945
Decision Guidelines 951
* summary Problem 1 952
y Problem 1 952
Job Order Costing: Allocating Manufacturing Overhead 954
Allocating Manufacturing Overhead to Jobs gSS
Accounting for Completion and Sale of Finished Goods and Adjusting
Manufacturing Overhead 957
Accounting for the Completion and Sale of Finished Goods 957
Adiusting Underallocated or Overallocated Manufacturing Overhead at the End of
, b 5
t n
the Period 958
Overview of Job Order Costing in a Manufacturing Company 960
Job Order Costing in a Service Company 960
. Decision Guidelines 964
* summary Problem 2 965
y Problem 2 965
Review and Assignment Material 968
20 2t:,2:2..':" 994
s: An Overview 994
TWo Basic Costing Systems: Job Order Costing and Process Costing 994
How Does the Flow of Costs Differ Between Job and Process Costing? 995
Building Blocks of Process Costing 998
Conversion Costs 998
Equivalent Units of Production 998
Process Costing in First Department with No Beginning inventory 999
Where Costs Are Added in the Manufacture of Calendars 1000
-
IX
x Contents
Step 1: Summarize the Flow of Physical Units 1001
Step 2: Compute Output in Terms of Equivalent Units 1002
Step 3: Compute the Cost per Equivalent Unit 1003
Step 4: Assign Costs to Units Completed and to Units in Ending Work in Process
Inventory 1004
. Decision Guidelines 1006
k summary Problem 1 1007
Process Costing in a Second Department 1009
The Weighted-Average Process Costing Method 1009
Steps 1 and 2: Summarize the Flow of Physical Units and Compute Output in Terms
of Equivalent Units 1011
Step 3: Summarize Total Costs to Account For and Compute the Cost per Equivalent
Unit 1012
Step 4: Assign Total Costs to Units Completed and to Units in Ending Work in
Process inventory 1013
How Managers Use a Production Cost Report 1015
. Decision Guidelines 1017
k summary Pro6lem 2 1018
Review and Assignment Material 1021
CHAPTER APPENDIX 20A: The FIFO Process Costing Method 1042
ac q Cost-VOlume-Profit Anall. 1050
21 fo?:::::t:rmt'0::o,,,^,,.,,,, 1050
Variable Costs 10s2
Fixed Costs 1053
Mixed Costs 1054
High-Low Method to Separate Fixed Cost from Variable Cost 1054
Relevant Range 1056
Basic CVP Analysis: What Must We Sell to Break Even? 1057
Assumptions 1057
How Much Must Chan Sell to Break Even? Three Approaches 1057
Using CVP to Plan Profits 1061
How Much Must Chan Sell to Earn a Profit? 1061
Graphing Cost-VOlume-Profit Relations 1061
* summary Problem 1 1064
Using CVP for Sensitivity Analysis 1066
Changing the Selling Price 1066
Changing Variable Costs 1066
Changing Fixed Costs 1067
Margin of Safety 1067
Information Technology and Sensitivity Analysis 1068
Effect of Sales Mix on CVP Analysis 1069
. Decision Guidelines 1072
k Summary Problem 2 1074
Review and Assignment Material 1076
CHAPTER APPENOIX 2 lA: Variable Costing and Absorption Costing 1093
ac ac The Master Budaet and Resoonsibilitv Accountina 1 100
Contents xi
Using Budgets to Plan and Control 1102
al D c'
foe Benefits of Budgeting 1103
Preparing the Master Budget 1105
paring the Master Budget 1105
Components of the Master Budget 1105
Preparing the Operating Budget 1106
.
al < I n,' 1 ac
rhe Sales Budget 1106
al T D, I I n
foe inventory, Purchases, and Cost of Goods Sold Budget 1107
y, Purchases, and Cost of Goods Sold Budget 1107
FI
foe Operating Expenses Budget 1109
perating Expenses Budget 1109
al p I I T G'. I no
foe Budgeted income Statement 1109
.eted income Statement 1109
k summary Problem 1 t t 1 1
y Problem 1 t t 1 1
Preparing the Financial Budget 1113
Preparing the Cash Budget 1113
al p 1 1 D I <I 4 1 1
foe Budgeted Balance Sheet 1117
Getting Employees to Accept the Budget 1118
Using information Technology for Sensitivity Analysis and Rolling UP Unit
Budgets 1119
qensitivitlr Analysis 1119
Jensltlvity Analysis 1119
; Analysis 1119
Rolling UP Individual Unit Budgets into the Companywide Budget 1119
Responsibility Accounting 1121
Four Types of Responsibility Centers 1120
J pos of Responsibility Centers 1120
Responsibility Accounting Performance Reports 1122
. Decision Guidelines 1126
* summary Problem 2 1127
y Problem 2 1127
Review and Assignment Material 1130
CHAPTER APPENOIX 22A: Oepartmental Accounting 1 150
23 F="tS==n,lc",,, 1156
o o
What is a Flexible Budget? 1158
Using the Flexible Budget: Why Do Actual Results Differ from the
static BudZet? 1160
static Budget? 1160
8
. Decision Guidelines 1162
* summary Problem 1 1163
y Problem 1 1163
standard CostinZ 1 164
standard Costing 1164
8 1164
Price Standards 1164
Application 1165
Quantity Standards 116s
Why Do ComDanies Use Standard Costs? 1166
J pantes Use Standard Costs? 1166
Variance Analysis 1167
y 6iS 1167
How Pluto Uses Standard Costing: Analyzing the Flexible Budget Variance 1168
Direct Material Variances 1168
Direct Labor Variances 1171
Manufacturing Overhead Variances 1172
Allocating Overhead in a Standard Cost System 1172
Overhead Flexible Budget Variance 1173
Overhead Production Volume Variance 1174
qummar\r of Overhead Variances 117s
summary of Overhead Variances 117s
y
Rtoridard Cost AccountinZ Qlrstems 1175
standard Cost Accounting Systems 1175
a systems 1175
xii Contents
Journal Entries 117S
Standard Cost income Statement for Management 1177
. Decision Guidelines 1179
k summary Pro6lem 2 1'80
Review and Assignment Material 1183
ac
24 ^ct4:s:ri,,;ezuoc",,,,9 and Other Cost Management
Refining Cost Systems 1204
Sharpening the Focus: Assigning Costs Based on the Activities That
Caused the Costs 1204
Activity-Based Costing 1205
Developing an Activity-Based Costing System 1205
Traditional Versus Activity-Based Costing Systems: Fischer Chemical Company 1206
Activity-Based Management: Using ABC for Decision Making 1210
Pricing and Product Mix Decisions 1210
Cutting Costs 1211
. Decision Guidelines 1214
k Summary Problem 1 12t5
Just-in-Time (JIT) Systems 1217
Just-in-Time Costing 1217
JIT Costing illustrated: Mintel Company 1219
Continuous Improvement and the Management of Quality 1221
The Four Types of Quality Costs 1221
Deciding Whether to Adopt a New Quality Program 1222
. Decision Guidelines 1224
* Summary Problem 2 1225
Review and Assignment Material 1226
ac r- SDecial Decisions and Caoital Budaetina,250
AS S::::?ln??::ti':n,l::f,,,.,,, Budgeting,250
How Managers Make Decisions 1252
What information is Relevant to a Special Business Decision? 1252
How to Make Short-Term Special Decisions 1253
Special Sales Order 1253
Dropping a Business Segment (a Product, a Department, a Territory) 1256
Product Mix: Which Product to Emphasize 12SS
Outsourcing--Make or Buy the Product 1259
Sell As is or Process Further 1261
How Do Short-Term and Long-Term Special Decisions Differ? 1262
. Decision Guidelines 1263
* summary Problem 1 1264
Using Payback and Accounting Rate of Return to Make Capital Budgeting
Decisions 1266
Payback Period 1266
Accounting Rate of Return 1268
Using Discounted Cash-Flow Models for Capital Budgeting 1269
Contents xiii
Comparing Capital Budgeting Methods 1275
. Decision Guidelines 1276
* summary Problem 2 1277
y Problem 2 1277
Review and Assignment Material 1278
Appendix C: Present Value Tables C-1
Appendix D: Check Figures D-1
Photo Credits PC-1
Glindex G-1
Company index I-1
Duplicate the classroom experience anytime, anyWhere with
Horngren & Harrison's Accounting. Seventh Edition
How The System WOrks
. The Demo Docs are entire problems worked through step-by-step, from start to finish,
with the kind of commentS around them that YOU would say in class. They exiSt in the first
four chapters of this text to support the critical accounting cycle chapters, in the Study
Guide both in print and in FLASH versions, and as a part of the instruCtor package for
instruCtors to use in class.
. The authors have created a "no clutter" layout so that critical content is clear and easily
referenced.
. Consistency is stressed across all mediums: teXt, student, and instructor supplements.
. MyAccountingLab is an online homework system that combines "I get iii" moments
with the power of praCtice.
The System's Backbone
Demo Docs in the Text, the Study Guide, and MyAccountingLab.
k NEW DEMO DOCS -- IntroduCtory accounting students consistently tell us, "When doing
homework, I get stuck trying to solve problems the way they were demonstrated in class."
InstruCtors consistently tell us, "l 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 I Chapter 2: Demo Doc 1
worked-through problems, available for nearly l,",",",,",,,::lo:clon:IT" ac. I
every chapter of Our introductory accounting I ~:;;lrt*;::!t:t;:o::17:;t I
MyAccountingLab -- This online homework and assessment tool supports the
same theme as the text and resources by providing "l get iii" moments inside
and outside of class. It is in MyAccountingLab where "l get iii" moments meet
the power of practice. MyAccountingLab is about helping students at their
teachable moment, whether that is 1 RM. or 1 A.M. MyAccountingLab is packed
with algorithmic problems because practice makes pedect. It is also packed with
the exaCt same end-of-chapter material in the text that you are used to assigning
for homework. MyAccountingLab features the same look and feel for exercises
and problems in journal entries and financial statements so that students are
familiar and comfortable working in it. Because it includes a Demo Doc for each of
the end-of-chapter exercises and problems that students can refer to as they work
through the question, it extends The System just one step further by providing
students with the help they need to succeed when you are not with them.
The System's Details
CHAPTERS 1--4 We know it'S critical that students have a solid understanding
of the fundamentals and language surrounding the accounting Cycle before they
can move to praCtice. To that end, we're spending eXtra time developing the
accounting Cycle chapters (Chs 1--4) to make sure they will help students succeed.
We're adding extra visuals, additional comprehensive problems, and a Demo Doc
per chapter to give students additional support to move on through the
material successfully. You'll be able to stay on schedule in the syllabus
because students understand the accounting cycle.
CONSISTENCY -- The entire package matters. Consistency in terminology and
problem set-ups from one medium to another--test bank to study guide to
MyAccountingLab--is critical to your success in the classroom. So when
students ask "Where do the numbers come from?," they can go to our text or
go online and see what to do. If it's worded one way in the teXt, you can count
on it being worded the same way in the supplements.
CLUTTER-FREE -- This edition is built on the premise of "Less is More."
Extraneous boxes and features, non-essential bells and whistles--they are all
gone. The authors know that excess crowds out what really matters--the
concepts, the problems, and the learning objectives. InstruCtors asked for
fewer "features" in favor of less clutter and better cross-referencing, and
Horngren/Harrison, Accounting, 7e, is delivering on that wish. And we've
redone all of the end-of-chapter exercises and problems with a renewed focus
on the critical core concepts.
INSTRUCTOR SUPPLEMENTS
Instrurtorfs Edition Featuring instruCtor Demo Docs
* The New Look of the InStructor'S Edition
We've asked a lot of instruCtors how we can help them successfully implement new course-delivery
methods (e.9. online) while maintaining their regular campus schedule of classes and academic
responsibilities. In response, we developed a system of instruction for those of you who are
long on commitment and expeFtise--but short on time and assistance.
The primary goal of the Instructor'S Edition is ease of implementation, using any delivery
method--traditional, self-paced, or online. That is, the Instructor's Edition quickly answers for
you, the professoF, the question "What must the student do?" Likewise, the instructor'S Edition
quickly answers for the student "What must I do?," offers time-saving tips with "best of "
categories for in class discussion, and strong examples to illustrate difficult concepts to a wide
variety of students. The instructor's Edition also offers a quick one-shot cross-reference at the
exact point of importance with key additional teaching resources, so everything is in one place.
The Instructor's Edition includes summaries and teaching tips, pitfalls for new students, and "best
of " practices from instructors from across the world.
* The Instructor's Edition also includes instruCtor Demo Docs
In instruCtor Demo Docs, we walk the students through how to solve a problem as if it were the
first time they've seen it. There are no lengthy passages of teXt. Instead, bits of expository text
are woven into the steps needed to solve the problem, in the exaCt sequence--for you to provide
at the teachable "l get iii" moment. This is the point at which the student has a context within
which he or she can understand the concept. We provide conversational text around each of the
steps so the student stays engaged in solving the problem. We provide notes to the instructor
for key teaching points around the Demo Docs, and "best of " practice tid-bits before each
InBttuCtor Demo Doc.
The InstruCtor Demo Docs are written with all of your everyday classroom realities in mind--and
trying to save your time in prepping new examples each time your book changes. Additionally,
algorithmic versions of these Demo Docs are provided to students in their student guide. We
keep the terminology consistent with the text, so there are no surprises for students as they try
and work through a problem the first time.
Solutions Transparencies
These transparency masters are the Solutions Manual in an easy-to-use format for class lectures.
InStructor's Resource Center CD or www.prenhall.com,horngren
The password-protected site and resource CD includes the following:
. The Instructor'S Edition with instruCtor Demo Docs
. Problem Set C
. Solutions Manual with Interactive Excel Solutions
The Solutions Manual contains solutions to all end-of-chapter questions, multiple-choice questions,
short exercises, exercise sets, problems sets, and Internet exercises. The Solutions Manual is
available in Microsoft Excel, Microsoft Word, and in print. You can access the solutions in MS Excel
and MS Word formats by visiting the instruCtor's Resource Center on the Prentice Hall catalog
site at www.prenhall.com/horngren or on the Instructor's CD. You will need a Pearson Educator
username and password to retrieve materials from the Web site.
Solutions to select end-of-chapter exercises and problems are available in interaCtive MS Excel
format so that instructors can present material in dynamic, step-by-step sequences in class. The
interaCtive solutions were prepared by Kathleen O'Donnell of the State University of New York,
Onondaga Community College.
. Test Bank
The test item file includes more than 2,000 questions:
. Multiple Choice
. Matching
. True/False
. Computational Problems
I
. Essay
. TeSt Bank is formatted for use with WebCT, Blackboard, and Course Compass.
. Powerpoints (instruCtor and student) summarize and reinforce key text materials. They
capture classroom attention with original problems and solved step-by-step exercises. These
walk-throughs are designed to help facilitate classroom discussion and demonstrate where the
numbers come from and what they mean to the concept at hand. There are approximately 35
slides per chapter Powerpoints are available on the instructor's CD and can be downloaded
from www.prenhall.com/horngren.
New ~ccountingLa6 Online Homework and Assessment Manager
The "l get it!" moment meets the power of praCtice. The power of repetition when you "get it"
means learning happens. MyAccountingLab is about helping students at their teachable moments,
whether it's 1 n.M. or lA.M.
MyAccountingLab is an online homework and assessment tool, packed with algorithmic versions
of every text problem, because practice makes pedect. it's also packed with the exact same end-
ofchapter material that you're used to assigning for homework. Additionally, MyAccountingLab
includes:
1. A Demo Doc for each of the end-of-chapter exercises and problems that students can refer to
as they work through the questions.
2. A Guided Solution to the exact problem they are working on. It helps students when they're
trying to solve a problem the way it was demonstrated in class.
3. A full e-book so the students can reference the book at the point of practice.
4. New topic specific videos that walk students through difficult concepts.
Companion Web Site-www.prenhall.com,Horngren
The book'S Web site at www.prenhall.com/horngren--coma the following:
. Self-study quizzes--interactive study guide for each chapter
. MS Excel templates that students can use to complete homework assignments for each chapter
(e-working papers)
. Samples of the Flash Demo Docs for students to work through the accounting cycle
Online Courses with WebCTIBlackBoardlCourse Compass
Prentice Hall offers a link to MyAccountingLab through the Bb and WebCT Course Management
Systems.
Classroom Response SyStems (CRS)
CRS is an exciting new wireless polling technology that makes large and small classrooms even
more interactive, because it enables instructors to pose questions to their students, record results,
and display those results instantly. Students can easily answer questions using compact
remotecontrol--type transmitters. Prentice Hall has partnerships with leading classroom response-systems
providers and can show you everything you need to know about setting up and using a CRS system.
Prentice Hall will provide the classroom hardware, text-specific Powerpoint slides, software,
and support.
Visit www.prenhall.comlcrs to learn more.
STUDENT SUPPLEMENTS
Runners Corporation PT Lab Manual
Containing numerous simulated real-world examples, the Runners Corporation practice set is available
complete with data files for Peachtree, QuickBooks, and PH General Ledger Each practice set also
includes business stationery for manual entry work.
A-1 Photography-Manual PT Lab Manual
Containing numerous simulated real-world examples, the A-1 Photography practice set is available
complete with data files for Peachtree, QuickBooks, and PH General Ledger Each set includes
business stationery for manual entry work.
Study Guide including Oemo Docs and e-WOrking Papers
IntroduCtory accounting students consistently tell us, "When doing homework, I get stuck trying to
solve problems the way they were demonstrated in class." Instructors consistently tell us, "I have so
much to cover in so little time; I can't afford to go backwards and review homework in class." Those
challenges inspired us to develop Demo Docs. Demo Docs are comprehensive worked-through
problems available for nearly every chapter of our introductory accounting text to help students
when they are trying to solve exercises and problems on their own. The idea is to help students
duplicate the classroom experience outside of class. Entire problems that mirror end-of-chapter
material are shown solved and annotated with explanations written in a conversational style,
essentially imitating what an instructor might say if standing over a student's shoulder. All
Demo Docs will be available in the Study Guide--in print and on CD in Flash, so students can
easily refer to them when they need them. The Study Guide also includes a summary overview of
key topics and multiple-choice and short-answer questions for students to test their knowledge.
Free electronic working papers are included on the accompanying CD.
MyAccountingLab Online Homework and Assessment Manager
The "l get iii" moment meets power of praCtiCe. The power of repetition when you "get it"
means that learning happens. MyAccountingLab is about helping students at their teachable
moment, whether that is 1 n.M. or lA.M.
MyAccountingLab is an online homework and assessment tool, packed with algorithmic versions
of every teXt problem because practice makes perfect. it's also packed with the exact same
endof-chapter that you're used to assigning for homework. Additionally' MyAccountingLab includes:
1. A Demo Doc for each of the end-of-chapter exercises and problems that students can refer
to as they work through the question.
2. A Guided Solution to the exact problem they are working on. It helps students when
they're trying to solve a problem the way it was demonstrated in class.
3. A full e-book so the students can reference the book at the point of praCtice.
4. New topic specific videos that walk students through difficult concepts.
Powerpoints
For student use as a study aide or note-taking guide, these Powerpoint slides may be downloaded
at the companion Web site at www.prenhall.com/horngren.
Companion Web Site-www.prenhall.com,Horngren
The book'S Web site at www.prenhall.com/horngren--coma the following:
. Self-study quizzes--interactive study guide for each chapter
. MS Excel templates that students can use to complete homework assignments for each
chapter (e-working papers)
. Samples of the Flash Demo Docs for students to work through the accounting cycle.
Classroom ReSPonse SyStems (CRS).
CRS is an exciting new wireless polling technology that makes large and small classrooms even
more interactive because it enables instruCtors to pose questions to their students, record
results, and display those results instantly. Students can easily answer questions using compact
remote-control-type transmitters. Prentice Hall has partnerships with leading classroom
responsesystems providers and can show you everything you need to know about setting up and using a
CRS system. Prentice Hall will provide the classroom hardware, teXt-specific Powerpoint slides,
software, and support.
Visit www.prenhall.comlcrs to learn more.
. VangoNotes in MP3 Format
Students can study on the go with VangoNotes, chapter reviews in downloadable
MP3 format that offer brief audio segments for each chapter:
. Big ideas: the vital ideas in each chapter
. Practice Test: lets students know if they need to keep studying
. Key Terms' audio "flashcards" that review key concepts and terms
. Rapid Review: a quick drill session--helpful right before tests
Students can learn more at www.vangonotes.com
Acknowledaments
gments
We'd like to thank the followina contributors:
9 contributors:
Florence McGovern Bergen Community College Suzanne Oliver Okaloosa Walton junior College
Sherry Mills New Mexico State University Helen Brubeck San lose State University
y Mills New Mexico State University Helen Brubeck San Jose State University
We'd like to eXtend a special thank you to the following members of our advisory panel:
Jim Ellis Bay State College, Boston Anita Ellzey Har/ord Community College
Mary Ann Swindlehurst CarroU Community College Cheryl McKay Monroe County Community College
J Ann Swindlehurst CarroU Community College Cheryl McKay Monroe County Community College
Andy Williams EdmondS Community College Todd Jackson Northeastern State University
Y Mlliams EdmondS Community College Todd Jackson Northeastern State University
Donnie Kristof-Nelson EdmondS Community College Margaret Costello Lambert Oakland Community Collect
y College Margaret Costello Lambert Oakland Community College
Joan Cezair Fayetteville State University Al Fagan University o/Ricbmond
David Baglia Grove City College
We'd also like to thank the fOllowing reviewers:
9 reviewers:
Shi-Mu (Simon) Yang Adelpbi University Liz Ott Casper College
Thomas Stolberg Al/red State University Joseph Adamo Cazenovia College
Thomas Branton Alvin Community College June Dailey Cental Virginia Community College
Maria Lehoczky American intercontinental University Jeannie Folk College o/Dupage
y American intercontinental University Jeannie Folk College o/Dupage
Suzanne Bradford Angelina College Lawrence Steiner College o/Marin
Judy Lewis Angelo State University Dennis Kovach COmmunity College Allegbeny COunty-
Roy Carson Anne Arundel Community College Allegbeny
y Carson Anne Arundel Community College Allegbeny
Paulette Ratliff-Miller Arkansas State University Norma Montague Central Carolina Community College
Joseph Foley Assumption College Debbie Schmidt Cerritos College
Jennifer Niece Assumption College Janet Grange Chicago State University
Bill Whitley Athens State University Bruce Leung City College o/San FranciSco
Shelly Gardner Augustana College Pamela Legner College o/Dupage
y gustana College Pamela Legner College o/Dupage
Bruce McMurrev Community College o/Denver
Y y College o/Denver
Becky lones Bavior University Martin Sabo Community College o/Denver
y Jones Baylor University Martin Sabo Community College o/Denver
Betsy Willis BaVlor University Jeffrey Jones Community College o/Soutbern Nevada
y millis Baylor University Jeffrey Jones Community College o/Soutbern Nevada
Michael Robinson Bavior University Tom Nohl Community College o/Soutbern Nenada
d y Yom Nohl Community College o/Soutbern Nenada
Kay WalkenHauser Beau/ort County Community Christopher Keily Community College o/Soutbern
COllege, WaShington Nenada
Joe Aubert Bemidji State University Patrick Rogan Cosumnes River College
Calvin Fink Betbune Cookman College Kimberly Smith County College o/MorriS
Michael Blue Bloomsburg University
Scott Wallace Blue Mountain College Jerold Braun Daytona Beach Community College
Llovd Carroll Borough Minbattan Community College Greg Canton DavidSon County Community College
yd Carroll Borough Minbattan Community College Greg Canton DavidSon County Community College
Ken Duffe Brookdale Community College lrene Bembenista Davenport University
Chuck Heuser Brookdale Community College Thomas Szczurek Delaware County Community College
Shaft Ullah Broward Community College South Charles Betts Delaware Technical and Community
Lots Slutsky Broward Community College South College
y Broward Community College South College
Ken Koerber Bucks County Community College Patty Holmes Des Monies Area Community College-
y Community College Patty Holmes Des Monies Area Community College-
Ankenv
y
June Browning Call/ornia BaptiSt University Tim Murphy Diablo Valley College
Richard Savich California State
Universitl ornla State University-
San Bernardino Phillipe Sammour Eastern Michigan University
David Bland Cape Fear Community College Saturnino (Nino) Gonzales EI Paso Community CoUege
Robert Porter Cafe Fear Community College Lee Canned EI Paso Community College
po Fear Community College Lee Canned EI Paso Community College
Vickie Campbell Cape Fear Community College John Eagan Erie Community College
Cynthia Thompson Carl Sandburg College--Cartbage
Ron O'Brien Favetteville Technical Community College Patrick Haggerty Lansing Community College
yetteville Technical Community College Patrick Haggerty Lansing Community College
Patrick McNabb Ferns State University Patricia Walczak Lansing Community College
y Patricia Walczak Lansing Community College
John Stancil Florida Southern College Humberto M. Herrera Laredo Community College
Lynn Clements Florida Southern College Christie Comunale Long Island University
Alice Sineath Forsvtb Technical Community College Ariel Markelevich Long ISland University
d.
James Makofske Fresno City College Randy Kidd Longview Community College
Mare Haskell Fresno City College Kathy Heltzel Luzerne County Community College
y College Kathy Heltzel Luzerne County Community College
James Keily Fi. Lauderdale City College Lori Major Luzerne County Community College
Christine lonick Gainesville State College Fred Jex Macomb Community College
,onick Gainesville State College Fred Jex Macomb Community College
Bruce Lindsey Genesee Community College Glenn Owen Marymount College
y y College Glenn Owen Marymount College
Constance Hylton Georffe Mason University Behnaz Quigley Marymount College
yiton George Mason University Behnaz Quigley Marymount College
Cody King Georgia Southwestern State University Penny Hanes Mercyburst College, Erie
y King Georgia Southwestern State University Penny Hanes Mercyburst College, Erie
Lolita Keck Globe College John Miller Metropolitan Community College
Kay Cames Gon~ University, Spokane Denise Leggett Middle Tennessee State University
Carol Pace Gravson County College William Huffman Missouri Southern State College
yson County College William Huffman Missouri Southern State College
Rebecca Floor Greenville Technical College Ted Crosby Montgomery County Community College
Geoffrev Heriot Greenville Technical College Beth EnZle Montgomery County Community College
y Heriot Greenville Technical College Beth Engle Montgomery County Community College
Jeffrey Patterson Grove City College David Candelaria Mount San Jacinto College
Lannv Nelms Gwinnet Technical College Linda Bolduc Mount Wacbusett Community College
Y I ge Linda Bolduc Mount Wacbusett Community College
Chris Cusatis Gwvnedd Mercy College
ynedd Mercy College p I
Barbara Gregoric Nassau Community College
Trim I I""* actional Coilers f p.
Tim Griffin HillSborougb Community College la",, Hurat National College o/Business and Technology
ac o;'" actional Colleq f p. I
Clair Helms Hinds Community College Deny,e, Riffe National College o/Business and
Michelle Powell Holmes Community College .Technology,.
Greg Bischoff Houston Community College Asokan Anandarajan New jersey institute o/ Technology
Donald Bond Houston Community College Robert Schoener New Mexico State University
q +ac yi 1
Manna Grau Houston Community College Stanley Carroll New York City Technical College o/
y College Stanley Carroll New York City Technical College o/
Carolyn Fitzmorris Hutcbinson Community College. CgwY. ', 1
Audrey Agnello Niagara County Community College
y Agnello Niagara County Community College
Susan Koepke illinoiS Valley Community College Catherine Chiang North Carolina Central University
v D..ssom North Ham'S Colle
William Alexander indian HillS Community College-- Karen Russom North Ham'S College
n'vi p ry'Tq 1' NortbamD+
Ottumun Dan Bayak Nortbampton Community College
Fit' k k Ti' T l, Northern Virginia Community
Dale Bolduc intercoast College Elizabeth Lynn Locke Northern Virginia Community
n 11
Thomas Cars international College olNaples "F,olleEe.
Lecia Berven iowa Lakes Community College Zr;r==== College
Nat Briscoe Nortbwestern State Universitl.
Nancy Schendel iowa Lakes ....:vn:ts@. ?r;r
y achendel iowa Lakes Community College: Y
Michelle Cannon Ivy Tech fony Scott Norwalk Community College
Vicki White Ivy Tech aam
d neborah Niemer Oakland Community1 Collects
Chuck Smith iowa Western Community College web"~lh N:r Oakland Community College
John Boyd Oklaboma City Community College
Stephen Christianjackson Community College Kathleen O'Donnell Onondaga Community College
DeeDee Daughtryjobnston Community College J'T. Ryan Onondaga Community College
Richard Bedwell lones County junior College
jones County junior College Tom Clegg Palm Beach Atlantic College
font Clegg Palm Beach Atlantic College
Ken Mark Kansas City Kansas Community College David Forsyth Palomar College
y Kansas Community College David Forsyth Palomar College
Ken Snow Kaplan Education Centers lohn Graves PCDI
John Graves PCDI
Charles Evans KeiSer College Carla Rich Pensacola lunior College
J unlor College
Bunnev Schmidt KeiSer College ludlr Grotrian Peru State College
y achmidt KeiSer College Judy Grotrian Peru State College
Amy Haas Kinasborouqb Community College ludlr Daulton Piedmont Technical Collect
y Haas KingSborowt Community College Judy Daulton Piedmont Technical College
Iohn Stone Potomac State Colleffe
Jim Racic Lakeland Community
Kathi Villani Queensborougb Community College Barry Mishra University o/ Call/ornia, Riverside
I qura YounZ Universitlf of Central Arkansas
William Black Raritan Valley Community College t,",, Young University o/ Central Arkansas
y Community College I;.. ..,...t:n:=:;vM':=
Verne ingram Red Rocks Community College if",,Cal:,,,:2i,,"ity of Central Oklaboma
Bambi Hora Universitll of Central Oklaboma
Paul Juriga Ricbland Community College ?,"ti:.H",aP?i,,rfity o/ Central Oklaboma
loan stone University o/ Central Oklaboma
Patty Worsham Riverside Community College {",n Stone ?liversity o/ Central Oklaboma
y Whrsham Riverside Community College ctv:", =O/
Margaret Berezewski Robert Moms College:t'hy J:,r,ll. gpiety,f Central Oklaboma
Harlan EtheridZe Universitll of [,ouiSiana
Phil Harder Robert Moms College raG,,h,rir19.5 cy,,,",ty o/Louisiana
i,qm Meyer University o/LouiSiana
Shifei Chung Rowan University o/Newjersey p,","ele, Un,,,",!{o/,,u.t.s,",
landra Scheuermann Universitly ot Y louiSiana
aandra Scheuermann University of LouiSiana
y o/ LouiSiana
Charles Fazzi Saint Vincent College Tom Wilson University o/LouiSiana
Lynnette Yerbuy Salt Lake Community College Lawrence Leaman University o/Micbigan
Susan Blizzard San Antonio College Larry Huus University o/Minnesota
Hector Martinez San Antonio College Brian Carpenter University o/Scranton
Audrey Voyles San Diego Miramar College Ashraf Khallaf University o/Soutbern indiana
Margaret Black San Jacinto College Tony Zordan University o/St. FranciS
Merrily Hoffman San lacinto College Gene Elrod University o/Texas, Arlington
y Hoffman San Jacinto College Gene Elrod University o/ Texas, Arlington
Randall Whitmore San Jacinto College Cheryl Prachyl University o/ Texas, EI Paso
Carroll Buck San Jose State University Karl Putnam University o/ Texas, EI Paso
Cynthia Coleman SandbillS Community College Stephen Rockwell University o/TulSa
Barbara Crouteau Santa Rosa Junior College Chula King University o/ West Florida
Pat Novak Southeast Community College Charles Baird University o/ WiSconsin -- Stout
Susan Pallas Southeast Community College
Al Case Southern Oregon University Mary Hollars Vincennes University
Gloria Worthy Southwest Tennessee Community College Lisa Nash Vincennes University
Melody Ashenfelter Southwestern Oklaboma State Elaine Dessouki Virginia Wesleyan College
University
y
Douglas Ward Southwestern Community College Sueann Hely West Kentucky Community and Technical
Brandi Shay Southwestern Community College College
John May Southwestern Oklaboma State University Darlene Pulliam West Texas Aam University, Canyon
.
Jeffrey Waybright SPokane Community College Judy Beebe Western Oregon University
Renee Goffinet SDokane Community M, Y Z",ty, canyon
pokane Community College Michelle Maggio West/ield State College
- I
Susan Antlers ST Bonaventure University Kathy Pellegrino WeSt/ield State College
John Olsavsky SUNY at Fredonia Nora McCarthy Wbarton County junior College
Peter Van Brunt SUNY College o/ Technology at Delhi Sally Stokes Wilmington College
Maggie Houston Wright State University
David L. Davis Tallabassee Community College ggie Houston Wright State University
d ge
Kathy Crusto-Way Tarrant County Community College Gerald Caton Yanapai College
y y Tarrant County Community College Gerald Caton Yanapai College
Sally Cook Texas Lutberan University Chris Crosblr YOrk Technical College
y Cook Texas Lutberan University Chris Crosby YOrk Technical College
Bea Chiang The College o/New Jersey Harold Gellis York College o/ CUNY
Matt Hightower Three Rivers Community College
Susan PoDe University o/Akron
po University of Akron
Joe Woods University o/Arkansas
Alien Blay UniversitY of California, Riverside
y University o/ Call/Ornia, Riverside
About the Authors
Charles T HO~n is the 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 I - M
recipient of honorary doctorates from Marquette University and Depaul University. I f
A Certified Public Accountant, Horngren served on the Accounting Principles I l=
Board for six years, the Financial Accounting Standards Board Advisory Council for I '.'SA
five years, and the Council of the American institute of Certified Public Accountants ] \ ~ A
for three years. For six years, he served as a trustee of the Financial Accounting 1 ac
Foundation, which oversees the Financial Accounting Standards Board and the 1' -a
Government Accounting Standards Board. ]' ac
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.
Horngren is the author of other accounting books published by Prentice-Hall:
Cost Accounting: A Managerial EmphasiS, Twelfth Edition, 2006 (with Srikant Datar
and George Foster); Introduction to Financial Accounting, Ninth Edition, 2006 (with
Gary L. Sundem and John A. Elliott); Introduction to Management Accounting,
Thirteenth Edition, 2005 (with Gary L. Sundem and William Stratton); Financial
Accounting, Sixth Edition, 2006 (with Walter T. Harrison, Jr.).
Horngren is the Consulting Editor for Prentice-Hall's Charles T. Horngren Series
in Accounting.
Whiter T Hation,Jr. is 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 I
College, Michigan State University, the University of Texas, and Stanford University. I
A member of the American Accounting Association and the American institute of f:Y =,
Certified Public Accountants, Professor Harrison has served as Chairman of the'
Financial Accounting Standards Committee of the American Accounting Association, i
on the ThachinglCurriculum Development aboard Committee, on the Program Advisory
.
xxv
- -'.
xxvi About the Authors
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
.,.' I.
numerous lournals, including Journal o/ Accounting Research, Journal o/ Accountancy,
j, including Journal o/ Accounting Research, Journal o/ Accountancy,
Journal o/Accounting and Publl'c Policy, Economic Consequences o/Financl'al
Account. c,' 1
ink StandardS, Accounting Horizons, ISsues in Accounting Education, and Journal o/Law
g StandardS, Accounting Horizons, ISsues in Accounting Education, and Journal o/Law
and Commerce.
He is co-author of Financial Accounting, Sixth Edition, 2006 (with Charles T.
u \ riublished blr Pfgnri*i TT.1
Horngren), published by Prentice Hall. Professor Harrison has received scholarships,
.ren), published by Prentice Hall. Professor Harrison has received scholarships,
fellowships, and research grants or awards from PriceWaterhouse Coopers, Deloitte &
.
m I I v & Younl v I.'' Tram x
fouche, the Ernst & Young Foundation, and the KPMG Foundation.
