The Curious Accountant. Answers to The Curious Accountant FOCUS ON INTERNATIONAL ISSUES RESEARCH AND DEVELOPMENT VS. RESEARCH OR DEVELOPMENT

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1 HOW DOES THE BOOK edm10858_ch05_ indd Page /23/10 2:55 PM user-f494 /204/MHBR214/hug_disk1of1/ /hug12656_pagefiles Real-World Examples The text provides a variety of thought- provoking, real-world examples of financial and managerial accounting as an essential part of the management process. There are descriptions of accounting practices from Coca-Cola, Chevron, Zales, Albertsons, and CBS Corporation. These companies are highlighted in blue in the text. The Curious Accountant Suppose the U.S. government purchases $10 million of fuel from ExxonMobil. Assume the government offers to pay for the fuel on the day it receives it from Exxon (a cash purchase) or 30 days later (a purchase on account). Assume that Exxon is absolutely sure the government will pay its account when due. Do you think Exxon should care whether the government pays for the goods upon delivery or 30 days later? Why? (Answers on page 159.) edm10858_ch05_ indd Page /22/10 5:48 PM user-f494 The Curious Accountant Each chapter opens with a short vignette that sets the stage and helps pique student interest. These pose a question about a real-world accounting issue related to the topic of the chapter. The answer to the question appears in a separate sidebar a few pages further into the chapter. Answers to The Curious Accountant Exxon would definitely prefer to make the sale to the government in cash rather than on account. Even though it may be certain to collect its accounts receivable, the sooner Exxon gets its cash, the sooner the cash can be reinvested. The interest cost related to a small account receivable of $50 that takes 30 days to collect may seem immaterial; at 4 percent, the lost interest amounts to less than $.20. However, when one considers that Exxon had approximately $27.6 billion of accounts receivable, the cost of financing receivables for a real-world company becomes apparent. At 4 percent, the cost of waiting 30 days to collect $27.6 billion of cash is $90.7 million ($27.6 billion [ ]). For one full year, the cost to Exxon would be more than $1.1 billion ($27.6 billion ). In 2009, it took Exxon approximately 32 days to collect its accounts receivable, and the weighted-average interest rate on its debt was approximately 4 percent. edm10858_ch06_ indd Page /22/10 7:10 PM user-f494 Focus on International Issues These boxed inserts expose students to international issues in accounting. FOCUS ON INTERNATIONAL ISSUES RESEARCH AND DEVELOPMENT VS. RESEARCH OR DEVELOPMENT For many years some thought the companies that followed U.S. GAAP were at a disadvantage when it came to research and development (R&D) costs, because these companies had to immediately expense such cost, while the accounting rules of some other countries allowed R&D cost to be capitalized. Remember, recording costs as an asset capitalizing it means that net income is not immediately reduced. The global movement toward using IFRS is reducing, but not eliminating, the different accounting treatments for R&D. Like U.S. GAAP, IFRS require research costs to be expensed, but they allow development costs to be capitalized. This IFRS rule itself can present challenges, because sometimes it is not clear where research ends and development begins. Basically, once research has produced a product, patent, and so forth, that the company believes will result in a revenue generating outcome, any additional costs to get it ready for market are development costs. The Curious Accountant and Real-World Examples, all make the text better and would make it a pleasure to teach from. VIVIAN WINSTON, INDIANA UNIVERSITY viii Survey of Accounting

2 MOTIVATE STUDENTS? CHECK YOURSELF 2.1 During 2012, Anwar Company earned $345,000 of revenue on account and collected $320,000 cash from accounts receivable. Anwar paid cash expenses of $300,000 and cash dividends of $12,000. Determine the amount of net income Anwar should report on the 2012 income statement and the amount of cash flow from operating activities Anwar should report on the 2012 statement of cash flows. Answer Net income is $45,000 ($345,000 revenue 2 $300,000 expenses). The cash flow from operating activities is $20,000, the amount of revenue collected in cash from customers (accounts receivable) minus the cash paid for expenses ($320,000 2 $300,000). Dividend payments are classified as financing activities and do not affect the determination of either net income or cash flow from operating activities. edm10858_ch03_ indd Page /16/10 10:03 PM user-f494 Check Yourself These short question/answer features occur at the end of each main topic and ask students to stop and think about the material just covered. The answer follows to provide immediate feedback before students go on to a new topic. REALITY BYTES Closed for Inventory Count is a sign you frequently see on retail stores sometime during the month of January. Even if companies use a perpetual inventory system, the amount of inventory on hand may be unknown because of lost, damaged, or stolen goods. The only way to determine the amount of inventory on hand is to count it. Why count it in January? Christmas shoppers and many after-christmas sales shoppers are satiated by mid-january, leaving the stores low on both merchandise and customers. Accordingly, stores have less merchandise to count and lost sales are minimized during January. Companies that do not depend on seasonal sales (e.g., a plumbing supplies wholesale business) may choose to count inventory at some other time during the year. Counting inventory is not a revenue-generating activity; it is a necessary evil that should be conducted when it least disrupts operations. Reality Bytes This feature provides examples or expansions of the topics presented by highlighting companies and showing how they use the accounting concepts discussed in the chapter to make business decisions. edm10858_ch05_ indd Page /23/10 2:56 PM user-f494 /204/MHBR214/hug_disk1of1/ /hug12656_pagefiles A Look Back << edm10858_ch02_ indd Page 67 11/15/10 9:55 PM user-f494 We first introduced accounting for receivables in Chapter 2. This chapter presented additional complexities related to accounts receivable, such as the allowance method of accounting for uncollectible accounts. The allowance method improves matching of expenses with revenues. It also provides a more accurate measure of the value of accounts receivable on the balance sheet. A Look Forward >> Chapters 1 and 2 focused on businesses that generate revenue by providing services to their customers. Examples of these types of businesses include consulting, real estate sales, medical services, and legal services. The next chapter introduces accounting practices for businesses that generate revenue by selling goods. Examples of these companies include Wal-Mart, Circuit City, Office Depot, and Lowes. A Look Back/A Look Forward Students need a roadmap to make sense of where the chapter topics fit into the whole picture. A Look Back reviews the chapter material and a Look Forward introduces new material to come in the next chapter. The Reality Bytes and Check Yourself sections in the chapters enhance the presentation. ROBERT PATTERSON, PENN STATE-ERIE I like the Check yourself examples. BRUCE DARLING, UNIVERSITY OF OREGON Tom Edmonds/Phil Olds/Frances McNair/Bor-Yi Tsay ix

3 HOW ARE CHAPTER edm10858_ch02_ indd Page 67 11/15/10 9:55 PM user-f494 Regardless of the instructional approach, there is no shortcut to learning accounting. Students must practice to master basic accounting concepts. The text includes a prodigious supply of practice materials and exercises and problems. Self-Study Review Problem These sections offer problems and solutions of major chapter concepts. A step-by-step audio-narrated series of slides is provided on the text website at edm10858_ch02_ indd Page 79 11/15/10 9:55 PM user-f494 SELF-STUDY REVIEW PROBLEM Gifford Company experienced the following accounting events during Started operations on January 1 when it acquired $20,000 cash by issuing common stock. 2. Earned $18,000 of revenue on account. 3. On March 1 collected $36,000 cash as an advance for services to be performed in the future. 4. Paid cash operating expenses of $17, Paid a $2,700 cash dividend to stockholders. 6. On December 31, 2012, adjusted the books to recognize the revenue earned by providing services related to the advance described in Event 3. The contract required Gifford to provide services for a one-year period starting March Collected $15,000 cash from accounts receivable. Exercise and Problem Sets Check figures The figures provide a quick reference for students to check on their progress in solving the problem. Excel Many exercises and problems can be solved using the Excel spreadsheet templates contained on the text s Online Learning Center. A logo appears in the margins next to these exercises and problems for easy identification. Stockholders Assets 5 Liabilities 1 Equity Rev. 2 Exp. 5 Net Inc. Cash Flows Event Accts. Accts. Unearn. Com. Ret. No. Cash 1 Rec. 1 Supp. 5 Pay. 1 Rev. 1 Stk. 1 Earn. 1 25,000 1 NA 1 NA 5 NA 1 NA 1 25,000 1 NA NA 2 NA 5 NA 25,000 FA Problem 2-28 Required Effect of deferrals on financial statements: three separate single-cycle examples a. On February 1, 2012, Heider, Inc., was formed when it received $80,000 cash from the issue of common stock. On May 1, 2012, the company paid $60,000 cash in advance to rent office space for the coming year. The office space was used as a place to consult with clients. The consulting activity generated $120,000 of cash revenue during Based on this information alone, record the events and related adjusting entry in the general ledger accounts under the accounting equation. Determine the amount of net income and cash flows from operating activities for b. On January 1, 2012, the accounting firm of Bonds & Associates was formed. On August 1, 2012, the company received a retainer fee (was paid in advance) of $30,000 for services to be performed monthly during the next 12 months. Assuming that this was the only transaction completed in 2012, prepare an income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for c. Edge Company had $2,200 of supplies on hand on January 1, Edge purchased $7,200 of supplies on account during A physical count of supplies revealed that $900 of supplies was on hand as of December 31, Determine the amount of supplies expense that should be recognized in the December 31, 2012 adjusting entry. Use a financial statements model to show how the adjusting entry would affect the balance sheet, income statement, and statement of cash flows. Problem 2-29 Required Effect of adjusting entries on the accounting equation Each of the following independent events requires a year-end adjusting entry. Show how each event and its related adjusting entry affect the accounting equation. Assume a December 31 closing date. The first event is recorded as an example. CHECK FIGURES a. Net Income: $80,000 b. Net Income: $12,500 LO 2 CHECK FIGURE b. adjustment amount: $1,250 x Survey of Accounting

4 edm10858_ch06_ indd Page /22/10 7:10 PM user-f494 CONCEPTS REINFORCED? Analyze, Think, Communicate (ATC) Each chapter includes an innovative section entitled Analyze, Think, Communicate (ATC). This section contains: Business application cases related to the annual report for Topps Company Writing Assignments Group Exercises Ethics Cases Internet Assignments Excel Spreadsheet Applications ANALYZE, THINK, COMMUNICATE ATC 6-1 Required Business Applications Case Understanding real-world annual reports Use the Target Corporation s annual report in Appendix B to answer the following questions. a. What method of depreciation does Target use? b. What types of intangible assets does Target have? c. What are the estimated lives that Target uses for the various types of long-term assets? d. As of January 30, 2010, what is the original cost of Target s: Land; Buildings and improvements; and Fixtures and equipment (see the footnotes)? e. What was Target s depreciation expense and amortization expense for 2009 (see the footnotes)? ATC 6-2 Group Assignment Different depreciation methods Sweet s Bakery makes cakes, pies, and other pastries that it sells to local grocery stores. The company experienced the following transactions during Started business by acquiring $60,000 cash from the issue of common stock. 2. Purchased bakery equipment for $46,000 with a four year life and a $6,000 salvage value. 3. Had cash sales in 2012 amounting to $42, Paid $8,200 of cash for supplies which were all used during the year to make baked goods. 5. Paid other operating expenses of $12,000 for Required a. Organize the class into two sections and divide each section into groups of three to five students. Assign each section a depreciation method: straight-line or double-decliningbalance. Group Task Prepare an income statement and a balance sheet using the preceding information and the depreciation method assigned to your group. Class Discussion b. Have a representative of each section put its income statement on the board. Are there differences in net income? How will these differences in the amount of depreciation expense change over the life of the equipment? ATC 6-3 Research Assignment Comparing Microsoft s and Intel s operational assets Companies in different industries often use different proportions of current versus long-term assets to accomplish their business objective. The technology revolution resulting from the silicon microchip has often been led by two well-known companies: Microsoft and Intel. Although often thought of together, these companies are really very different. Using either the most current Forms 10-K or annual reports for Microsoft Corporation and Intel Corporation, complete the requirements below. To obtain the Forms 10-K, use either the EDGAR system following the instructions in Appendix A or the company s website. Microsoft s annual report is available on its website; Intel s annual report is its Form 10-K. Real Company Examples Target Corporation I like the real life examples; I like the Analyze, Think and Communicate. DEBBIE GAHR, WAUKESHA COUNTY TECHNICAL COLLEGE Tom Edmonds/Frances Edmonds/Phil Olds/Frances McNair/Phil McNair/Bor-Yi Olds Tsay xi

5 WHAT WE DID We have reorganized the content to more closely follow a traditional balance sheet sequencing approach. Specifically, the first three chapters introduce the accounting cycle for service and merchandising businesses. Thereafter, topics are presented in the order they normally appear in a balance sheet with accounting for assets being discussed first, followed by accounting for liabilities, and finally accounting for equity. We moved topics associated with corporate governance from Chapter 2 into Chapter 4. Chapter 4 now includes coverage of Accounting for Cash, Internal Controls, and Ethics. Accounting for Inventory Cost Flow was moved from Chapter 4 into Chapter 5. Chapter 5 now includes Accounting for Receivables and Inventory Cost Flow. A comparative table of contents is shown below: Table of Contents for the Second Edition Table of Contents for the Third Edition Chapter 1 An Introduction to Accounting Chapter 1 An Introduction to Accounting Chapter 2 Understanding the Accounting Cycle Chapter 2 Understanding the Accounting Cycle Chapter 3 Accounting for Merchandising Businesses Chapter 3 Accounting for Merchandising Businesses Chapter 4 Accounting for Inventories and Cash Chapter 4 Internal Controls, Accounting for Cash, and Ethics Chapter 5 Accounting for Receivables Chapter 5 Accounting for Receivables and Inventory Cost Flow Chapter 6 Accounting for Long-Term Operational Assets Chapter 6 Accounting for Long-Term Operational Assets Chapter 7 Accounting for Liabilities Chapter 7 Accounting for Liabilities Chapter 8 Proprietorships, Partnerships, and Corporations Chapter 8 Proprietorships, Partnerships, and Corporations Chapter 9 Financial Statement Analysis Chapter 9 Financial Statement Analysis Chapter 10 An Introduction to Managerial Accounting Chapter 10 An Introduction to Managerial Accounting Chapter 11 Cost Behavior, Operating Leverage, and Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis Profitability Analysis Chapter 12 Cost Accumulation, Tracing and Allocation Chapter 12 Cost Accumulation, Tracing and Allocation Chapter 13 Relevant Information for Special Decisions Chapter 13 Relevant Information for Special Decisions Chapter 14 Planning for Profit and Cost Control Chapter 14 Planning for Profit and Cost Control Chapter 15 Performance Evaluation Chapter 15 Performance Evaluation Chapter 16 Planning for Capital Investments Chapter 16 Planning for Capital Investments To reduce duplication we consolidated coverage of financial ratios into Chapter 9 Financial Statement Analysis. While we continue to cover statement interpretation issues in each chapter, financial ratios are presented in Chapter 9. Removing coverage of financial ratios from each chapter provided additional space that has allowed us to add coverage of topics. For example, we added basic coverage of auditing practices in Chapter 4. In addition, we added coverage of bond discounts and premiums in Chapter 7. The straight-line method of amortizing discounts and premiums is covered in the main body of the text and the effective interest rate method is covered in the chapter appendix. Also, we added coverage of manufacturing costs flow through raw materials, work-in-process, and finished goods inventory in Chapter 10. Finally, we revised the ATC end of chapter materials to contain a consistent set of cases and exercises. Specifically, the ATC section now includes a business application case, a group assignment, a research assignment, a writing assignment, and an ethics case in each chapter. xii Survey of Accounting

6 TO MAKE IT BETTER! SPECIFIC CHAPTER CHANGES Chapter 1 An Introduction to Accounting Added a discussion of the role of accounting in society. More clearly described the relationship between assets and expenses. Updated Curious Accountant with new scenario including high-profile companies and products. Updated Focus on International Issues textbox. Chapter 2 Understanding the Accounting Cycle Reorganized Exhibit 2.1 and 2.7 to include transaction data. Updated Curious Accountant with current data from real-world companies. Removed content related to corporate governance and ethics. This content now appears in Chapter 4 with related issues such as internal control. Chapter 3 Accounting for Merchandising Businesses Updated Curious Accountant with current data from real-world companies. Revised Reality Bytes with new content about a new scenario, company and products. Chapter 4 Accounting for Internal Controls, Accounting for Cash, and Ethics Accounting for inventory cost flow has been moved from this chapter and placed in what is now Chapter 5 of the revised third edition text. Cooperate governance and ethics content have been moved into Chapter 4. These changes are in keeping with a balance sheet sequence of content presentation. Specifically, we cover internal control, ethics, and accounting for cash in Chapter 4. Coverage of accounts receivable and a discussion of inventory cost flow now appear in Chapter 5. Thereafter, we continue to discuss topics in the order they would appear in a customary top down reading of a balance sheet. Added coverage of The Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework for internal controls. Added coverage of the external audit function and the types of audit opinions. Replaced Curious Accountant content with new scenario including high-profile companies and characters. Added a new Reality Bytes textbox. Tom Edmonds/Phil Olds/Frances McNair/Bor-Yi Tsay xiii

7 Chapter 5 Accounting for Receivables and Inventory Cost Flow Added a discussion of inventory cost flow. This content was discussed in Chapter 4 of the previous edition of the text. The move was made to promote a consistent pattern of presenting information in the sequence it normally is covered in a formal balance sheet. Coverage of accounting for cash which was previously included in Chapter 5 has been moved forward to Chapter 4. Updated Curious Accountant with current data from real-world companies. Added a new Focus on International Issues textbox. Chapter 6 Accounting for Long-Term Operational Assets Updated Curious Accountant with current data from real-world companies. Replaced Focus on International Issues with new scenario related to international financial reporting standards (IFRS). Chapter 7 Accounting for Liabilities Added coverage of straight-ling amortization of discounts and premiums. Added a chapter appendix covering the effective interest rate method of amortization of discounts and premiums. Replaced Curious Accountant content with new scenario including high-profile companies and products. Replaced Focus on International Issues with new scenario related to international financial reporting standards (IFRS). Chapter 8 Proprietorships, Partnerships, and Corporations Updated Curious Accountant with current data from real-world companies. Replaced Focus on International Issues with new scenario related to international financial reporting standards (IFRS). Chapter 9 Financial Statement Analysis Replaced Curious Accountant content with new scenario including high-profile companies and products. xiv Survey of Accounting

8 Chapter 10 An Introduction to Managerial Accounting Added coverage of manufacturing cost flow including raw materials inventory, work-inprocess inventory and finished goods inventory. Coverage includes preparation of the schedule of cost of goods manufactured and sold. Updated Curious Accountant with new scenario including high-profile companies and products. Updated Focus on International Issues textbox. Added exercises and problems associated with the schedule of cost of goods manufactured and sold. Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis Replaced Curious Accountant content with new scenario including high-profile companies and products. Replaced Focus on International Issues content with new subject matter. Replaced Reality Bytes with new content about a new high-profile companies and products. Chapter 12 Cost Accumulation, Tracing, and Allocation Replaced Focus on International Issues content with new subject matter. Updated Reality Bytes. Chapter 13 Relevant Information for Special Decisions Updated Curious Accountant. Updated Focus on International Issues. Chapter 14 Planning for Profit and Cost Control Updated Curious Accountant. Updated Reality Bytes. Chapter 15 Performance Evaluation Replaced Curious Accountant content with new scenario including high-profile companies and products. Chapter 16 Planning for Capital Investments Updated Curious Accountant. Updated Focus on International Issues. Updated Reality Bytes. Tom Edmonds/Phil Olds/Frances McNair/Bor-Yi Tsay xv

9 HOW CAN TECHNOLOGY McGRAW-HILL s CONNECT TM ACCOUNTING Less Managing. More Teaching. accounting Greater Learning. McGraw-Hill s Connect Accounting is an online assignment and assessment solution that connects students with the tools and resources they ll need to achieve success. McGraw-Hill s Connect Accounting helps prepare students for their future by enabling faster learning, more efficient studying, and higher retention of knowledge. Connect Accounting offers a number of powerful tools and features to make managing assignments easier, so instructors can spend more time teaching. With Connect Accounting, students can engage with their coursework anytime and anywhere, making the learning process more accessible and efficient. Connect Accounting offers you the features described below. Simple Assignment Management With Connect Accounting, creating assignments is easier than ever, so you can spend more time teaching and less time managing. The assignment management function enables you to: Create and deliver assignments easily with selectable end-of-chapter questions and test bank items. Streamline lesson planning, student progress reporting, and assignment grading to make classroom management more efficient than ever. Go paperless with the ebook and online submission and grading of student assignments. Smart Grading When it comes to studying, time is precious. Connect Accounting helps students learn more efficiently by providing feedback and practice material when they need it, where they need it. When it comes to teaching, your time also is precious. The grading function enables you to: Have assignments scored automatically, giving students immediate feedback on their work and side-by-side comparisons with correct answers. Access and review each response; manually change grades or leave comments for students to review. Instructor Library The Connect Accounting Instructor Library is your repository for additional resources to improve student engagement in and out of class. You can select and use any asset that enhances your lecture. The Connect Accounting Instructor Library for Edmonds 3e includes: ebook PowerPoint files Instructor s and Solutions Manuals Test Bank Excel Spreadsheet Solutions Student Library The Connect Accounting Student Library is the place for students to access additional resources. The Student Library provides: Quick access to lectures, practice materials, ebook, and more. Instant practice material and study questions, easily accessible on the go. Student Progress Tracking Connect Accounting keeps instructors informed about how each student, section, and class is performing, allowing for more productive use of lecture and office hours. The progress-tracking function enables you to: View scored work immediately and track individual or group performance with assignment and grade reports. Access an instant view of student or class performance relative to learning objectives. Collect data and generate reports required by many accreditation organizations, such as AACSB and AICPA. xvi Survey of Accounting

10 HELP STUDENTS SUCCEED? Tegrity Increase the attention paid to lecture discussion by decreasing the attention paid to note taking. For a minimal charge Tegrity offers new ways for students to focus on the in-class discussion, knowing they can revisit important topics later. Tegrity enables you to: Record and distribute your lecture with a click of a button. Record and index PowerPoint presentations and anything shown on your computer so it is easily searchable, frame by frame. Offer access to lectures anytime and anywhere by computer, ipod, or mobile device. Increase intent listening and class participation by easing students concerns about note-taking. Tegrity will make it more likely you will see students faces, not the tops of their heads. McGraw-Hill s Connect Plus Accounting McGraw-Hill s reinvents the textbook learning experience for the modern student with Connect Plus Accounting. A seamless integration of an ebook and Connect Accounting, Connect Plus Accounting provides all of the Connect Accounting features plus the following: An integrated ebook, allowing for anytime, anywhere access to the textbook. Dynamic links between the problems or questions you assign to your students and the location in the ebook where that problem or question is covered. A powerful search function to pinpoint and connect key concepts in a snap. In short, Connect Accounting offers you and your students powerful tools and features that optimize your time and energies, enabling you to focus on course content, teaching, and student learning. Connect Accounting also offers a wealth of content resources for both instructors and students. This state-of-the-art, thoroughly tested system supports you in preparing students for the world that awaits. For more information about Connect Accounting, go to or contact your local McGraw-Hill representative. FPO Tom Edmonds/Phil Olds/Frances McNair/Bor-Yi Tsay xvii

11 Online Learning Center (OLC) More and more students are studying online. That s why we offer an Online Learning Center (OLC) that follows Survey of Accounting 3e chapter by chapter. The OLC includes the following: Excel Spreadsheets Interactive Quizzes PowerPoint Slides CourseSmart.com CourseSmart is a new way to find and buy etextbooks. At Course- Smart you can save up to 40 percent off the cost of a printed textbook, reduce your impact on the environment, and gain access to powerful web tools for learning. CourseSmart has the largest selection of etextbooks available anywhere, offering thousands of the most commonly adopted textbooks from a wide variety of higher education publishers. Coursemart etextbooks are available in one standard online reader with full text search, notes and highlighting, and tools for sharing notes between classmates. TEGRITY CAMPUS: LECTURES 24/7 Tegrity Campus is a service that makes class time available 24/7 by automatically capturing every lecture in a searchable format for students to review when they study and complete assignments. With a simple one-click start-and-stop process, you capture all computer screens and corresponding audio. Students can replay any part of any class with easy-to-use browser-based viewing on a PC or Mac. Educators know that the more students can see, hear, and experience class resources, the better they learn. In fact, studies prove it. With Tegrity Campus, students quickly recall key moments by using Tegrity Campus s unique search feature. This search helps students efficiently find what they need, when they need it, across an entire semester of class recordings. Help turn all your students study time into learning moments immediately supported by your lecture. To learn more about Tegrity watch a 2-minute Flash demo at ASSURANCE OF LEARNING READY Many educational institutions today are focused on the notion of assurance of learning, an important element of some accreditation standards. Edmonds Survey of Accounting 3e is designed specifically to support your assurance of learning initiatives with a simple, yet powerful solution. Each test bank question for Survey of Accounting maps to a specific chapter learning outcome/objective listed in the text. You can use our test bank software, EZ Test and EZ Test Online, or in Connect Accounting to easily query for learning outcomes/objectives that directly relate to those objectives for your course. You can then use the reporting features of EZ Test and Connect Accounting to aggregate student results in similar fashion, making the collection and presentation of assurance of learning data simple and easy. Online Course Management No matter what online course management system you use (WebCT, BlackBoard, or ecollege), we have a course content epack available for your course. Our new epacks are specifically designed to make it easy for students to navigate and access content online. They are easier than ever to install on the latest version of the course management system available today. Don t forget that you can count on the highest level of service from McGraw-Hill. Our online Digital Learning Consultants are ready to assist you with your online course needs. They provide training and will answer any questions you have throughout the life of your adoption. McGraw-Hill Higher Education and Blackboard have teamed up. What does this mean for you? 1. Your life, simplified. Now you and your students can access McGraw-Hill s Connect and Create right from within your Blackboard course all with one single sign-on. Say goodbye to the days of logging in to multiple applications. 2. Deep integration of content and tools. Not only do you get single sign-on with Connect and Create, you also get deep integration of McGraw-Hill content and content engines right in Blackboard. xviii Survey of Accounting

12 Whether you re choosing a book for your course or building Connect assignments, all the tools you need are right where you want them inside of Blackboard. 3. Seamless Gradebooks. Are you tired of keeping multiple gradebooks and manually synchronizing grades into Blackboard? We thought so. When a student completes an integrated Connect assignment, the grade for that assignment automatically (and instantly) feeds your Blackboard grade center. 4. A solution for everyone. Whether your institution is already using Blackboard or you just want to try Blackboard on your own, we have a solution for you. McGraw-Hill and Blackboard can now offer you easy access to industry leading technology and content, whether your campus hosts it, or we do. Be sure to ask your local McGraw-Hill representative for details. Tom Edmonds/Frances Edmonds/Phil Olds/Frances McNair/Phil McNair/Bor-Yi Olds Tsay xix