Financial accounting

Table of content

Chapter 1 Financial Statements and Business Decisions
Focus Company: Le-Nature’s Inc.


Chapter 2 Investing and Financing Decisions and the Accounting System
Focus Company: Chipotle Mexican Grill


Chapter 3 Operating Decisions and the Accounting System
Focus Company: Chipotle Mexican Grill


Chapter 4 Adjustments, Financial Statements, and the Quality of Earnings
Focus Company: Chipotle Mexican Grill


Chapter 5 Communicating and Interpreting Accounting Information
Focus Company: Apple Inc.


Chapter 6 Reporting and Interpreting Sales Revenue, Receivables, and Cash
Focus Company: Deckers Outdoor Corporation


Chapter 7 Reporting and Interpreting Cost of Goods Sold and Inventory
Focus Company: Harley-Davidson, Inc.


Chapter 8Reporting and Interpreting Property, Plant, and Equipment; Intangibles; and Natural Resources
Focus Company: Southwest Airlines




Chapter 9 Reporting and Interpreting Liabilities
Focus Company: Starbucks


Chapter 10 Reporting and Interpreting Bonds
Focus Company: AT&T


Chapter 11 Reporting and Interpreting Owners’ Equity
Focus Company: The Kroger Co.


Chapter 12 Statement of Cash Flows
Focus Company: National Beverage Corp.


Chapter 13 Analyzing Financial Statements
Focus Company: The Home Depot


Appendix A Present and Future Value Tables
Appendix B American Eagle Outfitters Form 10-K Annual Report
Appendix C Urban Outfitters, Inc., Form 10-K Annual Report
Appendix D Industry Ratio Report
Appendix E Reporting and Interpreting Investments in Other Corporations


Focus Company: The Washington Post Company

Libby/Libby/Hodge wrote this text based on their belief that the subject of financial accounting is inherently interesting but financial accounting textbooks are often not. They believe most financial accounting textbooks fail to demonstrate that accounting is an exciting field of study and one that is important to future careers in business. When writing this text they considered career relevance as their guide when selecting material and the need to engage the student as their guide to style pedagogy and design. Libby/Libby/Hodge successfully implements a real-world single focus company approach in every chapter. Students and instructors have responded very favorably to the use of focus companies and the real-world financial statements.

The companies chosen are engaging and the decision-making focus shows the relevance of financial accounting regardless of whether or not the student has chosen to major in accounting. Libby/Libby/Hodge believes in the building-block approach to teaching transaction analysis. Most faculty agree that mastery of the accounting cycle is critical to success in financial accounting. And yet all other financial books introduce and develop transaction analysis in one chapter bombarding a student early in the course with an overload of new concepts and terms.


The authors believe that most faculty take more time with the accounting cycle but other financial accounting textbooks don't. By slowing down the introduction of transactions and giving students time to practice and gain mastery this building-block approach leads to greater student success in their study of later topics in financial accounting such as adjusting entries