This textbook uses of T-accounts and diagrams to make the concepts become clearer for students. After reviewing the book, and the accompanying resources I will consider adopting it for use in my classes. If not as a primary resource, I will recommend the source as an additional reading option for my students. Instructors can rely on up-to-date accounting information, but unlike purchased publisher textbooks, these are not replaced every other year.
The text is divided into topical chapters, which is appropriate considering that the concepts build on each other. This makes it easy for an instructor to pick which sub-topics to cover. For an introductory accounting class with focus on US the concepts covered are typical. Chapter II covers fundamental concepts to help you build a good foundation before moving to more elaborate accounting topics.
Student and instructor resources
With its step-by-step approach and the author’s accessible writing style, Fundamental Accounting Principles streamlines complex accounting processes and helps students build confidence by mastering key concepts and procedures. With content that is presented in organized learning blocks ending with a need-to-know examples, the text makes it easy for students to find the most relevant content needed to solve problems. Chapter opening vignettes use dynamic, well-known entrepreneurs to appeal to all students and show the relevance of accounting.
I will flip these when I use the book in my class to provide more continuity for these concepts. Also, really liked how debits and credits are brought into the discussion of the accounting equation early. Other texts have the instructor teaching to the equation fundamental accounting and then introducing the concept of debits and credits. The book complies with the current accounting rules and regulations. OpenStax updates these textbooks on a regular basis, so there is no worry about using an outdated textbook for your classes.
What are the Fundamentals of Financial Accounting?
This means that interpretation and guidance on US GAAP standards can often contain specific details and guidelines in order to help align the accounting process with legal matters and tax laws. One of the major components of a balance sheet is short-term assets, which are assets that can be converted into cash within a year. Accounts receivables and inventories constitute a major part of short-term assets. Understanding accounting for these accounts will help you uncover how these accounts change over time, their valuation, and their usefulness in managerial decision making.
This concept is called the separate entity concept because the business is considered an entity separate and apart from its owner(s). The cost principle, also known as the historical cost principle, states that virtually everything the company owns or controls (assets) must be recorded at its value at the date of acquisition. For most assets, this value is easy to determine as it is the price agreed to when buying the asset from the vendor.
