Nelson Higher Education

Higher Education


Cornerstones of Financial Accounting, 3rd Edition

  • Jay S. Rich
  • Jefferson P. Jones
  • Maryanne M. Mowen
  • Don R. Hansen
  • Donald Jones
  • Ralph Tassone
  • ISBN-10: 017689859X
  • ISBN-13: 9780176898595
  • 0 Pages | Hardcover
  • Previous Editions: 2017, 2014
  • COPYRIGHT: 2021 Published
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About the Product

Cornerstones of Financial Accounting is a complete tool and technology solution that incorporates step-by-step coverage of important concepts throughout each chapter by utilizing the familiar Cornerstone examples and exercises. The approach provides a solid foundation of the core concepts, which allows one to build on that knowledge to gain a higher understanding of financial accounting. The integration of the Cornerstones text and unique features in CengageNOWv2™ will get students thinking like managers! The goal of this text is to solidify homework concepts so that students can spend more time learning how to analyze business situations and become good decision makers.


  • Experience Financial Accounting vignettes offer a relational approach to teaching and learning materials through the use of chapter-opening cases that show how real businesses deal with financial accounting issues.

  • The You Decide feature helps students actively practice decision making. Students play the part of a manager or business owner, then consider the different factors in their decisions and how they will affect outcomes. You Decide helps students prepare for work in the real world.

  • Conceptual Connection requirements within many end-of-chapter assignments ask students to go beyond the calculations and analyze the conceptual context of the problem. Students will better understand how companies use the calculations to make sound business decisions.

  • The Concept Q&A boxes throughout the text challenge students to use higher-level reasoning skills. Students are prompted to go beyond the procedures and understand the broader business implications.

  • The chapter-spanning Integrative Cases present opportunities to integrate concepts from several chapters in order to analyze financial accounting information in a broader context.

  • The Integrated Learning System (ILS) anchors chapter concepts, provides a framework for study, and links all the instructor resources. Learning objectives with number icons are listed at the start of each chapter. These icons reappear throughout the text and end-of-chapter materials, linking them to the chapter learning objectives. The ILS provides structure for instructors preparing lectures and exams, and helps students learn quickly and study efficiently.

About the Author

Jay S. Rich

Jay Rich is a professor of accounting at Illinois State University. He received his B.S., M.S. and Ph.D. from the University of Illinois. Prior to entering the Ph.D. program, he worked as an auditor at Price Waterhouse & Co. in Chicago and earned his C.P.A. In 1985. Dr. Rich has published articles in numerous journals, including The Accounting Review, Auditing: A Journal of Practice & Theory, Accounting Horizons, Contemporary Accounting Research, Organizational Behavior and Human Decision Processes and Accounting Organizations and Society. He has also served on the editorial board of Auditing: A Journal of Practice & Theory and Current Issues in Auditing. Dr. Rich has received both the Outstanding Dissertation Award and Notable Contribution to the Literature Award from the Audit Section of the American Accounting Association. He was also recognized with the Outstanding Educator Award from the Illinois CPA Society. His primary teaching interest is financial accounting and he has taught numerous courses at the undergraduate, master and doctoral levels. Dr. Rich has a wife of 30 years, Jane, and three children, Dennis, Anne and Grace. His outside interests include his family, travel and reading. He also repeatedly develops plans to exercise and diet at some point in the future. By all accounts, he is a master at grilling meat, a mediocre skier and a shameful golfer.

Jefferson P. Jones

Jefferson P. Jones is the PricewaterhouseCoopers associate professor of accounting at Auburn University. He received his bachelor’s and master of accountancy degrees from Auburn University and his Ph.D. in accounting from Florida State University. While earning his CPA, he worked for Deloitte & Touche. He has received numerous teaching awards, including the Outstanding Master of Accountancy Professor Award, the Beta Alpha Psi Outstanding Teaching Award (six times), the Auburn University College of Business McCartney Teaching Award, and the Auburn University School of Accountancy Teaching Award. In addition to writing an intermediate accounting text, he has published articles in Advances in Accounting, Review of Quantitative Finance and Accounting, Issues in Accounting Education, International Journal of Forecasting, The CPA Journal, Managerial Finance, Journal of Accounting and Finance Research, and The Journal of Corporate Accounting and Finance. Jones has made numerous presentations around the country on research and pedagogical issues. He is a member of the American Accounting Association (AAA), the American Institute of Certified Public Accountants (AICPA), and the Alabama Society of CPAs (ASCPA).

Maryanne M. Mowen

Maryanne M. Mowen is associate professor of accounting emerita at Oklahoma State University. She received her Ph.D. from Arizona State University. With degrees in economics and history, she brings a unique interdisciplinary perspective to teaching and writing in both cost accounting and management accounting. Her research interests include management accounting, behavioral decision theory, and Sarbanes-Oxley compliance. She also teaches an ethics course about the impact of Sarbanes-Oxley on the accounting profession. Dr. Mowen has published articles in journals such as Decision Science, Journal of Economic Psychology and Journal of Management Accounting Research. She has also served as a consultant to mid-sized and Fortune 100 companies and works with corporate controllers on management accounting issues. Currently, she advises entrepreneurs and nonprofit organizations. Outside the classroom, she enjoys hiking, travelling, reading mysteries and solving crossword puzzles.

Don R. Hansen

Dr. Don R. Hansen is professor emeritus of Oklahoma State University. He has an undergraduate degree in mathematics from Brigham Young University. He received his Ph.D. from the University of Arizona. Dr. Hansen has published articles in both accounting and engineering journals, including The Accounting Review, The Journal of Management Accounting Research, Accounting Organizations and Society, Accounting Horizons and IIE Transactions. He has also served on the editorial board of The Accounting Review. His outside interests include family, church activities, reading, movies and watching sports.

Donald Jones

Donald Jones is a tenured lecturer who teaches accounting, auditing, and income tax at the University of Windsor. He received his B.Comm. degree from the University of Windsor and his M.B.A. degree from the University of Toronto. Jones is a Canadian chartered professional accountant (CPA), having qualified as both a chartered accountant (CA) and a certified management accountant (CMA) in the province of Ontario. Jones is a member in good standing of CPA Canada and CPA Ontario. Jones has 41 years of professional public accounting experience, including service as a partner of Deloitte, an international professional accounting firm. In addition to his academic duties at the University of Windsor, Jones has led seminars both for large corporate audiences on accounting and auditing matters, including IFRS, and for private enterprise shareholder-managers on accounting and tax issues. Jones is licensed as an active public accountant (LPA) in the province of Ontario, where he carries on a professional practice.

Ralph Tassone

Ralph Tassone teaches accounting at the Joseph L. Rotman School of Management (Rotman), University of Toronto. He is a Canadian Chartered Professional Accountant (CPA), having qualified as a Chartered Accountant (CA) in the Province of Ontario, and has over 16 years of public accounting experience. His focus in public accounting is on owner-managed businesses. At Rotman, his teaching focus is accounting; he has taught several undergraduate courses, including Introductory and Intermediate Financial Accounting, Managerial Accounting and Management Control. At the graduate level, he has taught Advanced Financial Reporting for the Rotman Graduate Diploma in Professional Accounting program. He graduated from the University of Toronto Commerce program in 2000 and subsequently commenced his articling with KPMG LLP. He completed his Master of Education at OISE, University of Toronto, in 2014. He is actively involved in teaching in the CPA Ontario and CPA Canada PEP program and also volunteers his time in various community initiatives.

Table of Contents

Key Features
New to This Edition
Superior Supplements
Acknowledgment and Thanks
About the Authors
From the Authors

Chapter 1: Financial Statements and Making Business Decisions
Chapter 2: The Accounting Information System and Financial Statements
Chapter 3: Accrual Accounting and Financial Statements
Integrative Case 1

Chapter 4: Cash and Internal Control
Chapter 5: Receivables and Revenue Reporting, and Analyzing Sales
Chapter 6: Reporting and Analyzing Inventory and Costs of Goods Sold
Chapter 7: Reporting and Analyzing Property, Plant, and Equipment; Intangibles; Goodwill; and Natural Resources
Integrative Case 2

Chapter 8: Reporting and Analyzing Current Liabilities
Chapter 9: Reporting and Analyzing Noncurrent Liabilities
Chapter 10: Reporting and Analyzing Shareholders’ Equity
Integrative Case 3

Chapter 11: Reporting and Analyzing the Statement of Cash Flows
Chapter 12: Analysis and Interpretation of Financial Statements
CPA Cases

Appendix 1: Reporting and Analyzing Investments
Appendix 2: Time Value of Money
Appendix 3: Emerging Issues in Accounting
Appendix 4: Financial Statement Information: Canadian Tire Corporation, Limited
Appendix 5: Financial Statement Information: Rogers Communications Inc.

Check Figures

New to this edition

  • Chartered Professional Accountant (CPA) Competencies: The first page of each chapter contains the CPA Competencies that are specifically addressed in that chapter. The end-of-chapter questions refer to these competencies.
  • From the Authors: A personal note from the authors to our readers has been incorporated in this text to highlight changes which are currently underway in the world of accounting.
  • New IFRS content: The content of each chapter has been updated to reflect changes in IFRS for publicly accountable enterprises in Canada.
  • New summaries of differences between IFRS and ASPE: Each chapter ends with an updated summary of the major differences between IFRS for publicly accountable enterprises and ASPE for private companies in Canada.
  • New real-company references: The Experience Financial Accounting vignettes have been updated with appropriate Canadian or multinational companies to reinforce the major concepts discussed in the chapter, with appropriate references to the business operations of companies operating in Canada.
  • Highlights of chapter content updates: The learning objectives and real-life examples in each chapter have been updated to ensure consistency with the CPA Competencies and with IFRS standards. Chapters 3 and 5 have been updated to include references to the new IFRS standard on revenue recognition. Chapter 9 has been updated to include references to the new IFRS leasing standard.
  • Investment accounting: The investment accounting material has been updated for the new IFRS standard 9, and has been moved to Appendix 1 in this third edition from Chapter 13 in the second edition. This third edition now contains 12 chapters, which matches the normal 12-week academic term for introductory accounting courses. This material was retained for those instructors who desire to include investment accounting in their course offerings.
  • Two new competency-based CPA Cases with grading guides: These two cases have been prepared with the Chartered Professional Accountant (CPA) exam in mind. Instructors can use these cases to show students what a competency-based exam looks like and to give students an early look at what they can expect when writing the professional exam for entry to the profession.
  • New Emerging Issues in Accounting: An appendix devoted to introducing students to hot topics in the accounting world, from big data and artificial intelligence to blockchain technology and cryptocurrencies, to sustainability reporting. Instructors can introduce these topics to students and use them as a springboard for further discussion.


All supplements have been updated in coordination with the Main title.
Please see Main title page for new to this edition information.

Instructor Supplements

eBook: Cornerstones of Financial Accounting  (ISBN-10: 0176898697 | ISBN-13: 9780176898694)
CengageNOWv2 Instant Access (12 Months/Multi Term) for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176898638 | ISBN-13: 9780176898632)
CengageNOWv2 Printed Access Card (12 Months/Multi Term) for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176898646 | ISBN-13: 9780176898649)
Online Only Instructor's Resources for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176898654 | ISBN-13: 9780176898656)
Nelson Testing, powered by Cognero® Instant Access for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176898689 | ISBN-13: 9780176898687)
Value Pack: Cornerstones of Financial Accounting, 3rd Edition + CengageNOWv2 Printed Access Card (12 Months/Multi Term)  (ISBN-10: 0176911693 | ISBN-13: 9780176911690)
Value Pack: Cornerstones of Financial Accounting 3rd Edition, Loose-Leaf Version + CengageNOWv2 Printed Access Card (12 Months/Multi Term)  (ISBN-10: 0176911707 | ISBN-13: 9780176911706)

Student Supplements

eBook: Cornerstones of Financial Accounting  (ISBN-10: 0176898697 | ISBN-13: 9780176898694)
CengageNOWv2 Instant Access (12 Months/Multi Term) for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176898638 | ISBN-13: 9780176898632)
CengageNOWv2 Printed Access Card (12 Months/Multi Term) for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176898646 | ISBN-13: 9780176898649)
Value Pack: Cornerstones of Financial Accounting, 3rd Edition + CengageNOWv2 Printed Access Card (12 Months/Multi Term)  (ISBN-10: 0176911693 | ISBN-13: 9780176911690)
Value Pack: Cornerstones of Financial Accounting 3rd Edition, Loose-Leaf Version + CengageNOWv2 Printed Access Card (12 Months/Multi Term)  (ISBN-10: 0176911707 | ISBN-13: 9780176911706)