Nelson Higher Education

Higher Education

Cornerstones of Financial Accounting, 2nd Edition

  • Jay S. Rich
  • Jefferson P. Jones
  • Maryanne M. Mowen
  • Don R. Hansen
  • Donald Jones
  • Ralph Tassone
  • ISBN-10: 0176707123
  • ISBN-13: 9780176707125
  • 0 Pages | Hardcover
  • Previous Editions: 2014
  • COPYRIGHT: 2017 Published
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About the Product

Cornerstones of Financial Accounting, Second Canadian Edition, presents an exciting new approach to teaching and learning accounting. Carefully crafted in response to studies on student reading behaviour, the innovative Cornerstones approach has been shown to increase students’ engagement and preparedness while improving their grades. In the Cornerstones approach, each major concept is illustrated in a Cornerstone that supports accounting concepts with a compelling example. Step-by-step calculations demonstrate how to solve a business problem, and a brief video segment reinforces and summarizes key concepts and procedures.


  • 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 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, behavioural decision theory, and Sarbanes-Oxley compliance, and she teaches an ethics course about the impact of Sarbanes-Oxley on the accounting profession. 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. Outside the classroom, she enjoys hiking, travelling, reading mysteries, and solving crossword puzzles. Don R. Hansen is professor of accounting at Oklahoma State University. He received his Ph.D. from the University of Arizona and has an undergraduate degree in mathematics from Brigham Young University. His research interests include activity-based costing and mathematical modelling. Hansen’s published articles appear in The Accounting Review; Journal of Management Accounting Research; Accounting, Organizations, and Society; Accounting Horizons; and IIE Transactions.

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 in 1977. 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 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 MBA 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 the Canadian Institute of Chartered Accountants (CICA), the Ontario Institute of Chartered Accountants (ICAO), and the Certified Management Accountants of Ontario (CMA Ontario). Jones has 36 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 for both 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. Jones enjoys watching football and hockey and expanding his Canadian coin and currency collection. He and his wife, Linda, have three children, each of whom is a professionally qualified accountant.

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
Acknowledgments and Thanks
About the Authors
Chapter 1: Financial Statements and Decision Making
Chapter 2: The Accounting Information System and Financial Statements
Chapter 3: Accrual Accounting and Financial Statements
Chapter 4: Internal Control and Cash
Chapter 5: Reporting and Analyzing Sales Revenue and Receivables
Chapter 6: Reporting and Analyzing Inventory and Cost of Goods Sold
Chapter 7: Reporting and Analyzing Property, Plant, and Equipment; Intangibles; and
Natural Resources
Chapter 8: Reporting and Analyzing Current Liabilities
Chapter 9: Reporting and Analyzing Noncurrent Liabilities
Chapter 10: Reporting and Analyzing Shareholders’ Equity
Chapter 11: Reporting and Analyzing the Statement of Cash Flows
Chapter 12: Reporting and Analyzing Investments
Chapter 13: Analysis and Interpretation of Financial Statements
Appendix 1: Time Value of Money
Appendix 2: Financial Statement Information: Canadian Tire Corporation, Limited
Appendix 3: Financial Statement Information: Rogers Communication Inc.
Check Figures

New to this edition

  • Updated and enhanced end-of-chapter assignments. The end-of-chapter questions have been updated throughout the text to include new data and the most recent developments in accounting as well as to incorporate current company information and the CPA Educational Standards. Integrative cases have been added to the ends of Chapters 3, 7, and 10.
  • New Brief Exercises. A new section of exercises with an average of 15 exercises per chapter has been added to the second Canadian edition.
  • ‘‘Why’’ in Cornerstones. The ‘‘Why’’ section has been expanded in each Cornerstone to provide students with additional reasoning for covering the topic.
  • New real-company references. The Experience Financial Accounting opening vignettes have been updated to reflect additional Canadian companies or multinational corporations that have prominent operations in Canada. These companies are then appropriately referenced in the chapters to reinforce the connections between key concepts and their applications in real-world business situations.
  • Highlights of content updates: Chapter 1 has been amended to focus on the basics of an introductory accounting course; Chapter 3 has been expanded with additional content concerning the reversal of accruals and the closing of accounts; Chapter 4 has been expanded with respect to the application of internal controls and fraud; Chapter 5 has increased discussion on the allowance for doubtful accounts and the use of credit and debit cards; Chapter 7 includes increased discussion of goodwill impairment; and Chapter 12 has been updated to reflect recent changes in investment accounting.
  • New IFRS content. The content in each chapter has been changed or updated to fully reflect IFRS for publicly accountable enterprises in Canada.
  • New summaries of differences between accounting standards. Each chapter contains an appropriate summary of ‘‘Significant Differences between IFRS and ASPE’’ in Canada.
  • With its engaging learning and assessment tools, CengageNOWv2™ supports the entire student workflow, from motivation to mastery. For instructors, CengageNOWv2 provides control and customization with the opportunity to tailor the learning experience to improve outcomes. Class-tested and student-praised, CengageNOWv2 offers a variety of features that support course objectives and interactive learning. These features include: Multipanel View Adaptive Study Plan Animated Activities Cornerstones Videos Blueprint Problems Blueprint Connections Ask your Nelson Education learning solutions consultant for more information about integrating CengageNOWv2 into your course.


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

Instructor Supplements

CNOW v2 Printed Access Card (6 months) for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176792716 | ISBN-13: 9780176792718)
Online Only Instructor's Resources for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176768769 | ISBN-13: 9780176768768)
CNOW v2 Printed Access Card (12 months) for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176792724 | ISBN-13: 9780176792725)

Student Supplements

eBook: Cornerstones of Financial Accounting  (ISBN-10: 0176767835 | ISBN-13: 9780176767839)
CNOW v2 Instant Access (6 months) for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176792686 | ISBN-13: 9780176792688)
CNOW v2 Instant Access (12 months) for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176792694 | ISBN-13: 9780176792695)
CNOW v2 Instant Access (24 months) for Rich's Cornerstones of Financial Accounting  (ISBN-10: 0176792708 | ISBN-13: 9780176792701)