This Fourth Edition of Financial Accounting." A Programmed TeJt

has all of the features included in any other financial accounting text,

but also contains an additional feature. The text includes a simple-to-use

programming format which has proven to be effective in assisting

students to understand the material. This increased understanding on

the part of the student enables the instructor to be more effective in

teaching the material.

This volume on financial accounting may be used alone or in combina-

tion with its companion volume, Managerial Accounting: A Pro-

grammed Text. These two volumes contain the essential financial and

managerial accounting subject matter covered in the first year account-

ing course for undergraduate students majoring in either business

administration or accounting.

Contents. Part I, consisting of the first three chapters of this volume,

covers the accounting cycle. Part I1, Chapters 4 through 10, is con-

cerned with various items which appear in the statement of fii~ncial

position and with their related effects on revenues and expenses.

Part III, consisting of the chapters on analysis and interpretation of

financial statements and on the statement of changes in financial position

deals with analysis of results. Part IV is concerned with the basic

theory underlying financial statements and consolidated financial state-

ments.

This fourth edition has been substantially rewritten so as to make it

completely up-to-date in coverage and to reduce the reading level from

that of previous editions. This latter change should bring about even

clearer communication between the text and its users than in previous

editions.

Some users have encouraged us to retain the comprehensive coverage

of previous editions. Other users have suggested eliminating certain

materials to shorten the coverage. We have attempted to satisfy both

types of users by moving considerable materials into appendices. (There

are 14 appendices.) This should make the text more flexible, in that

those who prefer a comprehensive coverage can assign all chapters

and appendices. Those who prefer to concentrate on only essential

subject matter can assign the chapters only. Others can select some

option between these two alternatives. All end-of-chapter materials