Warren/Reeve/Duchac -
Leading By Example!
Designed for today's students, the 23rd edition has been revised using an innovative,
high-impact writing style that emphasizes topics in a concise and clearly written manner.
Direct sentences, concise paragraphs, and numbered lists provide students with an
easy-to-follow structure for learning accounting. While you will notice this change in the
book’s appearance, this is achieved without sacrificing content or rigor.
We are happy to provide a list of individual chapter changes to help you adapt your
course to take advantage of the new edition’s enhancements. As a sample of what you’ll
find in the preface of the new edition, we list a sample of the enhancements to Chapters
1-3 in this document.
Chapter by Chapter Changes
Chapters 1 - 3
Chapter 1: Introduction to Accounting and Business
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Starbucks replaces Daimler-Chrysler in opening lead-in example
Discussion of “types of business organizations” has been moved to later in the
chapter. Proprietorships, partnerships, corporations, and Limited Liability
Companies (LLC) are now discussed with the Business Entity Concept.
“General-purpose financial statements” has been added as a new key term
New Exhibit 3 provides guidelines for ethical conduct
Discussion on career opportunities for accountants has been updated
Improved formatting of transaction discussion for NetSolutions for greater clarity
International Accounting Standards Board (IASB) and International Financial
Reporting Standards are now mentioned in the discussion of generally accepted
accounting principles.
New Financial Analysis and Interpretation box has been added that introduces
the ratio for liabilities to owner’s equity
Chapter 2 Analyzing Transactions
• New chapter opener features Apple
• New section on the double-entry accounting system (Objective 2) provides
improved coverage of the rules of debit and credit for balance sheet, income
statement, and owner drawing account. This discussion includes normal
balances of accounts. In addition, Exhibit 3 was revised so that it better
summarizes the rules of debits and credits for students to referred to when
working end-of-chapter homework.
• Discussion of recording transactions in accounts has been streamlined by
including the discussion of the rules of debits and credits earlier in the chapter.
Also, a new more simplified format for the journal and accounts is used.
• Each illustrated transaction now includes the following sections: “Transaction,
Analysis, and Journal Entry”. In addition, new line art design to improve the
presentation of journal entries and accounts.
• Discussion of discovery and correction of errors has been revised and is now
integrated into the discussion of the unadjusted trial balance.
• New FAI feature has been added that discussed horizontal analysis of financial
statements
Chapter 3 The Adjusting Process
• Discussion of the adjusting process has been revised to list the reasons for
updating some accounts in the ledger under accrual accounting
• A new Exhibit 6 on Summary of Adjustments has developed to include the
reason for each adjustment, the adjusting entry, examples adjusting entries from
NetSolutions, and the financial statement impact if adjusting is omitted
• New FAI feature has been added that discussed vertical analysis of financial
statements.