Financial Accounting for Decision Makers

Fourth Edition

Mark DeFond - Marshall School of Business, University of Southern California, USA

February 2026 | 632 pages | Cambridge Business Publishers

Formerly published by Cambridge Business Publishers, now published by Sage

Financial Accounting for Decision Makers, Fourth Edition by Mark DeFond equips students with the essential skills to interpret and analyze real-world financial statements without overwhelming them with technical accounting procedures. Designed for both undergraduate and graduate courses, this text emphasizes practical application, helping future business leaders make informed decisions. Featuring examples from real-world companies and supported by the robust online learning platform myBusinessCourse™, included with every new copy, this book ensures an engaging and effective learning experience.

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Available Formats

ISBN: 9798348850968 Paperback Suggested Retail Price: $217.00 Bookstore Price: $173.60

Chapter 1: Financial Accounting and Business Decisions

What the Numbers Mean

Business Organization

Activities of a Business

Accounting Information and Its Use

The Accounting Process

Financial Statements

Additional Information

Accounting and Technology

Chapter 2: Processing Accounting Information

Score!

Accounting Cycle

Analyze Transactions

Record Transactions

Transaction Analysis Template

The "Account" System

Chapter 3: Accrual Basis of Accounting

Making Dough

Accrual Basis of Accounting

Accounting Adjustments

Preparing the Financial Statements

Quality of Accounting Numbers

Close Temporary Accounts

Chapter 4: Understanding Accounting Information

Identifying a Win-Win Company

Financial Reporting Quality

Finding Financial Accounting Information

Balance Sheet Classification

Income Statement Classificiation

Working with Financial Statements

Chapter 5: Internal Control Cash

Wirecard Fraud

Fraud

Internal Control

Accounting for Cash

Internal Controls over Cash

Effective Cash Management

Appendix 5A: Auding and Internal Control

Appendix 5B: Preparing the Bank Reconciliation

Chapter 6: Receivables

MGM Resorts International-Managing Credit for Bigger Profits

Receivables

Accounts Receivable

Losses from Valuing Accounts Receivable

Estimating Credit Losses

Writing Off Specific Accounts Receivable under the Allowance Method

Credit Card Sales

Notes Receivable

Analyzing and Managing Receivables

Chapter 7: Inventory

COSTCO

The Nature of Inventory

Inventory Costing Methods

Lower of Cost of Net Realizable Value

Inventory Analysis

Appendix 7A: Inventory Costing using a Perpetual Inventory System

Chapter 8: Long-Lived Assets

Ford Motory Company

Overview of Long-Lived Assets

Accounting for Long-Lived Assets

Nature of Depreciation

Revenue Expenditures Versus Capital Expenditures

Disposals of Property, Plant and Equipment

Intangible Assets

Examples of Intangible Assets

Balance Sheet Presentation

Return of Assets and Asset Turnover

Chapter 9: Liabilities

Microsoft Corporation

Current Liabilities

Long-Term Liabilities

Bond Prices

Amortization of Bond Discount/Premium

Long-Term Notes (Term Loans)

Leases

Contingent Liabilities

Analyzing Liabilities

Chapter 10: Stockholders' Equity

Amazon

Nature and Formation of a Corporation

Par Value Stock and NoPar Value Stock

Types of Capital Stock

Stock Issuances for Cash

Stock Splits

Accounting for Stock Repurchases

Cash Dividends and Stock Dividends

Retained Earnings and the Statement of Stockholders' Equity

Chapter 11: Statement of Cash Flows

The Home Depot: A Company with a Vision

Overview of the Cash Flow Statement

Cash Flow Statement Presentation

Non-Cash Investing ad Financing Acitivities

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

Completing the Statement of Cash Flows

Inerpreting the Cash Flow Statement

Cash Flow Ratios

Appendix 11A: Preparing the Statement of Cash Flows Under the Direct Method

Chapter 12: Analysis and Interpretation of Financial Statements

FMCG

Persistent Earnings and the Income Statement

Sources of Information

Horizontal Analysis

Trend Analysis

Vertical Analysis

Ratio Analysis

Limitations of Financial Statement Analysis

Appendix 12A: Financial Statement Disclosures

Appendix A: Columbia Sportswear: Financial Statements

Report of Independent Auditors

Financial Statements

Notes to Financial Statements

Report on Internal Control

Appendix B: Under Armour Financial Statements

Appendix C: The Language of Accountants: Debits and Credits

System of Debits and Credits

Trial Balance

Accounting Adjustments

Adjusted Trial Balance and Financial Statements

Closing Process

Appendix D: Accounting for Investments and Consolidated Financial Statements

Investments

Parent Subsidiary Relationship

Appendix E: Accounting and the Time Value of Money

Time Value of Money Concept

Future Value of an Amount

Future Value of an Annuity

Present Value of an Amount

Present Value of an Annuity

Calculations Using a Spreadsheet

Appendix F: Data Analytics and Artificial Intelligence

Data Analytics

Artificial Intelligence in Accounting

A good take on the importance of accounting for entry level accounting students.

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Professor Rob Stussie

University of Arizona

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Key features

Deemphasizes debits and credits using the Transaction Analysis Template (TAT):

Replaces traditional debits and credits with an intuitive tool for analyzing financial reports.

Focuses on understanding financial statements and underlying concepts.

Saves time for deeper discussions and enhances understanding of the "big picture."

Real Companies' Financial Statements:

Features examples from well-known companies like Google, Apple, Amazon, and Target.

Makes accounting relatable and engaging.

Real Data and Examples:

Includes Beyond the Numbers assignments using financial statements from Nike and Under Armour.

Accounting in Practice:

Boxed inserts highlight real-world scenarios and reporting choices companies make.

Responsible Business Practices (RBP):

Explores how companies integrate responsible business practices into their business strategies.

Organizing for Student Success:

Past/Present/Future Feature: Connects chapter content to the overall course.

Road Maps: Highlights learning objectives, eLecture videos, and assignments.

Review Boxes: Reinforces material with solutions and guided example videos.

A.K.A. Sidebars: Clarifies alternative terms students may encounter.

Takeaways: Summarizes key concepts before moving to the next topic.

Ethics:

Includes assignments and discussions on ethical decision-making in accounting.

Data analytics and Excel skill development for career readiness

Data Analytics boxes throughout the text expose students to techniques that are used by businesses in areas related to the topic being discussed.
Integrated Excel and Tableau assignments require students to hone data analytics and visualization skills.

Thinking Globally:

Highlights similarities and differences in accounting practices between the U.S. and other countries.

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