John Wild and Ken Shaw - Fundamental Accounting Principles

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th edition

John J. Wild

University of WisconsinMadison

Ken W. Shaw

University of MissouriColumbia

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To my students and family, especially Kimberly, Jonathan, Stephanie, and Trevor. To my wife Linda and children Erin, Emily, and Jacob.

FUNDAMENTAL ACCOUNTING PRINCIPLES, TWENTY-FIFTH EDITION

Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10121. Copyright 2021 by McGraw Hill LLC. All rights reserved. Printed in the United States of America. Previous editions 2019, 2017, and 2015. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw Hill LLC, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

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• ISBN 978-1-260-24798-5 (combined bound edition)

• MHID 1-260-24798-8 (combined bound edition)

• ISBN 978-1-260-78020-8 (combined loose-leaf edition)

• MHID 1-260-78020-1 (combined loose-leaf edition)

• ISBN 978-1-260-78014-7 (principles bound edition, chapters 1 - 17)

• MHID 1-260-78014-7 (principles bound edition, chapters 1 - 17)

• ISBN 978-1-260-78015-4 (principles loose-leaf edition, chapters 1 - 17)

• MHID 1-260-78015-5 (principles loose-leaf, chapters 1 - 17)

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Library of Congress Cataloging-in-Publication Data

• Names: Wild, John J., author. | Shaw, Ken W., author.

• Title: Fundamental accounting principles / John J. Wild, University of

• Wisconsin at Madison, Ken W. Shaw, University of Missouri at Columbia.

• Description: 25th Edition. | Dubuque : McGraw-Hill Education, 2020. |

• Revised edition of the authors Fundamental accounting principles,

• [2019]

• Identifiers: LCCN 2020017682 (print) | LCCN 2020017683 (ebook) | ISBN

• 9781260247985 (hardcover) | ISBN 9781260780208 (spiral bound) | ISBN

• 9781260780147 (hardcover) | ISBN 9781260780154 (spiral bound) | ISBN

• 9781260386950 (ebook)

• Subjects: LCSH: Accounting.

• Classification: LCC HF5636 .W675 2020 (print) | LCC HF5636 (ebook) | DDC

• 657dc23

• LC record available at https://lccn.loc.gov/2020017682

• LC ebook record available at https://lccn.loc.gov/2020017683

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mheducation.com/highered

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Courtesy of John J. Wild

JOHN J. WILD is a distinguished professor of accounting at the University of Wisconsin at Madison. He previously held appointments at Michigan State University and the University of Manchester in England. He received his BBA, MS, and PhD from the University of Wisconsin.

John teaches accounting courses at both the undergraduate and graduate levels. He has received numerous teaching honors, including the Mabel W. Chipman Excellence-in-Teaching Award and the departmental Excellence-in-Teaching Award, and he is a two-time recipient of the Teaching Excellence Award from business graduates at the University of Wisconsin. He also received the Beta Alpha Psi and Roland F. Salmonson Excellence-in-Teaching Award from Michigan State University. John has received several research honors, is a past KPMG Peat Marwick National Fellow, and is a recipient of fellowships from the American Accounting Association and the Ernst and Young Foundation.

John is an active member of the American Accounting Association and its sections. He has served on several committees of these organizations, including the Outstanding Accounting Educator Award, Wildman Award, National Program Advisory, Publications, and Research Committees. John is author of Financial Accounting Fundamentals, Managerial Accounting, Fundamental Accounting Principles, and Financial and Managerial Accounting, all published by McGraw Hill.

Johns research articles on accounting and analysis appear in The Accounting Review; Journal of Accounting Research; Journal of Accounting and Economics; Contemporary Accounting Research; Journal of Accounting, Auditing and Finance; Journal of Accounting and Public Policy; Accounting Horizons; and other journals. He is past associate editor of Contemporary Accounting Research and has served on several editorial boards including The Accounting Review and the Journal of Accounting and Public Policy.

In his leisure time, John enjoys hiking, sports, boating, travel, and spending time with family and friends.

Courtesy of Ken W. Shaw

KEN W. SHAW is the KPMG/Joseph A. Silvoso Distinguished Professor of Accounting at the University of Missouri at Columbia. He previously was on the faculty at the University of Maryland at College Park. He has also taught in international programs at the University of Bergamo (Italy) and the University of Alicante (Spain). He received a B.S. in accounting from Bradley University and an MBA and PhD from the University of Wisconsin. He is a Certified Public Accountant with audit experience at KPMG.

Ken teaches managerial and financial accounting. He teaches in online, flipped classroom, and face-to-face modes. He has received numerous School of Accountancy, College of Business, and university-level awards for teaching excellence and for teaching with technology. He is the past advisor to his schools Beta Alpha Psi and Association of Certified Fraud Examiners chapters.

Ken is an active member of the American Accounting Association and its sections. He has served on many committees of these organizations. Ken has presented his research papers at international and national conferences and workshops. Kens research appears in the