Financial Accounting in an Economic Context. 5th ed. John Wiley & Sons, Inc. is written by Jamie Pratt, professor of Accounting at the Indiana University. It is the recommended text for the MIT open courseware on financial accounting.


The book delves into understanding financial accounting through the lens of the economy. The areas covered in the book include financial statements, the measurement fundamentals of financial accounting, the mechanics of financial accounting, using financial statement information, asset classification, current liabilities and contingencies, notes, bonds and leases, stockholders equity, income statement, statement of cash flows and inventory management.

Each topic ends with a review of concepts. Short exercises and multiple-choice questions at the end of the chapter will help further reinforce the concept for the reader. Detailed solutions are provided for review and understanding.

Financial Accounting in an Economic Context. 5th ed has been designed to serve as a companion to Pratt’s Financial Accounting, 5th ed.

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