Financial Accounting - 2026 Release
PREFACE
CHAPTER ONE Financial Statements and Business Decisions
CHAPTER TWO Investing and Financing Decisions and the Accounting System
CHAPTER THREE Operating Decisions and the Accounting System
CHAPTER FOUR Adjustments, Financial Statements, and the Closing Process
CHAPTER FIVE Reporting and Interpreting Sales Revenue, Receivables, and Cash
CHAPTER SIX Reporting and Interpreting Cost of Sales and Inventory
CHAPTER SEVEN Reporting and Interpreting Long-Lived Assets
CHAPTER EIGHT Reporting and Interpreting Current Liabilities
CHAPTER NINE Reporting and Interpreting Non-current Liabilities
CHAPTER TEN Reporting and Interpreting Shareholders’ Equity
CHAPTER ELEVEN Statement of Cash Flows
CHAPTER TWELVE Communicating Accounting Information and Analyzing Financial Statements
CHAPTER THIRTEEN Reporting and Interpreting Investments in Other Corporations
APPENDIX A Extracts of the Annual Consolidated Financial Statements of Metro Inc.
APPENDIX B Industry Ratio Report
APPENDIX C The Formal Recordkeeping System (Online)
INDEX FOCUS COMPANIES
Well-known for its distinctive company approach, Libby’s Financial Accounting demonstrates how financial accounting makes a difference in the success of a firm. Throughout each chapter, the material focuses on a familiar company, its decisions, and its financial statements, clearly showing the relevance of accounting and engaging students by explaining accounting in a real-world context.
Since it was first published, Financial Accounting has grown to be a market-leading financial accounting textbook on which both students and instructors rely. The authors of the Canadian 2026 Release continue to make financial accounting a more relevant and interesting introduction to financial accounting for students. How? By helping the instructor and student become partners in learning, with a remarkable learning approach using real examples of companies familiar to students, which keeps them engaged and involved in the material from the first day of class.
Updated Real Company Information. Greater focus on reporting by students’ favourite tech companies including Alphabet (Google), Meta Platforms (Facebook), Apple, Amazon, Microsoft, and others.
Application-Based Activities. Prepare students for the real world with Application-Based Activities in Connect. These highly interactive, assignable exercises boost engagement and provide a safe space to apply concepts learned to real-world, course-specific problems. Each Application-Based Activity involves the application of multiple concepts, providing the ability to synthesize information and use critical thinking skills to solve realistic scenarios.
Data Analytics. Auto-graded data analytics exercises in Connect titled Business Analytics and Data Visualization for most chapters. New appendix (1C) on Data Visualization, which provides an overview of commonly used data visualization techniques that can help in interpreting, analyzing, and learning from the data.
ESG Coverage. New Appendix 2B on ESG reporting from a global perspective. Reorganized the material on Environmental, Social, and Governance (ESG) Reporting in Chapter 12 with an excerpt from Empire’s 2024 Sustainable Business Report. Revised discussion on Environmental, Social, and Governance (ESG) issues with an excerpt from FedEx’s 2024 ESG Report in Chapter 7.
General Ledger Problems. General Ledger Problems provide a much-improved student experience when working with accounting cycle questions, offering improved navigation and less scrolling. Students can audit their mistakes by easily linking back to their original entries and can see how the numbers flow through the various financial statements. Many General Ledger Problems include an analysis tab that allows students to demonstrate their critical thinking skills and a deeper understanding of accounting concepts.
AI Reader. Encourage discovery and boost understanding with AI Reader. Designed to facilitate active reading, AI Reader within McGraw Hill Connect provides students with AI tools to enhance their comprehension, retention, and critical thinking. Students can use AI Reader within the Connect eBook and/or SmartBook to highlight words or sections to see different explanations, create quiz-questions for self-study, copy helpful explanations to their notes, and follow citations to find the original context of the AI-generated explanation.
Evergreen™. Content and technology are ever-changing, and it is important that you can keep your course up to date with the latest content and assessments. That’s why we want to deliver the most current and relevant content for your course, hassle-free. McGraw Hill uses an Evergreen delivery model, which is a product delivery model and experience that provides customers with the most relevant and updated content, tools, and accessibility. Engage students and freshen up assignments with up-to-date coverage of select topics and new questions, all without having to switch editions or build a new course.
Focus Company Approach. Libby’s distinctive focus company approach motivates students by involving them in the business decisions of a real company and engaging them with relevant real-world financial statements. The focus company in each chapter provides the perfect setting for discussing the importance of accounting, and how businesses use accounting information.
A Building-Block Approach to Teaching Transaction Analysis. Faculty agree the accounting cycle is the most critical concept to learn and master for students studying financial accounting, regardless of their career aspirations. Libby believes students struggle with the accounting cycle when transaction analysis is covered in one chapter. This book’s approach spreads the coverage of transaction analysis over two chapters so that students have the time to master the material. In Chapter 2 of Financial Accounting, students are exposed to the accounting equation and transaction analysis for investing and financing transactions that affect only elements of the statement of financial position. In Chapter 3, students are exposed to more complex operating transactions that also affect elements of the statement of earnings. By slowing down the introduction of transactions and giving students time to practise and gain mastery, this building-block approach leads to greater student success in their study of later topics in financial accounting such as adjusting entries.
Balanced Coverage. Libby ensures students understand both the use and preparation of financial statements. Technical requirements for financial reporting are presented within a context that helps students learn the technical material and better understand its importance. The decision-making focus then prepares students to analyze and interpret real financial information to make better business decisions.
Currency. International Financial Reporting Standards (IFRS) are completely integrated within each chapter and throughout the text, while an Accounting Standards for Private Enterprises (ASPE) box addresses the differences between the two types of reporting and conclude each chapter.
Clarity. Libby’s clear presentation keeps students engaged throughout the course. The organization of the material ensures maximum readability for students and flexibility for instructors.
Wealth of Problem Material. Based on real Canadian and International companies, the extensive selection of end-of-chapter Exercise and Problem material examines single concepts or integrate multiple concepts presented in the chapter. The “Cases and Projects” selection of assignments require students to analyze and think conceptually, calculate, and enhance their written communication skills.
McGraw Hill Connect®. Predictive, Personal and Powered by AI. McGraw Hill Connect is an award-winning digital teaching and learning platform designed to empower students and streamline course management for instructors. With cutting-edge adaptive technology and AI-driven tools, Connect delivers personalized learning experiences that help students achieve their full potential. For instructors, Connect provides comprehensive reporting, actionable data, and valuable insights designed to amplify teaching.
SmartBook®. Within Connect, students have access to SmartBook, McGraw Hill’s adaptive learning and reading resource. SmartBook creates a safe space for learning and confidence building, as students receive immediate and meaningful feedback to help guide their study. By prompting students with questions and assessing individual answers, SmartBook learns what a student knows and identifies which topics they need to practice, giving each student a personalized learning experience and path to success.
ReadAnywhere® App. Read or study when it’s convenient with McGraw Hill’s free ReadAnywhere app. Available for iOS and Android smartphones or tablets, the ReadAnywhere App gives users access to McGraw Hill tools including the eBook and SmartBook or Adaptive Learning Assignments in McGraw Hill Connect. Students can take notes, highlight, and complete assignments offline—all their work will sync when connected to Wi-Fi. Students log in with their Connect username and password to start learning—anytime, anywhere!
McGraw-Hill Connect is an award-winning digital teaching and learning solution that empowers students to achieve better outcomes and enables instructors to improve course management efficiency.
High-Quality Course Material
Our trusted solutions are designed to help students actively engage in course content and develop critical higher-level thinking skills while offering you the flexibility to tailor your course to the ways you teach and the ways your students learn.
Assignments & Automatic Grading
Connect features a question bank that you can select from to create homework, practice tests and quizzes. Dramatically reduce the amount of time you spend reviewing homework and grading quizzes, freeing up your valuable time to spend on teaching.
Analytics & Reporting
Monitor progress and improve focus with Connect’s visual and actionable dashboards. Reports are available to empower both instructors and students with real-time performance analytics.
Seamless Integration
Link your Learning Management with Connect for single sign-on and gradebook synchronization, with all-in-one ease for you and your students.