Financial accounting is a key building block to understanding accounting more generally. This textbook helps students to understand the concepts that underpin the application of accounting theory to help solve accounting problems. This international edition includes extracts from financial statements, definitions of key terms and exam examples, along with real life examples to support class work. Unlike other textbooks, the author provides analysis of why accountants do what they do and not just how. This is an essential read for all accountancy and financing students and researchers.