This easy-to-read text will give students the grounding they need to understand the principles of financial accounting. Whilst it provides a sound theoretical foundation of the subject area this new edition also emphasises the preparation, analysis and application of accounting statements in the context of the modern business organisation. Key Features End-of-chapter review questions and exercises with answers. Checkpoint questions throughout, solutions also included. Definitions of all key terms and easy-reference glossary. New! greater prominence given to the limitations of the accounting model. New! chapter on the accounts of charities. New! chapter summarising the preparation of financial statements. New! chapter on computerised accounting. New! expanded coverage of auditing. New! updated section on the recognition of profit.; New! Companion Website with excellent resources for both students and lecturers e. g. multiple choice questions, comments on recent press reports and downloadable instructor's manual. Principles of Financial Accounting is ideal for students taking an introductory course or module in financial accounting. Ian Gillespie was formerly Academic Director of Validation Services at the European Business School, London and Academic Leader, Regents Business School, London. Richard Lewis was formerly Professor of Accountancy at the University of Wales and is now Co-Director of the Centre for Higher Education Research and Information (CHERI) and President of the International Network for Quality Assurance Agencies in Higher Education (INQAAHE). Kay Hamilton was formerly Accounting Subject Leader at the European Business School, London.