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 page i

Data Analytics for Accounting

THIRD EDITION

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 page ii

DATA ANALYTICS FOR ACCOUNTING

Published by McGrawHill LLC, 1325 Avenue of the Americas, New

York, NY 10019. Copyright ©2023 by McGrawHill LLC. All rights
reserved. Printed in the United States of America. 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 McGrawHill LLC, including, but not limited to, in
any network or other electronic storage or transmission, or
broadcast for distance learning.

Some ancillaries, including electronic and print components, may not

be available to customers outside the United States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 LWI 27 26 25 24 23 22

ISBN 978-1-265-09445-4
MHID 1-265-09445-4

Cover Image: sasirin pamai/Shutterstock

All credits appearing on page or at the end of the book are
considered to be an extension of the copyright page.

The Internet addresses listed in the text were accurate at the time of
publication. The inclusion of a website does not indicate an
endorsement by the authors or McGraw Hill LLC, and McGraw Hill
LLC does not guarantee the accuracy of the information presented at
these sites.

mheducation.com/highered
 page iii

Dedications
My wonderful daughter, Rachel, for your
constant love, encouragement, and support.
You always make me laugh and smile!

—Vern Richardson

To my three wonderful little Teeter tots, who

keep me on my toes.

—Ryan Teeter

To the Mustache Running Club. Over many

miles you all have learned more about
accounting data analytics than you ever hoped
for! Thanks for all of your support—on and off
the trail.

—Katie Terrell
 page iv

Preface
Data Analytics is changing the business world—data simply surround
us! So many data are available to businesses about each of us—how
we shop, what we read, what we buy, what music we listen to,
where we travel, whom we trust, where we invest our time and
money, and so on. Accountants create value by addressing
fundamental business and accounting questions using Data
Analytics.
All accountants must develop data analytic skills to address the
needs of the profession in the future—it is increasingly required of
new hires and old hands. Data Analytics for Accounting, 3e
recognizes that accountants don’t need to become data scientists—
they may never need to build a data repository or do the real
hardcore Data Analytics or learn how to program a computer to do
machine learning. However, there are seven skills that analytic-
minded accountants must have to be prepared for a data-filled
world, including:

1. Developed analytics mindset—know when and how Data

Analytics can address business questions.
2. Data scrubbing and data preparation—comprehend the process
needed to clean and prepare the data before analysis.
3. Data quality—recognize what is meant by data quality, be it
completeness, reliability, or validity.
4. Descriptive data analysis—perform basic analysis to understand
the quality of the underlying data and their ability to address
the business question.
5. Data analysis through data manipulation—demonstrate ability to
sort, rearrange, merge, and reconfigure data in a manner that
allows enhanced analysis. This may include diagnostic,
predictive, or prescriptive analytics to appropriately analyze the
data.
6. Statistical data analysis competency—identify and implement an
approach that will use statistical data analysis to draw
conclusions and make recommendations on a timely basis.
7. Data visualization and data reporting—report results of analysis
in an accessible way to each varied decision maker and his or
her specific needs.

Consistent with these skills, it’s important to recognize that Data

Analytics is an iterative process. The process begins by identifying
business questions that can be addressed with data, extracting and
testing the data, refining our testing, and finally, communicating
those findings to management. Data Analytics for Accounting, 3e
describes this process by relying on an established Data Analytics
model called the IMPACT cycle:1

1. Identify the questions.

2. Master the data.
3. Perform test plan.
4. Address and refine results.
5. Communicate insights.
6. Track outcomes.

page v

Adapted from Win with Advanced Business Analytics: Creating Business Value from
Your Data, by Jean Paul Isson and Jesse S. Harriott.

The IMPACT cycle is described in the first four chapters, and then
the process is illustrated in auditing, managerial accounting, financial
accounting, and taxes in Chapters 5 through 9. In response to
instructor feedback, Data Analytics for Accounting, 3e now also
includes two new project chapters, giving students a chance to
practice the full IMPACT model with multiple labs that build on one
another.
Data Analytics for Accounting, 3e emphasizes hands-on practice
with real-world data. Students are provided with hands-on
instruction (e.g., click-by-click instructions, screenshots, etc.) on
datasets within the chapter; within the end-of-chapter materials; and
in the labs at the end of each chapter. Throughout the text, students
identify questions, extract and download data, perform testing, and
then communicate the results of that testing.
 The use of real-world data is highlighted by using data from
Avalara, LendingClub, College Scorecard, Dillard’s, the State
of Oklahoma, as well as other data from our labs. In particular, we
emphasize the rich data from Dillard’s sales transactions that we
use in more than 15 of the labs throughout the text (including
Chapter 11).
Data Analytics for Accounting, 3e also emphasizes the various
data analysis tools students will use throughout the rest of their
career around two tracks—the Microsoft track (Excel, Power BI) and
a Tableau track (Tableau Prep and Tableau Desktop—available with
free student license). Using multiple tools allows students to learn
which tool is best suited for the necessary data analysis, data
visualization, and communication of the insights gained—for
example, which tool is easiest for internal controls testing, which is
best for analysis or querying (using SQL) big datasets, which is best
for data visualizations, and so on.

1Jean Paul Isson and Jesse S. Harriott, Win with Advanced Business Analytics:
Creating Business Value from Your Data (Hoboken, NJ: Wiley, 2013).
 page vi

About the Authors

Vernon J. Richardson

Vernon J. Richardson is a Distinguished Professor of Accounting

and the G. William Glezen Chair in the Sam M. Walton College of
Business at the University of Arkansas and a Visiting Professor at
Baruch College. He received his BS, Master of Accountancy, and MBA
from Brigham Young University and a PhD in accounting from the
University of Illinois at Urbana–Champaign. He has taught students
at the University of Arkansas, Baruch College, University of Illinois,
Brigham Young University, Aarhus University, and University of
Kansas, and internationally at the China Europe International
Business School (Shanghai), Xi’an Jiaotong Liverpool University,
Chinese University of Hong Kong–Shenzhen, and the University of
Technology Sydney.
Dr. Richardson is a member of the American Accounting
Association. He has served as president of the American Accounting
Association Information Systems section. He previously served as an
editor of The Accounting Review and is currently an editor at
Accounting Horizons. He has published articles in The Accounting
Review, Journal of Information Systems, Journal of Accounting and
Economics, Contemporary Accounting Research, MIS Quarterly,
International Journal of Accounting Information Systems, Journal of
Management Information Systems, Journal of Operations
Management, and Journal of Marketing. Dr. Richardson is also an
author of McGraw Hill’s Accounting Information Systems and
Introduction to Data Analytics for Accounting textbooks.

Ryan A. Teeter

Ryan A. Teeter is a Clinical Associate Professor of Accounting in the

Katz Graduate School of Business at the University of Pittsburgh. He
teaches accounting information systems, auditing, and accounting
data analytics. Prior to receiving his PhD in accounting information
systems from Rutgers University, he worked at Google in Mountain
View, California. He has since worked with internal audit
organizations at Siemens, Procter & Gamble, Alcoa/Arconic, and
FedEx, helping to develop robotic process automation programs and
Data Analytic solutions.
Dr. Teeter is a member of the American Accounting Association
and has published articles in the Journal of Strategic Technologies in
Accounting and Issues in Accounting Education. He has received
grant funding for Data Analytics research from PwC. Dr. Teeter is
also an author of McGraw Hill’s Introduction to Data Analytics for
Accounting textbook.
Katie L. Terrell

Katie L. Terrell is an instructor in the Sam M. Walton College of

Business at the University of Arkansas. She received her BA degrees
in English literature and in the Spanish language from the University
of Central Arkansas and her MBA from the University of Arkansas.
She expects a doctoral degree by 2021. She has taught students at
the University of Arkansas; Soochow University (Suzhou, China); the
University College Dublin (Ireland); and Duoc UC, a branch of the
Catholic University of Chile (Vina del Mar, Chile).
She is a member of the American Accounting Association and has
published a Statement on Management Accounting for the Institute
of Management Accountants on managing organizational change in
operational change initiatives. Terrell was named the 2019 Business
Professional of the Year (Education) by the national Beta Alpha Psi
organization. She has recently been recognized for her innovative
teaching by being the recipient of the Mark Chain/FSA Teaching
Award for innovative graduate-level accounting teaching practices in
2016. She has worked with Tyson Foods, where she held various
information system roles, focusing on business analysis, project
management for ERP implementations and upgrades, and
organizational change management. Terrell is also an author of
McGraw Hill’s Introduction to Data Analytics for Accounting textbook.
 page vii

Acknowledgments
Our sincere thanks to all who helped us on this project.
Our biggest thanks to the awesome team at McGraw Hill,
including Steve Schuetz, Tim Vertovec, Rebecca Olson, Claire
McLemore, Michael McCormick, Christine Vaughan, Kevin Moran,
Angela Norris, and Lori Hancock.
Our thanks also to each of the following:
The Walton College Enterprise Team (Paul Cronan, Ron Freeze,
Michael Gibbs, Michael Martz, Tanya Russell) for their work helping
us get access to the Dillard’s data.
Shane Lunceford from LendingClub for helping gain access to
LendingClub data.
Joy Caracciolo, Will Cocker, and Tommy Morgan from Avalara for
their help to grant permissions usage of the Avalara data.
Bonnie Klamm, North Dakota State University, and Ryan Baxter,
Boise State University, for their accuracy check review of the
manuscript and Connect content.
In addition, the following reviewers and classroom testers who
provided ideas and insights for this edition. We appreciate their
contributions.
Amelia Annette Baldwin
University of South Alabama
Dereck Barr-Pulliam
University of Wisconsin–Madison
Ryan Baxter
Boise State University
Cory Campbell
Indiana State University
Heather Carrasco
Texas Tech University
Curtis Clements
Abilene Christian University
Elizabeth Felski
State University of New York at Geneseo
Amber Hatten
The University of Southern Mississippi
Jamie Hoeischer
Southern Illinois University, Edwardsville
Chris C. Hsu
York College, City University of New York
Venkataraman Iyer
University of North Carolina at Greensboro
Andrea S. Kelton
Middle Tennessee State University
Bonnie Klamm
North Dakota State University
Gregory Kogan
Long Island University, Brooklyn
Hagit Levy
Baruch College, CYNY
Brandon Lock
Baruch College, CUNY
Sharon M. Lightner
National University
Kalana Malimage
University of Wisconsin–Whitewater
Partha Mohapatra
California State University, Sacramento
Bonnie Morris
Duquesne University
Uday Murthy
University of South Florida
Kathy Nesper
University at Buffalo
Kamala Raghavan
Texas Southern University
Marie Rice
West Virginia University
Ali Saeedi
University of Minnesota Crookston
Karen Schuele
John Carroll University
Drew Sellers
Kent State University
Joe Shangguan
Robert Morris University
Vincent J. Shea
St. John’s University
Jacob Shortt
Virginia Tech
Marcia Watson
University of North Carolina at Charlotte
Liu Yang
Southeast Missouri State University
Zhongxia Ye
University of Texas, San Antonio
Qiongyao (Yao) Zhang
Robert Morris University
Vernon Richardson
Ryan Teeter
Katie Terrell
 page viii

Key Features
NEW! Color Coded Multi-Track Labs: Instructors have the
flexibility to guide students through labs using the Green Track:
Microsoft tools (including Excel, Power Query, and Power BI);
Blue Track: Tableau tools (including Tableau Prep Builder and
Tableau Desktop); or both. Each track is clearly identified and
supported with additional resources.

NEW! Lab Example Outputs: Each lab begins with an example

of what students are expected to create. This provides a clear
reference and guide for student deliverables.

NEW! Auto-Graded Problems: The quantity and variety of

auto-graded problems that are assignable in McGraw Hill Connect
have been expanded.

NEW! Discussion and Analysis: Now available as manually

graded assignments in McGraw Hill Connect.

Emphasis on Skills: Working through the IMPACT cycle

framework, students will learn problem assessment, data
preparation, data analysis, data visualization, control contesting,
and more.
Emphasis on Hands-On Practice: Students will be provided
hands-on learning (click-by-click instructions with screenshots) on
datasets within each chapter, within the end-of-chapter materials,
and in the labs and comprehensive cases.

Emphasis on Datasets: To illustrate data analysis techniques

and skills, multiple practice datasets (audit, financial, and
managerial data) will be used in every chapter. Students gain
real-world experience working with data from Avalara,
LendingClub, Dillard’s, College Scorecard, the State of
Oklahoma, as well as financial statement data (via XBRL) from
S&P100 companies.

Emphasis on Tools: Students will learn how to conduct data

analysis using Microsoft and Tableau tools. Students will compare
and contrast the different tools to determine which are best
suited for basic data analysis and data visualization, which are
easiest for internal controls testing, which are best for SQL
queries, and so on.
 page ix

Main Text Features

 page x

End-of-Chapter Materials
page xi
 page xii

Data Analytics for Accounting,

3e Content Updates
General Updates for the 3rd Edition
Color coded multi-track labs now emphasize two tracks: The
green Microsoft Track (including Excel, Power Query, and Power
BI) and blue Tableau Track (including Tableau Prep Builder and
Tableau Desktop).

Added additional End-of-Chapter Multiple Choice Questions

throughout the text that are auto-graded in Connect.

Significantly revised many End-of-Chapter Problems for

availability and auto-grading within Connect. Analysis Problems
in Connect are manually graded.

Linked chapter content to lab content using Lab Connections

within the chapter content.

Chapter by Chapter Updates

Specific chapter changes for Data Analytics for Accounting, 3e are as
follows:
Chapter 1
Added new opening vignette regarding a recent IMA survey of
finance and accounting professionals and their use of Big Data
and Data Analytics.

Added discussion on how analytics are used in auditing, tax, and

management accounting.

Included introduction to the variety of analytics tools available

and explanation of dual tracks for labs including Microsoft Track
and Tableau Track.

Added “Data Analytics at Work” box feature: What Does an

Analyst Do at a Big Four Accounting Firm.

Added six new Connect-ready problems.

Implemented lab changes:

All-new tool connections in Lab 1-5.

Revised Labs 1-0 to 1-4.

Chapter 2
Edited opening vignette to include current examples regarding
data privacy and ethics.

Added a discussion on ethical considerations related to data

collection and use.

Added exhibit with potential external data sources to address

accounting questions.
 Expanded the data extraction section to first include data
identification, including the use of unstructured data.

Added “Data Analytics at Work” box feature: Jump Start Your

Accounting Career with Data Analytics Knowledge.

Added six new Connect-ready problems.

Implemented lab changes:

Revised Labs 2-1 to 2-8.

page xiii

Chapter 3
Refined the discussion on diagnostic analytics.

Improved the discussion on the differences between qualitative

and quantitative data and the discussion of the normal
distribution.

Refined the discussion on the use of regression as an analytics

tool.

Added examples of time series analysis in the predictive

analytics section.

Added “Data Analytics at Work” box feature: Big Four Invest

Billions in Tech, Reshaping Their Identities as Professional
Services Firm with a Technology Core.

Added six new Connect-ready problems.

 Implemented lab changes:

All-new cluster analysis in Lab 3-2.

Revised Labs 3-1, 3-3 to 3-6.

Chapter 4
Added discussion of statistics versus visualizations using
Anscombe’s quartet.

Updated explanations of box plots and Z-scores.

Added “Data Analytics at Work” box feature: Data Visualization:

Why a Picture Can Be Worth a Thousand Clicks.

Added six new Connect-ready problems.

Implemented lab changes:

All-new dashboard in Lab 4-3.

Revised Labs 4-1, 4-2, 4-4, 4-5.

Chapter 5
Improved and clarified content to match the focus on
descriptive, diagnostic, predictive, and prescriptive analytics.

Added “Data Analytics at Work” box feature: Citi’s $900 Million

Internal Control Mistake: Would Continuous Monitoring Help?

Added six new Connect-ready problems.

Implemented lab changes:

 Revised Labs 5-1 to 5-5.

Chapter 6
Clarified chapter content to match the focus on descriptive,
diagnostic, predictive, and prescriptive analytics.

Added “Data Analytics at Work” box features: Do Auditors Need

to Be Programmers?

Added six new Connect-ready problems.

Implemented lab changes:

Major revisions to Labs 6-1 to 6-5.

Chapter 7
Added new exhibit and discussion that maps managerial
accounting questions to data approaches.

Added “Data Analytics at Work” box feature: Maximizing Profits

Using Data Analytics

Added five new Connect-ready problems.

Implemented lab changes:

All-new job cost, balanced scorecard, and time series

dashboards in Lab 7-1, 7-2, 7-3.

Revised Lab 7-4, 7-5.

page xiv
Chapter 8
Added new exhibit and discussion that maps financial statement
analysis questions to data approaches.

Added four new Connect-ready problems.

Implemented lab changes:

All-new sentiment analysis in Lab 8-4.

Revised Labs 8-1 to 8-3.

Chapter 9
Added new exhibit and discussion that maps tax questions to
data approaches.

Added four new Connect-ready problems.

Implemented lab changes:

Revised Labs 9-1 to 9-5.

Chapter 10
Updated project chapter that evaluates different business
processes, including the order-to-cash and procure-to-pay
cycles, from different user perspectives with a choice to use the
Microsoft track, the Tableau track, or both.

Added extensive, all-new set of objective and analysis questions

to assess analysis and learning.
Chapter 11
Updated project chapter, estimating sales returns at Dillard’s
with three question sets highlighting descriptive and exploratory
analysis, hypothesis testing, and predictive analytics with a
choice to use the Microsoft track, the Tableau track, or both.

Added extensive, all-new set of objective and analysis questions

to assess analysis and learning.
 page xv

Connect for Data Analytics for

Accounting

With McGraw Hill Connect for Data Analytics for Accounting, your
students receive proven study tools and hands-on assignment
materials, as well as an adaptive eBook. Here are some of the
features and assets available with Connect.

Proctorio: New remote proctoring and browser-locking capabilities,

hosted by Proctorio within Connect, provide control of the
assessment environment by enabling security options and verifying
the identity of the student. Seamlessly integrated within Connect,
these services allow instructors to control students’ assessment
experience by restricting browser activity, recordingstudents’ activity,
and verifying students are doing their own work. Instant and
detailed reporting gives instructors an at-a-glance view of potential
academic integrity concerns, thereby avoiding personal bias and
supporting evidence-based claims.
SmartBook 2.0: A personalized and adaptive learning tool used to
maximize the learning experience by helping students study more
efficiently and effectively. Smartbook 2.0 highlights where in the
chapter to focus, asks review questions on the materials covered,
and tracks the most challenging content for later review recharge.
Smartbook 2.0 is available both online and offline.

Orientation Videos: Video-based tutorial assignments are

designed to train students via an overview video followed by a quiz
for each of the assignment types they will find in McGraw Hill
Connect.
Multiple Choice Questions: The multiple choice questions from
the end-of-chapter materials are assignable and auto-gradable in
McGraw Hill Connect, with the option to provide students with
instant feedback on their answers and performance.
Discussion and Analysis Questions: We have added the
Discussion and Analysis questions into McGraw Hill Connect as
manually graded assignments for convenience of assignment
organization. These can be utilized for small group or in-class
discussion.

page xvi

Problems: Select problems from the text are auto-graded in

McGraw Hill Connect. Manually graded analysis problems are also
now available to ensure students are building an analytical skill set.
Color Coded Multi-Track Labs: Labs are assignable in McGraw
Hill Connect as the green Microsoft Track (including Excel, Power
Query, and Power BI) and blue Tableau Track (including Tableau
Prep Builder and Tableau Desktop).
 page xvii

Students complete their lab work outside of Connect in the lab track
selected by their professor. Students answer assigned lab questions
designed to ensure they understood the key skills and outcomes
from their lab work. Both auto-graded lab objective questions and
manually graded lab analysis questions are assignable in Connect.
Comprehensive Cases: Comprehensive case labs are assignable in
McGraw Hill Connect. Students work outside of Connect to complete
the lab using the Dillard’s real-world Big Data set. Once students
complete the comprehensive lab, they will go back into Connect to
answer questions designed to ensure they completed the lab and
understood the key skills and outcomes from their lab work.

Lab Walkthrough Videos: These author-led lab videos in McGraw

Hill Connect explain how to access and use the tools needed to
complete the processes essential to the labs. Lab videos improve
student success and minimize student questions!
Author Lecture Videos: Lecture Videos assignable in McGraw Hill
Connect teach each chapter’s core learning objectives and concepts
through an author-developed, hands-on presentation, bringing the
text content to life. The videos have the touch and feel of a live
lecture, rather than a canned presentation, so you can learn at your
own pace.
Writing Assignment: The Writing Assignment tool delivers a
learning experience to help students improve their written
communication skills and conceptual understanding. As an instructor
you can assign, monitor, grade, and provide feedback on writing
more efficiently and effectively in McGraw Hill Connect.
Test Bank: The test bank includes auto-graded multiple choice and
true/false assessment questions. The test bank can be assigned
directly within McGraw Hill Connect or exported from Test Builder.
 page xviii

Instructors: Student Success Starts with You

Tools to enhance your unique voice

Want to build your own course? No problem. Prefer to use our
turnkey, prebuilt course? Easy. Want to make changes throughout
the semester? Sure. And you’ll save time with Connect’s auto-
grading too.
Laptop: McGraw Hill; Woman/dog: George Doyle/Getty Images

Study made personal

Incorporate adaptive study resources like SmartBook® 2.0 into your
course and help your students be better prepared in less time. Learn
more about the powerful personalized learning experience available
in SmartBook 2.0 at
www.mheducation.com/highered/connect/smartbook

Affordable solutions, added value

Make technology work for you with LMS integration for single sign-
on access, mobile access to the digital textbook, and reports to
quickly show you how each of your students is doing. And with our
Inclusive Access program you can provide all these tools at a
discount to your students. Ask your McGraw Hill representative for
more information.

Padlock: Jobalou/Getty Images

 Solutions for your challenges

A product isn’t a solution. Real solutions are affordable, reliable,

and come with training and ongoing support when you need it and
how you want it. Visit www.supportateverystep.com for
videos and resources both you and your students can use
throughout the semester.

Checkmark: Jobalou/Getty Images

page xix

Students: Get Learning that Fits You

Effective tools for efficient studying

Connect is designed to make you more productive with simple,
flexible, intuitive tools that maximize your study time and meet your
individual learning needs. Get learning that works for you with
Connect.
Study anytime, anywhere.
Download the free ReadAnywhere app and access your online eBook
or SmartBook 2.0 assignments when it’s convenient, even if you’re
offline. And since the app automatically syncs with your eBook and
SmartBook 2.0 assignments in Connect, all of your work is available
every time you open it. Find out more at
www.mheducation.com/readanywhere

“I really liked this app—it made it easy to study when

you don’t have your textbook in front of you.”
– Jordan Cunningham, Eastern Washington University

Calendar: owattaphotos/Getty Images

Everything you need in one place

Your Connect course has everything you need—whether reading on
your digital eBook or completing assignments for class, Connect
makes it easy to get your work done.

Learning for everyone

McGraw Hill works directly with Accessibility Services Departments
and faculty to meet the learning needs of all students. Please
contact your Accessibility Services Office and ask them to email
[email protected], or visit
www.mheducation.com/about/accessibility for more
information.

Top: Jenner Images/Getty Images, Left: Hero Images/Getty Images, Right: Hero
Images/Getty Images
 page xx

Brief Table of Contents

Preface iv
About the Authors vi
Acknowledgments vii
Key Features viii
Main Text Features ix
End-of-Chapter Materials x
Data Analytics for Accounting, 3e Content Updates xii
Connect for Data Analytics for Accounting xv

Chapter 1 Data Analytics for Accounting and Identifying the

Questions 2
Chapter 2 Mastering the Data 52
Chapter 3 Performing the Test Plan and Analyzing the Results
114
Chapter 4 Communicating Results and Visualizations 180
Chapter 5 The Modern Accounting Environment 244
Chapter 6 Audit Data Analytics 282
Chapter 7 Managerial Analytics 334
Chapter 8 Financial Statement Analytics 404
Chapter 9 Tax Analytics 454
Chapter 10 Project Chapter (Basic) 498
Chapter 11 Project Chapter (Advanced): Analyzing Dillard’s Data
to Predict Sales Returns 512
Appendix A Basic Statistics Tutorial 528
Appendix B Excel (Formatting, Sorting, Filtering, and PivotTables)
534
Appendix C Accessing the Excel Data Analysis Toolpak 544
Appendix D SQL Part 1 546
Appendix E SQL Part 2 560
Appendix F Power Query in Excel and Power BI 564
Appendix G Power BI Desktop 572
Appendix H Tableau Prep Builder 578
Appendix I Tableau Desktop 582
Appendix J Data Dictionaries 586

GLOSSARY 588

INDEX 593
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 Fig. 42. A transsection through the posterior region of the œsophagus of the
hibernating animal, under low magnification; e, epithelium; cm, circular muscles;
lm, longitudinal muscles; mm, muscularis mucosa; sm, submucosa; s, serosa.

In the posterior region of the œsophagus, as may be seen by

comparison of figures 41 and 42, the wall as a whole is about one
third thicker than in the anterior region just described, though how
much of this difference is due to different degrees of distension or
contraction it is hard to say.
The epithelium, e, is in the tissue studied thrown into less
complicated folds than in the anterior region, and is not so thick.
The submucosa, sm, if the entire layer may be so called, has
about the same thickness and structure as in the more anterior
region; but instead of the small and widely scattered bundles of
longitudinal muscle fibers there is a distinct layer of muscle which
may be called the muscularis mucosa, mm, lying about midway
between the epithelium and the circular muscle layer.
The muscularis mucosa is somewhat variable in thickness and is
thrown into folds that correspond to the larger folds of the epithelium
and the submucosa; one of these folds is shown in Figure 42. The
fibers of the muscularis mucosa are apparently all longitudinal in
position.
Outside of the submucosa is a layer of circular muscle fibers, cm;
it is here somewhat wider and more dense than in the anterior
region.
The longitudinal muscle layer (Fig. 42, lm) is much wider and more
compact than in the anterior region. The fibers are indistinctly divided
into large irregular masses as shown in the figure.
The serosa (Fig. 42, s) is a varying but fairly thick layer that is
quite distinct from the longitudinal muscle layer. It consists of the
usual connective tissue groundwork with scattered blood-vessels.
The epithelium, as was said above, is thicker and somewhat more
folded in the anterior than in the posterior region, and in the former
region is partially ciliated while in the latter cilia are entirely wanting.
With these exceptions the epithelium is practically the same in the
two regions.
 Figure 43 represents the epithelium from the anterior region as
seen under high magnification. The outlines of all the cells could not
be determined but if each nucleus represents a cell there are twenty-
five or thirty layers of cells. The nuclei are arranged in two dense,
irregular groups, one along the base of the epithelium, the other
about two thirds of the distance from the base to the free border. The
basal nuclei are perhaps slightly larger and more rounded than those
of the distal group. Between these two groups are numerous more
scattered nuclei; while scattered through the epithelium, except near
the free border, are smaller, round nuclei that stain somewhat darker
than the rest; these, from their size and appearance, seem possibly
to belong to an invisible network of connective tissue that has
penetrated the epithelium from the surrounding mucosa.
 Fig. 43. The epithelium of the anterior region of the œsophagus of the
hibernating animal, under high magnification.

The free border of the epithelium consists of long, ciliated,

columnar cells in which the cell walls may be easily seen. The cilia
are of average length and even in this anterior region are not
everywhere present; possibly they are arranged in bands, but the
material at hand was not sufficient to determine this. As was noted
above, cilia are wanting in the posterior region.
The only differences noted in the anterior region of the
œsophagus between the feeding and the hibernating conditions are
in the muscularis mucosa and the epithelium. As was noted above,
the muscularis mucosa is practically absent in the hibernating stage,
being represented only by a few small, scattered bundles of
longitudinal muscle fibers; while in the feeding stage there is a
narrow but fairly distinct layer to represent the muscularis mucosa.
 Fig. 44. The epithelium of the anterior region of the œsophagus of
the feeding animal, under high magnification.

The difference in the appearance of the epithelium is not striking.

The nuclei are somewhat larger in the feeding stage and, instead of
being crowded into a basal and a median zone, as noted in the
hibernating conditions, they form a dense basal zone, but show no
indication of medial zone. From the dense basal zone the nuclei
become more scattered towards the free surface and are rarely
found closer to the surface than is shown in Figure 44. The smaller
nuclei scattered among the larger ones, noted in connection with the
hibernating stage, are not here seen.
As in the hibernating stage cilia are present on some but not all
cells of this region.
The only noticeable difference between the feeding and
hibernating conditions of the posterior region of the œsophagus is in
the epithelium, which, as in the feeding condition of the anterior
œsophagus, exhibits but one zone of closely set nuclei, that at the
base of the epithelium.
The Stomach. The stomach was sectioned in three regions, as
shown in Figure 35: (1) in the cardiac region very near the opening
of the œsophagus; (2) in the middle or fundic region; and (3) in the
region near the opening of the pylorus. The first two sections are in
the first or large region of the stomach; the third section is in the
second or small region of the stomach (Fig. 35).
The wall as a whole is thickest in the fundus, being there
practically twice as thick as in the pyloric and half again as thick as in
the cardiac region. This great thickening is due mainly to a
thickening of the middle or oblique layer of muscle, which is here
remarkably developed. The mucosa is of nearly uniform thickness in
the different regions and will be described later.
Since there is no striking difference beside that of thickness in the
general structure of the wall of the different regions, the pyloric
region, as seen under low magnification, will now be described (Fig.
45).
 The mucosa, m, consists of fairly long glands underlaid by a well-
marked muscularis mucosa, mm, the latter exhibiting a compact
circular layer over a wider but more scattered layer of longitudinal
fibers. A considerable amount of fibrous connective tissue lies
among the muscle fibers. The circular layer of the muscularis
mucosa sends towards the surface numerous strands or septa
between the glands; six or eight of these are seen in the figure.
These strands are not nearly so numerous in the large region of the
stomach. As was said, the outer or longitudinal layer of the
muscularis mucosa is wider but less compact than the circular and
its bundles of fibers are seen in the figure as a layer of large,
scattered dots just beneath the circular layer.
The submucosa, sm, is of average thickness and density. In the
fundic and cardiac regions it seems to extend between the circular
and oblique layers; at any rate, there is a considerable layer of
connective tissue between these two muscular layers.
The circular muscular layer, cm, is of only moderate thickness and
is of rather a loose character. In the pyloric region it is not very
distinct from the underlying oblique layer, but in the other regions, as
has just been said, it is separated from the oblique layer by a
considerable layer of connective tissue like that of the submucosa.
The oblique layer, om, even in this section of the pyloric region is
the thickest of the three muscle layers; while in the cardiac, and
especially in the fundic, regions it is of great thickness, as was noted
above, and is made up of larger bundles with less intervening
connective tissue.
 Fig. 45. A transsection through the wall of the
pyloric region of the stomach of the feeding animal,
under low magnification; m, mucosa; om, oblique
muscles; other letters as in Figure 42.
 The outer or longitudinal muscle layer, lm, is comparatively little
developed and consists of small rather scattered bundles of muscles
with a correspondingly large amount of connective tissue. This
connective tissue passes insensibly into that of the surrounding
serosa, s, a loose, vascular layer of varying thickness and density,
shown very thick in Figure 45, but often much thinner.
So far as could be determined, the mucous membrane has the
same structure in both anterior and middle regions of the stomach.
That of the pyloric or small region, although fixed, stained, et cetera,
just as carefully as the rest, did not show cell details sufficiently well
to draw; the ducts of the glands in this region are fairly distinct but
the deeper parts of the glands have the appearance of series of
alveoli or large adipose cells. What the significance of this condition
may be the writer is not able to say, but since the structure of this
region of the gastric mucous membrane is not clear no attempt will
be made to describe its appearance under higher magnification than
was employed in the figure above. However, as will be noted below,
there is probably no great difference between the pyloric mucosa
and that of the other regions of the stomach.
 Fig. 46. The glands of the middle or fundic region of the stomach of the
hibernating animal, under high magnification; A, through duct; B, through body of
gland; C, through fundus of gland.
 Figure 46 shows portions of typical glands from the mucosa of the
middle region of the stomach, the posterior border of the large
stomach cavity; A is a longitudinal section through two ducts where
they open to the surface; B is a similar section through the body of a
gland below the region of the duct; C is a transsection through the
bottom or fundus of a gland; all are drawn with a camera under the
same magnification.
As is seen in Figure 45, under low magnification, the duct is about
one third of the entire length of the gland. The lumen of the duct is
fairly wide, that of the body of the gland is reduced to a mere slit,
while that of the fundus is quite wide.
One, two, or possibly more, glands may open to the surface
through one duct, as is shown in Figure 46. There is nothing peculiar
about the epithelium of these glands. Near the opening of the duct
the cells are of a typical columnar character with finely granular
cytoplasm, each with a nucleus at its basal end.
In the deeper parts of the duct the cells become shorter until in the
body of the gland (Fig. 46, B) they are cuboidal in outline.
The bodies of the glands are so closely packed together that it is
difficult to pick out an individual tube that will show details clearly
enough to draw with a camera lucida. So far as could be observed
all of the cells of this region of the gland are alike.
The bottom or fundus of the gland, as seen in Figure 46, C, is
somewhat enlarged and has a wide lumen. The cells are of the same
general character as in the more distal parts of the gland except that
they are somewhat more columnar or pyramidal than in the body of
the gland. The nuclei of the body and fundus are usually somewhat
larger and more nearly spherical than in the columnar cells of the
duct.
The feeding animals from which tissues were taken were
considerably smaller than the hibernating specimen, so that the
stomach walls were proportionately thinner; but, so far as could be
discovered, there was no difference in structure.
The relative thickness of the entire wall in each of the three
regions sectioned was about the same as described above.
As has been said, the mucosa on the pyloric or small region of the
stomach from the hibernating animal was so poorly fixed that its
structure could not be made out. In the feeding stage the mucosa of
this region was as well fixed as any of the other tissues and showed
that its structure is essentially like that shown in Figure 46, except
that the glands are proportionately not quite so long as in the fundic
and cardiac regions, and are somewhat more open—that is, they
have wider lumina; their lining cells are all of one kind and are
unchanged from what was seen in the hibernating condition.
The Small Intestine. Three regions of the small intestine will be
described: (1) an anterior, just caudad to the stomach; (2) a middle;
and (3) a posterior, one half inch cephalad to the rectum or large
intestine (Fig. 35).
As might be expected, the general structure of the wall of the
intestine is essentially the same in all three regions, the slight
differences noticeable being due mainly to variations in the thickness
of the various layers.
The middle and posterior regions have about the same diameter,
while the diameter of the anterior region is considerably greater, due
partly to the greater diameter of the lumen but mainly to the greater
thickness of the constituent layers, especially the mucosa. The
mucosa is also thrown into more numerous and complicated folds in
the anterior than in the middle and posterior regions; the complexity
of the mucosa seems to diminish as the intestine is followed caudad.
In the anterior region the mucosa may form at least one half of the
entire thickness of the wall, while in the posterior region it may form
less than one third of the thickness of the intestinal wall. The minute
structure of the intestinal epithelium will be described below.
The chief peculiarity of the intestinal wall is the apparent total
absence of a submucosa (Fig. 47). As will be described later, the
mucosal epithelium is laid upon the usual bed of fibrous and
lymphatic tissue, the tunica propria (Fig. 47, tp).
At the outer border of the tunica propria, and with no tissue
corresponding to a submucosa between it and the circular muscular
layer, is a thin and indistinct layer that has the appearance of a
longitudinal layer of muscle fibers; this should correspond to the
muscularis mucosa (Figs. 47, 48, 49, and 51, mm).
 Fig. 47. A transsection of the wall of the anterior region of the small intestine of
the hibernating animal, under low magnification; ln, lymph node; tp, tunica propria;
other letters as in Figure 42.

The circular, cm, and longitudinal, lm, muscle layers are compact,
and are distinct from the other layers of the wall; the former is
approximately twice the thickness of the latter. The relative thickness
of all the layers in the three regions of the intestine may be seen by
comparing Figures 47, 48, and 49.
 Fig. 48. An outline of a transsection of the wall of the middle
region of the small intestine of the hibernating animal, under low
magnification; lettering as in Figure 42.

The serosa, s, which is of about the same character in the three

regions under discussion, is a distinct and fairly dense layer of
connective tissue with numerous blood-vessels.
The general appearance of the mucous membrane as a whole is
sufficiently clear in the low-power drawing described above, so that
all that need be shown under a higher magnification is the epithelium
(Fig. 50). The upper part of this figure represents the lower end of
one of the intestinal glands cut longitudinally, below which is the end
of another gland in transverse section. Between the two sections is
the compact tunica propria of lymphatic tissue.
The section from which this particular figure was drawn was in the
anterior region, but the corresponding part of a section in either of
the other regions would have practically the same appearance.
The epithelium is of the stratified columnar type. The superficial
cells are very tall and narrow, with the nuclei generally at or near the
bases, though an occasional nucleus may be seen near the free end
of a cell. Below the tall columnar cells are four or five rows of nuclei
which represent smaller, irregular cells, though the cell walls could
not always be determined between the closely packed nuclei. No
goblet cells are to be seen at any place.

Fig. 49. An outline of a transsection through the

wall of the posterior region of the small intestine of the
hibernating animal, under low magnification; lettering
as in Figure 42.
 The relative diameters of the three regions of the small intestine in
the feeding condition are about the same as noted for the
hibernating stage; that is, the anterior region has the greatest
diameter and the other regions are smaller and have about the same
average diameter.
The most marked difference between the intestine during
hibernation and feeding is in the relative thickness of the mucosa
and muscular layers. As described for the hibernating stage, so in
the feeding stage, the mucosa is relatively the thickest in the anterior
regions and diminishes in thickness caudad; but while, in the
hibernating stage, it forms, in the anterior region, as much as half of
the entire thickness of the wall, in the feeding condition it forms, in
the same region, at least two thirds of the entire wall and in the
middle and posterior regions more than half of the wall.
 Fig. 50. Part of the mucous membrane of the anterior region of
the small intestine of the hibernating animal, under high
magnification. The upper part of the figure shows a part of a gland
cut longitudinally, the lower part of the figure shows another gland
cut transversely; e, epithelium; tp, tunica propria.
 The feeding animals being the smaller, the diameter of the
intestine was considerably less than in the hibernating stage; but the
actual thickness of the mucosa was practically the same, so that the
difference in diameter was due to the difference in the thickness of
the muscular and fibrous layers. It is therefore probable that the
differences noted above are due rather to the differences in the size
of the animals from which the tissues were taken than to the different
conditions of hibernation and feeding. The point to be noticed is that
the increase in the diameter of the intestine is due almost if not
entirely to an increase in thickness of the connective tissue and
muscle layers.
No difference in the complexity of the folds of the mucosa of the
two stages can be noticed.
The thickness of the fibro-muscular part of the wall of the intestine
varies considerably on different sides of the same region, but it
consists of the same layers in about the same relative amounts.
 Fig. 51. An outline of a transsection of the wall of
the middle region of the small intestine of the feeding
animal, under low magnification; m, mucosa; other
letters as in Figure 42.
 Figure 51 represents in outline the wall of the middle region of the
small intestine during feeding.
The epithelium is of the same thickness in the two stages, and the
only difference in its character that can be seen under a high
magnification is that, in the middle region at least, the nuclei are not
crowded so close together at the basal ends of the cells as in the
hibernating stage but are scattered more towards their free ends.