Solution Manual
Accounting What The Numbers Mean
13th Edition by David Marshall
All Chapters 1 - 16
,CHAPTER
1
Accounting—Present and Past g g
CHAPTERgOUTLINE:
I. WhatgIsgAccounting?
A. Definition
B. UsesgofgAccountinggInformation
C. Classifications
1. FinancialgAccounting
2. ManagerialgAccountingg/gCostgAccounting
3. Auditingg—gPublicgAccounting
4. InternalgAuditing
5. GovernmentalgandgNot-for-ProfitgAccounting
6. IncomegTaxgAccounting
II. HowgHasgAccountinggDeveloped?
A. EarlygHistory
B. ThegAccountinggProfessiongingthegUnitedgStates
C. FinancialgAccountinggStandardgSettinggatgthegPresentgTime
1. FinancialgAccountinggStandardsgBoard
2. StandardsgaregEvolving
D. StandardsgforgOthergTypesgofgAccounting
1. ManagerialgAccountingg/gCostgAccounting
2. Auditing
3. GovernmentalgandgNot-for-ProfitgAccounting
4. IncomegTaxgAccounting
E. InternationalgAccountinggStandards
F. EthicsgandgthegAccountinggProfession
III. ThegConceptualgFramework
A. Context
B. SummarygofgConceptsgStatementg No.g8,gChapterg1g —
gThegObjectivegofgGeneralgPurposegFinancialgReporting
C. ObjectivesgofgFinancialgReportinggforgNonbusinessgOrganizations
IV. PlangofgthegBook
,TEACHING/LEARNINGgOBJECTIVES:
Principal:
1. Togpresentgagdefinitiongofgaccounting.
2. Togidentifygandgdescribegdifferentg classificationsgofgaccounting.
3. Togemphasizegthatg financialgaccountinggstandardsgaregnotgag―fixedgcodegofgrules,‖gbut
g aregestablishedgingresponsegtogusergneedsgandgbusinessgdevelopments.gAccountantsg
needgtogapplygprofessionalgjudgmentg ingthegapplicationgofgaccountinggprinciples.
4. Togemphasizegthegrolegandgsourcesgofgethicsgforgthegaccountinggprofession.
Supporting:
5. Togsummarizeghowgaccountingghasgevolvedgovergtime.
6. Togidentifygsourcesgofgstandardsgforgothergtypesgofgaccountinggandgtogcontrastgth
esegwithgfinancialgaccountinggstandards.
7. Togintroducegthegissuesgassociatedgwithgthegdevelopmentgofginternationalgacc
ountinggstandards.
8. TogdescribegthegcontextgofgthegFASBgConceptualgFrameworkgproject.
9. TogsummarizegConceptsgStatementgNo.g8,gChapterg1g—
gThegObjectivegofgGeneralgPurposeg
FinancialgReporting.
10. Togrelategthegobjectivesgofgfinancialgreportinggforgnonbusinessgorganizationsgtogt
hosegofgbusinessgenterprises.
TEACHINGgOBSERVATIONS/ASSIGNMENTgSUGGESTIONS:
1. Studentsgshouldgbegputgongnoticegaboutgthegjargongofgaccounting,gthegusegofgsynon
ymousgterms,gthegimportancegofgthegcontextgwithingwhichgagtermgisgused,gandgthegne
edgforgprecisiongingthegusegofgterminology.gThegfirstg examplegofgjargongisgthegtermgen
tity.
, 2. Whengdiscussingg"Auditingg—
gPublicgAccounting,"ghavegstudentsgfindgthegauditors'gopiniongingthegCampbellgSoupg
Companyg2020gAnnualgReportg(seegpagesg87-
88gofgthegAppendix).gEmphasizegthatg ag"cleangopinion"gisgnotgag"cleangbillgofghealth."
3. DiscussgthegSummarygofgConceptsgStatementgNo.g8,gChapterg1g—
gThegObjectivegofgFinancialg
Reporting,g ingdetail.
Accounting What The Numbers Mean
13th Edition by David Marshall
All Chapters 1 - 16
,CHAPTER
1
Accounting—Present and Past g g
CHAPTERgOUTLINE:
I. WhatgIsgAccounting?
A. Definition
B. UsesgofgAccountinggInformation
C. Classifications
1. FinancialgAccounting
2. ManagerialgAccountingg/gCostgAccounting
3. Auditingg—gPublicgAccounting
4. InternalgAuditing
5. GovernmentalgandgNot-for-ProfitgAccounting
6. IncomegTaxgAccounting
II. HowgHasgAccountinggDeveloped?
A. EarlygHistory
B. ThegAccountinggProfessiongingthegUnitedgStates
C. FinancialgAccountinggStandardgSettinggatgthegPresentgTime
1. FinancialgAccountinggStandardsgBoard
2. StandardsgaregEvolving
D. StandardsgforgOthergTypesgofgAccounting
1. ManagerialgAccountingg/gCostgAccounting
2. Auditing
3. GovernmentalgandgNot-for-ProfitgAccounting
4. IncomegTaxgAccounting
E. InternationalgAccountinggStandards
F. EthicsgandgthegAccountinggProfession
III. ThegConceptualgFramework
A. Context
B. SummarygofgConceptsgStatementg No.g8,gChapterg1g —
gThegObjectivegofgGeneralgPurposegFinancialgReporting
C. ObjectivesgofgFinancialgReportinggforgNonbusinessgOrganizations
IV. PlangofgthegBook
,TEACHING/LEARNINGgOBJECTIVES:
Principal:
1. Togpresentgagdefinitiongofgaccounting.
2. Togidentifygandgdescribegdifferentg classificationsgofgaccounting.
3. Togemphasizegthatg financialgaccountinggstandardsgaregnotgag―fixedgcodegofgrules,‖gbut
g aregestablishedgingresponsegtogusergneedsgandgbusinessgdevelopments.gAccountantsg
needgtogapplygprofessionalgjudgmentg ingthegapplicationgofgaccountinggprinciples.
4. Togemphasizegthegrolegandgsourcesgofgethicsgforgthegaccountinggprofession.
Supporting:
5. Togsummarizeghowgaccountingghasgevolvedgovergtime.
6. Togidentifygsourcesgofgstandardsgforgothergtypesgofgaccountinggandgtogcontrastgth
esegwithgfinancialgaccountinggstandards.
7. Togintroducegthegissuesgassociatedgwithgthegdevelopmentgofginternationalgacc
ountinggstandards.
8. TogdescribegthegcontextgofgthegFASBgConceptualgFrameworkgproject.
9. TogsummarizegConceptsgStatementgNo.g8,gChapterg1g—
gThegObjectivegofgGeneralgPurposeg
FinancialgReporting.
10. Togrelategthegobjectivesgofgfinancialgreportinggforgnonbusinessgorganizationsgtogt
hosegofgbusinessgenterprises.
TEACHINGgOBSERVATIONS/ASSIGNMENTgSUGGESTIONS:
1. Studentsgshouldgbegputgongnoticegaboutgthegjargongofgaccounting,gthegusegofgsynon
ymousgterms,gthegimportancegofgthegcontextgwithingwhichgagtermgisgused,gandgthegne
edgforgprecisiongingthegusegofgterminology.gThegfirstg examplegofgjargongisgthegtermgen
tity.
, 2. Whengdiscussingg"Auditingg—
gPublicgAccounting,"ghavegstudentsgfindgthegauditors'gopiniongingthegCampbellgSoupg
Companyg2020gAnnualgReportg(seegpagesg87-
88gofgthegAppendix).gEmphasizegthatg ag"cleangopinion"gisgnotgag"cleangbillgofghealth."
3. DiscussgthegSummarygofgConceptsgStatementgNo.g8,gChapterg1g—
gThegObjectivegofgFinancialg
Reporting,g ingdetail.