Solution Manual for Accounting What The Numbers Mean, 13th Edition By David Marshall, Complete Chapters 1 - 16 (Verified by Experts)

Instructor’s ilManual il/ ilSolutions
ilManual




4-1
© ilMcGraw ilHill ilLLC. ilAll ilrights ilreserved. ilNo ilreproduction ilor ildistribution ilwithout ilthe ilprior ilwritten ilconsent ilof
ilMcGraw ilHill ilLLC.

, Instructor’s ilManual il/ ilSolutions
Full ilSolution ilManual ilfor ilAccounting ilWhat ilThe ilNumbers ilMean il13th ilEdition ilDavid ilMarshall
ilManual




CHAPTER
Accounting—Present and Past il il


1

CHAPTER ilOUTLINE:

I. What ilIs ilAccounting?
A. Definition
B. Uses ilof ilAccounting ilInformation
C. Classifications
1. Financial ilAccounting
2. Managerial ilAccounting il/ ilCost ilAccounting
3. Auditing il— ilPublic ilAccounting
4. Internal ilAuditing
5. Governmental iland ilNot-for-Profit ilAccounting
6. Income ilTax ilAccounting

II. How ilHas ilAccounting ilDeveloped?
A. Early ilHistory
B. The ilAccounting ilProfession ilin ilthe ilUnited ilStates
C. Financial ilAccounting ilStandard ilSetting ilat ilthe ilPresent ilTime
1. Financial ilAccounting ilStandards ilBoard
2. Standards ilare ilEvolving
D. Standards ilfor ilOther ilTypes ilof ilAccounting
1. Managerial ilAccounting il/ ilCost ilAccounting
2. Auditing
3. Governmental iland ilNot-for-Profit ilAccounting
4. Income ilTax ilAccounting
E. International ilAccounting ilStandards
F. Ethics iland ilthe ilAccounting ilProfession

III. The ilConceptual ilFramework
A. Context
B. Summary ilof ilConcepts ilStatement ilNo. il8, ilChapter il1 il— ilThe ilObjective ilof ilGeneral
ilPurposeliFinancial ilReporting
C. Objectives ilof ilFinancial ilReporting ilfor ilNonbusiness ilOrganizations
IV. Plan ilof ilthe ilBook



4-2
© ilMcGraw ilHill ilLLC. ilAll ilrights ilreserved. ilNo ilreproduction ilor ildistribution ilwithout ilthe ilprior ilwritten ilconsent ilof
ilMcGraw ilHill ilLLC.

, Instructor’s ilManual il/ ilSolutions
ilManual




TEACHING/LEARNING ilOBJECTIVES:

Principal:

1. To ilpresent ila ildefinition ilof ilaccounting.

2. To ilidentify iland ildescribe ildifferent il classifications ilof ilaccounting.

3. To ilemphasize ilthat ilfinancial ilaccounting ilstandards ilare ilnot ila il―fixed ilcode ilof ilrules,‖
ilbut il are ilestablished ilin ilresponse ilto iluser ilneeds iland ilbusiness ildevelopments.
ilAccountants ilneed ilto ilapplyliprofessional iljudgment il in ilthe ilapplication ilof ilaccounting
ilprinciples.


4. To ilemphasize ilthe ilrole iland ilsources ilof ilethics ilfor ilthe ilaccounting ilprofession.

Supporting:

5. To ilsummarize ilhow ilaccounting ilhas ilevolved ilover iltime.

6. To ilidentify ilsources ilof ilstandards ilfor ilother iltypes ilof ilaccounting iland ilto ilcontrast
ilthese ilwithlfi inancial ilaccounting ilstandards.


7. To ilintroduce ilthe ilissues ilassociated ilwith ilthe ildevelopment ilof ilinternational
ilaccountinglistandards.


8. To ildescribe ilthe ilcontext ilof ilthe ilFASB ilConceptual ilFramework ilproject.

9. To ilsummarize ilConcepts ilStatement ilNo. il8, ilChapter il1 il— ilThe ilObjective ilof ilGeneral
ilPurposeliFinancial ilReporting.


10. To ilrelate ilthe ilobjectives ilof ilfinancial ilreporting ilfor ilnonbusiness ilorganizations ilto
ilthose iloflibusiness ilenterprises.


TEACHING ilOBSERVATIONS/ASSIGNMENT ilSUGGESTIONS:

1. Students ilshould ilbe ilput ilon ilnotice ilabout ilthe iljargon ilof ilaccounting, ilthe iluse ilof
ilsynonymous ilterms, ilthe ilimportance ilof ilthe ilcontext ilwithin ilwhich ila ilterm ilis ilused,
iland ilthe ilneed ilfor ilprecisionliin ilthe iluse ilof ilterminology. ilThe il first il example ilof iljargon
ilis ilthe ilterm ilentity.


2. When ildiscussing il"Auditing il— ilPublic ilAccounting," ilhave ilstudents ilfind ilthe ilauditors'
ilopinionlii n ilthe ilCampbell ilSoup ilCompany il2020 ilAnnual ilReport il(see ilpages il87-88 ilof
ilthe ilAppendix). ilEmphasize ilthat il a il"clean ilopinion" ilis ilnot ila il"clean ilbill ilof ilhealth."


3. Discuss ilthe ilSummary ilof ilConcepts ilStatement ilNo. il8, ilChapter il1 il— ilThe ilObjective ilof
ilFinancialliReporting, il in ildetail.

4-3
© ilMcGraw ilHill ilLLC. ilAll ilrights ilreserved. ilNo ilreproduction ilor ildistribution ilwithout ilthe ilprior ilwritten ilconsent ilof
ilMcGraw ilHill ilLLC.

, Instructor’s ilManual il/ ilSolutions
ilManual
4. Assign ilExercise il1-1. ilEncourage ilstudents ilto ilexperiment ilwith ilwebsites ilthat ilare ilof
ilinterest. ilInliaddition, ilor ilas ilan ilalternative ilto ilhaving ilstudents ilrequest iltheir ilown
ilannual ilreports, ildistribute ilreports ilthat il have il been ilobtained ilby ilthe ilinstructor.


5. Use ilExercise il1-5 ilto ilgenerate ildiscussion ilabout ilthe ilimportance ilof ilethical ilstandards ilin
ilgeneral lai nd ilindependence il(in ilboth ilappearance iland ilfact) ilin ilparticular. ilFollow ilup
ilwith ila ilbrief illook ilatliExercise il1-7 ilconcerning ilaudit il independence ilstandards.




SOLUTIONS:

E1.3. This ilexercise ilprovides ilan ilopportunity ilto ilgauge ilwhere ilthe ilstudents ilare ilin
ilterms iloflti heir ilprior ilbackground ilin ilaccounting, ilbe ilit ilpractical ilor
ileducational, iland ilto ilclear ilup ilsome ilof ilthe ilcommon ilmisconceptions il(i.e.,
ilto ilexplain ilthat ilaccounting ilgoes
beyond ilthe il―how ilto‖ ilaspects ilof ilbookkeeping iland ilinvolves ilthe iluse ilof
iljudgment).


E1.4. This ilexercise ilprovides ilan ilopportunity ilto ilalign ilstudent iland ilinstructor
ilexpectations.lFi or ilfirst-time ilinstructors ilin ilthis ilcourse, ilor ilfor ilthose ilhaving ila
ildiverse ilstudent ilgroup, ilyou ilwill ilget ila ilglimpse ilat ilthe ilcommon ilperceptions
ilstudents ilhave ilconcerning ilthe ilcourse ilcontent, illevel ilof ildifficulty, iland
ilmethods ilof ilpresentation,
testing/evaluation, iland ilgrading.

E1.5. The ilprincipal ilfactors ilJim ilSandrolini ilmust ilconsider ilare ilhis ilcompetence iland
ilindependence. ilIs ilhe ilcompetent ilto ilprepare ilfinancial ilstatements ilfor ila
ilcompany ilthatlioperates ilin ila ildifferent ilindustry ilthan ilthe ilone ilin ilwhich ilhe
ilworks? ilAccepting ila ilcontingent ilfee ilarrangement il would ilnormally ilcause ilan
ilimpairment ilof ilhis
independence ilbecause ilhe ilwould ildirectly ilbenefit ilif ilthe illoan ilwere ilto ilbe
ilapproved.




4-4
© ilMcGraw ilHill ilLLC. ilAll ilrights ilreserved. ilNo ilreproduction ilor ildistribution ilwithout ilthe ilprior ilwritten ilconsent ilof
ilMcGraw ilHill ilLLC.