SOLUTION MANUAL tii
ACCOUNTING WHAT THE NUMBERS MEAN 1
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3TH EDITION BY DAVID MARSHALL
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ALL CHAPTERS 1 - 16
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,CHAPTER
1
ACCOUNTING—
PRESENTANDPAST t t
CHAPTERt OUTLINE:
I. WHATt ISt ACCOUNTING?
A. DEFINITION
B. USESt OFtACCOUNTINGt INFORMATION
C. CLASSIFICATIONS
1. FINANCIALt ACCOUNTING
2. MANAGERIALtACCOUNTINGt /t COSTt ACCOUNTING
3. AUDITINGt —t PUBLICt ACCOUNTING
4. INTERNALtAUDITING
5. GOVERNMENTALtANDt NOT-FOR-PROFITt ACCOUNTING
6. INCOMEt TAXt ACCOUNTING
II. HOWt HASt ACCOUNTINGt DEVELOPED?
A. EARLYt HISTORY
B. THEt ACCOUNTINGt PROFESSIONt INt THEt UNITEDt STATES
C. FINANCIALt ACCOUNTINGt STANDARDt SETTINGt ATt THEt PRESENTt TIME
1. FINANCIALt ACCOUNTINGt STANDARDSt BOARD
2. STANDARDSt AREtEVOLVING
D. STANDARDSt FORt OTHERt TYPESt OFt ACCOUNTING
1. MANAGERIALtACCOUNTINGt /t COSTt ACCOUNTING
2. AUDITING
3. GOVERNMENTALtANDt NOT-FOR-PROFITt ACCOUNTING
4. INCOMEt TAXt ACCOUNTING
E. INTERNATIONALtACCOUNTINGt STANDARDS
F. ETHICSt ANDt THEt ACCOUNTINGt PROFESSION
III. THEt CONCEPTUALtFRAMEWORK
A. CONTEXT
B. SUMMARYtOFtCONCEPTStSTATEMENTtNO.t8,tCHAPTERt1t—
tTHEt OBJECTIVEtOFt GENERALt PURPOSEiFINANCIALt REPORTING
C. OBJECTIVESt OFt FINANCIALtREPORTINGt FORt NONBUSINESSt ORGANIZATIONS
IV. PLANt OFt THEt BOOK
,TEACHING/LEARNINGt OBJECTIVES:
PRINCIPAL:
1. TOt PRESENTt At DEFINITIONt OFtACCOUNTING.
2. TOt IDENTIFYtANDt DESCRIBEt DIFFERENTtCLASSIFICATIONSt OFt ACCOUNTING.
3. TOt EMPHASIZEt THATt FINANCIALt ACCOUNTINGt STANDARDSt AREt NOTt A
―FIXEDttCODEttOFt RULES,‖ttBUTttAREttESTABLISHEDttINtRESPONSEt TOttUSERtNEEDStAND
tBUSINESStDEVELOPMENTS.tACCOUNTANTStNEEDtTOtAPPLYtPROFESSIONALt JUDG
MENTt INt THEt APPLICATIONt OFtACCOUNTINGt PRINCIPLES.
4. TOt EMPHASIZEt THEt ROLEt ANDt SOURCESt OFtETHICSt FORt THEt ACCOUNTINGt PROFESSION.
SUPPORTING:
5. TOt SUMMARIZEt HOWt ACCOUNTINGt HASt EVOLVEDt OVERt TIME.
6. TOtIDENTIFYtSOURCEStOFtSTANDARDStFORtOTHERtTYPEStOFtACCOUNTINGtA
NDtTOtCONTRASTtTHESEtWITHFINANCIALtACCOUNTINGtSTANDARDS.
7. TOtINTRODUCEtTHEtISSUEStASSOCIATEDtWITHtTHEtDEVELOPMENTtOFtINT
ERNATIONALt ACCOUNTINGSTANDARDS.
8. TOt DESCRIBEt THEt CONTEXTt OFtTHEt FASBt CONCEPTUALt FRAMEWORKt PROJECT.
9. TOt SUMMARIZEt CONCEPTSt STATEMENTt NO.t 8,t CHAPTERt 1t —
t THEtOBJECTIVEttOFttGENERALttPURPOSEiFINANCIALt REPORTING.
10. TOt RELATEt THEt OBJECTIVESt OFt FINANCIALt REPORTINGt FORt NONBUSINESStO
RGANIZATIONSt TOt THOSEt OFBUSINESSt ENTERPRISES.
TEACHINGt OBSERVATIONS/ASSIGNMENTt SUGGESTIONS:
1. STUDENTStSHOULDtBEtPUTtONtNOTICEtABOUTt THEt JARGONt OFtACCOUNTING,t T
HEt USEt OFt SYNONYMOUSt TERMS,t THEt IMPORTANCEt OFtTHEtCONTEXTt WITHINt
WHICHt At TERMt ISt USED,t ANDt THEt NEEDt FORt PRECISIONIN
, THEt USEt OFt TERMINOLOGY.t THEt FIRSTt EXAMPLEt OFt JARGONt ISt THEt TERM
ENTITY.
2. WHENtDISCUSSINGt"AUDITINGt—
tPUBLICtACCOUNTING,"tHAVEtSTUDENTStFINDtTHEtAUDITORS'tOPINIONINtTHEtC
AMPBELLtSOUPtCOMPANYt2020tANNUALt REPORTt (SEEt PAGESt 87-
88t OFt THEt APPENDIX).t EMPHASIZEt THATt At"CLEANt OPINION"t ISt NOTt At "CLEAN
t BILLt OFt HEALTH."
3. DISCUSSt THEt SUMMARYt OFt CONCEPTSt STATEMENTt NO.t 8,t CHAPTERt 1t —
t THEtOBJECTIVEt OFt FINANCIALREPORTING,t INt DETAIL.
ACCOUNTING WHAT THE NUMBERS MEAN 1
tii tii tii tii t
3TH EDITION BY DAVID MARSHALL
tii tii tii tii
ALL CHAPTERS 1 - 16
tii tii tii tii tii
,CHAPTER
1
ACCOUNTING—
PRESENTANDPAST t t
CHAPTERt OUTLINE:
I. WHATt ISt ACCOUNTING?
A. DEFINITION
B. USESt OFtACCOUNTINGt INFORMATION
C. CLASSIFICATIONS
1. FINANCIALt ACCOUNTING
2. MANAGERIALtACCOUNTINGt /t COSTt ACCOUNTING
3. AUDITINGt —t PUBLICt ACCOUNTING
4. INTERNALtAUDITING
5. GOVERNMENTALtANDt NOT-FOR-PROFITt ACCOUNTING
6. INCOMEt TAXt ACCOUNTING
II. HOWt HASt ACCOUNTINGt DEVELOPED?
A. EARLYt HISTORY
B. THEt ACCOUNTINGt PROFESSIONt INt THEt UNITEDt STATES
C. FINANCIALt ACCOUNTINGt STANDARDt SETTINGt ATt THEt PRESENTt TIME
1. FINANCIALt ACCOUNTINGt STANDARDSt BOARD
2. STANDARDSt AREtEVOLVING
D. STANDARDSt FORt OTHERt TYPESt OFt ACCOUNTING
1. MANAGERIALtACCOUNTINGt /t COSTt ACCOUNTING
2. AUDITING
3. GOVERNMENTALtANDt NOT-FOR-PROFITt ACCOUNTING
4. INCOMEt TAXt ACCOUNTING
E. INTERNATIONALtACCOUNTINGt STANDARDS
F. ETHICSt ANDt THEt ACCOUNTINGt PROFESSION
III. THEt CONCEPTUALtFRAMEWORK
A. CONTEXT
B. SUMMARYtOFtCONCEPTStSTATEMENTtNO.t8,tCHAPTERt1t—
tTHEt OBJECTIVEtOFt GENERALt PURPOSEiFINANCIALt REPORTING
C. OBJECTIVESt OFt FINANCIALtREPORTINGt FORt NONBUSINESSt ORGANIZATIONS
IV. PLANt OFt THEt BOOK
,TEACHING/LEARNINGt OBJECTIVES:
PRINCIPAL:
1. TOt PRESENTt At DEFINITIONt OFtACCOUNTING.
2. TOt IDENTIFYtANDt DESCRIBEt DIFFERENTtCLASSIFICATIONSt OFt ACCOUNTING.
3. TOt EMPHASIZEt THATt FINANCIALt ACCOUNTINGt STANDARDSt AREt NOTt A
―FIXEDttCODEttOFt RULES,‖ttBUTttAREttESTABLISHEDttINtRESPONSEt TOttUSERtNEEDStAND
tBUSINESStDEVELOPMENTS.tACCOUNTANTStNEEDtTOtAPPLYtPROFESSIONALt JUDG
MENTt INt THEt APPLICATIONt OFtACCOUNTINGt PRINCIPLES.
4. TOt EMPHASIZEt THEt ROLEt ANDt SOURCESt OFtETHICSt FORt THEt ACCOUNTINGt PROFESSION.
SUPPORTING:
5. TOt SUMMARIZEt HOWt ACCOUNTINGt HASt EVOLVEDt OVERt TIME.
6. TOtIDENTIFYtSOURCEStOFtSTANDARDStFORtOTHERtTYPEStOFtACCOUNTINGtA
NDtTOtCONTRASTtTHESEtWITHFINANCIALtACCOUNTINGtSTANDARDS.
7. TOtINTRODUCEtTHEtISSUEStASSOCIATEDtWITHtTHEtDEVELOPMENTtOFtINT
ERNATIONALt ACCOUNTINGSTANDARDS.
8. TOt DESCRIBEt THEt CONTEXTt OFtTHEt FASBt CONCEPTUALt FRAMEWORKt PROJECT.
9. TOt SUMMARIZEt CONCEPTSt STATEMENTt NO.t 8,t CHAPTERt 1t —
t THEtOBJECTIVEttOFttGENERALttPURPOSEiFINANCIALt REPORTING.
10. TOt RELATEt THEt OBJECTIVESt OFt FINANCIALt REPORTINGt FORt NONBUSINESStO
RGANIZATIONSt TOt THOSEt OFBUSINESSt ENTERPRISES.
TEACHINGt OBSERVATIONS/ASSIGNMENTt SUGGESTIONS:
1. STUDENTStSHOULDtBEtPUTtONtNOTICEtABOUTt THEt JARGONt OFtACCOUNTING,t T
HEt USEt OFt SYNONYMOUSt TERMS,t THEt IMPORTANCEt OFtTHEtCONTEXTt WITHINt
WHICHt At TERMt ISt USED,t ANDt THEt NEEDt FORt PRECISIONIN
, THEt USEt OFt TERMINOLOGY.t THEt FIRSTt EXAMPLEt OFt JARGONt ISt THEt TERM
ENTITY.
2. WHENtDISCUSSINGt"AUDITINGt—
tPUBLICtACCOUNTING,"tHAVEtSTUDENTStFINDtTHEtAUDITORS'tOPINIONINtTHEtC
AMPBELLtSOUPtCOMPANYt2020tANNUALt REPORTt (SEEt PAGESt 87-
88t OFt THEt APPENDIX).t EMPHASIZEt THATt At"CLEANt OPINION"t ISt NOTt At "CLEAN
t BILLt OFt HEALTH."
3. DISCUSSt THEt SUMMARYt OFt CONCEPTSt STATEMENTt NO.t 8,t CHAPTERt 1t —
t THEtOBJECTIVEt OFt FINANCIALREPORTING,t INt DETAIL.
