SOLUTION MANUAL 7
zii
z7 z7 z7 z7
ALL CHAPTERS 1 - 16
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,CHAPTER
1
ACCOUNTING—
PRESENT AND PAST z7 z7
CHAPTERz 7 OUTLINE:
I. WHATz 7 ISz7 ACCOUNTING?
A. DEFINITION
B. USESz 7 OFz7ACCOUNTINGz 7 INFORMATION
C. CLASSIFICATIONS
1. FINANCIALz7 ACCOUNTING
2. MANAGERIALz7ACCOUNTINGz 7 /z 7 COSTz 7 ACCOUNTING
3. AUDITINGz7 —z 7 PUBLICz 7 ACCOUNTING
4. INTERNALz7AUDITING
5. GOVERNMENTALz7ANDz7 NOT-FOR-PROFITz 7 ACCOUNTING
6. INCOMEz 7 TAXz 7 ACCOUNTING
II. HOWz 7 HASz 7 ACCOUNTINGz 7 DEVELOPED?
A. EARLYz 7 HISTORY
B. THEz 7 ACCOUNTINGz 7 PROFESSIONz 7 INz7 THEz 7 UNITEDz 7 STATES
C. FINANCIALz 7 ACCOUNTINGz 7 STANDARDz 7 SETTINGz 7 ATz 7 THEz 7 PRESENTz 7 TIME
1. FINANCIALz 7 ACCOUNTINGz 7 STANDARDSz 7 BOARD
2. STANDARDSz 7 AREz7 EVOLVING
D. STANDARDSz 7 FORz 7 OTHERz 7 TYPESz 7 OFz 7 ACCOUNTING
1. MANAGERIALz7ACCOUNTINGz 7 /z 7 COSTz 7 ACCOUNTING
2. AUDITING
3. GOVERNMENTALz7ANDz7 NOT-FOR-PROFITz 7 ACCOUNTING
4. INCOMEz 7 TAXz 7 ACCOUNTING
E. INTERNATIONALz7ACCOUNTINGz 7 STANDARDS
F. ETHICSz 7 ANDz 7 THEz 7 ACCOUNTINGz 7 PROFESSION
III. THEz 7 CONCEPTUALz7FRAMEWORK
A. CONTEXT
B. SUMMARYz7OFz7CONCEPTSz 7 STATEMENTz 7 NO.z 7 8,z 7 CHAPTERz 7 1z 7 —
z7THEz 7 OBJECTIVEz7OFz7GENERALz7PURPOSEiiFINANCIALz7REPORTING
C. OBJECTIVESz7 OFz7 FINANCIALz7REPORTINGz 7 FORz 7 NONBUSINESSz 7 ORGANIZATIONS
IV. PLANz 7 OFz7 THEz 7 BOOK
,TEACHING/LEARNINGz 7 OBJECTIVES:
PRINCIPAL:
1. TOz 7 PRESENTz 7 Az 7 DEFINITIONz 7 OFz7ACCOUNTING.
2. TOz 7 IDENTIFYz7ANDz 7 DESCRIBEz 7 DIFFERENTz 7 CLASSIFICATIONSz 7 OFz7 ACCOUNTING.
3. TOz 7 EMPHASIZEz 7 THATz 7 FINANCIALz 7 ACCOUNTINGz 7 STANDARDSz 7 AREz 7 NOTz 7 A
―FIXEDz 7 CODEz 7 OFz 7 RULES,‖z 7 BUTz 7 AREz 7 ESTABLISHEDz 7 INz7RESPONSEz 7 TOz 7
USERz7NEEDSz7ANDz 7 BUSINESSz 7 DEVELOPMENTS.z7ACCOUNTANTSz7NEEDz7TOz7A
PPLYz7PROFESSIONALz 7 JUDGMENTz 7 INz7THEz 7 APPLICATIONz 7 OFz7ACCOUNTINGz 7
PRINCIPLES.
4. TOz 7 EMPHASIZEz 7 THEz 7 ROLEz 7 ANDz 7 SOURCESz 7 OFz7ETHICSz 7 FORz 7 THEz 7 ACCOUNTINGz 7 PROFES
SION.
SUPPORTING:
5. TOz 7 SUMMARIZEz 7 HOWz 7 ACCOUNTINGz 7 HASz 7 EVOLVEDz 7 OVERz 7 TIME.
6. TOz 7 IDENTIFYz 7 SOURCESz 7 OFz7STANDARDSz 7 FORz 7 OTHERz7TYPESz 7 OFz7A
CCOUNTINGz 7 ANDz 7 TOz 7 CONTRASTz 7 THESEz7WITHFINANCIALz7ACCOUNTI
NGz7STANDARDS.
7. TOz7INTRODUCEz7THEz 7 ISSUESz7ASSOCIATEDz 7 WITHz7THEz7DEVELOPMEN
Tz7OFz7INTERNATIONALz7ACCOUNTINGSTANDARDS.
8. TOz 7 DESCRIBEz 7 THEz 7 CONTEXTz 7 OFz7THEz 7 FASBz 7 CONCEPTUALz 7 FRAMEWORKz 7 PROJECT.
9. TOz 7 SUMMARIZEz 7 CONCEPTSz 7 STATEMENTz 7 NO.z 7 8,z 7 CHAPTERz 7 1z
7—
z7THEz7OBJECTIVEz 7 OFz 7 GENERALz 7 PURPOSEiiFINANCIALz7REPORTIN
G.
10. TOz 7 RELATEz7THEz7OBJECTIVESz7OFz7FINANCIALz7REPORTINGz 7 FORz7NONBUSI
NESSz7ORGANIZATIONSz7TOz7THOSEz7OFBUSINESSz 7 ENTERPRISES.
TEACHINGz 7 OBSERVATIONS/ASSIGNMENTz 7 SUGGESTIONS:
1. STUDENTSz 7 SHOULDz 7 BEz 7 PUTz 7 ONz 7 NOTICEz 7 ABOUTz 7 THEz 7 JARGONz 7 OFz7A
CCOUNTING,z 7 THEz 7 USEz 7 OFz 7 SYNONYMOUSz 7 TERMS,z 7 THEz 7 IMPORTANCEz7
, OFz7THEz7CONTEXTz 7 WITHINz 7 WHICHz7Az7 TERMz 7 ISz 7 USED,z 7 ANDz 7 THEz 7 NEEDz 7
FORz 7 PRECISIONIN
zii
z7 z7 z7 z7
ALL CHAPTERS 1 - 16
z7ii z7ii z7ii z7ii z7ii
,CHAPTER
1
ACCOUNTING—
PRESENT AND PAST z7 z7
CHAPTERz 7 OUTLINE:
I. WHATz 7 ISz7 ACCOUNTING?
A. DEFINITION
B. USESz 7 OFz7ACCOUNTINGz 7 INFORMATION
C. CLASSIFICATIONS
1. FINANCIALz7 ACCOUNTING
2. MANAGERIALz7ACCOUNTINGz 7 /z 7 COSTz 7 ACCOUNTING
3. AUDITINGz7 —z 7 PUBLICz 7 ACCOUNTING
4. INTERNALz7AUDITING
5. GOVERNMENTALz7ANDz7 NOT-FOR-PROFITz 7 ACCOUNTING
6. INCOMEz 7 TAXz 7 ACCOUNTING
II. HOWz 7 HASz 7 ACCOUNTINGz 7 DEVELOPED?
A. EARLYz 7 HISTORY
B. THEz 7 ACCOUNTINGz 7 PROFESSIONz 7 INz7 THEz 7 UNITEDz 7 STATES
C. FINANCIALz 7 ACCOUNTINGz 7 STANDARDz 7 SETTINGz 7 ATz 7 THEz 7 PRESENTz 7 TIME
1. FINANCIALz 7 ACCOUNTINGz 7 STANDARDSz 7 BOARD
2. STANDARDSz 7 AREz7 EVOLVING
D. STANDARDSz 7 FORz 7 OTHERz 7 TYPESz 7 OFz 7 ACCOUNTING
1. MANAGERIALz7ACCOUNTINGz 7 /z 7 COSTz 7 ACCOUNTING
2. AUDITING
3. GOVERNMENTALz7ANDz7 NOT-FOR-PROFITz 7 ACCOUNTING
4. INCOMEz 7 TAXz 7 ACCOUNTING
E. INTERNATIONALz7ACCOUNTINGz 7 STANDARDS
F. ETHICSz 7 ANDz 7 THEz 7 ACCOUNTINGz 7 PROFESSION
III. THEz 7 CONCEPTUALz7FRAMEWORK
A. CONTEXT
B. SUMMARYz7OFz7CONCEPTSz 7 STATEMENTz 7 NO.z 7 8,z 7 CHAPTERz 7 1z 7 —
z7THEz 7 OBJECTIVEz7OFz7GENERALz7PURPOSEiiFINANCIALz7REPORTING
C. OBJECTIVESz7 OFz7 FINANCIALz7REPORTINGz 7 FORz 7 NONBUSINESSz 7 ORGANIZATIONS
IV. PLANz 7 OFz7 THEz 7 BOOK
,TEACHING/LEARNINGz 7 OBJECTIVES:
PRINCIPAL:
1. TOz 7 PRESENTz 7 Az 7 DEFINITIONz 7 OFz7ACCOUNTING.
2. TOz 7 IDENTIFYz7ANDz 7 DESCRIBEz 7 DIFFERENTz 7 CLASSIFICATIONSz 7 OFz7 ACCOUNTING.
3. TOz 7 EMPHASIZEz 7 THATz 7 FINANCIALz 7 ACCOUNTINGz 7 STANDARDSz 7 AREz 7 NOTz 7 A
―FIXEDz 7 CODEz 7 OFz 7 RULES,‖z 7 BUTz 7 AREz 7 ESTABLISHEDz 7 INz7RESPONSEz 7 TOz 7
USERz7NEEDSz7ANDz 7 BUSINESSz 7 DEVELOPMENTS.z7ACCOUNTANTSz7NEEDz7TOz7A
PPLYz7PROFESSIONALz 7 JUDGMENTz 7 INz7THEz 7 APPLICATIONz 7 OFz7ACCOUNTINGz 7
PRINCIPLES.
4. TOz 7 EMPHASIZEz 7 THEz 7 ROLEz 7 ANDz 7 SOURCESz 7 OFz7ETHICSz 7 FORz 7 THEz 7 ACCOUNTINGz 7 PROFES
SION.
SUPPORTING:
5. TOz 7 SUMMARIZEz 7 HOWz 7 ACCOUNTINGz 7 HASz 7 EVOLVEDz 7 OVERz 7 TIME.
6. TOz 7 IDENTIFYz 7 SOURCESz 7 OFz7STANDARDSz 7 FORz 7 OTHERz7TYPESz 7 OFz7A
CCOUNTINGz 7 ANDz 7 TOz 7 CONTRASTz 7 THESEz7WITHFINANCIALz7ACCOUNTI
NGz7STANDARDS.
7. TOz7INTRODUCEz7THEz 7 ISSUESz7ASSOCIATEDz 7 WITHz7THEz7DEVELOPMEN
Tz7OFz7INTERNATIONALz7ACCOUNTINGSTANDARDS.
8. TOz 7 DESCRIBEz 7 THEz 7 CONTEXTz 7 OFz7THEz 7 FASBz 7 CONCEPTUALz 7 FRAMEWORKz 7 PROJECT.
9. TOz 7 SUMMARIZEz 7 CONCEPTSz 7 STATEMENTz 7 NO.z 7 8,z 7 CHAPTERz 7 1z
7—
z7THEz7OBJECTIVEz 7 OFz 7 GENERALz 7 PURPOSEiiFINANCIALz7REPORTIN
G.
10. TOz 7 RELATEz7THEz7OBJECTIVESz7OFz7FINANCIALz7REPORTINGz 7 FORz7NONBUSI
NESSz7ORGANIZATIONSz7TOz7THOSEz7OFBUSINESSz 7 ENTERPRISES.
TEACHINGz 7 OBSERVATIONS/ASSIGNMENTz 7 SUGGESTIONS:
1. STUDENTSz 7 SHOULDz 7 BEz 7 PUTz 7 ONz 7 NOTICEz 7 ABOUTz 7 THEz 7 JARGONz 7 OFz7A
CCOUNTING,z 7 THEz 7 USEz 7 OFz 7 SYNONYMOUSz 7 TERMS,z 7 THEz 7 IMPORTANCEz7
, OFz7THEz7CONTEXTz 7 WITHINz 7 WHICHz7Az7 TERMz 7 ISz 7 USED,z 7 ANDz 7 THEz 7 NEEDz 7
FORz 7 PRECISIONIN
