Franklyn A Plus Pass
Instructor’s Manual / Solutions Manual
SOLUTION MANUAL for Accounting: What the Numbers
Mean 13th Edition by David Marshall
All Chapters Fully Covered 1-16| Verified Questions & 100% Accurate
Solutions for Exam Preparations| A+ GRADE RATED
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,Franklyn A Plus Pass
Instructor’s Manual / Solutions Manual
CHAPTER 1 : Accounting—Present and Past
CHAPTER OUTLINE:
I. What Is Accounting?
A. Definition
B. Uses of Accounting Information
C. Classifications
1. Financial Accounting
2. Managerial Accounting / Cost Accounting
3. Auditing — Public Accounting
4. Internal Auditing
5. Governmental and Not-for-Profit Accounting
6. Income Tax Accounting
II. How Has Accounting Developed?
A. Early History
B. The Accounting Profession in the United States
C. Financial Accounting Standard Setting at the Present Time
1. Financial Accounting Standards Board
2. Standards are Evolving
D. Standards for Other Types of Accounting
1. Managerial Accounting / Cost Accounting
2. Auditing
3. Governmental and Not-for-Profit Accounting
Fr
4. Income Tax Accounting
E. International Accounting Standards
an
F. Ethics and the Accounting Profession
kl
III. The Conceptual Framework
A. Context
yn
B. Summary of Concepts Statement No. 8, Chapter 1 — The Objective of General Purpose
Financial Reporting
e
C. Objectives of Financial Reporting for Nonbusiness Organizations
A
IV. Plan of the Book
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,Franklyn A Plus Pass
Instructor’s Manual / Solutions Manual
TEACHING/LEARNING OBJECTIVES:
Principal:
1. To present a definition of accounting.
2. To identify and describe different classifications of accounting.
3. To emphasize that financial accounting standards are not a ―fixed code of rules,‖ but are
established in response to user needs and business developments. Accountants need to apply
professional judgment in the application of accounting principles.
4. To emphasize the role and sources of ethics for the accounting profession.
Supporting:
5. To summarize how accounting has evolved over time.
6. To identify sources of standards for other types of accounting and to contrast these with
financial accounting standards.
7. To introduce the issues associated with the development of international accounting
standards.
8. To describe the context of the FASB Conceptual Framework project.
Fr
9. To summarize Concepts Statement No. 8, Chapter 1 — The Objective of General Purpose
Financial Reporting.
an
10. To relate the objectives of financial reporting for nonbusiness organizations to those of
kl
business enterprises.
yn
TEACHING OBSERVATIONS/ASSIGNMENT SUGGESTIONS:
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1. Students should be put on notice about the jargon of accounting, the use of synonymous terms, the
importance of the context within which a term is used, and the need for precision in the use of
A
terminology. The first example of jargon is the term entity.
pl
2. When discussing "Auditing — Public Accounting," have students find the auditors' opinion in the
Campbell Soup Company 2020 Annual Report (see pages 87-88 of the Appendix). Emphasize that
us
a "clean opinion" is not a "clean bill of health."
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, Franklyn A Plus Pass
Instructor’s Manual / Solutions Manual
3. Discuss the Summary of Concepts Statement No. 8, Chapter 1 — The Objective of Financial
Reporting, in detail.
4. Assign Exercise 1-1. Encourage students to experiment with websites that are of interest. In
addition, or as an alternative to having students request their own annual reports, distribute reports
that have been obtained by the instructor.
5. Use Exercise 1-5 to generate discussion about the importance of ethical standards in general and
independence (in both appearance and fact) in particular. Follow up with a brief look at Exercise 1-7
concerning audit independence standards.
SOLUTIONS:
E1.3. This exercise provides an opportunity to gauge where the students are in terms of their
prior background in accounting, be it practical or educational, and to clear up some of
the common misconceptions (i.e., to explain that accounting goes
beyond the ―how to‖ aspects of bookkeeping and involves the use of judgment).
E1.4. This exercise provides an opportunity to align student and instructor expectations. For
first-time instructors in this course, or for those having a diverse student group, you will
get a glimpse at the common perceptions students have concerning the course content,
level of difficulty, and methods of presentation,
testing/evaluation, and grading.
E1.5. The principal factors Jim Sandrolini must consider are his competence and
independence. Is he competent to prepare financial statements for a company that
operates in a different industry than the one in which he works? Accepting a contingent
fee arrangement would normally cause an impairment of his
Fr
independence because he would directly benefit if the loan were to be approved.
an
kl
yn
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pl
us
Pa
4|Page
ss
Instructor’s Manual / Solutions Manual
SOLUTION MANUAL for Accounting: What the Numbers
Mean 13th Edition by David Marshall
All Chapters Fully Covered 1-16| Verified Questions & 100% Accurate
Solutions for Exam Preparations| A+ GRADE RATED
Fr
an
kl
yn
e
A
pl
us
Pa
1|Page
ss
,Franklyn A Plus Pass
Instructor’s Manual / Solutions Manual
CHAPTER 1 : Accounting—Present and Past
CHAPTER OUTLINE:
I. What Is Accounting?
A. Definition
B. Uses of Accounting Information
C. Classifications
1. Financial Accounting
2. Managerial Accounting / Cost Accounting
3. Auditing — Public Accounting
4. Internal Auditing
5. Governmental and Not-for-Profit Accounting
6. Income Tax Accounting
II. How Has Accounting Developed?
A. Early History
B. The Accounting Profession in the United States
C. Financial Accounting Standard Setting at the Present Time
1. Financial Accounting Standards Board
2. Standards are Evolving
D. Standards for Other Types of Accounting
1. Managerial Accounting / Cost Accounting
2. Auditing
3. Governmental and Not-for-Profit Accounting
Fr
4. Income Tax Accounting
E. International Accounting Standards
an
F. Ethics and the Accounting Profession
kl
III. The Conceptual Framework
A. Context
yn
B. Summary of Concepts Statement No. 8, Chapter 1 — The Objective of General Purpose
Financial Reporting
e
C. Objectives of Financial Reporting for Nonbusiness Organizations
A
IV. Plan of the Book
pl
us
Pa
2|Page
ss
,Franklyn A Plus Pass
Instructor’s Manual / Solutions Manual
TEACHING/LEARNING OBJECTIVES:
Principal:
1. To present a definition of accounting.
2. To identify and describe different classifications of accounting.
3. To emphasize that financial accounting standards are not a ―fixed code of rules,‖ but are
established in response to user needs and business developments. Accountants need to apply
professional judgment in the application of accounting principles.
4. To emphasize the role and sources of ethics for the accounting profession.
Supporting:
5. To summarize how accounting has evolved over time.
6. To identify sources of standards for other types of accounting and to contrast these with
financial accounting standards.
7. To introduce the issues associated with the development of international accounting
standards.
8. To describe the context of the FASB Conceptual Framework project.
Fr
9. To summarize Concepts Statement No. 8, Chapter 1 — The Objective of General Purpose
Financial Reporting.
an
10. To relate the objectives of financial reporting for nonbusiness organizations to those of
kl
business enterprises.
yn
TEACHING OBSERVATIONS/ASSIGNMENT SUGGESTIONS:
e
1. Students should be put on notice about the jargon of accounting, the use of synonymous terms, the
importance of the context within which a term is used, and the need for precision in the use of
A
terminology. The first example of jargon is the term entity.
pl
2. When discussing "Auditing — Public Accounting," have students find the auditors' opinion in the
Campbell Soup Company 2020 Annual Report (see pages 87-88 of the Appendix). Emphasize that
us
a "clean opinion" is not a "clean bill of health."
Pa
3|Page
ss
, Franklyn A Plus Pass
Instructor’s Manual / Solutions Manual
3. Discuss the Summary of Concepts Statement No. 8, Chapter 1 — The Objective of Financial
Reporting, in detail.
4. Assign Exercise 1-1. Encourage students to experiment with websites that are of interest. In
addition, or as an alternative to having students request their own annual reports, distribute reports
that have been obtained by the instructor.
5. Use Exercise 1-5 to generate discussion about the importance of ethical standards in general and
independence (in both appearance and fact) in particular. Follow up with a brief look at Exercise 1-7
concerning audit independence standards.
SOLUTIONS:
E1.3. This exercise provides an opportunity to gauge where the students are in terms of their
prior background in accounting, be it practical or educational, and to clear up some of
the common misconceptions (i.e., to explain that accounting goes
beyond the ―how to‖ aspects of bookkeeping and involves the use of judgment).
E1.4. This exercise provides an opportunity to align student and instructor expectations. For
first-time instructors in this course, or for those having a diverse student group, you will
get a glimpse at the common perceptions students have concerning the course content,
level of difficulty, and methods of presentation,
testing/evaluation, and grading.
E1.5. The principal factors Jim Sandrolini must consider are his competence and
independence. Is he competent to prepare financial statements for a company that
operates in a different industry than the one in which he works? Accepting a contingent
fee arrangement would normally cause an impairment of his
Fr
independence because he would directly benefit if the loan were to be approved.
an
kl
yn
e
A
pl
us
Pa
4|Page
ss
