Instructor’s Manual / Solutions Manual
TopTierStudyGuides
4-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, Instructor’s Manual / Solutions Manual
Full Solution Manual for Accounting What The Numbers Mean 13th Edition David Marshall
CHAPTER
Accounting Present and Past
— 1
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
4. Income Tax Accounting
E. International Accounting Standards
F. Ethics and the Accounting Profession
III. The Conceptual Framework
4-2
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, Instructor’s Manual / Solutions Manual
A. Context
B. Summary of Concepts Statement No. 8, Chapter 1 — The Objective of General Purpose
Financial Reporting
C. Objectives of Financial Reporting for Nonbusiness Organizations
IV. Plan of the Book
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.
9. To summarize Concepts Statement No. 8, Chapter 1 — The Objective of General Purpose Financial
Reporting.
10. To relate the objectives of financial reporting for nonbusiness organizations to those of business
enterprises.
4-3
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, Instructor’s Manual / Solutions Manual
TEACHING OBSERVATIONS/ASSIGNMENT SUGGESTIONS:
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 terminology. The first example of jargon is the term entity.
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 a "clean opinion" is not a "clean bill of health."
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
independence because he would directly benefit if the loan were to be approved.
E1.6. Suggested discussion strategy:
Q: Why does a business have value?
4-4
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
TopTierStudyGuides
4-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, Instructor’s Manual / Solutions Manual
Full Solution Manual for Accounting What The Numbers Mean 13th Edition David Marshall
CHAPTER
Accounting Present and Past
— 1
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
4. Income Tax Accounting
E. International Accounting Standards
F. Ethics and the Accounting Profession
III. The Conceptual Framework
4-2
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, Instructor’s Manual / Solutions Manual
A. Context
B. Summary of Concepts Statement No. 8, Chapter 1 — The Objective of General Purpose
Financial Reporting
C. Objectives of Financial Reporting for Nonbusiness Organizations
IV. Plan of the Book
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.
9. To summarize Concepts Statement No. 8, Chapter 1 — The Objective of General Purpose Financial
Reporting.
10. To relate the objectives of financial reporting for nonbusiness organizations to those of business
enterprises.
4-3
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
, Instructor’s Manual / Solutions Manual
TEACHING OBSERVATIONS/ASSIGNMENT SUGGESTIONS:
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 terminology. The first example of jargon is the term entity.
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 a "clean opinion" is not a "clean bill of health."
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
independence because he would directly benefit if the loan were to be approved.
E1.6. Suggested discussion strategy:
Q: Why does a business have value?
4-4
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
