SOLUTION MANUAL
,Chapter Accounting—Present And Past
1
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
A. Context
B. Summary Of Concepts Statement No. 8, Chapter 1 — The Objective Of
General Purposefinancial 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 Applyprofessional 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 Withfinancial Accounting Standards.
7. To Introduce The Issues Associated With The Development Of
International Accountingstandards.
8. To Describe The Context Of The Fasb Conceptual Framework Project.
, 9. To Summarize Concepts Statement No. 8, Chapter 1 — The Objective Of
General Purposefinancial Reporting.
10. To Relate The Objectives Of Financial Reporting For Nonbusiness
Organizations To Those Ofbusiness Enterprises.
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 Precisionin The Use Of Terminology. The First Example Of
Jargon Is The Term Entity.
2. When Discussing "Auditing — Public Accounting," Have Students Find The
Auditors' Opinionin 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 Financialreporting, In Detail.
,Chapter Accounting—Present And Past
1
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
A. Context
B. Summary Of Concepts Statement No. 8, Chapter 1 — The Objective Of
General Purposefinancial 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 Applyprofessional 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 Withfinancial Accounting Standards.
7. To Introduce The Issues Associated With The Development Of
International Accountingstandards.
8. To Describe The Context Of The Fasb Conceptual Framework Project.
, 9. To Summarize Concepts Statement No. 8, Chapter 1 — The Objective Of
General Purposefinancial Reporting.
10. To Relate The Objectives Of Financial Reporting For Nonbusiness
Organizations To Those Ofbusiness Enterprises.
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 Precisionin The Use Of Terminology. The First Example Of
Jargon Is The Term Entity.
2. When Discussing "Auditing — Public Accounting," Have Students Find The
Auditors' Opinionin 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 Financialreporting, In Detail.
