Accounting: What the Numbers Mean 13th Edition Marshall – Complete Solution Manual & Quiz Bank (Chapters 1-17)

Instructor’sVManualV/VSolutionsVManu
al
FullVSolutionVManualVforVAccountingVWhatVTheVNumbersVMeanV13thVEditionVDavidVMarshall



CHAPTER
Accounting—Present and Past V V


1

CHAPTERVOUTLINE:

I. WhatVIsVAccounting?
A. Definition
B. UsesVofVAccountingVInformation
C. Classifications
1. FinancialVAccounting
2. ManagerialVAccountingV/VCostVAccounting
3. AuditingV—VPublicVAccounting
4. InternalVAuditing
5. GovernmentalVandVNot-for-ProfitVAccounting
6. IncomeVTaxVAccounting

II. HowVHasVAccountingVDeveloped?
A. EarlyVHistory
B. TheVAccountingVProfessionVinVtheVUnitedVStates
C. FinancialVAccountingVStandardVSettingVatVtheVPresentVTime
1. FinancialVAccountingVStandardsVBoard
2. StandardsVareVEvolving
D. StandardsVforVOtherVTypesVofVAccounting
1. ManagerialVAccountingV/VCostVAccounting
2. Auditing
3. GovernmentalVandVNot-for-ProfitVAccounting
4. IncomeVTaxVAccounting
E. InternationalVAccountingVStandards
F. EthicsVandVtheVAccountingVProfession

III. TheVConceptualVFramework
A. Context
B. SummaryVofVConceptsVStatementVNo.V8,VChapterV1V—
VTheVObjectiveVofVGeneralVPurposeVFinancialVReporting
C. ObjectivesVofVFinancialVReportingVforVNonbusinessVOrganizations
IV. PlanVofVtheVBook


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, Instructor’sVManualV/VSolutionsVManu
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TEACHING/LEARNINGVOBJECTIVES:

Principal:

1. ToVpresentVaVdefinitionVofVaccounting.

2. ToVidentifyVandVdescribeVdifferentV classificationsVofVaccounting.

3. ToVemphasizeVthatVfinancialVaccountingVstandardsVareVnotVaV―fixedVcodeVofVrules,‖Vbu
tVareVestablishedVinVresponseVtoVuserVneedsVandVbusinessVdevelopments.VAccountantsVn
eedVtoVapplyVprofessionalVjudgmentVinVtheVapplicationVofVaccountingVprinciples.

4. ToVemphasizeVtheVroleVandVsourcesVofVethicsVforVtheVaccountingVprofession.

Supporting:

5. ToVsummarizeVhowVaccountingVhasVevolvedVoverVtime.

6. ToVidentifyVsourcesVofVstandardsVforVotherVtypesVofVaccountingVandVtoVcontrastVthe
seVwithVfinancialVaccountingVstandards.

7. ToVintroduceVtheVissuesVassociatedVwithVtheVdevelopmentVofVinternationalVacco
untingVstandards.

8. ToVdescribeVtheVcontextVofVtheVFASBVConceptualVFrameworkVproject.

9. ToVsummarizeVConceptsVStatementVNo.V8,VChapterV1V—
VTheVObjectiveVofVGeneralVPurposeVFinancialVReporting.


10. ToVrelateVtheVobjectivesVofVfinancialVreportingVforVnonbusinessVorganizationsVtoVth
oseVofVbusinessVenterprises.

TEACHINGVOBSERVATIONS/ASSIGNMENTVSUGGESTIONS:

1. StudentsVshouldVbeVputVonVnoticeVaboutVtheVjargonVofVaccounting,VtheVuseVofVsynony
mousVterms,VtheVimportanceVofVtheVcontextVwithinVwhichVaVtermVisVused,VandVtheVnee
dVforVprecisionVinVtheVuseVofVterminology.VTheVfirstVexampleVofVjargonVisVtheVtermVe
ntity.

2. WhenVdiscussingV"AuditingV—
VPublicVAccounting,"VhaveVstudentsVfindVtheVauditors'VopinionVinVtheVCampbellVSoupV
CompanyV2020VAnnualVReportV(seeVpagesV87-
88VofVtheVAppendix).VEmphasizeVthatVaV"cleanVopinion"VisVnotVaV"cleanVbillVofVhealt
h."

3. DiscussVtheVSummaryVofVConceptsVStatementVNo.V8,VChapterV1V—
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awVHillVLLC.

, Instructor’sVManualV/VSolutionsVManu
VTheVObjectiveVofVFinancialVReporting,VinVdetail. al




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awVHillVLLC.

, Instructor’sVManualV/VSolutionsVManu
al
4. AssignVExerciseV1-
1.VEncourageVstudentsVtoVexperimentVwithVwebsitesVthatVareVofVinterest.VInVaddition,Vo
rVasVanValternativeVtoVhavingVstudentsVrequestVtheirVownVannualVreports,VdistributeVrep
ortsVthatVhaveVbeenVobtainedVbyVtheVinstructor.

5. UseVExerciseV1-
5VtoVgenerateVdiscussionVaboutVtheVimportanceVofVethicalVstandardsVinVgeneralVandVind
ependenceV(inVbothVappearanceVandVfact)VinVparticular.VFollowVupVwithVaVbriefVlookVa
tVExerciseV1-7VconcerningVauditVindependenceVstandards.


SOLUTIONS:

E1.3. ThisVexerciseVprovidesVanVopportunityVtoVgaugeVwhereVtheVstudentsVareVinVte
rmsVofVtheirVpriorVbackgroundVinVaccounting,VbeVitVpracticalVorVeducational,
VandVtoVclearVupVsomeVofVtheVcommonVmisconceptionsV(i.e.,VtoVexplainVthat
VaccountingVgoes
beyondVtheV―howVto‖VaspectsVofVbookkeepingVandVinvolvesVtheVuseVofVjudg
ment).

E1.4. ThisVexerciseVprovidesVanVopportunityVtoValignVstudentVandVinstructorVexpecta
tions.VForVfirst-
timeVinstructorsVinVthisVcourse,VorVforVthoseVhavingVaVdiverseVstudentVgroup,
VyouVwillVgetVaVglimpseVatVtheVcommonVperceptionsVstudentsVhaveVconcerni
ngVtheVcourseVcontent,VlevelVofVdifficulty,VandVmethodsVofVpresentation,
testing/evaluation,VandVgrading.

E1.5. TheVprincipalVfactorsVJimVSandroliniVmustVconsiderVareVhisVcompetenceVandV
independence.VIsVheVcompetentVtoVprepareVfinancialVstatementsVforVaVcompan
yVthatVoperatesVinVaVdifferentVindustryVthanVtheVoneVinVwhichVheVworks?VAc
ceptingVaVcontingentVfeeVarrangementVwouldVnormallyVcauseVanVimpairmentV
ofVhis
independenceVbecauseVheVwouldVdirectlyVbenefitVifVtheVloanVwereVtoVbeVappr
oved.




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©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMcGr
awVHillVLLC.