Solution Manual
k k
Accounting What The Numbers Mean
k k k k k
13th Edition by David Marshall
k k k k k
All Chapters 1 - 16
k k k k k
,CHAPTER
1
Accounting—Present and Past k k
CHAPTERkOUTLINE:
I. WhatkIskAccounting?
A. Definition
B. UseskofkAccountingkInformation
C. Classifications
1. FinancialkAccounting
2. ManagerialkAccountingk/kCostkAccounting
3. Auditingk—kPublickAccounting
4. InternalkAuditing
5. GovernmentalkandkNot-for-ProfitkAccounting
6. IncomekTaxkAccounting
II. HowkHaskAccountingkDeveloped?
A. EarlykHistory
B. ThekAccountingkProfessionkinkthekUnitedkStates
C. FinancialkAccountingkStandardkSettingkatkthekPresentkTime
1. FinancialkAccountingkStandardskBoard
2. StandardskarekEvolving
D. StandardskforkOtherkTypeskofkAccounting
1. ManagerialkAccountingk/kCostkAccounting
2. Auditing
3. GovernmentalkandkNot-for-ProfitkAccounting
4. IncomekTaxkAccounting
E. InternationalkAccountingkStandards
F. EthicskandkthekAccountingkProfession
III. ThekConceptualkFramework
A. Context
B. SummarykofkConceptskStatementkNo.k8,kChapterk1k—
kThekObjectivekofkGeneralkPurposekFinancialkReporting
C. ObjectiveskofkFinancialkReportingkforkNonbusinesskOrganizations
IV. PlankofkthekBook
,TEACHING/LEARNINGkOBJECTIVES:
Principal:
1. Tokpresentkakdefinitionkofkaccounting.
2. Tokidentifykandkdescribekdifferentkclassificationskofkaccounting.
3. Tokemphasizekthatkfinancialkaccountingkstandardskareknotkak―fixedkcodekofkrules,‖k
butkarekestablishedkinkresponsektokuserkneedskandkbusinesskdevelopments.kAccoun
tantskneedktokapplykprofessionalkjudgmentkinkthekapplicationkofkaccountingkprincipl
es.
4. Tokemphasizekthekrolekandksourceskofkethicskforkthekaccountingkprofession.
Supporting:
5. Toksummarizekhowkaccountingkhaskevolvedkoverktime.
6. Tokidentifyksourceskofkstandardskforkotherktypeskofkaccountingkandktokcontrast
kthesekwithkfinancialkaccountingkstandards.
7. Tokintroducekthekissueskassociatedkwithkthekdevelopmentkofkinternationalka
ccountingkstandards.
8. TokdescribekthekcontextkofkthekFASBkConceptualkFrameworkkproject.
9. ToksummarizekConceptskStatementkNo.k8,kChapterk1k—
kThekObjectivekofkGeneralkPurposekFinancialkReporting.
10. Tokrelatekthekobjectiveskofkfinancialkreportingkforknonbusinesskorganizationskt
okthosekofkbusinesskenterprises.
TEACHINGkOBSERVATIONS/ASSIGNMENTkSUGGESTIONS:
1. Studentskshouldkbekputkonknoticekaboutkthekjargonkofkaccounting,kthekusekofksyn
onymouskterms,kthekimportancekofkthekcontextkwithinkwhichkaktermkiskused,kandkt
hekneedkforkprecisionkinkthekusekofkterminology.kThekfirstkexamplekofkjargonkiskthe
ktermkentity.
, 2. Whenkdiscussingk"Auditingk—
kPublickAccounting,"khavekstudentskfindkthekauditors'kopinionkinkthekCampbellkSou
pkCompanyk2020kAnnualkReportk(seekpagesk87-
88kofkthekAppendix).kEmphasizekthatkak"cleankopinion"kisknotkak"cleankbillkofkhealt
h."
3. DiscusskthekSummarykofkConceptskStatementkNo.k8,kChapterk1k—
kThekObjectivekofkFinancialkReporting,k inkdetail.
k k
Accounting What The Numbers Mean
k k k k k
13th Edition by David Marshall
k k k k k
All Chapters 1 - 16
k k k k k
,CHAPTER
1
Accounting—Present and Past k k
CHAPTERkOUTLINE:
I. WhatkIskAccounting?
A. Definition
B. UseskofkAccountingkInformation
C. Classifications
1. FinancialkAccounting
2. ManagerialkAccountingk/kCostkAccounting
3. Auditingk—kPublickAccounting
4. InternalkAuditing
5. GovernmentalkandkNot-for-ProfitkAccounting
6. IncomekTaxkAccounting
II. HowkHaskAccountingkDeveloped?
A. EarlykHistory
B. ThekAccountingkProfessionkinkthekUnitedkStates
C. FinancialkAccountingkStandardkSettingkatkthekPresentkTime
1. FinancialkAccountingkStandardskBoard
2. StandardskarekEvolving
D. StandardskforkOtherkTypeskofkAccounting
1. ManagerialkAccountingk/kCostkAccounting
2. Auditing
3. GovernmentalkandkNot-for-ProfitkAccounting
4. IncomekTaxkAccounting
E. InternationalkAccountingkStandards
F. EthicskandkthekAccountingkProfession
III. ThekConceptualkFramework
A. Context
B. SummarykofkConceptskStatementkNo.k8,kChapterk1k—
kThekObjectivekofkGeneralkPurposekFinancialkReporting
C. ObjectiveskofkFinancialkReportingkforkNonbusinesskOrganizations
IV. PlankofkthekBook
,TEACHING/LEARNINGkOBJECTIVES:
Principal:
1. Tokpresentkakdefinitionkofkaccounting.
2. Tokidentifykandkdescribekdifferentkclassificationskofkaccounting.
3. Tokemphasizekthatkfinancialkaccountingkstandardskareknotkak―fixedkcodekofkrules,‖k
butkarekestablishedkinkresponsektokuserkneedskandkbusinesskdevelopments.kAccoun
tantskneedktokapplykprofessionalkjudgmentkinkthekapplicationkofkaccountingkprincipl
es.
4. Tokemphasizekthekrolekandksourceskofkethicskforkthekaccountingkprofession.
Supporting:
5. Toksummarizekhowkaccountingkhaskevolvedkoverktime.
6. Tokidentifyksourceskofkstandardskforkotherktypeskofkaccountingkandktokcontrast
kthesekwithkfinancialkaccountingkstandards.
7. Tokintroducekthekissueskassociatedkwithkthekdevelopmentkofkinternationalka
ccountingkstandards.
8. TokdescribekthekcontextkofkthekFASBkConceptualkFrameworkkproject.
9. ToksummarizekConceptskStatementkNo.k8,kChapterk1k—
kThekObjectivekofkGeneralkPurposekFinancialkReporting.
10. Tokrelatekthekobjectiveskofkfinancialkreportingkforknonbusinesskorganizationskt
okthosekofkbusinesskenterprises.
TEACHINGkOBSERVATIONS/ASSIGNMENTkSUGGESTIONS:
1. Studentskshouldkbekputkonknoticekaboutkthekjargonkofkaccounting,kthekusekofksyn
onymouskterms,kthekimportancekofkthekcontextkwithinkwhichkaktermkiskused,kandkt
hekneedkforkprecisionkinkthekusekofkterminology.kThekfirstkexamplekofkjargonkiskthe
ktermkentity.
, 2. Whenkdiscussingk"Auditingk—
kPublickAccounting,"khavekstudentskfindkthekauditors'kopinionkinkthekCampbellkSou
pkCompanyk2020kAnnualkReportk(seekpagesk87-
88kofkthekAppendix).kEmphasizekthatkak"cleankopinion"kisknotkak"cleankbillkofkhealt
h."
3. DiscusskthekSummarykofkConceptskStatementkNo.k8,kChapterk1k—
kThekObjectivekofkFinancialkReporting,k inkdetail.
