choose a dignified death through euthanasia or assisted suicide, others believe that these
practices undermine the sanctity of life. Legal systems across the world differ on the matter,
with some countries or states permitting euthanasia, while others forbid it entirely.#### 2.3
**Confidentiality and Privacy**Medical professionals are ethically and legally bound to maintain
patient confidentiality. The principle of confidentiality is critical for building trust between
patients and healthcare providers. However, breaches in confidentiality can occur when
healthcare providers are forced to share patient information due to legal requirements, such as
in cases of child abuse or public health emergencies. The balance between maintaining
confidentiality and ensuring public safety often creates a complex ethical and legal
dilemma.### 3. **Ethical Issues in Business**In the world of business, ethical and legal issues
are common and wide-ranging. Companies are often faced with difficult decisions about how to
balance profit motives with moral responsibility. These ethical issues often extend into areas
TEST BANK FOR
ACCOUNTING WHAT THE NUMBERS MEAN13TH EDITION DAVID MARSHALL ALL
CHAPTER
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
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 Purpose Financial Reporting
C. Objectives of Financial Reporting for Nonbusiness Organizations
IV. Plan of the Book
choose a dignified death through euthanasia or assisted suicide, others believe that these practices
undermine the sanctity of life. Legal systems across the world differ on the matter, with some countries or
states permitting euthanasia, while others forbid it entirely.#### 2.3 **Confidentiality and Privacy**Medical
professionals are ethically and legally bound to maintain patient confidentiality. The principle of confidentiality
is critical for building trust between patients and healthcare providers. However, breaches in confidentiality
can occur when healthcare providers are forced to share patient information due to legal requirements, such
as in cases of child abuse or public health emergencies. The balance between maintaining confidentiality and
ensuring public safety often creates a complex ethical and legal dilemma.### 3. **Ethical Issues in
Business**In the world of business, ethical and legal issues are common and wide-ranging. Companies are
often faced with difficult decisions about how to balance profit motives with moral responsibility. These ethical
issues often extend into areas
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. Acco
untants need to apply professional judgment in the application of accounting prin
ciples.
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 contras
t these with financial accounting standards.
7. To introduce the issues associated with the development of international a
ccounting 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 t
, o those of business enterprises.
TEACHING OBSERVATIONS/ASSIGNMENT SUGGESTIONS:
1. Students should be put on notice about the jargon of accounting, the use of sy
nonymous 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 t
he term entity.
2. When discussing "Auditing —
Public Accounting," have students find the auditors' opinion in the Campbell So
up Company 2020 Annual Report (see pages 87-
88 of the Appendix). Emphasize that a "clean opinion" is not a "clean bill of
heal th."
3. Discuss the Summary of Concepts Statement No. 8, Chapter 1 —
The Objective of Financial Reporting, in detail.
choose a dignified death through euthanasia or assisted suicide, others believe that these practices
undermine the sanctity of life. Legal systems across the world differ on the matter, with some countries or
states permitting euthanasia, while others forbid it entirely.#### 2.3 **Confidentiality and Privacy**Medical
professionals are ethically and legally bound to maintain patient confidentiality. The principle of confidentiality
is critical for building trust between patients and healthcare providers. However, breaches in confidentiality
can occur when healthcare providers are forced to share patient information due to legal requirements, such
as in cases of child abuse or public health emergencies. The balance between maintaining confidentiality and
ensuring public safety often creates a complex ethical and legal dilemma.### 3. **Ethical Issues in
Business**In the world of business, ethical and legal issues are common and wide-ranging. Companies are
often faced with difficult decisions about how to balance profit motives with moral responsibility. These ethical
issues often extend into areas
4. Assign Exercise 1-
1. Encourage students to experiment with websites that are of interest. In additio
n, or as an alternative to having students request their own annual reports, distri
bute 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 i
n terms oftheir prior background in accounting, be it practical or educa
tional, and to clear up some of the common misconceptions (i.e., to ex
plain that accounting goes
beyond the ―how to‖ aspects of bookkeeping and involves the use of ju
dgment).
, E1.4. This exercise provides an opportunity to align student and instructor exp
ectationsf.dFor first-
time instructors in this course, or for those having a diverse student gro
up, you will get a glimpse at the common perceptions students have co
ncerning the course content, level of difficulty, and methods of presenta
tion,
testing/evaluation, and grading.
choose a dignified death through euthanasia or assisted suicide, others believe that these practices
undermine the sanctity of life. Legal systems across the world differ on the matter, with some countries or
states permitting euthanasia, while others forbid it entirely.#### 2.3 **Confidentiality and Privacy**Medical
professionals are ethically and legally bound to maintain patient confidentiality. The principle of confidentiality
is critical for building trust between patients and healthcare providers. However, breaches in confidentiality
can occur when healthcare providers are forced to share patient information due to legal requirements, such
as in cases of child abuse or public health emergencies. The balance between maintaining confidentiality and
ensuring public safety often creates a complex ethical and legal dilemma.### 3. **Ethical Issues in
Business**In the world of business, ethical and legal issues are common and wide-ranging. Companies are
often faced with difficult decisions about how to balance profit motives with moral responsibility. These ethical
issues often extend into areas
E1.5. The principal factors Jim Sandrolini must consider are his competence
an d independence. Is he competent to prepare financial statements for a
co mpany that operates in a different industry than the one in which he work
s? Accepting a contingent fee arrangement would normally cause an imp
airment of his
independence because he would directly benefit if the loan were to be a
pproved.
E1.6. Suggested discussion strategy:
Q: Why does a business have value?
A: It provides the owners an opportunity to earn a profit, an opportunit y
forpersonal fulfillment from being in charge, and an opportunity to pr ovide
a product or service that is useful to others.
Q: How can this value be measured?
A: Financial information will have the most to do with evaluating the fir
m‘s profitability, and the financial statements include this information.
Q: How is an asking price for the sale of a business established?
A: The asking price should be a function of the profit, resources, and obl
igations related to the business as shown in the financial statements.
Note: This exercise also provides an opportunity to point out some of
the basic limitations of the data provided by the accounting process (e.
g., historical cost information —
how useful are past earnings results in predicting future earnings and c
ash flows?). Be careful not to get too carried away with details. Let the
students lead this discussion.
practices undermine the sanctity of life. Legal systems across the world differ on the matter,
with some countries or states permitting euthanasia, while others forbid it entirely.#### 2.3
**Confidentiality and Privacy**Medical professionals are ethically and legally bound to maintain
patient confidentiality. The principle of confidentiality is critical for building trust between
patients and healthcare providers. However, breaches in confidentiality can occur when
healthcare providers are forced to share patient information due to legal requirements, such as
in cases of child abuse or public health emergencies. The balance between maintaining
confidentiality and ensuring public safety often creates a complex ethical and legal
dilemma.### 3. **Ethical Issues in Business**In the world of business, ethical and legal issues
are common and wide-ranging. Companies are often faced with difficult decisions about how to
balance profit motives with moral responsibility. These ethical issues often extend into areas
TEST BANK FOR
ACCOUNTING WHAT THE NUMBERS MEAN13TH EDITION DAVID MARSHALL ALL
CHAPTER
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
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 Purpose Financial Reporting
C. Objectives of Financial Reporting for Nonbusiness Organizations
IV. Plan of the Book
choose a dignified death through euthanasia or assisted suicide, others believe that these practices
undermine the sanctity of life. Legal systems across the world differ on the matter, with some countries or
states permitting euthanasia, while others forbid it entirely.#### 2.3 **Confidentiality and Privacy**Medical
professionals are ethically and legally bound to maintain patient confidentiality. The principle of confidentiality
is critical for building trust between patients and healthcare providers. However, breaches in confidentiality
can occur when healthcare providers are forced to share patient information due to legal requirements, such
as in cases of child abuse or public health emergencies. The balance between maintaining confidentiality and
ensuring public safety often creates a complex ethical and legal dilemma.### 3. **Ethical Issues in
Business**In the world of business, ethical and legal issues are common and wide-ranging. Companies are
often faced with difficult decisions about how to balance profit motives with moral responsibility. These ethical
issues often extend into areas
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. Acco
untants need to apply professional judgment in the application of accounting prin
ciples.
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 contras
t these with financial accounting standards.
7. To introduce the issues associated with the development of international a
ccounting 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 t
, o those of business enterprises.
TEACHING OBSERVATIONS/ASSIGNMENT SUGGESTIONS:
1. Students should be put on notice about the jargon of accounting, the use of sy
nonymous 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 t
he term entity.
2. When discussing "Auditing —
Public Accounting," have students find the auditors' opinion in the Campbell So
up Company 2020 Annual Report (see pages 87-
88 of the Appendix). Emphasize that a "clean opinion" is not a "clean bill of
heal th."
3. Discuss the Summary of Concepts Statement No. 8, Chapter 1 —
The Objective of Financial Reporting, in detail.
choose a dignified death through euthanasia or assisted suicide, others believe that these practices
undermine the sanctity of life. Legal systems across the world differ on the matter, with some countries or
states permitting euthanasia, while others forbid it entirely.#### 2.3 **Confidentiality and Privacy**Medical
professionals are ethically and legally bound to maintain patient confidentiality. The principle of confidentiality
is critical for building trust between patients and healthcare providers. However, breaches in confidentiality
can occur when healthcare providers are forced to share patient information due to legal requirements, such
as in cases of child abuse or public health emergencies. The balance between maintaining confidentiality and
ensuring public safety often creates a complex ethical and legal dilemma.### 3. **Ethical Issues in
Business**In the world of business, ethical and legal issues are common and wide-ranging. Companies are
often faced with difficult decisions about how to balance profit motives with moral responsibility. These ethical
issues often extend into areas
4. Assign Exercise 1-
1. Encourage students to experiment with websites that are of interest. In additio
n, or as an alternative to having students request their own annual reports, distri
bute 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 i
n terms oftheir prior background in accounting, be it practical or educa
tional, and to clear up some of the common misconceptions (i.e., to ex
plain that accounting goes
beyond the ―how to‖ aspects of bookkeeping and involves the use of ju
dgment).
, E1.4. This exercise provides an opportunity to align student and instructor exp
ectationsf.dFor first-
time instructors in this course, or for those having a diverse student gro
up, you will get a glimpse at the common perceptions students have co
ncerning the course content, level of difficulty, and methods of presenta
tion,
testing/evaluation, and grading.
choose a dignified death through euthanasia or assisted suicide, others believe that these practices
undermine the sanctity of life. Legal systems across the world differ on the matter, with some countries or
states permitting euthanasia, while others forbid it entirely.#### 2.3 **Confidentiality and Privacy**Medical
professionals are ethically and legally bound to maintain patient confidentiality. The principle of confidentiality
is critical for building trust between patients and healthcare providers. However, breaches in confidentiality
can occur when healthcare providers are forced to share patient information due to legal requirements, such
as in cases of child abuse or public health emergencies. The balance between maintaining confidentiality and
ensuring public safety often creates a complex ethical and legal dilemma.### 3. **Ethical Issues in
Business**In the world of business, ethical and legal issues are common and wide-ranging. Companies are
often faced with difficult decisions about how to balance profit motives with moral responsibility. These ethical
issues often extend into areas
E1.5. The principal factors Jim Sandrolini must consider are his competence
an d independence. Is he competent to prepare financial statements for a
co mpany that operates in a different industry than the one in which he work
s? Accepting a contingent fee arrangement would normally cause an imp
airment of his
independence because he would directly benefit if the loan were to be a
pproved.
E1.6. Suggested discussion strategy:
Q: Why does a business have value?
A: It provides the owners an opportunity to earn a profit, an opportunit y
forpersonal fulfillment from being in charge, and an opportunity to pr ovide
a product or service that is useful to others.
Q: How can this value be measured?
A: Financial information will have the most to do with evaluating the fir
m‘s profitability, and the financial statements include this information.
Q: How is an asking price for the sale of a business established?
A: The asking price should be a function of the profit, resources, and obl
igations related to the business as shown in the financial statements.
Note: This exercise also provides an opportunity to point out some of
the basic limitations of the data provided by the accounting process (e.
g., historical cost information —
how useful are past earnings results in predicting future earnings and c
ash flows?). Be careful not to get too carried away with details. Let the
students lead this discussion.
