ALL iiCHAPTERS ii1 ii- ii16 ii
SOLUTION iiMANUAL 1 / 4
1
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 iiFINANCIAL REPORTING
C. OBJECTIVES OF FINANCIAL REPORTING FOR NONBUSINESS ORGANIZATIONS
IV. PLAN OF THE BOOK 2 / 4
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 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 PURPOSEiiFINANCIAL 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 3 / 4
THE USE OF TERMINOLOGY. THE FIRST EXAMPLE OF JARGON IS THE TERM
ENTITY.
- 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.
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