NBJ11e_SM_ch02 - CHAPTER 2 FINANCIAL REPORTING: ITS...

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Unformatted text preview: CHAPTER 2 FINANCIAL REPORTING: ITS CONCEPTUAL FRAMEWORK CONTENT ANALYSIS OF CASES Number Content Time Range (minutes) C2-1 Qualitative Characteristics . Matching of definitions to the qualities of useful accounting information. 10-20 C2-2 Accounting Assumptions and Principles . Matching of a list of descriptive statements with a list of assumptions and principles. 5-15 C2-3 Objectives of Financial Reporting . Discuss general through specific objectives. 15-30 C2-4 Qualitative Characteristics . Identify and discuss qualities of useful accounting information. 20-40 C2-5 (AICPA adapted). Cost and Expense Recognition . Rationale for expense recognition at time of sale, in an accounting period, or due to systematic and rational allocation. 15-30 C2-6 (CMA adapted). Characteristics of Useful Information . Define relevance and reliability (and their ingredients), as well as comparability, consistency, and materiality. 20-30 C2-7 (CMA adapted). Objectives, Users, and Stewardship . Discuss the primary objectives of financial reporting, the sophistication level of users, and the stewardship responsibilities of management. 20-30 C2-8 Segment Reporting . Discuss what types of useful information for investment decision making is provided by a company's disclosures of the revenues, operating profits, and assets of its lines of business. 10-15 C2-9 Relevance Versus Reliability . Define relevance and reliability, and ingredients of each. Discuss which is most important. 10-15 C2-10 (AICPA adapted). Inconsistent Statements about GAAP . Evaluate and discuss two statements containing fallacies, half-truths, circular 15-30 2-1 reasoning, errors, and inconsistencies. C2-11 (AICPA adapted). Accounting Entity . Define and discuss an accounting entity; give illustrations. 15-30 2-2 Number Content Time Range (minutes) C2-12 (AICPA adapted). Timing of Revenue Recognition . Discuss why point-of-sale recognition is usual. Discuss merits of alternative revenue recognition bases. 20-40 C2-13 (AICPA adapted). Accruals and Deferrals . Discuss accrual accounting, including accruals and deferrals. Contrast with cash accounting. 10-15 C2-14 Revenue Recognition . Describe when revenue should be recognized in four cases, and indicate what method should be used. 15-20 C2-15 Violation of Assumptions and Conventions . For seven situations, identify what accounting assumption or convention each procedure or practice violates. Indicate what should be done to rectify each violation....
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This note was uploaded on 10/26/2010 for the course ACC 3023 taught by Professor Cole during the Spring '10 term at The University of Texas at San Antonio- San Antonio.

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NBJ11e_SM_ch02 - CHAPTER 2 FINANCIAL REPORTING: ITS...

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