ch01 solutions - CHAPTER 1 Financial Accounting and...

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Unformatted text preview: CHAPTER 1 Financial Accounting and Accounting Standards ASSIGNMENT CLASSIFICATION TABLE Topics Questions Cases 1. Subject matter of accounting. 1 1 2. Environment of accounting. 2, 3, 4 3, 4 3. Role of principles, objectives, standards, and accounting theory. 5, 6, 7 2 4. Historical development of accounting standards. 8, 9, 10, 11 5, 16 5. Authoritative pronouncements and standards-setting bodies. 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23 6, 7, 8, 9, 10, 11, 12, 15 6. Role of pressure groups. 23, 24, 25, 26, 27, 28 17, 18 7. International accounting. 29, 30 14 8. Ethical issues. 31 13, 16 1-1 ASSIGNMENT CHARACTERISTICS TABLE It e m Description Level of Difficu lty Time (minut es) C A 1- 1 Financial accounting. Simple 1520 C A 1- 2 Objectives of financial reporting. Moder ate 2025 C A 1- 3 Accounting numbers and the environment. Simple 1015 C A 1- 4 Need for accounting standards. Simple 1520 C A 1- 5 AICPA s role in standards setting. Simple 2025 C A 1- 6 FASB role in standards setting. Simple 2025 C A 1- 7 Government role in standards setting. Simple 1015 C A 1- 8 Politicalization of standards setting. Compl ex 3040 C A 1- 9 Models for setting accounting standards. Simple 1520 C A 1- 1 Standards-setting terminology. Moder ate 3040 C A 1- 1 1 Accounting organizations and documents issued. Simple 1520 1-2 C A 1- 1 2 Accounting pronouncements. Simple 1015 C A 1- 1 3 Issues involving standards setting. Compl ex 2025 C A 1- 1 4 Securities and Exchange Commission. Moder ate 3040 C A 1- 1 5 Standards-setting process. Moder ate 2535 C A 1- 1 6 History of standards-setting organizations. Moder ate 2535 C A 1- 1 7 Economic consequences. Moder ate 2535 C A 1- 1 8 Standards-setting process, economic consequences. Moder ate 2535 1-3 ANSWERS TO QUESTIONS 1. Financial accounting measures, classifies, and summarizes in report form those activities and that information which relate to the enterprise as a whole for use by parties both internal and external to a business enterprise. Managerial accounting also measures, classifies, and summarizes in report form enterprise activities, but the communication is for the use of internal, managerial parties, and relates more to subsystems of the entity. Managerial accounting is management decision oriented and directed more toward product line, division, and profit center reporting. 2. Financial statements generally refer to the four basic financial statements: balance sheet, income statement, statement of cash flows, and statement of changes in owners or stockholders equity. Financial reporting is a broader concept; it includes the basic financial statements and any other means of communicating financial and economic data to interested external parties. Examples of financial reporting other than financial reports are annual reports, prospectuses, reports filed with the government, news releases, management forecasts or plans, and descriptions of an enterprise...
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This note was uploaded on 11/17/2010 for the course ACCT ACC550 taught by Professor Armsrong during the Spring '10 term at Kellogg School of Management.

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ch01 solutions - CHAPTER 1 Financial Accounting and...

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