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Accounting Essay

5996 words - 24 pages

CHAPTER 1 ACCOUNTING: INFORMATION FOR DECISION MAKING
OVERVIEW OF BRIEF EXERCISES, EXERCISES, AND CRITICAL THINKING CASES
Brief Exercises B. Ex. 1.1 B. Ex. 1.2 B. Ex. 1.3 B. Ex. 1.4 B. Ex. 1.5 B. Ex. 1.6 B. Ex. 1.7 B. Ex. 1.8 B. Ex. 1.9 B. Ex. 1.10 Learning Objectives 1, 3, 5 2, 5 3, 4 5, 6 1, 3, 5, 6 5, 6 2, 5, 6 7, 8 5, 7 1

Topic Users of accounting information Components of internal control Inexact or approximate measures Standards for the preparation of accounting information FASB conceptual framework PCAOB COSO Professional certifications in accounting AICPA code of professional conduct Personal benefits of accounting skills

Skills Analysis Analysis Analysis, judgment Analysis ...view middle of the document...

In all future chapters you will find a series of Problems that generally include computations, are more complex, and generally require more time to complete than Exercises. Critical Thinking Cases 1.1 Real World: Fannie Mae Reliability of financial statements 1.2 Objectives of financial accounting 1.3 1.4 1.5 Accounting systems Codes of ethics (Ethics, fraud, and corporate governance) Accessing information on the Internet (Internet)

5 3 2 7 6, 7

Analysis, ethics, judgment Analysis, communication, group, judgment Analysis, communication Analysis, communication, judgment Research, technology

© The McGraw-Hill Companies, Inc., 2012 Overview

DESCRIPTIONS OF CRITICAL THINKING CASES
Below are brief descriptions of each case. These descriptions are accompanied by the estimated time (in minutes) required for completion and by a difficulty rating.

Critical Thinking Cases
1.1 Fannie Mae 15 Easy Reliability of Financial Statements This case explores the general subject of integrity in financial statements—what causes potential investors to be able to rely on information and what precludes management from portraying a company in more positive terms than it should. Objectives of Financial Accounting Characteristics of accounting and accounting information (e.g., useful for decision making, language of business) are used to explain the importance of accounting information. Accounting Systems The purpose and functions of accounting systems are covered, as well as the definition of what an accounting system is and who is responsible for designing and implementing accounting systems. 15 Medium

1.2

1.3

15 Easy

1.4

Codes of Ethics 30 Medium Ethics, Fraud, and Corporate Governance Students are placed in the position of a new employee who is faced with the challenge of becoming familiar with an appropriate code of ethics and must think through how that code might influence his/her behavior on the job. Accessing Information on the Internet Internet Students are introduced to learning on the Internet by accessing the Rutgers University web page on accounting information. Once there, they learn about accounting firms, accounting textbook publishers, and professional accounting organizations. 30 Medium

1.5

© The McGraw-Hill Companies, Inc., 2012 Desc. of Cases

SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
Note to instructor: We regularly include discussion questions as part of the assigned homework. One objective of these questions is to help students develop communications skills; however, we find that they also increase students’ conceptual understanding of accounting. 1. Accounting is a way of communicating the results of business activity and, therefore, is sometimes described as the language of business. Among the important accounting measurements that communicate business activity and justify describing accounting as the language of business are costs, prices, sales volume, profits, and return on investment. 2. The return of...

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