Chapter 1 1 Essay

Submitted By Adaine-Brown
Words: 8430
Pages: 34

CHAPTER 1
Accounting as a Form of Communication
OVERVIEW OF EXERCISES, PROBLEMS, AND CASES Estimated Time in
Learning Outcomes Exercises Minutes Level

1. Identify the primary users of accounting information and their 1 5 Mod needs. 12* 10 Mod 14* 15 Mod

2. Explain the purpose of each of the financial statements 2 5 Easy and the relationships among them, and prepare a set of 3 15 Mod simple statements. 4 10 Mod 5 10 Mod 6 15 Easy 7 10 Easy 8 20 Diff 9 15 Mod 12* 10 Mod 13* 10 Mod

3. Identify and explain the primary assumptions made in 10 10 Mod preparing financial statements. 13* 10 Mod

4. Explain the critical role that ethics play in providing useful financial information.

5. Describe the various roles of accountants in organizations. 11 5 Easy 14* 15 Mod

*Exercise, problem, or case covers two or more learning outcomes Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff) Problems Estimated and Time in
Learning Outcomes Alternates Minutes Level

1. Identify the primary users of accounting information and their 1 30 Mod needs. 2 20 Mod 10 20 Mod

2. Explain the purpose of each of the financial statements 3 30 Easy and the relationships among them, and prepare a set of 4 30 Easy simple statements. 5 60 Mod 6 45 Mod 7 60 Diff 8 25 Mod 11* 45 Diff

3. Identify and explain the primary assumptions made in 11* 45 Diff preparing financial statements.

4. Explain the critical role that ethics play in providing useful financial information.

5. Describe the various roles of accountants in organizations. 9 15 Easy

*Exercise, problem, or case covers two or more learning outcomes Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff) Estimated Time in
Learning Outcomes Cases Minutes Level

1. Identify the primary users of accounting information and their 1* 25 Mod needs. 4 30 Mod 6* 75 Diff

2. Explain the purpose of each of the financial statements 1* 25 Mod and the relationships among them, and prepare a set of 2 20 Mod simple statements. 3* 30 Mod 5 60 Diff 6* 75 Diff

3. Identify and explain the primary assumptions made in preparing financial statements.

4. Explain the critical role that ethics play in providing useful financial information. 3* 30 Mod 6* 75 Diff 7* 20 Mod

5. Describe the various roles of accountants in organizations. 7* 20 Mod

*Exercise, problem, or case covers two or more learning outcomes Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff)

questions

1. Accounting is a communication process. Its purpose is to provide economic information about an organization that will be useful to those who need to make decisions regarding that entity. For example, information provided by an accountant about an entity is useful to a banker in reaching a decision about whether to loan money to a business. 2. Financial accounting and management accounting differ with regard to the users of the information provided by the two branches of the discipline. Management accounting is the branch of accounting that provides management with information to facilitate the planning and control functions. The information provided by a management accounting system can be tailored to meet the needs of managers. Alternatively, financial accounting is concerned with the preparation of general purpose financial statements for use by both management and outsiders. Because the information provided by financial accounting must meet the needs of many different groups, it is necessary to rely on a set of generally accepted accounting principles in preparing the financial statements. 3. Many different groups rely on accounting information in making decisions. For example, investors and potential investors rely on financial statements and related disclosures in deciding whether to sell or buy stock in a company. This group is particularly concerned with the recent profitability…