Horngren_s Accounting, Volume 1, Eleventh Canadian Edition Plus MyLab 11th edition BY Miller-Nobles, Mattison
Email: Richard@qwconsultancy.com
Table of Contents Introduction to the Instructor’s Resource Manual ...................................................................................... iv Sample 14-Week Syllabus ............................................................................................................................. v Sample 12-Week Syllabus .............................................................................................................................ix Student Handout (How to Get an A in This Class) ........................................................................................ x Tips for Taking Your Course Online ...............................................................................................................xi Chapter 1: Accounting and the Business Environment ................................................................................ 1 Chapter 2: Recording Business Transactions .............................................................................................. 19 Chapter 3: Measuring Business Income: The Adjusting Process ................................................................ 32 Chapter 4: Completing the Accounting Cycle ............................................................................................. 49 Chapter 5: Merchandising Operations ........................................................................................................ 65 Chapter 6: Accounting for Merchandise Inventory ................................................................................... 90 Chapter 7: Accounting Information Systems ............................................................................................ 107 Chapter 8: Internal Control and Cash ....................................................................................................... 123 Chapter 9: Receivables.............................................................................................................................. 141 Chapter 10: Property, Plant, and Equipment; and Goodwill and Intangible Assets ................................. 160 Chapter 11: Current Liabilities and Payroll ............................................................................................... 179
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CHAPTER 1 Accounting and the Business Environment Chapter Overview This chapter is an overall introduction to financial accounting. Many of the key concepts are introduced, and are repeated and reinforced in greater detail in the chapters that follow. Core concepts are introduced in the Framework for Financial Reporting and the accounting equation is introduced to help students learn the basics of double-entry accounting and the recording of business transactions. Financial statements and the importance of preparing them in a specific order is discussed. Chapter 1 covers the following topics: A. Accounting: The language of business o Users of accounting information o Financial accounting and management accounting o Accountants o Ethics in accounting and business B. Forms of business organizations o Proprietorship o Partnership o Corporation C. Accounting concepts o Framework for financial reporting D. The accounting equation o Assets o Liabilities o Owner’s equity o Accounting for business transactions. E. The financial statements o Income statement o Statement of owner’s equity o Balance sheet o Cash flow statement o Relationships among the financial statements F. What are IFRS and ASPE? TRY IT! questions appear at the end of most Learning Objectives and are useful for students to test their understanding of the Learning Objective just completed. The answers appear at the end of the chapter as well as in MyLab. ..
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Students should be directed to MyLab. The repetition of questions will help to reinforce some of the key concepts introduced in the chapter: forms of business organizations, business transactions, and the accounting equation. MyLab also contains several Excel templates (Exercises 1-8 and 1-1,3 and Problems 1-5A and 15B) that students can use to prepare the financial statements introduced in the chapter. The Assignment Grid recommends “Pre-Test” questions in MyLab that can be assigned before a test to ensure students understand the topics, as well as “Post-Test” questions that students can complete after a test to check understanding before moving on.
Learning Objectives and Key Questions
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Learning Objective Define accounting, and describe the users of accounting information Compare and contrast the forms of business organizations Describe some concepts and principles of accounting Use the accounting equation to analyze business transactions Prepare financial statements Briefly explain the different accounting standards
Key Question Why is accounting important, and who uses the information? In what form can we set up a company? What are some of the guidelines for accounting, and why do we need them? How do business activities affect the accounting records of a company? What financial statements are prepared by a company, and how do we create them? What are IFRS and ASPE?
Suggested Priority of Chapter Topics Must Cover Accounting, the language of business Accounting concepts The accounting equation The financial statements Recommended Forms of business organizations ASPE vs. IFRS
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Chapter Outline Learning Objective 1: Define accounting, and describe the users of accounting information (Why is accounting important, and who uses the information?) A. Accounting is the system that measures business activities, processes information into reports, and communicates these findings to decision makers. 1.
Financial statements are documents that report on an individual’s or an organization’s business in monetary amounts.
2. Bookkeeping is the procedural element of accounting. Teaching Tip The terms “bookkeeping” and “accounting” are often referred to in the same context. As a result, students may have a preconceived idea that the two terms mean the same thing and can be used interchangeably. Emphasis should be placed on the differences. Accounting is an information system used to measure, organize, report and communicate information to decision makers. Bookkeeping involves the physical recording of business transactions within the accounting system. Try the everyday example provided in the text—skating is to hockey as bookkeeping is to accounting—as a way to emphasize the differences. The users of accounting information are people who need to make business decisions. (Exhibit 1-1 illustrates the role of accounting in business.) 1. Individuals use accounting information to manage bank accounts, make investments, and decide whether to buy or rent a home. 2. Business owners and managers use accounting information to set goals, evaluate progress toward the goals, and determine corrective action if necessary. 3. Investors use financial statements to help determine what income they can reasonably expect from their investment. Creditors determine a borrower’s ability to meet scheduled payments on a loan by analyzing financial statements. 4. Government regulatory agencies such as the provincial securities commissions verify compliance with financial and other reporting requirements. Taxing authorities such as the local, provincial, and federal governments collect taxes based on income determined by using accounting information. 5. Not-for-profit organizations use accounting information to deal with budgets, payrolls, and other financial issues. 6. Other users of accounting information include labour unions, consumer groups, and the general public. ..