Type:
Instructor Manual
Resource:
Financial Accounting
Edition:
12th Edition
Author(s):
William Thomas Wendy M. Tietz Walter Harrison
Introduction to the Instructor’s Resource Manual Below is a brief guide that will help you use the resources associated with the Instructor’s Resource Manual and to utilize your time most effectively: Sample Syllabi The sample syllabi provides instructors with a class-ready document in which they can enter their own course-specific information to begin a new term. Sample syllabi for the introductory financial accounting course and the introductory managerial accounting course (Appendix A) include suggested course schedules and related assignments for a 16-week term and a 10-week term. These syllabi are developed for an online course but can easily be adapted for hybrid or in-class courses. Student Handouts The student handouts are designed to ease your communication with students. MyLab Accounting Registration will guide students through registering and logging into MyLab Accounting for the first time. Tips on How to get an A in the course Flipping the Classroom Tips for taking your course from a traditional/in-class course to a hybrid, blended, or fully online format. Discussion Board Prompts Chapter-specific suggestions for getting an online discussion started for your course. Directed Reading Worksheets with Solutions These worksheets provide several fill-in-the-blank and open-ended questions for each Learning Objective in each chapter. They allow students to follow along with the reading, consolidating the key concepts of the chapter. Solutions are available for each question provided. IRM Chapter Outline Each chapter of this Instructor’s Resource Manual also contains:
Learning Objectives—lists all the chapter’s Learning Objectives Chapter Outline –lists all the topics covered within the chapter Chapter Activities—student activities to help reinforce chapter topics Difficult Topics—lists of most difficult topics from chapter Ten-Minute Quiz—multiple-choice questions to quickly assess students’ understanding of the chapter material Answer Key to Chapter Quiz Questions You Should Be Able to Answer—questions from each Learning Objective that the student should have mastered after reviewing the material. Also includes suggested Short Exercises for further practice. Assignment Grid—indicates the corresponding Learning Objective for each exercise and problem. 1
Chapter 1: The Financial Statements Learning Objectives 1. 2. 3. 4. 5.
Explain why accounting is critical to business Explain and apply underlying accounting concepts, assumptions, and principles Apply the accounting equation to business organizations Construct financial statements and analyze the relationships among them Evaluate business decisions ethically
Chapter Outline I.
II.
Accounting – Critical to Business A. Decision makers 1. Individuals 2. Investors and creditors 3. Regulatory bodies 4. Nonprofit organizations B. Financial accounting vs. management accounting C. Organizing a business 1. Proprietorship 2. Partnership 3. Limited-liability company 4. Corporation Underlying Accounting Concepts, Assumptions, and Principles A. Financial Accounting Standards Board (FASB)/Generally Accepted Accounting Principles (GAAP) B. International Accounting Standards Board (IASB)/International Financial Reporting Standard (IFRS) C. Fundamental qualitative characteristics 1. Relevance 2. Faithful representation D. Enhancing (supplementary) qualitative characteristics 1. Comparability 2. Verifiability 3. Timeliness 4. Understandability E. Cost/benefit F. Entity assumption G. Continuity (going-concern) assumption 1-1 .
III.
IV.
V.
H. Historical cost principle I. Stable-monetary-unit assumption Application of the Accounting Equation (Assets = Liabilities + Equity) A. Assets – economic resources with future benefit B. Liabilities – “outsider claims” C. Owners’ equity – “insider claims” 1. Paid-in capital 2. Retained earnings a. Revenues b. Expenses c. Dividends Construct Financial Statements and Analyze the Relationships Among Them A. The Income Statement (Revenues – Expenses = Net Income (Net Loss)) 1. Revenues and 2. Gains 3. Expenses and 4. Losses B. Statement of Retained Earnings (Beginning Retained Earnings + Net Income – Dividends = Ending Retained Earnings) C. Balance Sheet (Assets = Liabilities + Equity) 1. Assets a. Current assets b. Long-term (non-current) assets 2. Liabilities a. Current liabilities b. Long-term liabilities 3. Stockholders’ equity a. Paid-in capital (common stock and additional paid-in capital) b. Retained earnings c. Sometimes, Treasury stock and/or Other equity D. Statement of Cash Flows (Net cash flow from (Operating Activities + or – Investing Activities + or – Financing Activities) + Beginning Cash balance = Ending Cash balance) Evaluate Business Decisions Ethically A. The role of judgment B. Economic factors C. Legal factors D. Ethical factors E. AICPA Code of Professional Conduct
1-2 .
Chapter Activities 1. Chapter Opener Chapter 1 spotlights The Walt Disney Company and details the services and products the worldwide entertainment corporation provides and sells, its network of theme parks, movies, and stores, and financial information for the year ended October 1, 2016. Additionally, the section introduces the terms “revenues” and “net income.” Discuss with the students the many different ways Disney generates revenues as they produce and provide entertainment; mention the services and goods that the company sells and the prices related to those items. Talk about the flow of revenues from goods and services sold to the financial statements and how those revenues become part of net income. Visit http://www.disney.com and read about the company’s many different sources of revenues. From the company’s website, https://thewaltdisneycompany.com, you can also download the most current annual report. Throughout this chapter, there are many references to information from Disney’s financial statements. Additionally, ask the students what information they would need from the financial statements if they had $10,000 to invest. How would they decide if The Walt Disney Company was a good investment? 2. Accounts Activity On slips of paper, list accounts and distribute one slip of paper to each student. You can use the following chart of accounts as an example: Cash Accounts Receivable Inventory Prepaid Rent Office Supplies Land Automobiles Buildings Patents Copyrights Trademark Accounts Payable Income Taxes Payable Interest Payable Notes Payable Salaries and Wages Payable Bonds Payable Common Stock 1-3 .
Retained Earnings Sales Revenue Interest Revenue Rent Revenue Advertising Expense Commissions Expense Cost of Goods Sold Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Salary and Wage Expense Supplies Expense Dividends Dividends Payable Divide the room up into five areas: assets, liabilities, stockholders’ equity, revenues, and expenses. Ask the students to move to their particular area of the room depending on what account types they have been assigned. Quiz each student to confirm that he or she is in the correct section of the room. Move the students accordingly if they are in the wrong section. Repeat the exercise by dividing the room into a balance sheet section and an income statement section. Again, quiz the students to confirm that they are in the correct area for that particular financial statement and move them, if necessary.
Difficult Topics
Statement of Cash Flows
1-4 .
Chapter 1: Assignment Grid (Will have an X if available) Assignment
S1-1
S1-2 S1-3
S1-4 S1-5 S1-6
S1-7 S1-8 S1-9 S1-10 S1-11 S1-12 S1-13 S1-14 S1-15
Topic(s)
L.O.
Level of Difficulty
1
Estimated Time (minutes) 10
Explain and differentiate between business organizations Identify relevant accounting assumptions Identify underlying accounting concepts, assumptions, and principles Apply the accounting equation Apply the accounting equation Identify assets, liabilities, and stockholders’ equity accounts Accounting equation Identify income statement components Identify appropriate financial statement Explain aspects of financial statements Identify appropriate financial statement use Construct an income statement Construct a statement of retained earnings Construct a balance sheet Solve for retained earnings and construct a balance sheet
2
5
Easy
2
5-10
Easy
3
10
Easy
3
5
Easy
3
5-10
Easy
3 4
5-10 5
Easy Easy
4
10
Easy
4
15-20
Medium
4
5
Easy
4
5
Easy
4
5
Easy
4
10-15
Easy
4
10-15
Medium
1-5 .
Excel Projects
Easy
X
General Ledger Templates