horngren's financial & managerial accounting
CHAPTER 1
COVERAGE OF LEARNING OBJECTIVES
LEARNING OBJECTIVES
QUESTIONS
EXERCISES
PROBLEMS
OTHER
LO1: Explain how accounting information assists in making decisions.
1,2,3,4,5,23
49,51
LO2: Describe the components of the balance sheet.
6,7,22
26
49,50,51
LO3: Analyze business transactions and relate them to changes in the balance sheet.
8,9
27,28
32,33,34,35,
36,37
48,51
LO4: Prepare a balance sheet from transactions data.
29,30,31
38,39,40, 41,42
LO5: Compare the features of sole proprietorships, partnerships, and corporations.
10,11,12,13,24
LO6: Identify how the owners’ equity section in a corporate balance sheet differs from that in a sole proprietorship or a partnership.
14,15
43,44,45
LO7: Explain the regulation of financial reporting, including differences between U.S. GAAP and IFRS.
16,17
LO8: Describe auditing and how it enhances the value of financial information.
18,19,25
46
LO9: Evaluate the role of ethics in the accounting process.
20
47
CHAPTER 1
1-1 Accounting is a process of identifying, recording, summarizing, and reporting economic information to decision makers.
1-2 No. Accounting is about real information about real companies. In learning accounting it is helpful to see accounting reports from various companies. This helps put the rules and techniques of accounting into an understandable framework and provides familiarity with the diversity of practice.
1-3 Examples of decisions that are likely to be influenced by financial statements include choosing where to expand or reduce operations, lending money, investing ownership capital, and rewarding mangers.
1-4 Users of financial statements include managers, lenders, suppliers, owners, income tax authorities, and government regulators.
1-5 The major distinction between financial accounting and management accounting is their use by two classes of decision makers. Management accounting is concerned mainly with how
COVERAGE OF LEARNING OBJECTIVES
LEARNING OBJECTIVES
QUESTIONS
EXERCISES
PROBLEMS
OTHER
LO1: Explain how accounting information assists in making decisions.
1,2,3,4,5,23
49,51
LO2: Describe the components of the balance sheet.
6,7,22
26
49,50,51
LO3: Analyze business transactions and relate them to changes in the balance sheet.
8,9
27,28
32,33,34,35,
36,37
48,51
LO4: Prepare a balance sheet from transactions data.
29,30,31
38,39,40, 41,42
LO5: Compare the features of sole proprietorships, partnerships, and corporations.
10,11,12,13,24
LO6: Identify how the owners’ equity section in a corporate balance sheet differs from that in a sole proprietorship or a partnership.
14,15
43,44,45
LO7: Explain the regulation of financial reporting, including differences between U.S. GAAP and IFRS.
16,17
LO8: Describe auditing and how it enhances the value of financial information.
18,19,25
46
LO9: Evaluate the role of ethics in the accounting process.
20
47
CHAPTER 1
1-1 Accounting is a process of identifying, recording, summarizing, and reporting economic information to decision makers.
1-2 No. Accounting is about real information about real companies. In learning accounting it is helpful to see accounting reports from various companies. This helps put the rules and techniques of accounting into an understandable framework and provides familiarity with the diversity of practice.
1-3 Examples of decisions that are likely to be influenced by financial statements include choosing where to expand or reduce operations, lending money, investing ownership capital, and rewarding mangers.
1-4 Users of financial statements include managers, lenders, suppliers, owners, income tax authorities, and government regulators.
1-5 The major distinction between financial accounting and management accounting is their use by two classes of decision makers. Management accounting is concerned mainly with how