Professional Documents
Culture Documents
E: Exercises
P: Problems (Each problem has a User Insight question.)
C: Cases
All questions are in the text with related Learning Objectives (Stop, Think, and Apply).
Instructional Strategy
Learning activity: Group work, game
Learning environment: Interactive groups within classroom
Learning tool: Textbook assignment: Problem 4 or 7 or Case 5
Steps to Implement
1. Divide the class into small groups. One quick way to form groups is to divide the number of
students in class by three or four (the most effective group size for this activity). Ask students to
count off from 1 to the maximum number of groups. Remind them not to forget their number.
Have students get together after you give complete instructions. It will encourage a speedy
transition, as this activity has a time limit.
2. Assign one of the learning tools. (If one of the problems was done for homework, use another one
in this activity; it will reinforce learning.)
3. The first group to correctly complete the task wins. As the groups complete the task, they ask you
to mark their completion time. (You may want to keep their responses until the time limit has
expired. See Step 4.) The time limit is 25 minutes. If, for some reason, no group has the correct
response in 25 minutes, give them additional time as deemed appropriate.
4. The winning group could present the correct responses to the entire class using the solution
transparency and answer student questions. You may prefer to debrief this activity if time is
limited. If you have group responses, a quick check will identify where the problems are.
5. Reward each of the winning group members with one or two extra quiz points, “$100 Grand”
chocolate bars, novelty erasers, etc.
Assessment
Technical skills: Grade group written responses. Ask a related question on the next examination and/or
quiz.
Interpersonal skills: Ask students to answer one or more of the following: How well did your group
interact? How many were fully involved? What could your group do to improve next time?
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1: Uses of Accounting Information and the Financial Statements 3
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4 Chapter 1: Uses of Accounting Information and the Financial Statements
Lecture Outline
I. Accounting is an information system that measures, processes, and communicates financial
information.
A. Accounting is a link between business activities and decision makers.
B. Management must have a good understanding of accounting to set financial goals and make
financial decisions.
C. Management must not only understand how accounting information is compiled and
processed but also realize that accounting information is imperfect and should be interpreted
with caution.
II. A business is an economic unit that aims to sell goods and services to customers at prices that will
provide an adequate return to its owners.
A. Goals
1. Profitability—earning a sufficient return to maintain owner interest
2. Liquidity—having enough cash to pay debts as they come due
B. Activities
1. Operating—selling goods and services to customers; employing managers and
workers; buying and producing goods and services; and paying taxes
2. Investing—spending the capital a company receives in productive ways that help it
achieve its objectives
3. Financing—obtaining funds to begin operations and to continue operating
C. Performance measures
1. Performance measures relate to achieving goals and assessing the management of
business activities.
2. Financial analysis is the evaluation and interpretation of the financial statements and
related performance measures.
3. Performance measures must be crafted to motivate managers to make decisions that are
in the best interest of the business.
III. Categories of accounting
A. Management accounting—accounting information for internal decision makers
B. Financial accounting—accounting information for external decision makers; reports are
called financial statements.
IV. Ways in which accounting information is processed
A. Bookkeeping is the mechanical and repetitive recordkeeping aspect of accounting.
B. Computerized accounting
1. Computerized accounting is useful for routine bookkeeping chores and complex
accounting calculations.
2. Computerized information is only as useful as the data input into the system.
C. A management information system (MIS) consists of the interconnected subsystems that
provide the information needed to run a business.
V. Ethical financial reporting
A. Ethics is a code of conduct that addresses whether actions are right or wrong.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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"Not before lunch," said the Great Man. He turned to the
detective. "On the face of it the matter should prove a simple one,
Kenly, but just at present it is beyond our combined intelligence to
fathom it. Late on the fifteenth—a Tuesday, wasn't it, Markham?—a
cypher cablegram containing important information came into this
office. The despatch was de-coded——"
"By myself," interrupted the Permanent Secretary.
"Placed in a despatch case which was sealed in the usual way
and forwarded by King's Messenger to me," continued Sir Gadsby. "I
received the case, broke the seals myself, and retained the despatch
in my own possession."
"Yes," said the detective, as the Great Man paused.
"The despatch related to the recent trouble in the South Pacific,
the German affair," remarked the Permanent Secretary, "and next
morning there was wild excitement on the Stock Exchange, and later
in the day the newspapers published full details of the trouble, much
to our embarrassment."
"H—m," said the detective, "I suppose you want me to find out
who gave the show away?"
"Your perspicacity is wonderful, Kenly," remarked the Great Man
drily and the Permanent Secretary smiled. "At present, Markham, I
know, suspects me of 'giving the show away,' as you put it, and if I
didn't know Markham I should be compelled to suspect him. We are
really the only two possible suspects."
"H—m," said the detective a second time before remarking
deprecatingly, "The despatch passed through the hands of a third
person. I think you mentioned a King's Messenger?"
"I sealed the despatches with my own hands," remarked the
Permanent Secretary. "And the seals were intact when I took the
case from Captain Marven's hands," added the Great Man.
The detective hazarded another suggestion.
"Is it quite impossible that the information might not have
reached the Stock Exchange and the newspapers from an external
source?"
"So far as we can ascertain, quite impossible," replied the
Permanent Secretary. "We have ascertained that no cable was
received in London which could in any way have related to the affair
before the publication of the news."
"It seems to me," said the Great Man briskly, "that even if we
cannot get direct evidence as to the source through which the
information leaked out, we should at least be able to come to some
sort of conclusion if we knew the names of the parties who must
have benefited by the Stock Exchange operations."
"I see," said the detective. "Well, Sir Gadsby, I'll do my best to
find that out for you."
"I know you will, Kenly," said the Great Man. "But not a word to
anyone; and, while I think of it, I'll write a note to the Commissioner
and ask him to allow you to report directly to Markham here, and to
devote your whole time and attention to this business."
"Very good, Sir Gadsby," said the detective, and the interview
ended.
When alone with the Permanent Secretary, Inspector Kenly
asked every question which occurred to his active brain, but he
elucidated nothing more than the very simple facts with which he had
already been made acquainted, and when he left the Foreign Office
it was with no very hopeful feeling of being able to lay his hand on
the culprit. It is true that there had occurred to him the glimmering of
a possibility as to who might have been responsible for the
disclosure. The despatches had been in the possession of a third
party, in the possession of Captain Marven, the King's Messenger,
for seven or eight hours; and Inspector Kenly had no particular
reason for believing that official locks and seals were more inviolable
than any other locks and seals if submitted to the gentle
manipulation of an expert. But he had met Captain Marven in the
course of his official life, and what he had seen of him led him to
credit the reputation for perfect probity and honour which the King's
Messenger held in the eyes of the world.
"I should have liked an easier job," grumbled Inspector Kenly to
himself. "Another failure to find out anything coming on top of my
failure to get the slightest clue to the mystery of the Flurscheim affair
will make the Chief think that I am getting past my work. However,
it's no use worrying because I'm not possessed of the gift of
divination. What is, was to be," with which philosophic reflection he
stepped aboard a 'bus bound Citywards, and, while engaged there in
his investigations, the Great Man, having finished preparing his list of
answers for the day's sitting of Parliament, carried off the Permanent
Secretary to lunch with him. They enjoyed their meal none the less
because they had unloaded the cause of their vexation upon the
broad shoulders of Detective Inspector Kenly.
CHAPTER X
A NEW VIEW OF THE FLURSCHEIM ROBBERY