Professional Documents
Culture Documents
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
TIME
5-1
Q5-1 Income Statement Income statement; objectives of 1 Easy 5 Analytic Measurement Comprehension
financial reporting
Q5-2 Income Statement Purposes of income statement 1 Easy 5 Analytic Measurement Comprehension
revenue recognition
Q5-9 Revenue Recognition Explanation of criteria for 3 Easy 5 Analytic Measurement Comprehension
revenue recognition
Q5-10 Revenue Recognition Explanation of criteria for 3 Easy 5 Analytic Measurement Comprehension
revenue recognition
Q5-11 Expense Recognition Definition and discussion of 3 Easy 5 Analytic Measurement Comprehension
expenses
5-2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
TIME
NUMBER TOPIC CONTENT LO ADAPTED DIFFICULTY EST. AACSB AICPA BLOOM’S
Q5-12 Expense Recognition Three principles associated with 3 Easy 5 Analytic Measurement Comprehension
expense recognition; examples
Q5-13 Gains and Losses Definition and examples 3 Easy 5 Analytic Measurement Comprehension
Q5-14 Operating Income Items included in operating 4 Easy 5 Analytic Measurement Comprehension
income
Q5-15 Income from Items including in income from 4 Easy 5 Analytic Measurement Comprehension
Continuing Operations continuing operations; format
component of income
Q5-18 Results of Discontinued Items included in income from 6 Easy 5 Analytic Measurement Comprehension
Operations discontinued operations;
definition of component
Q5-19 Extraordinary Items Definition; criteria; examples 7 Easy 5 Analytic Measurement Comprehension
Q5-20 Unusual or Infrequent Reporting unusual or infrequent 7 Easy 5 Analytic Measurement Comprehension
Items items on income statement
Q5-21 Earnings per Share Definition and disclosure 8 Easy 5 Analytic Measurement Comprehension
Q5-22 Income Statement Identification of differences in 8 Easy 5 Analytic Measurement Comprehension
income between IFRS and U.S.
GAAP
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
TIME
NUMBER TOPIC CONTENT LO ADAPTED DIFFICULTY EST. AACSB AICPA BLOOM’S
Q5-24 Comprehensive Income Alternatives for reporting 9 Easy 5 Analytic Measurement Comprehension
comprehensive income
Q5-25 Statement of Cash Definition and purpose 10 Easy 5 Analytic Measurement Comprehension
Flows
Q5-26 Statement of Cash Major sections of the statement 10 Easy 5 Analytic Measurement Comprehension
Flows of cash flows
Q5-27 Statement of Cash Usefulness of statement of cash 10 Easy 5 Analytic Measurement Comprehension
Flows flows with other statements
5-4
Q5-28 Statement of Cash Activities included on statement 10 Easy 5 Analytic Measurement Comprehension
Flows of cash flows; examples
Q5-29 Statement of Cash Indirect method; net cash 10 Easy 5 Analytic Measurement Comprehension
Flows provided by operating activities
Q5-30 Statement of Cash Direct method; net cash 10 Easy 5 Analytic Measurement Comprehension
Flows provided by operating activities
Q5-31 Common-Size Analysis Most common profit margin 11 Easy 5 Analytic Measurement Comprehension
measures using common-size
analysis
Q5-32 Rate of Change Definition 11 Easy 5 Analytic Measurement Comprehension
Analysis
Q5-33 Return on Common Three determinants of a 11 Easy 5 Analytic Measurement Comprehension
Equity company's rate of return
5-5
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
TIME
NUMBER TOPIC CONTENT LO ADAPTED DIFFICULTY EST. AACSB AICPA BLOOM’S
Q5-34 Operating Segment Criteria used to determine 12 Easy 5 Analytic Measurement Comprehension
operating segments
Q5-35 Segment and Interim Usefulness of segment and 12 Easy 5 Analytic Measurement Comprehension
Reporting interim reporting
M5-1 Systematic and Expenses recognized using 3 AICPA Easy 10 Analytic Measurement Comprehension
Rational Allocation systematic and rational
allocation methods
M5-2 Cost of Goods Computation 4 AICPA Easy 10 Analytic Measurement Application
Available for Sale
M5-3 Cost of Goods Sold Computation 5 AICPA Easy 10 Analytic Measurement Application
M5-4 Expense Recognition Criteria used to determine 5 AICPA Easy 10 Analytic Measurement Application
expense recognition and/or
disclosure
5-6
M5-5 Loss from Sale of a Reporting loss from sale of 6 AICPA Easy 10 Analytic Measurement Comprehension
Component of the component
Business
M5-6 Extraordinary Items Presentation in the income 7 AICPA Easy 10 Analytic Measurement Comprehension
statement
M5-7 Extraordinary Items Computation of extraordinary 7 AICPA Easy 10 Analytic Measurement Application
losses
M5-8 Statement of Cash Activities included on statement 10 AICPA Easy 10 Analytic Measurement Comprehension
Flows of cash flows; examples
TIME
NUMBER TOPIC CONTENT LO ADAPTED DIFFICULTY EST. AACSB AICPA BLOOM’S
RE5-4 Selling, General, and Preparation of schedule to 5 Easy 10 Analytic Measurement Application
Administrative determine selling, general, and
Expenses administrative expenses
RE5-5 Income Statement Preparation of partial income 6 Easy 10 Analytic Measurement Application
statement starting with pretax
income from operations
RE5-8 Earnings per Share Reporting earnings per share 7,8 Easy 10 Analytic Measurement Application
5-8
TIME
NUMBER TOPIC CONTENT LO ADAPTED DIFFICULTY EST. AACSB AICPA BLOOM’S
E5-5 Income Statement Solve for missing amounts; next 4,5 Moderate 20 Analytic Measurement Analysis
Calculations level
E5-6 Results of Discontinued Preparation of results from 6 Easy 15 Analytic Measurement Application
Operations discontinued operations section
of income statement
E5-7 Results of Discontinued Preparation of results from 6 Moderate 20 Analytic Measurement Analysis
Operations discontinued operations section
of income statement
E5-8 Basic Income Statement Preparation using multiple-step 4,7 Moderate 20 Analytic Measurement Analysis
and single-step formats; IFRS ,8
discussion; next level
E5-9 Income Statement Discuss appropriateness of 6,8 AICPA Moderate 20 Analytic Measurement Analysis
Deficiencies income statement presentation
5-10
E5-10 Basic Income Statement Preparation of multiple-step 4,9 Moderate 20 Analytic Measurement Analysis
and Statement of and single-step income
Comprehensive Income statements and statement of
comprehensive income
E5-11 Net Income and Preparation of income 4,9 Easy 15 Analytic Measurement Application
Comprehensive Income statement and statement of
comprehensive income under
two different methods
E5-12 Cost of Goods sold, Preparation of schedule of cost 4,5 Moderate 20 Analytic Measurement Analysis
Income Statement, and of goods sold, single-step ,9
Statement of income statement, multiple-
Comprehensive Income step income statement, and
statement of comprehensive
income
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
TIME
NUMBER TOPIC CONTENT LO ADAPTED DIFFICULTY EST. AACSB AICPA BLOOM’S
E5-13 Net Cash Flow from Preparation of operating 10 Easy 15 Analytic Measurement Application
Operating Activities activities section; indirect
method
E5-14 Operating Cash Flows: Preparation of operating 10 Easy 15 Analytic Measurement Application
Direct Method activities section; direct method
E5-15 Statement of Cash Prepare simple statement of 10 Moderate 15 Analytic Measurement Analysis
Flows cash flows using indirect
method
E5-16 Statement of Cash Prepare simple statement of 10 Moderate 15 Analytic Measurement Analysis
Flows cash flows using indirect
method
E5-17 Classifications Identification of where various 4,9 Moderate 10 Analytic Measurement Analysis
5-11
E5-18 Classifications Identification of where various 4,6 Moderate 10 Analytic Measurement Analysis
items would be reported in the ,7,
financial statements 8,9
,10
E5-19 Rate of Change Rate of change analysis; year- 11 Moderate 20 Analytic Measurement Analysis
Analyses to-year growth rates; next level
TIME
NUMBER TOPIC CONTENT LO ADAPTED DIFFICULTY EST. AACSB AICPA BLOOM’S
E5-25 Segment Reporting Preparation of segment reports 12 Moderate 20 Analytic Measurement Analysis
E5-26 Interim Reporting Preparation of interim reports 12 Moderate 20 Analytic Measurement Analysis
P5-1 Results of Discontinued Journal entry for loss on held- 6 Moderate 50 Analytic Measurement Analysis
Operations for-sale division; preparation of
income statement including
results from discontinued
operations; preparation of
partial balance sheet
P5-2 Income Statement Lower portion; dividends; 6,7 Moderate 30 Analytic Measurement Analysis
component disposal;
extraordinary item; prior-period
correction; retained earnings
statement
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
TIME
NUMBER TOPIC CONTENT LO ADAPTED DIFFICULTY EST. AACSB AICPA BLOOM’S
P5-3 Income Statement Lower portion; dividends; prior- 6,7 Moderate 30 Analytic Measurement Analysis
period correction; extraordinary
item; change in accounting
estimate; sale of division;
retained earnings statement
P5-4 Classifications Matching of various items with 4,6 Moderate 25 Analytic Measurement Analysis
reporting component in the ,7
financial statements
P5-5 Classification Recognition of unusual and/or 4,6 Moderate 40 Analytic Measurement Analysis
infrequent items and indication ,7
of where to disclose; next level
P5-6 Violations of GAAP Identification and suggested 4,5 AICPA Moderate 35 Analytic Measurement Analysis
5-14
Others dine with Lords and Academicians—for God’s sake, take care
what you say! Would you strip the Editor’s mantel-piece of the cards
of invitation that adorn it to select parties for the next six months?
An Editor takes a turn in St. James’s-street, and is congratulated by
the successive literary or political groups on all he does not write;
and when the mistake is found out, the true Simon Pure is dismissed.
We have heard that it was well said by the proprietor of a leading
journal, that he would take good care never to write a line in his own
paper, as he had conflicting interests enough to manage, without
adding literary jealousies to the number. On the other hand, a very
good-natured and warm-hearted individual declared, ‘he would
never have another man of talents for an Editor’ (the Editor, in this
case, is to the proprietor as the author to the Editor), ‘for he was tired
of having their good things thrust in his teeth.’ Some Editors are
scrubs, mere drudges, newspaper-puffs: others are bullies or quacks:
others are nothing at all—they have the name, and receive a salary
for it! A literary sinecure is at once lucrative and highly respectable.
At Lord’s-Ground there are some old hands that are famous for
‘blocking out and staying in:’ it would seem that some of our literary
veterans had taken a lesson from their youthful exercises at Harrow
or Eton.
All this is bad enough; but the worst is, that Editors, besides their
own failings, have friends who aggravate and take advantage of
them. These self-styled friends are the night-shade and hemlock
clinging to the work, preventing its growth and circulation, and
dropping a slumberous poison from its jaundiced leaves. They form a
cordon, an opake mass round the Editor, and persuade him that they
are the support, the prop, and pillar of his reputation. They get
between him and the public, and shut out the light, and set aside
common sense. They pretend anxiety for the interest of some
established organ of opinion, while all they want is to make it the
organ of their dogmas, prejudices, or party. They want to be the
Magazine or the Review—to wield that power covertly, to warp that
influence to their own purposes. If they cannot do this, they care not
if it sinks or swims. They prejudge every question—fly-blow every
writer who is not of their own set. A friend of theirs has three articles
in the last number of ——; they strain every nerve and make pressing
instances to throw a slur on a popular contribution by another hand,
in order that he may write a fourth in the next number. The short
articles which are read by the vulgar, are cut down to make room for
the long ones, which are read by nobody but the writers and their
friends. If an opinion is expressed contrary to the shibboleth of the
party, it is represented as an outrage on decency and public opinion,
when in truth the public are delighted with the candour and boldness
displayed. They would convert the most valuable and spirited journal
into a dull pamphleteer, stuffed with their own lucubrations on
certain heavy topics. The self-importance of these people is in
proportion to their insignificance; and what they cannot do by an
appeal to argument or sound policy, they effect by importunity and
insinuation. They keep the Editor in continual alarm as to what will
be said of him by the public, when in fact the public will think (in
nine cases out of ten) just what he tells them.
These people create much of the mischief. An Editor should have
no friends—his only prompter should be the number of copies of the
work that sell. It is superfluous to strike off a large impression of a
work for those few squeamish persons who prefer lead to tinsel.
Principle and good manners are barriers that are, in our estimate,
inviolable: the rest is open to popular suffrage, and is not to be
prejudged by a coterie with closed doors. Another difficulty lies here.
An Editor should, in one sense, be a respectable man—a
distinguished character; otherwise, he cannot lend his name and
sanction to the work. The conductor of a periodical publication
which is to circulate widely and give the tone to taste and opinion,
ought to be of high standing, should have connections with society,
should belong to some literary institution, should be courted by the
great, be run after by the obscure. But ‘here’s the rub’—that one so
graced and gifted can neither have his time nor his thoughts to
himself. Our obligations are mutual; and those who owe much to
others, become the slaves of their good opinion and good word. He
who dines out loses his free agency. He may improve in politeness;
he falls off in the pith and pungency of his style. A poem is dedicated
to the son of the Muses:—can the critic do otherwise than praise it? A
tragedy is brought out by a noble friend and patron:—the severe
rules of the drama must yield in some measure to the amenities of
private life. On the contrary, Mr. —— is a garretteer—a person that
nobody knows; his work has nothing but the contents to recommend
it; it sinks into obscurity, or addresses itself to the canaille. An
Editor, then, should be an abstraction—a being in the clouds—a mind
without a body—reason without passion.——But where find such a
one?
THE LETTER-BELL
It rose then in the east: it has again risen in the west. Two suns in
one day, two triumphs of liberty in one age, is a miracle which I hope
the Laureate will hail in appropriate verse. Or may not Mr.
Wordsworth give a different turn to the fine passage, beginning—
‘What, though the radiance which was once so bright,
Be now for ever vanished from my sight;
Though nothing can bring back the hour
Of glory in the grass, of splendour in the flower?’
For is it not brought back, ‘like morn risen on mid-night‘; and may
he not yet greet the yellow light shining on the evening bank with
eyes of youth, of genius, and freedom, as of yore? No, never! But
what would not these persons give for the unbroken integrity of their
early opinions—for one unshackled, uncontaminated strain—one Io
pæan to Liberty—one burst of indignation against tyrants and
sycophants, who subject other countries to slavery by force, and
prepare their own for it by servile sophistry, as we see the huge
serpent lick over its trembling, helpless victim with its slime and
poison, before it devours it! On every stanza so penned should be
written the word Recreant! Every taunt, every reproach, every note
of exultation at restored light and freedom, would recal to them how
their hearts failed them in the Valley of the Shadow of Death. And
what shall we say to him—the sleep-walker, the dreamer, the sophist,
the word-hunter, the craver after sympathy, but still vulnerable to
truth, accessible to opinion, because not sordid or mechanical? The
Bourbons being no longer tied about his neck, he may perhaps
recover his original liberty of speculating; so that we may apply to
him the lines about his own Ancient Mariner—
‘And from his neck so free
The Albatross fell off, and sank
Like lead into the sea.’
This is the reason I can write an article on the Letter-Bell, and other
such subjects; I have never given the lie to my own soul. If I have felt
any impression once, I feel it more strongly a second time; and I have
no wish to revile or discard my best thoughts. There is at least a
thorough keeping in what I write—not a line that betrays a principle
or disguises a feeling. If my wealth is small, it all goes to enrich the
same heap; and trifles in this way accumulate to a tolerable sum. Or
if the Letter-Bell does not lead me a dance into the country, it fixes
me in the thick of my town recollections, I know not how long ago. It
was a kind of alarm to break off from my work when there happened
to be company to dinner or when I was going to the play. That was
going to the play, indeed, when I went twice a year, and had not been
more than half a dozen times in my life. Even the idea that any one
else in the house was going, was a sort of reflected enjoyment, and
conjured up a lively anticipation of the scene. I remember a Miss D
——, a maiden lady from Wales (who in her youth was to have been
married to an earl), tantalised me greatly in this way, by talking all
day of going to see Mrs. Siddons’ ‘airs and graces’ at night in some
favourite part; and when the Letter-Bell announced that the time was
approaching, and its last receding sound lingered on the ear, or was
lost in silence, how anxious and uneasy I became, lest she and her
companion should not be in time to get good places—lest the curtain
should draw up before they arrived—and lest I should lose one line
or look in the intelligent report which I should hear the next
morning! The punctuating of time at that early period—every thing
that gives it an articulate voice—seems of the utmost consequence;
for we do not know what scenes in the ideal world may run out of
them: a world of interest may hang upon every instant, and we can
hardly sustain the weight of future years which are contained in
embryo in the most minute and inconsiderable passing events. How
often have I put off writing a letter till it was too late! How often had
to run after the postman with it—now missing, now recovering the
sound of his bell—breathless, angry with myself—then hearing the
welcome sound come full round a corner—and seeing the scarlet
costume which set all my fears and self-reproaches at rest! I do not
recollect having ever repented giving a letter to the postman, or
wishing to retrieve it after he had once deposited it in his bag. What I
have once set my hand to, I take the consequences of, and have been
always pretty much of the same humour in this respect. I am not like
the person who, having sent off a letter to his mistress, who resided a
hundred and twenty miles in the country, and disapproving, on
second thoughts, of some expressions contained in it, took a post-
chaise and four to follow and intercept it the next morning. At other
times, I have sat and watched the decaying embers in a little back
painting-room (just as the wintry day declined), and brooded over
the half-finished copy of a Rembrandt, or a landscape by Vangoyen,
placing it where it might catch a dim gleam of light from the fire;
while the Letter-Bell was the only sound that drew my thoughts to
the world without, and reminded me that I had a task to perform in
it. As to that landscape, methinks I see it now—
‘The slow canal, the yellow-blossomed vale,
The willow-tufted bank, the gliding sail.’
Perhaps there is no part of a painter’s life (if we must tell ‘the secrets
of the prison-house’) in which he has more enjoyment of himself and
his art, than that in which after his work is over, and with furtive,
sidelong glances at what he has done, he is employed in washing his
brushes and cleaning his pallet for the day. Afterwards, when he gets
a servant in livery to do this for him, he may have other and more
ostensible sources of satisfaction—greater splendour, wealth, or
fame; but he will not be so wholly in his art, nor will his art have such
a hold on him as when he was too poor to transfer its meanest
drudgery to others—too humble to despise aught that had to do with
the object of his glory and his pride, with that on which all his
projects of ambition or pleasure were founded. ‘Entire affection
scorneth nicer hands.’ When the professor is above this mechanical
part of his business, it may have become a stalking-horse to other
worldly schemes, but is no longer his hobby-horse and the delight of
his inmost thoughts—
‘His shame in crowds, his solitary pride!’
or oftener I put it off till after dinner, that I might loiter longer and
with more luxurious indolence over it, and connect it with the
thoughts of my next day’s labours.
The dustman’s bell, with its heavy, monotonous noise, and the
brisk, lively tinkle of the muffin-bell, have something in them, but
not much. They will bear dilating upon with the utmost licence of
inventive prose. All things are not alike conductors to the
imagination. A learned Scotch professor found fault with an
ingenious friend and arch-critic for cultivating a rookery on his
grounds: the professor declared ‘he would as soon think of
encouraging a froggery.’ This was barbarous as it was senseless.
Strange, that a country that has produced the Scotch novels and
Gertrude of Wyoming should want sentiment!
The postman’s double knock at the door the next morning is ‘more
germain to the matter.’ How that knock often goes to the heart! We
distinguish to a nicety the arrival of the Two-penny or the General
Post. The summons of the latter is louder and heavier, as bringing
news from a greater distance, and as, the longer it has been delayed,
fraught with a deeper interest. We catch the sound of what is to be
paid—eight-pence, nine-pence, a shilling—and our hopes generally
rise with the postage. How we are provoked at the delay in getting
change—at the servant who does not hear the door! Then if the
postman passes, and we do not hear the expected knock, what a pang
is there! It is like the silence of death—of hope! We think he does it
on purpose, and enjoys all the misery of our suspense. I have
sometimes walked out to see the Mail-Coach pass, by which I had
sent a letter, or to meet it when I expected one. I never see a Mail-
Coach, for this reason, but I look at it as the bearer of glad tidings—
the messenger of fate. I have reason to say so. The finest sight in the
metropolis is that of the Mail-Coaches setting off from Piccadilly. The
horses paw the ground, and are impatient to be gone, as if conscious
of the precious burden they convey. There is a peculiar secresy and
despatch, significant and full of meaning, in all the proceedings
concerning them. Even the outside passengers have an erect and
supercilious air, as if proof against the accidents of the journey. In
fact, it seems indifferent whether they are to encounter the summer’s
heat or winter’s cold, since they are borne on through the air in a
winged chariot. The Mail-Carts drive up; the transfer of packages is
made; and, at a signal given, they start off, bearing the irrevocable
scrolls that give wings to thought, and that bind or sever hearts for
ever. How we hate the Putney and Brentford stages that draw up in a
line after they are gone! Some persons think the sublimest object in
nature is a ship launched on the bosom of the ocean: but give me, for
my private satisfaction, the Mail-Coaches that pour down Piccadilly
of an evening, tear up the pavement, and devour the way before them
to the Land’s-End!
In Cowper’s time, Mail-Coaches were hardly set up; but he has
beautifully described the coming in of the Post-Boy:—
‘Hark! ’tis the twanging horn o’er yonder bridge,
That with its wearisome but needful length
Bestrides the wintry flood, in which the moon
Sees her unwrinkled face reflected bright:—
He comes, the herald of a noisy world,
With spattered boots, strapped waist, and frozen locks;
News from all nations lumbering at his back.
True to his charge, the close-packed load behind.
Yet careless what he brings, his one concern
Is to conduct it to the destined inn;
And having dropped the expected bag, pass on.
He whistles as he goes, light-hearted wretch!
Cold and yet cheerful; messenger of grief
Perhaps to thousands, and of joy to some;
To him indifferent whether grief or joy.
Houses in ashes and the fall of stocks,
Births, deaths, and marriages, epistles wet
With tears that trickled down the writer’s cheeks
Fast as the periods from his fluent quill,
Or charged with amorous sighs of absent swains
Or nymphs responsive, equally affect
His horse and him, unconscious of them all.’
And yet, notwithstanding this, and so many other passages that seem
like the very marrow of our being, Lord Byron denies that Cowper
was a poet!—The Mail-Coach is an improvement on the Post-Boy;
but I fear it will hardly bear so poetical a description. The
picturesque and dramatic do not keep pace with the useful and
mechanical. The telegraphs that lately communicated the
intelligence of the new revolution to all France within a few hours,
are a wonderful contrivance; but they are less striking and appalling
than the beacon-fires (mentioned by Æschylus), which, lighted from
hill-top to hill-top, announced the taking of Troy, and the return of
Agamemnon.
ON THE SPIRIT OF MONARCHY
The Liberal.]
[1822.
‘Strip it of its externals, and what is it but a jest?’
Charade on the word Majesty.
‘As for politics, I think poets are Tories by nature, supposing them to be by
nature poets. The love of an individual person or family, that has worn a crown for
many successions, is an inclination greatly adapted to the fanciful tribe. On the
other hand, mathematicians, abstract reasoners, of no manner of attachment to
persons, at least to the visible part of them, but prodigiously devoted to the ideas of
virtue, liberty, and so forth, are generally Whigs. It happens agreeably enough to
this maxim, that the Whigs are friends to that wise, plodding, unpoetical people,
the Dutch.’—Skenstone’s Letters, 1746.