Chapter4IncomeMeasurementandAccrualAccounting.docVIP

CHAPTER 4 Income Measurementand Accrual Accounting OVERVIEW OF EXERCISES, PROBLEMS, AND CASES Estimated Time in Learning Outcomes Exercises Minutes Level 1. Explain the significance of recognition and measurement 27* 20 Diff in the preparation and use of financial statements. 2. Explain the differences between the cash and accrual bases 27* 20 Diff of accounting. 3. Describe the revenue recognition principle and explain its 1 10 Easy application in various situations. 27* 20 Diff 15 Mod 4. Describe the matching principle and the various methods for 2 10 Mod recognizing expenses. 28* 15 Mod 29* 15 Mod 5. Identify the four major types of adjusting entries and prepare 3 10 Easy them for a variety of situations. 4 10 Easy 5 20 Easy 6 20 Easy 7 15 Easy 8 15 Easy 9 15 Easy 10 15 Mod 11 15 Easy 12 15 Easy 13 15 Easy 14 15 Easy 15 10 Mod 16 15 Mod 17 20 Mod 28* 15 Mod 29* 15 Mod 6. Explain the steps in the accounting cycle and the significance 18 5 Easy of each step. 19 20 Mod *Exercise, problem, or case covers two or more learning outcomes Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff)  Estimated Time in Learning Outcomes Continued Exercises Minutes Level 7. Explain why and how closing entries are made at the end of 20 20 Mod an accounting period. 21 10 Mod 22 10 Mod 23 15 Mod 24 15 Mod 8. Understand how to use a work sheet as a basis for preparing 25 5 Mod financial statements (Appendix). 26 10 Mod Problems Estimated and Time in Learning Outcomes Alternates Minutes Level 1. Explain the significance of recognition and measurement in the preparation and use of financial statements. 2. Explain the differences between the cash and accrual bases 12* 25 Mod of accounting. 3. Describe the revenue recognition principle and explain its application in various situations. 11* 30 Diff 4. Describe the matching principle and the various methods for