Income Measurement

CHAPTER 4

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Income Measurement and Accrual Accounting

OVERVIEW OF EXERCISES, PROBLEMS, AND CASES

Estimated

Time in

Learning Objective Exercises Minutes Level

1. Explain the significance of recognition and measurement 18* 20 Diff

in the preparation and use of financial statements. 19* 15 Mod

2. Explain the differences between the cash and accrual bases 18* 20 Diff

of accounting. 19* 15 Mod

3. Describe the revenue recognition principle, and explain its 1 10 Easy

application in various situations. 18* 20 Diff

19* 15 Mod

4. Describe the matching principle and the various methods for 2 10 Mod

recognizing expenses. 20* 15 Mod

21* 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

20* 15 Mod

21* 15 Mod

*Exercise, problem, or case covers two or more learning objectives

Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff)

Continued

6. Explain the steps in the accounting cycle and the significance 17 5 Easy

of each step.

Problems Estimated

and Time in

Learning Objective 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 9* 25 Mod

of accounting.

3. Describe the revenue recognition principle, and explain its 1 25 Mod

application in various situations. 9* 25 Mod

10* 25 Diff

11* 30 Diff

4. Describe the matching principle and the various methods for 9** 25 Mod

recognizing expenses. 10* 25 Diff

11 30 Diff

5. Identify the four major types of adjusting entries and prepare 2 20 Mod...