Chapter 3

CHAPTER 3

PROCESSING ACCOUNTING INFORMATION

OVERVIEW OF EXERCISES, PROBLEMS, AND CASES

Estimated

Time in

Learning Outcomes Exercises Minutes Level

1. Explain the difference between an external and internal event. 1 10 Easy

2. Explain the role of source documents in an accounting system. 2 10 Easy

3. Analyze the effects of transactions on the accounting equation 3 15 Mod

and understand how those transactions affect the balance 4 15 Mod

sheet and the income statement. 9* 20 Mod

11* 10 Mod

12* 10 Easy

13* 20 Mod

14* 30 Mod

4. Define the concept of a general ledger and understand the 5 10 Easy

use of the T account as a method for analyzing transactions. 9* 20 Mod

10* 10 Mod

11* 10 Mod

12* 10 Easy

5. Explain the rules of debits and credits. 6 10 Easy

7 10 Diff

9* 20 Mod

11* 10 Mod

12* 10 Easy

13* 20 Mod

14* 30 Mod

15* 15 Mod

6. Explain the purposes of a journal and the posting process. 13* 20 Mod

14* 30 Mod

15* 15 Mod

7. Explain the purpose of a trial balance. 8 25 Mod

10* 10 Mod

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

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

Problems Estimated

and Time in

Learning Outcomes Alternates Minutes Level

1. Explain the difference between an external and internal event. 1 20 Easy

5* 45 Mod

2. Explain the role of source documents in an accounting system. 5* 45 Mod

3. Analyze the effects of transactions on the accounting equation 2 60 Mod

and understand how those transactions affect the balance 3 60 Mod

sheet and the income statement. 4 60 Diff

6* 20 Mod

7* 60 Mod

9* 30 Mod

10* 45 Mod

11* 30 Diff

12* 75 Mod

13* 75 Mod

4. Define the concept of a general ledger and understand the 7* 60 Mod

use of the T account as a method for analyzing transactions. 8* 60 Mod

10* 45 Mod

11** 30 Diff

5. Explain the...