Accounting: Third Edition · Part 1

Author: Charles T. Horngren (USA) / et al. Translators: Wang Huacheng / et al.
Publisher:
Publish Date: 2005-08-01
Features: Accounting (3rd Edition), written by the renowned American accounting scholar, Professor Charles T. Horngren of the Stanford University Graduate School of Business, and others, covers all the fundamental knowledge of financial accounting and management accounting. It represents the mainstream of basic accounting and is an excellent accounting textbook. Additionally, the book primarily teaches readers how to use accounting information, making it very suitable for managers who want to understand how to leverage accounting information for scientific decision-making. This Accounting (3rd Edition), written by the famous American accounting scholar, Professor Charles T. Horngren of the Stanford University Graduate School of Business, and others, covers all the fundamental knowledge of financial accounting and management accounting, representing the mainstream of basic accounting and being a recognized, highly excellent accounting textbook. The book fully considers the recommendations of the Accounting Education Improvement Committee (AECC) and reflects a spirit of comprehensive innovation. The features of the book are as follows:
(1) Focus on developing decision-making skills. As the authors point out in the preface, "Our main purpose is to introduce the basic principles of financial accounting and management accounting and to attempt to cultivate students' active thinking and decision-making abilities, helping them become decision-makers." This idea runs through the entire book.
(2) Emphasis on critical thinking. The "Think," "Comprehensive Exercises," and "Case Studies" sections in the book are designed to help develop readers' critical thinking skills.
(3) Focus on the connection between accounting and the related environment. The opening examples and corporate case studies in the book help readers systematically connect accounting issues with the relevant environment.
(4) Emphasis on ethical education. The book specifically discusses ethical issues in decision-making, with ethical considerations covered in the "Knowledge Expansion" section of each chapter.
(5) Focus on developing communication skills. Each chapter's exercises require readers to write memoranda on decision-making principles, and selected problems also ask students to explain how they would help manage a business or evaluate investment projects. The "Group Discussion Scheme" can be used in class for oral discussions to develop students' communication skills.
In summary, whether students or business managers can use this book to accurately apply accounting information and continuously improve their decision-making skills.
Excerpt: We will use Exercise 7 in Chapter 1 to illustrate the above points. The exercise requires you to handle the accounting for the business activities of Mr. Allison's clinic, providing cash amounts and other data, assuming it is the end of the month after the clinic opens. Let's answer the following questions:
1. What did you learn from this exercise? Possible answers (there can be many):
(1) A business should distinguish its own operations from the personal activities of its owner.
(2) A business starts operating with the capital invested by its owner.
(3) A business must account for its own purchases and sales activities.
(4) Every business activity, such as purchasing land, is affected by at least two aspects.
2. How will you apply the knowledge you learned to manage a business?
(1) Only by separating my personal activities from the business operations can I better evaluate the business's performance. If they are mixed, I will not be able to understand the business's condition.
(2) If I were to run a business, I might invest some of my own funds, so I would have to be frugal. I might need to borrow from outsiders, and I would need a good credit record.
(3) If I want to understand the operation of my business, accounting is essential.
(4) Undoubtedly, the purchase and sales activities of a business have two impacts on the organization because they involve both buyers and sellers, such as purchasing land.
3. Group Discussion Scheme (for teacher reference). To emphasize the importance of business decision-making activities in accounting learning, the authors suggest that teachers conduct group discussions (or similar activities) before class in the following way. Divide the entire class into 4–5 groups, with each group spending 15–30 minutes listing their business plans and incentives, then discuss them. Note that the measures should be as specific and detailed as possible and closely align with the goal of a profitable business. Of course, teachers can arrange such discussions at any time, but pre-class discussions work best as a foundation for stimulating thinking. Discussions at the end of the term can summarize all the knowledge learned during the semester. Allowing students to independently develop business decision-making plans has the following benefits for beginners in accounting:
(1) Starting a business is an exciting and stimulating activity that can spark students' interest in learning.
(2) Various strategic decisions provide a good background for explaining the relevance of accounting.
(3) This abstract training helps develop students' sharp thinking skills—moving beyond the limitations of accounting records.
(4) The learning goal is to understand the foundation and structure of a discipline.
(5) This group discussion can foster students' teamwork awareness as well as their oral and written communication skills.
(6) This group discussion makes students active participants in the learning process.
But the discussion plan should be student-centered, not teacher-centered.
(7) This exercise is decision-centered. We hope students will understand why accountants are more likely to receive promotions in businesses than other specially trained employees. Teachers should ask students to continuously use new knowledge to refine their decision-making plans during the learning process. A comprehensive exercise is provided at the end of each chapter to help students integrate the knowledge they have learned. Students should submit memoranda or formal reports.