Accounting (Third Edition. Part 1)

Author: Charles T. Hwang (USA)
Publisher:
Publishing Date: Not available
Features: "Accounting" (3rd Edition), written by Charles T. Hwang, a renowned American accounting scholar and professor at the Stanford Graduate School of Business, covers all 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 highly suitable for managers who want to understand how to leverage accounting information for scientific decision-making. This "Accounting" (3rd Edition), authored by Charles T. Hwang, a distinguished American accounting scholar and professor at the Stanford Graduate School of Business, covers all fundamental knowledge of financial accounting and management accounting, representing the mainstream of basic accounting and being a widely recognized, outstanding accounting textbook. The book fully considers the recommendations of the Accounting Education Improvement Committee (AECC) and embodies a spirit of comprehensive innovation. The features of this book are:
(1) Emphasis on developing decision-making skills. As the authors state in the preface, "Our main purpose is to introduce the basic principles of financial accounting and management accounting and to cultivate students' ability to think actively and make decisions, helping them become decision-makers." This idea runs through the entire book.
(2) Emphasis on fostering critical thinking. The "Think," "Comprehensive Exercises," and "Case Studies" sections are designed to help readers develop critical thinking skills.
(3) Emphasis on the connection between accounting and the related environment. The opening examples and corporate case studies in the book help readers systematically analyze accounting issues in relation to their broader context.
(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) Emphasis on developing communication skills. Each chapter's exercises require readers to write memos on decision-making principles, and selected problems ask students to explain how they would manage a business or evaluate investment projects. The "Group Discussion Scheme" can be used in class for oral discussions to enhance communication skills.
In summary, whether students or business managers, they can accurately use accounting information and continuously improve their decision-making skills by studying this book.
Excerpt: Let's take Exercise 7 in Chapter 1 to illustrate the above points. The exercise asks you to handle the accounting affairs of Mr. Allison's clinic, providing cash amounts and other data, assuming it is the end of the month of the clinic's opening. Let's answer these two 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 owners.
(2) A business starts operating with the capital invested by its owner.
(3) A business must account for its purchasing and selling activities.
(4) Every business activity, such as buying land, is affected by at least two aspects.
2. How will you apply what you've learned to manage a business?
(1) Only by separating my personal activities from the business's operations can I better evaluate its performance. If they are mixed, I won't 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 must have a good credit record.
(3) If I want to understand the operation of my business, accounting is essential.
(4) Undoubtedly, the buying and selling activities of a business have two impacts on the organization because they involve both buyers and sellers, such as buying 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 as follows. 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 aligned with the goal of a profitable business. Of course, teachers can arrange such discussions at any time, but pre-class discussions are more effective as a foundation for stimulating thinking. Discussions at the end of the semester can summarize all the knowledge learned during the term. Letting students develop their own business decision 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, oral communication skills, and written expression skills.
(6) This group discussion makes students active participants in the learning process.
However, the discussion plan should be student-centered rather than teacher-centered.
(7) This exercise is decision-focused. We hope students will understand why accounting professionals 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 memos or formal reports.