Accounting for Accounting/Finance Majors
This guide is produced by Else Grech, the course coordinator, to assist students in understanding how to
approach the questions that are assigned/completed during the 2 hour break-out sessions. It works
WITH the PowerPoint presentation that we will be using.
Students are urged to complete the assigned in-class questions in this workbook. In addition, SHOW
YOUR WORK for each question (this is a required for both the midterm and the final exam so you might
as well get used to it!)
Remember - this workbook works WITH the PowerPoint. I recommend that you bring the workbook
with you to every class. Chapter 1 - The Accounting Environment: What is Accounting and Why is it Done?
E1-3, pg. 25
New Concept: an entity means any distinct and independent existence. It can be anything (for instance,
you are an entity, so is Apple Corp., so is Ryerson University.) Entities have stakeholders - individuals
who have a stake or interest in the entity. For instance, your stakeholders might be your parents, your
grandparents, your friends, etc. Each stakeholder has an interest in the entity. Your parents interest
might be to ensure you are successful at university. They would need information about your academic
results to be able to assess this. Your grandparents might be more interested in your overall happiness.
They would need to have information about your happiness level, maybe from your parents or your
friends, in order to assess this. Your friends - they might be interested in whether you are "cool", add
value to their social group, know the latest video games or grossest YouTube videos. They would have
to assess your dress, your hobbies, and your other friends to make a decision about this.
Note that there can be many different stakeholders and each might have a very different "stake" or
"interest" in the entity. They need information to assess their "stake" and make a decision.
Who are the stakeholders of Ryerson University and what would be each stakeholders main interest(s)?
What information would they need in order to assess their interest(s)?
Name of Stakeholder 1. Interest or Stake
2. Information needs P1-6, pg. 27
Purpose: Do you understand that each stakeholder needs information to make a decision? This
questions flips that around - it gives you the decision that has to be made and asks if you can figure out
who the stakeholder must be.
By reversing the concept this question tests student's conceptual understanding of the concept of
stakeholders, who they are and what they need information for.
The following is a list of decisions that a stakeholder would have to make. Read the decision that has to
be made and brainstorm who the stakeholder must be.
Decision that needs to be made: Who is the stakeholder most likely to be?
SAMPLE: Whether a loan should be made to a Stakeholder: Bank
small business. Extend your learning:
Information needs: income statement, cash flow
The price a manufacturer's products should be
Whether to purchase the shares of a public
company (e.g., a retail chain such as Lululemon
Whether a corporation has paid an appropriate
amount of tax.
P1-16, pg. 30
New Concept: Auditors: When information is audited it has been checked by a independent party. For
instance, at work, after you count your cash draw, the supervisor might check it again. Your supervisor
is acting as an auditor auditing your work, ch