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Chapter 8 – Accounting: Decision Making by the Numbers
Opening Activity: Ask students how many of them are planning to become accountants. (Typically at
least a few students will raise their hands.) Ask them what makes the field appealing to those who are
interested and unappealing to others. (This question usually elicits very strong opinions, many based on
outdated stereotypes.) Then share some recent statistics that may pique their interest:
• The U.S. Bureau of Labor Statistics expects accountants (especially CPAs) and auditors to experience
higher-than-average demand through 2018.
• The average starting salary for a CPA can be about $40,500. Tax accountants make slightly less, at
$39,700. But with some experience, a financial controller can start at $67,400, and a tax manager can
start at $84,400.
• PricewaterhouseCoopers expected to hire 3,000 accountants in 2010, up from 2,600 in 2009.
• Forensic accounting is one of the fastest-growing accounting careers and attracts students with
majors in criminal justice, IT, political science, and other fields.1
Slide 1 Slide 2
Encourage students to look for the answers to these questions as you move through the lecture.
Slide 3
Ask students for examples of ways that each group might

use accounting information. Some examples cited in the
text:
• Managers: Marketing managers might need to know

sales for various product lines. Financial managers
might need up-to-date facts about debt, inventory, and
capital.
• Stockholders: Accounting information tells stockholders
whether managers have generated a strong enough
return on their investment.
• Employees: Strong financial performance may give
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO – 117
Lecture Outline / Chapter 8
workers leverage for better pay or bonuses, but weak performance may have them polishing their
résumés.
• Creditors: Any lenders would want to know whether a firm has the financial resources to pay back its
debts.
Other groups with an interest in accounting information include the IRS and other government agencies,
the news media, competitors, unions, and suppliers.
Lecture Booster: Point out that students themselves may have almost as much interest in a firm’s
financial statements as its current stakeholders. It’s a smart idea for them to check out the statements
of firms they’re interested in working for whenever they’re in the job market. (They can usually find a
link to this information on the investor relations page of the company’s website.) A look at these
statements might suggest some questions or comments they’ll want to bring up during an interview. It
also might help them avoid spending time pursuing an employer that won’t be around very long!
Slide 4
Many introductory business students confuse accounting

with bookkeeping. Whereas bookkeeping involves routine
transactions, accounting goes much further. Accountants
organize, analyze, and interpret information and
communicate their findings to end users.
More information from the text about the different types

of accountants:
• Private accountants: Accountants who work within the

confines of a single organization to provide financial
information and analyze data.
• Internal auditors: Private accountants who verify the accuracy and validity of internal accounting
procedures.
• Public accountants: Accountants who provide a broad range of accounting and consulting services to
outside clients.
• Government accountants: Accountants who provide accounting services at the federal, state, and
local levels of government.
Professional accounting certification can be tough to get—but valuable to have—because it dramatically

boosts opportunities in the workforce.
Lecture Booster: Every business department makes embarrassing mistakes. But when the accounting
department makes mistakes, it’s not only embarrassing, it’s potentially very costly.
Here are some examples:
• The discount-coupon website Group on recently had to lower its initial public offering (IPO) goal from
$750 million to $540 million. The company has also been pressured by regulators to revise its
accounting system twice, as well as having to replace its chief financial officer twice in a single year.
LO – 118 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
• The city of Toledo, Ohio, expected to be $7 million short of funds at the end of 2011, mostly because
homeowners in financial distress could not reimburse the city for the cost of demolishing their homes.
The mayor’s office blamed the shortfall on poor accounting practices by the previous administration.
• The retailer chain Kohl’s had to reduce its stock-earnings estimates due to errors in how it accounted
for its lease payments.2
Web Connection: Click the icon at the top right corner of the slide to explore the website of the
American Institute of Certified Public Accountants (AICPA). Show students the wealth of information—
including career advice, news stories, and legislative updates—by browsing through some of the links.
Slide 5
Point out that financial accounting addresses the needs of

external stakeholders, who are concerned with the
financial performance of a company as a whole. The end
products of financial accounting are detailed sets of
financial statements that provide this information.
(Managerial accounting is discussed later in the chapter.)
Slide 6
Point out that although the SEC is ultimately responsible

for setting accounting standards (generally accepted
accounting principles, or GAAP), it has delegated that
responsibility to the FASB. Also mention that FASB allows
individual firms some flexibility in preparing their financial
statements, but more flexibility means less consistency
and comparability. The tradeoff may not be worthwhile.
According to Arthur Levitt, the former chair of the SEC,

flexibility in the current rules allows firms to manipulate
their accounting data in ways that make their financial
performance look better than it really is. He would argue
that consistency is better than creativity in accounting!
Slide 7
The Bernard Madoff investment scandal is only one fraud

that forensic accountants have recently been called on to
investigate. In fact, forensic accounting has been one of
the fastest-growing occupations over the past few years.
Lecture Booster: It is ironic that the best known forensic

accountant connected with the Bernard Madoff scandal
was the one whose efforts came to nothing. But it
certainly wasn’t for lack of trying. Remind students about
the role Harry Markopolos played in the Madoff affair. A
quiet, analytical math whiz, he’s also something of a
bulldog. When he was working as an investment manager
for Rampart Investment Management in Boston during the 1990s, his boss instructed him to figure out
how the financier Bernie Madoff was making his astounding double-digit returns so that Rampart could
use the strategy itself. Markopolos did the math—and redid the math—and concluded that Madoff’s
unrelenting winning streak was too good to be true. It was, Markopolos has said, “the equivalent of a
Major League Baseball player batting .966.”
Once he became convinced that Madoff was running a “Ponzi scheme”—using the money he collected
from new investors to pay the older ones—he went to The Wall Street Journal and repeatedly to the
SEC. In fact, in 2005, he sent the SEC a 21-page memo with a title that wasted no time cutting to the
chase: “The World’s Largest Hedge Fund is a Fraud.” Despite nearly ten years of effort by Markolpolos,
no one ever took his arguments seriously. “People think I’m a hero, but I didn’t stop him,” says
Markopolos. “He stopped himself.” Markopolos is right. It was, in fact, alarmed investors’ withdrawing
their funds in the aftermath of the financial meltdown much faster than Madoff could replace them that
drove the financier to confess to his sons. His sons turned him in to federal authorities.
After giving a 60 Minutes interview and testifying before Congress, Markopolos has gone back to
working as an independent certified fraud investigator. He’s hoping his celebrity days are over—being
recognized isn’t particularly helpful in his line of work.3
Slide 8
Many corporations have been involved in high-profile

accounting scandals in the last few years, including Enron,
Tyco, Halliburton, WorldCom, and Adelphia, among
others. Although most of the blame lies with top
executives, accountants certainly played a major role in
implementing, and often concealing, their schemes.
Begin by pointing out that things have changed for the

better in terms of both federal legislation and tough new
ethics requirements for CPAs.
Lecture Booster: Share the following with students: A
Bloomberg (new Businessweek owner) blogger
highlighted the apparent scarcity of accounting scandals in the wake of the financial-industry meltdown.
In 2010, only one S&P 500 company voluntarily disclosed its own accounting error. Here are some other
statistics:
• In 2010, 699 companies registered with the SEC revised their financial statements, more than the 640
that did in 2009—but fewer than half the number for 2006, which was 1,566.
• In 2010, 44 banks issued revised statements; the figure for 2009 was 45. Between 2008 and the end of
2010, 133 banks made corrections. In the three-year interval before the financial crisis, 169 banks
issued revised statements.
How did such discrepancies happen? The enactment of the Sarbanes-Oxley Act in 2002 may account for
the record numbers of restatements by 2006, but why did the numbers fall so steeply in later years? In
August 2008, the SEC decided to ease the standards for deciding when restatements were called for.
Although companies have apparently improved their internal accounting practices, some observers find
it hard to explain why so few banks have issued restatements in the years following the crisis.
Ask students why they think these discrepancies came about. It should be a good discussion. 4
Slide 9
Point out to students that although European observers

of, say, the 2001 Enron scandal insisted that such
disasters could never happen in Europe, corporate greed
and lack of vigilance know no national boundaries. It
turned out that some European regulators were even less
conscientious than their American counterparts.
Slide 10
Remind students that financial accounting is intended for

those on the outside looking in, and that it is different
from managerial accounting, which will be discussed later.
Point out that the SEC requires financial statements from

publicly traded corporations, but many private firms
choose to prepare them as well. Ask students if they can
identify why.
Slide 11
Assets include cash, inventory, machinery, buildings, and

accounts receivable (money that credit customers owe
the firm). Liabilities include accounts payable and the
amount that a firm owes to its lenders. Owner’s equity
includes the value of common stock and retained
earnings.
The logic behind the accounting equation at the bottom

of the slide is that the value of a firm’s assets must equal
the amount of financing provided by the owners plus the
amount provided by lenders. In other words, the balance
sheet must always “balance.” This is true for every firm,
regardless of size.
Lecture Booster: The first published documentation of the accounting equation (and the double-entry
bookkeeping system) is a Renaissance textbook, Summa de arithmetica, geometria, proportioni et
proportionalita (“The Collected Knowledge of Arithmetic, Geometry, Proportion, and Proportionality”),
written in 1494 by the Italian mathematician and Franciscan friar Fra Luca Bartolomeo de Pacioli. His
description of the accounting methods practiced by the Venetian merchants of his time earned him the
title “Father of Accounting.”5
Slide 12
When you review this example of a basic balance sheet

from the text, be sure to point out that Total Assets does
indeed equal Total Liabilities plus Total Owner’s (or
Stockholders’) Equity.
Lecture Booster: Do balance sheets really report the true

value of all of a company’s assets? In many cases, the
answer is no. For example, many observers believe that
much of Apple’s phenomenal success in the first few years
of the twenty-first century was due to the chemistry and
camaraderie that’s developed among the creative
geniuses who work on its new-product design team. Yet
even though this unique creative environment has great value, accountants don’t include it on Apple’s
balance sheet. The problem is that this “asset” evolved internally rather than being purchased through a
market transaction. Thus, accountants have no objective and verifiable way to assign a value to the
creative environment.
Ask students if they can come up with other examples of “invisible” assets. (Possibilities include the
Disney mystique, the Virgin Group’s cool factor, Donald Trump’s personal fame, etc.)
Slide 13
Revenue typically includes increases in both cash and

accounts receivable that a firm has earned in exchange
for goods or services, or both. Expenses are typically
referred to as “costs” and include items such as payroll,
utilities, cost of goods, advertising, and selling expenses.
Lecture Booster: As the textbook points out, accountants

typically use accrual-basis accounting when recognizing
revenues. But explain to students that instead of using
accrual-basis accounting, you can use the other major
method, cash-basis accounting. In cash-basis accounting,
you record revenues when you actually receive the
money and expenses when you send off your bill payments.
Ask students to come up with reasons that accrual-basis accounting is preferable to cash-basis
accounting for recording revenue and expenses. Which method gives you a better idea of how your
business is doing? Why?6
Slide 14
Discuss the nature and purpose of the income statement.

Be sure students understand the meaning of these terms:
revenue, cost of goods sold, gross profit, operating
expenses, and net income.
Slide 15
The statement of cash flows is critically important, since a

firm must have adequate cash in order to conduct
business. The timing of cash flows can be especially
problematic for small businesses, because they often have
a smaller cash “cushion” to cover any emergencies.
Lecture Booster: Cash flow can be a matter of survival for

small businesses. The challenge is especially great when
the economy slows.
Many small businesses find themselves squeezed

between suppliers who want faster payment and
customers who take longer to pay. Some observers fear this may be a permanent feature of the post-
recession business climate. Here are some ways to improve cash flow in tough times:
• Increase customers’ initial down payments.

• Offer incentives (such as a small discount) to customers who pay early.
• Establish a payment at the midpoint of a project as well as at the beginning and the end, and halt
work on the project until that payment is made.
• Expand what you offer for your projects—and demand payment in full up front from clients who opt
for the expanded offering.
• Hold on to the finished product until the final payment has been made.
• Renegotiate payment plans with your suppliers, with the incentive of additional interest to sweeten
the longer wait for payment.
Discuss with students the reasons that owners of new businesses need to focus so much on cash flow.
Ask what they think of the methods listed above for improving cash flow. How might these methods
affect businesses owners—and their customers? Then ask students for any other suggestions. Any
students who run their own businesses, or know someone who does, should have some additional
ideas.7
Slide 16
Be sure to point out that the total amount of cash at the

end of the period should match the amount of cash
reported in the balance sheet. This may be a good place
to reiterate that for maximum usefulness, firms must
prepare all the key financial statements to cover the same
time period, so that they tie together.
Lecture Booster: Now that you’ve covered the big three

financial statements, this activity can help students
internalize and apply their new knowledge. Divide the
class into groups of three to five students. Announce that
each group represents a team of investment advisors for
a client with $100,000 to invest in the stock of publicly traded companies. Their client—who has just
enough accounting knowledge to be dangerous—has asked them to justify their advice on the basis of
the financial statements of the companies they recommend.
The students’ challenge is to determine what specific information from each financial statement could
help them make their choice (possibilities include earnings, cash reserves, level of debt, etc.). What does
that information tell them about the investment potential of the company? Which of the three key
statements—the balance statement, the income statement, and the statement of cash flows—is most
important? Why? Give the groups ten to fifteen minutes to develop a response. Reconvene as a class to
compare and contrast results. You will probably find that responses are interesting and thoughtful, but
all over the place. You could use the range of ideas to emphasize the importance of investment
objectives in determining a strategy for financial research.
Slide 17
In addition to the three major statements, firms usually

prepare either one of these additional statements,
depending on how complex the changes are to their
owners’ equity. The statement of retained earnings is
found by subtracting dividends paid to stockholders from
net income. The stockholders’ equity statement also
shows other changes, such as those that arise from the
issuance of additional shares of stock.
Slide 18
Interpreting financial statements can be misleading

without the proper context. Full understanding comes
from analyzing the auditor’s report, the notes that
accompany the statements, and the statements
themselves.
Slide 19
Anything less than an “unqualified opinion” should

generate skepticism about a firm’s financial statements.
In the wake of recent accounting scandals, stakeholders
can have more confidence that the auditor’s opinion is
valid, thanks to the Sarbanes-Oxley Act of 2002, which
mandates that auditors be independent of the firms that
they audit.
Lecture Booster: In its discussion of Sarbanes-Oxley, the

textbook mentions that the law established the Public
Company Accounting Oversight Board (PCAOB), which
regulates the accounting profession. Critics of business
regulation argued that the PCAOB was unconstitutional, because the SEC rather than the president
selected its members. They also argued that due to the way the law was written, if just one part of it
was found to be unconstitutional, the whole law would be invalidated.
In June 2010, the Supreme Court ruled partly in favor of the law’s critics, deciding that members of the
PCAOB should be chosen by, and report to, the president. But the Court also declared that Sarbanes-
Oxley was constitutional and should continue to be “fully operative as a law.”
Sarbanes-Oxley does impose heavy regulations on businesses, especially small ones. It did not prevent
the 2008 financial crisis or Lehman Brothers’ last-minute financial trickery. And Bernard Madoff’s own
sons, rather than the law, exposed him as a fraud. But the law has improved corporate transparency and
accountability. Firms have adjusted their computer systems to comply with it and have made sure that
their lawyers and accountants are knowledgeable about it. And the PCAOB recently set a precedent by
publicly releasing a report in which it criticized the “big four” accounting firm Deloitte & Touche for
inadequate quality control of its audits. Congress is considering legislation that would make it easier for
small businesses to raise capital.
Discuss with students the impact of regulating financial transparency. How much regulation do they feel
is necessary? Make sure they can justify their answers.8
Web Connection: Click the icon at the top right corner of the slide to explore the website of the Institute
of Internal Auditors (IIA), which promotes certification, education, research, and technical guidance for
independent auditors. The IIA has institutes in 103 countries around the world and 153 chapters in the
United States alone.
Slide 20
Exhibit 8.4 shows an excerpt from the auditing firm Ernst

& Young’s actual report on Google Inc. Discuss with
students how this report complies with the standards set
by Sarbanes-Oxley and the PCAOB.
Slide 21
Lecture Booster: Remind students that U.S. businesses

comply with GAAP (generally accepted accounting
principles) as set forth by the SEC. But most other
nations—including major U.S. economic partners in
Europe, Asia, and South America—comply with a different
set of regulations, the International Financial Reporting
Standards (IFRS). The two regulatory bodies have been
working to iron out their differences, with the goal of
converging GAAP and IFRS—but the SEC expects that to
occur no earlier than 2015.
Recently, an AICPA report found that about half of
American public and private companies have made their employees familiar with IFRS rules. However,
issues are already arising that highlight discrepancies. For example, if a foreign firm buys a 75% share of
an American company, that company must adopt the IFRS standards, even though it operates on U.S.
soil. In light of these issues, some observers question the wisdom of gradual implementation and
advocate a get-it-over-with approach. They argue that a slow pace distracts firms from dealing with their
actual business while they spend time and resources on implementation. Others argue that the longer
deadline allows small businesses—which have fewer resources—more time to make the change.
Do students think that a faster or more gradual approach would be better for businesses? Make sure
they can give the reasons for their answers.9
Web Connection: Click the icon at the top right corner of the slide to explore the AICPA’s IFRS Resources
website, which includes FAQs, information on training, and other information.
Slide 22
Reading the fine print is critical (and can sometimes

amount to a big job). In addition to these examples, the
notes to the financial statements may disclose changes in
accounting methods—which GAAP often allows—that
could affect the compatibility of the current financial
statements with those of previous years.
Lecture Booster: The notes to a financial statement can

contain other important data, so investors need to check
them carefully:
• Companies can report errors from previous financial

statements in the notes.
• Firms are sometimes allowed to omit any liabilities or pending lawsuits from the main report and
include them in the footnotes instead.
• If a footnote is difficult to comprehend, it may be that the company is trying to confuse readers—
possibly because it wants to hide something.10
Slide 23
Analyzing and comparing a firm’s financial statements can

yield additional insights that improve stakeholders’
understanding of the company’s financial position. Stress
that horizontal analysis helps stakeholders identify
important changes and trends in key accounts.
Web Connection: Click the icon at the top right corner of

the slide to explore the website of the U.S. Securities and
Exchange Commission, whose stated mission is “to
protect investors, maintain fair, orderly, and efficient
markets, and facilitate capital formation.”
Slide 24
Stress that the accuracy and reliability of managerial

accounting information can make a huge difference in the
performance of a firm and can provide a valuable
competitive advantage.
Also mention that the managerial accounting described in

this chapter is only a small sampler of the areas where
managerial accounting plays a role in the organization.
Lecture Booster: One way to stay competitive is to

manage costs, so managerial accounting can play a key
role in a company’s strategy. During the recession,
companies avoided spending on equipment but later found themselves stuck with outdated machinery.
Recently they have begun buying equipment again, but with some differences. Keeping economy and
efficiency in mind and aware of former wasteful machines and practices, they are shopping for versatile
machines that can perform a variety of functions. According to the Association for Manufacturing
Technology (AMT), purchases of machine tools in the first quarter of 2011 were up almost 120% over
the same period in 2010. Firms are also planning for a future that includes increased international
competition. According to Doug Woods, the president of AMT, “We’ve seen manufacturers buying
equipment that is going to help them survive the next downturn. In doing so, they’re also upgrading
their equipment in such a way that they’re more able to compete on an international stage.”
Ask students how accountants can help a firm’s decision makers in planning the best way forward in
difficult economic times. How might managerial accounting make a difference to a firm’s long-term
plans?11
Lecture Booster: This is also a good opportunity to draw students’ attention to another aspect of
efficiency that is highlighted in the “New Accounting Trend: Stretching a Single into a Triple” feature on
page 129 of the textbook. Have students discuss the trend toward a “triple bottom line” in accounting.
How might broader assessments—with people and the planet in mind as well as profits—give a clearer,
better-rounded picture of a firm’s overall performance?
Slide 25
This slide identifies several ways in which managerial

accounting differs from financial accounting. Be sure that
students understand the differences in purpose, type of
information, nature of reports, timing of reports,
adherence to accounting standards, and time-period
focus in each type of accounting. Why might a firm use its
own, internally developed procedures instead of following
GAAP standards?
Slide 26
Use this segment to facilitate a discussion of cash flows

and product costing. This segment also offers the
opportunity to discuss the use of technology in
accounting practices.
Slide 27
Use these questions to discuss with students Pizzeria

Uno’s accounting practices and their effect on the
company’s strategy and business plan.
Slide 28
Make sure students understand the definitions of the

following: out-of-pocket costs, implicit costs, fixed costs,
and variable costs. Ask students why an implicit cost
sometimes might be difficult to measure.
Slide 29
Beginning with the textbook’s simple definition of cost,

review with students the ways in which a managerial
accountant assists managers in all areas of a firm in
making decisions about the company’s operation.
Slide 30
In this scene from In Good Company, the marketing

manager Mark Steckle attempts to fire Dan Foreman for
disrespecting the company’s CEO in person. The new
young boss Carter Duryea comes to Foreman’s side,
saying that he will quit if Foreman is fired. Cunningly,
Carter states that their exit from the firm would surrender
a major account without which the magazine will end up
deep in the red.
Slide 31
These questions will start students thinking about the

usefulness of accounting from an applied perspective.
Slide 32
A firm’s management accounting system helps managers

throughout an organization measure costs and assign
them to the correct products and activities. In the past,
management accountants simply assigned overhead costs
in proportion to the hours of labor required to produce a
product, but that method yielded misleading results.
Activity-based costing is a newer, better method.
Slide 33
Budgeting facilitates planning by requiring managers to

translate goals into measurable quantities and to identify
the specific resources that they need to achieve those
goals. It also offers the benefits outlined on this slide.
Lecture Booster: Stress the differences between ideal

budgets and real-world ones. In a 2009 survey by Business
Finance magazine, readers made the following statements
about how their budgeting practices had recently
changed:
• Two-thirds said their budgets would become obsolete

before the year was half over.
• Over 40% said they had not made big changes in their budgeting processes.
• Fewer than 20% said they had included more detail.
• Almost a quarter added updates or interim reports.
Ask students if they have any solutions to these difficulties, or can share related experiences.12
Slide 34
Supporters of the top-down approach point out that

senior management knows long-term strategic needs and
can see the big picture when making budget decisions.
Supporters of the bottom-up, or participatory, approach
maintain that it has two major advantages.
First, lower-level managers are likely to know more about

the issues and challenges facing their departments—and
the resources it will take to address them—than senior
managers.
Second, middle- and first-line managers are likely to be more highly motivated to achieve budgetary
goals when they have a say in how those goals are developed.
Which approach would students choose? Why?
Slide 35
Many students find that budgeting for companies is more

complex than they had initially imagined. After you review
the two main categories, you might want to point out that
Chapter 9 will offer more depth regarding the key
financial budgets.
Slide 36
The firm’s master budget brings together all of the

documents in the operating and financial budgets into a
unified whole, representing the firm’s overall plan of
action for a specified time period. In other words, the
master budget shows how all of the pieces fit together to
form a complete picture.
Slide 37
Give students five to ten minutes to answer the questions

on this slide. Then ask them to share their answers with
the class. You will almost certainly get a wide range of
responses.
Slide 38
This video features a meeting between representatives of

BG Capital and representatives of D&B Specialty Foods
regarding a possible investment by the former
organization in the latter organization. The BG Capital
people assess D&B’s prospects for success as being much
less promising than D&B’s own assessment. BG Capital
believes that D&B needs $13.5 million in capital from BG
rather than the $2 to $3 million in capital investment
requested by D&B. BG Capital also believes that D&B has
a great product but that its operations leave much to be
desired; consequently, the likelihood of a positive cash
flow is considerably diminished and D&B is not a good
investment opportunity for BG Capital.
Slide 39
Use these questions to talk about real-world budgeting

issues that companies face every day.
Slide 40
To review the chapter, ask students to volunteer answers

to these questions.
Closing Activity: Students probably know that Google

went public in 2004, and its stock has been red hot ever
since.
Share with them these vital statistics:
• Google’s market value is well over $150 billion.

• Google’s annual revenues in 2010 were $30 billion.
• Google currently holds more than $36 billion in cash.
• Google’s stock price was about $580 per share in spring of 2011.13
The Assignment:
Ask your students to determine where interested stakeholders can find detailed financial information on
Google Inc. Using what they’ve learned from this chapter, how can they interpret this information to
obtain meaningful insights into the company’s financial condition? Can the public be confident that this
financial information is accurate? Why or why not?
Sources:
1
Bureau of Labor Statistics, “Accountants and Auditors,” Occupational Outlook Handbook, 2010–11
Edition, http://www.bls.gov/oco/ocos001.htm; Marisa Taylor, “A Career in Accounting,” Wall Street
Journal, September 13, 2010,
http://online.wsj.com/article/SB10001424052748704358904575478111205275920.html; Laura Raines,
“Forensic Accounting Is a Career to Count On,” Atlanta Journal-Constitution, March 8, 2011,
http://www.ajc.com/business/forensic-accounting-is-a-865157.html (all accessed 11/4/11).
2
“UPDATE 2—Groupon Mulls Raising IPO Price, NY Show Wraps Up,” Reuters, October 28, 2011,
http://www.reuters.com/article/2011/10/29/groupon-ipo-roadshow-idUSN1E79R21E20111029; Claudia
Boyd-Barrett, “Toledo Likely to Face $7M Shortfall by Year’s End,” Toledo Blade, October 28, 2011,
http://www.toledoblade.com/Politics/2011/10/28/Toledo-likely-to-face-7M-shortfall-by-year-s-
end.html; Melodie Warner, “Kohl’s Cuts Estimates to Reflect Lease Accounting,” MarketWatch, October
6, 2011, http://www.marketwatch.com/story/kohls-cuts-estimates-to-reflect-lease-accounting-2011-10-
06 (all accessed 11/3/11).
3
Ross Kerber, “The Whistleblower: Dogged Pursuer of Madoff Wary of Fame,” Boston Globe, January 8,
2009, http://www.boston.com/business/articles/2009/01/08/the_whistleblower/; Robert Chew, “A
Madoff Whistle-Blower Tells His Story,” Time.com, February 4, 2009,
http://www.time.com/time/business/article/0,8599,1877181,00.html; “A Timeline of the Madoff
Fraud,” New York Times, June 29, 2009,
http://www.nytimes.com/interactive/2009/06/29/business/madoff-timeline.html?ref=business;
Wikipedia contributors, “Harry Markopolos,” Wikipedia,
http://en.wikipedia.org/w/index.php?title=Harry_Markopolos&oldid=309461423 (all accessed 11/3/11).
4
Jonathan Weil, “The Mystery of Vanishing Accounting Scandals: Jonathan Weil,” Bloomberg, March 2,
2011, http://www.bloomberg.com/news/2011-03-03/honesty-for-banks-is-still-such-a-lonely-word-
commentary-by-jonathan-weil.html (accessed 11/3/11).
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“History of Double-Entry Bookkeeping,” International Institute of Certified Public Accountants,
http://www.iicpa.com/aboutus/De%20Computis%20et%20Scripturis.HTML (accessed 11/3/11).
6
“Accrual Accounting,” Investopedia,
http://www.investopedia.com/terms/a/accrualaccounting.asp#axzz1cg0NyiwP; “Cash Accounting,”
Investopedia, http://www.investopedia.com/terms/c/cashaccounting.asp#axzz1cg0NyiwP (both
accessed 11/3/11).
7
John Tozzi, “For Small Business, a Cash-Flow Crisis,” Bloomberg Businessweek, March 24, 2011,
http://www.businessweek.com/magazine/content/11_14/b4222059377221.htm; Scott Gerber, “Six
Ways to Smooth Out Uneven Cash Flow,” Entrepreneur, April 26, 2011,
http://www.entrepreneur.com/article/219537 (accessed 11/4/11).
8
“Two Cheers for Sarbanes-Oxley,” The Economist, July 1, 2011,
http://www.economist.com/node/16478996; Jim Abrams, “Congress Easing Small Company Capital
Raising Rules,” Huffington Post, November 2, 2011,
http://www.huffingtonpost.com/2011/11/02/congress-small-company-capital-raising_n_1072636.html;
Floyd Norris, “Accounting Board Criticizes Deloitte’s Auditing System,” New York Times, October 17,
2011, http://www.nytimes.com/2011/10/18/business/accounting-board-criticizes-deloittes-auditing-
system.html?scp=8&sq=%22Floyd+Norris%22&st=nyt (all accessed 11/4/11).
9
Jacob Barron, “The Endless Switch from GAAP to IFRS,” Business Credit 113, no. 8 (September 2011): 4–
6, http://findarticles.com/p/articles/mi_hb4355/is_201109/ai_n58256093/; “IFRS and U.S. GAAP
Convergence—It’s Not Too Early to Start Preparing,” Controller’s Report 11-10 (October 2011),
http://www.iofm.com (accessed 11/4/11).
10
“Financial Footnotes: Start Reading the Fine Print,” Investopedia, December 23, 2010,
http://www.investopedia.com/articles/02/050102.asp#axzz1cg0NyiwP (accessed 11/4/11).
11
Frank Andorka, “Is Your Technology as Efficient as It Could Be?” Industry Week, June 22, 2011,
http://www.industryweek.com/articles/is_your_technology_as_efficient_as_it_could_be_24849.aspx?S
howAll=1 (accessed 11/4/11).
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“Budgeting Practices and How They Change,” Controller’s Report, July 2010, http://www.iofm.com
(accessed 11/4/11).
13
Nasdaq, www.nasdaq.com; Erick Schonfeld, “Citi: Google's YouTube Revenues Will Pass $1 Billion In
2012 (And So Could Local),” TechCrunch.com, March 21, 2011, http://techcrunch.com/2011/03/21/citi-
google-local-youtube-1-billion/; “Where Does Google Have Its Cash?” Quora.com, May 26, 2011,
http://www.quora.com/Where-does-Google-have-its-cash.
Another random document with
no related content on Scribd:
Fig. 47.—Interior View
of M-2 Mask.
Fig. 48.—French Artillery Mask,
Tissot Type.
Tissot Mask. The French deserve great credit for their

development of the Tissot type mask. This was first issued to
artillerymen, stretcher bearers, and certain other special classes of
soldiers to furnish them with protection and yet enable them to work
with greater efficiency because of the decrease in resistance to
breathing. The mask (Fig. 48) resembles the British box respirator in
that it consists of a canister and rubber facepiece, but differs in that
the mouthpiece and noseclip are lacking. The inhaled air enters the
mask from two tubes which open directly under the eyepieces and
allow the air to sweep across them. This removes, by evaporation,
the condensed moisture of the breath from the eyepieces, which
otherwise would obstruct the vision. The circulation of the fresh air in
the mask also removes and dilutes lachrymatory gases which may
filter through the mask. The exhaled air escapes through a simple
outlet valve. This type of mask is advantageous because:
(1) The facepiece is tight and comfortable.

(2) The eyepieces do not become dimmed.
(3) There is no difficulty in speaking.
(4) Salivation is eliminated because of the absence of the
mouthpiece.
(5) It is generally more comfortable than the box respirator.
This mask, however, was made of thin rubber of great flexibility

which, while affording a perfect fit, did not possess sufficient
durability to recommend it as the sole defense of the wearer.
The canister is markedly different from all other canisters
described in this chapter in that a highly hygroscopic chemical
absorbent is used. An approximate determination showed about 70
per cent sodium hydroxide. The use of caustic soda in the canister is
made possible by the intermixing of steel wool with the granules of
caustic. A layer of absorbent having the appearance of vegetable
charcoal is placed at the top of the canister.
The canister has the shape of a rectangular prism 8 × 6½ × 2½
inches; and, owing to the use of steel wool, is large in proportion to
the weight of absorbent contained. Valves are supplied which
prevent exhalation through the canister. When not in use the opening
in the bottom of the canister is plugged with a rubber stopper to
protect the absorbents from moisture. The canister is carried against
the body and is connected to the facepiece with a flexible rubber-
fabric tube.
A. R. S. Mask (Appareil Respiratoire Special). One of the latest
types of French mask is the so-called A. R. S. mask, which is based
upon, or at least resembles closely, the German mask. This is a
frame mask made from well rubberized balloon material, provided on
the inside with a lining of oiled or waxed linen and fitted with a drum
which is screwed on. The mask is provided with eyepieces of
cellophane, fastened by metal rings into rubber goggles, which are
sewed in the mask. A metal mouth-ring is tied in the mask with tape.
This ring is placed somewhat higher than in the German mask, in
this way reducing the harmful space under the mask. An inlet and
outlet valve is placed in the mouth-ring; the first is of mica while the
other, which is in direct communication with the interior of the mask,
is of rubber. On the inside of the mask, in front of the valves, a baffle
is sewed in, whereby the inhaled air is forced to pass in front of the
eyepieces to prevent dimming and, at the same time, condensed
vapor is prevented from entering the valves.
Fig. 49.—French A. R. S. Mask.
The mask or head straps are arranged in the same way as on the
latest M-2 mask, i.e., one elastic band is placed across the top of the
head and the other across the back; the two are joined by an elastic.
Below these two straps is an adjustable elastic neck band. The drum
is made of metal similar in shape to the German drum and fits in the
mouth-ring by means of a thread. It is made tight by a rubber ring as
in the German mask. The thread differs from that on the German
mask, making an interchange of canisters impossible. The canister
or drum includes a bottom screen, springs and wire screens between
the layers. It is closed by a perforated bottom. There are three
layers. On the top is a thin layer of absorbent cotton. Beneath this is
a central layer of charcoal, which is a little finer than the German
charcoal. The lower layer consists of soda-lime, mixed with charcoal
and zinc oxide and moistened with glycerine.
German Mask
The early type of German mask probably served as the model for
the French A. R. S. mask. The facepiece was made of rubber, which
was later replaced by leather because of the shortage of rubber. The
following is a good description of a typical German facepiece:
“The facepiece of the German mask was made of one piece of
leather, with seams at the chin and at the temples, giving it roughly
the shape of the face. The leather was treated with oil to make it soft
and pliable, also to render it impervious to gases. The dressed
surface was toward the inside of the mask. A circular steel plate, 3
inches in diameter, was set into the facepiece just opposite the
wearer’s nose and mouth, with a threaded socket into which the
drum containing the absorbents screwed. A rubber gasket
(synthetic?) held in place by a sort of pitch cement, secured a gas-
tight joint between the drum and the facepiece. There were no
valves, both inhaled and exhaled air passing through the canister.
The eyepieces were inserted by means of metal rims with leather
washers, and were in two parts: (a) a permanent exterior sheet of
transparent material (‘cellon’) resembling celluloid, and (b) an inner
removable disc which functioned as an anti-dimming device. This
latter appeared to be of ‘cellon’ coated on the side toward the eye
with gelatin, and was held in position by a ‘wheel’ stamped from thin
sheet metal, which screwed into the metal rim of the eyepiece from
the inside. The gelatin prevented dimming by absorbing the
moisture, but wrinkled and blistered and became opaque after a few
hours’ use, and could not be changed without removing the mask.
The edge of the facepiece all around was provided with a bearing
surface consisting of a welt of finely woven cloth about one inch wide
sewed to the leather. In some instances this welt was of leather of an
inferior grade. The edge of the facepiece was smoothed over by a
coat of flexible transparent gum, probably a synthetic compound.”
Fig. 50.—German Respirator.
Fig. 51.—The German Respirator
1. Smoke Filter Extension.

2. Canister.
3. Ring for Protecting Eye Piece.
4. Anti-dimming Disc Envelope.
5. Carrying Case.
6. Cloth Wallet for Extra Canister (1918).
7. Can for Extra Canister (1916).
8. Assembled Respirator.
9. Face Piece.
10. Anti-dimming disc.
German Canister. The general appearance of the canister

(Sept., 1916 Type) is that of a short thick cylinder slightly tapered
and having at the smaller end a threaded protrusion or neck by
which it is screwed onto the facepiece. The cylinder is about 10 cm.
in diameter and about 5 cm. in length. In the canister are three layers
of absorbents of unequal thickness separated by disks of fine mesh
metal screen. The canister is shipped in a light sheet iron can 10 cm.
in diameter and 8 cm. high. The can is shellacked and is lined with
paper packing board. The container is made air-tight by sealing with
a strip of adhesive tape.
Fig. 52.—Cross Section of 1917 and 1918 German

Canisters.
Absorbents.
Absorbent. Composition. Weight.

Volume.
1917. No. Chemical Absorbent.
66 gr. 105 cc.
1.
No. Impregnated
36 gr. 85 cc.
2. Charcoal.
No. Chemical Absorbent.
15 gr. 45 cc.
3.
1918. No. Impregnated
58 gr. 185 cc.
1. Charcoal.
Absorbent. Composition. Weight.
Volume.
No. Chemical Absorbent.
29 gr. 45 cc.
2.
Total Volume of 1917, 235 cc. 14.3 cu.

Absorbents, = in.
1918, 230 cc. 14.0 cu.
= in.
Total Weight of 1917, 117 gr.
Absorbents,
1918, 87 gr.
Volume of Air Space above Absorbents = 50 cc. =
3.1 cu. in.
Body. The body of the canister is made of sheet metal (probably
iron), which is protected on the outside with a coat of dark gray paint
and on the inside with a japan varnish. For ease in assembling the
sides of the canister have a gentle taper, and are formed so as to
supply a seat for each of the follower rings. The protrusion or neck
has about six threads to the inch, the pitch of the screw being 4 mm.
The lower part of the body is rolled so as to give a finished edge, and
the upper part of the cylinder is grooved to receive the top support.
The first screen is double, consisting of a coarse top screen five
to six mesh, per linear inch, and immediately below, a finer screen of
30-40 mesh, per linear inch. The top support is a rigid ring of metal
with two cross arms, which give added, strength to the ring and
support to the screens. It springs into a groove at the top of the body
and forms the support for the contents of the canister. Both screens
are made of iron wire and the top support is made of iron (probably
lightly tinned).
The second screen, which separates the second and third
absorbents, is double, consisting of two disks of 30-40 mesh iron
screen. Both screens are held in place by a follower ring.
The third screen is single, but otherwise it is exactly similar to the
second screen. It serves to keep separate the layers of absorbents
No. 1 and No. 2.
The fourth screen (30-40 mesh) is made of iron wire and is held
to the bottom support by six cleats which are punched from the body
of the support. The bottom support is simply a flanged iron cover for
the bottom of the canister. It is punched with 79 circular holes each 4
mm. in diameter and is painted on the outside to match the body of
the canister. The screen and the inside of the bottom support or
cover are coated with a red paint.
American Mask
At the entrance of the United States into the war, three types of
masks were available: the PH helmet, the British S. B. R. and the
French M-2 masks. Experiments were made on all three of these
types, and it was soon found that the S. B. R. offered the greatest
possibilities, both as regards immediate protection and future
development. During the eighteen months which were devoted to
improvement of the American mask, the facepiece underwent a
gradual evolution and the canister passed through types A to L, with
many special modifications for experimental purposes. The latest
development consisted in an adaptation of the fighting mask to
industrial purposes. For this reason a rather detailed description of
the construction of the facepiece and of the canister of the respirator
in use at the close of the war (R. F. K. type) may not be out of place.
The mask now adopted as standard for the U. S. Army and Navy is
known as the Model 1919 American mask, with 1920 model carrier,
and will be described on page 225.
Fig. 53.—Diagrammatic Sketch of
Box Respirator Type Mask.
Facepiece. The facepiece of the R. F. K. type Box Respirator is

made from a light weight cotton fabric coated with pure gum rubber,
the finished fabric having a total thickness of approximately ¹/₁₆ inch.
The fit of the facepiece is along two lines—first, across the forehead,
approximately from temple to temple; second, from the same
temporal points down the sides of the face just in front of the ears
and under the chin as far back as does not interfere with the Adam’s
apple. In securing this fit, the piece of stock for the facepiece is died
out of the felt and pleated up around the edges to conform to this
line. After this pleating operation, the edges of the fabric are stitched
to a binding frame similar to a hat-band made up of felt or velveteen
covered with rubberized fabric. All the stitching and joints in the
facepiece are rendered gas-tight by cementing with rubber cement.
This facepiece is made in five sizes ranging from No. 1 to No. 5, with
a large majority of faces fitted by the three intermediate sizes, 2, 3,
4.
Harness. The function of the harness is to hold the mask on the
face in such a way as to insure a gas-tight fit at all points. Because
of the great variations in the conformation of different heads, this
problem is not a simple one. Probably, the simplest type of harness,
as well as the one which is theoretically correct, consists of a
harness in which the line of fit across the forehead is extended into
an elastic band passing around the back of the head, while the line
of fit around the side of the face and chin is similarly extended into
another elastic tape passing over the top of the head; these should
be held in place by a third tape, preferably non-elastic, attached to
the mask at the middle of the forehead and to the middle points of
the other tapes at a suitable distance to hold them in their proper
positions.
The discomfort of the earlier types of harness has been
remedied, in a large measure, by the development of a specially
woven elastic web which, for a given change in tension, allowed
more than double the stretch of the commercial weaves. There is still
much room for valuable work in developing a harness which will
combine greater comfort and safety. The following points should
always be observed in harness design:
(1) The straps should pull in such a direction that as large a
component as possible of the tension of the strap should be
available in actually holding the mask against the face.
(2) The number of straps should be kept to a minimum in order to
avoid tangling and improper positioning when put on in a hurry by an
inexperienced wearer.
Eyepieces. One of the most important parts of the gas mask,
from the military point of view, is the eyepiece. The primary
requirement of a good eyepiece is that it shall provide a minimum
reduction in clarity of vision with a maximum degree of safety to the
wearer. The clarity of vision may be affected in one of several ways:
(1) by abrasion of the eyepieces under service conditions; (2)
irregularities in the surface and thickness of the eyepiece, causing
optical dispersion; (3) absorption of light by the eyepiece itself; (4)
dimming of the eyepieces due to condensation of moisture radiating
from the face or in the exhaled air.
Three types of eyepieces were used but by the end of the war the
first two types had been abandoned.
(1) Ordinary celluloid.
(2) Various hygroscopic forms of celluloid, known as non-
dimming eyepieces.
(3) Various combinations of glass and celluloid, known as non-
breakable eyepieces.
Celluloid was used first, due to its freedom from breakage. It is
not satisfactory because it is rapidly abraded in use, turns yellow,
thus increasing its light absorption, has relatively uneven optical
surfaces and becomes brittle after service.
The various forms of non-dimming lenses function by absorbing
the water which condenses on their surfaces, either by combining
individual drops into a film which does not seriously impair vision, by
transmitting it through the surface and giving it off on the exterior or
by a combination of these mechanisms. With the exception that they
are non-dimming, they are open to all the objections of the celluloid
eyepiece and, as a matter of fact, were never tried out in the field.
The so-called non-breakable eyepieces are formed by cementing
together a layer of celluloid between two layers of glass.[25] This
results in an almost perfect eyepiece. Any ordinary blow falling upon
such an eyepiece does no more than crack the glass, which remains
attached to the celluloid coating. Except in extreme cases, the
celluloid remains unbroken and there is relatively slight danger of a
cracked eyepiece of this sort leaking gas.
In the matter of flying fragments, the type of eyepiece consisting
of a single layer of celluloid and glass with the celluloid placed next
to the eye, has probably a slight advantage over the type in which
there is glass on both sides. However, the superior optical surface of
the latter type, coupled with its greater freedom from abrasion of the
surface led to the adoption of this type known as “triplexin” in the
mask produced in the later part of the American manufacturing
program. It should be pointed out in connection with this type of
eyepiece that it is possible to make it as perfect optically as desired
by using the better grades of glass. While the optical properties of
these eyepieces undoubtedly suffer somewhat with age, due to the
discoloration of the celluloid, it can be safely said that this material,
located as it is between the layers of glass and relatively little
exposed to atmospheric conditions, will probably be far less affected
in this way than is the ordinary celluloid eyepiece.
Fig. 54.—American Box Respirator,

Showing Improved Rubber Noseclip.
The position of the eyepiece is very important; the total and the
binocular fields of vision should be kept at a maximum.
Nose clip. The noseclip is probably the most uncomfortable
feature of the types of mask used during the War. While a really
comfortable nose pad is probably impossible, the comfort of the clip
was greatly improved by using pads of soft rubber and springs giving
the minimum tension necessary to close the nostrils.
Mouthpiece. The design of the mouthpiece should consider the
size and shape of the flange which goes between the lips and teeth;
this should be such as to prevent leakage of gas into the mouth and
should reduce to a minimum any chafing of the gums. The opening
through the mouthpiece is held distended at its inner end by a
metallic bushing to prevent its collapse, if, under stress of
excitement, the jaws are forced over the flange and closed. Rubber
has proved a very satisfactory material for this part of the facepiece.
Flexible Hose. The flexible hose leads from the angle tube to the
canister. This should combine flexibility, freedom from collapse, and
extreme physical ruggedness. These specifications are met
successfully by the stockinette-covered corrugated rubber hose. The
angular corrugations not only give a high degree of flexibility but are
extremely effective in preventing collapse. The flexibility gained by
this construction is not only lateral but also longitudinal; a hose
having a nominal length of 10 inches functions successfully between
lengths of 8 and 12 inches. The covering of stockinette, which is
vulcanized to the rubber in the manufacturing process, adds
materially to the mechanical strength by preventing incipient tears
and breaks.
Exhalation Valve. The exhalation valve allows the exhaled air to
pass directly to the outside atmosphere. (This valve is not found on
the German mask.) This valve has the following advantages:
(1) It tends to reduce very materially the dead air space in the
mask.
(2) It prevents deterioration of the absorbent on account of
moisture and carbon dioxide of the expired air.
(3) It reduces the back pressure against expiration, since it is
unnecessary to breathe out against the resistance of the canister.
The disadvantage, which may under certain conditions be very
serious, is that, if for any reason the valve fails to function properly,
inspiration will take place through the valve. It can be readily seen
that any failure of this nature will allow the poisonous atmosphere to
be drawn directly into the lungs of the wearer.
The type of valve generally used is shown in Fig. 55, which
shows one of these valves mounted and unmounted. While it is
rather difficult to give a clear description of its construction, the valve
may be considered as a flattened triangular sack of rubber, whose
altitude is two or three times the base and from which all three
corners have been clipped, each giving openings into the interior of
the sack. The opening at the top is slipped over the exhalation
passage of the angle tube, and the air passes out through the other
two corners. Closure is obtained by the combination of two factors,—
first, the difference in atmospheric pressure, and second, the tension
due to mounting a section which has been cured in the flat over an
elliptical opening.
Fig. 55.—American Type Exhale Valve,
Mounted and Unmounted.
In order to protect the flutter valve from injury and from contact
with objects which might interfere with its proper functioning, the later
types of valve were provided with a guard of stamped sheet metal.
Canisters
During the development of the facepiece, as discussed above,
the American canister underwent changes in design which have
been designated as A to L. These changes were noted by the
different colored paints applied to the exterior of the canister.
Type A canister was exactly like the British model then in use,
except that it was made one inch longer because it was realized that
the early absorbents were of poor quality. The canister was made of
beaded tin plate and was 18 cm. high. The area of the flattened oval
section was 65 sq. cm. In the bottom was a fine wire dome 3.4 cm.
high. The valve in the bottom was integral with the bottom of the
container, there being no removable plug for the insertion of the
check valve. The absorbents were held in place by a heavy wire
screen on top and by two rectangular springs.
Fig. 56.—American Canister, Type A.
Inhaled air entered through the circular valve at the bottom of the
canister, passed through the absorbents and through a small nipple
at the top.
The filling consisted of 60 per cent by volume of wood charcoal,
developed by the National Carbon Co., and 40 per cent of green
soda lime, developed and manufactured by the General Chemical
Company, Easton, Pa. The entire volume amounted to 660 cc. The
early experiments with this volume of absorbent showed that ⅖
soda-lime was the minimum amount that could be used and still
furnish adequate protection against the then known war gases. It
was, therefore, decided to use ⅖ soda-lime and ⅗ charcoal by
volume and this proportion has been adhered to in all of the later
types of canisters. It is interesting to note that these figures have
been fully substantiated by the later experimental work on canister
filling.
The charcoal and soda-lime were not mixed but arranged in five
layers of equal volume, each layer, therefore, containing 20 per cent
of the total volume. The layers were separated by screens of
crinoline. At the top was inserted a layer of terry cloth, a layer of gray
flannel, and two steel wire screens. The cloth kept the fine particles
of chemicals from being drawn into the throat of the person wearing
the mask.
This canister furnished very good protection against chlorine and
hydrocyanic acid and was fairly efficient against phosgene, but it was
useless against chloropicrin. These canisters were never used at the
front, but served a very useful purpose as experimental canisters
and in training troops.
It was soon found that better protection was obtained if the
absorbents were mixed before packing in the canister. This
procedure also simplified the method of packing and was used in
canister B and following types. Among other changes introduced in
later types were: The integral valve was replaced by a removable
check valve plug which enabled the men in the field to adjust the
valve in case it did not function properly. The mixture of charcoal and
soda-lime was divided into three separate layers and these
separated by cotton pads. The pads offered protection against
stannic chloride smokes but not against smokes of the type of
sneezing gas. The green soda-lime was replaced by the pink
granules. In April, 1918, the mesh of the absorbent was changed to
8 to 14 in place of 6 to 14.
About July 1, 1918, the authorities were convinced by the field
forces of the Chemical Warfare Service that the length of life of the
chemical protection of the standard H canister (the type then in use)
was excessive and that the resistance was much too high. Type J

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BUSN 6 6th Edition Kelly Solutions

Ask students for examples of ways that each group might

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Be sure to point out that the total amount of cash at the

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Web Connection: Click the icon at the top right corner of

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Also mention that the managerial accounting described in

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This slide identifies several ways in which managerial

Use this segment to facilitate a discussion of cash flows

Use these questions to discuss with students Pizzeria

Make sure students understand the definitions of the

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Budgeting facilitates planning by requiring managers to

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Which approach would students choose? Why?

Many students find that budgeting for companies is more

The firm’s master budget brings together all of the

Give students five to ten minutes to answer the questions