FULL SOLUTION MANUAL FOR h h h
Financial And Managerial Accounting 4th Edition by Jerry J h h h h h h h h
Weygandt, Paul D Kimmel, Jill E Mitchel
h h h h h h h
CHAPTER 1 h
Accounting in Action h h
ASSIGNMENT CLASSIFICATION TABLE h h
Brief A
Learning Objectives h Questions Exercises
h Do It! h Exercises Problems
1. Identify the activities and h h h 1, 2, 3, 4, 5
h h h h 1 1, 2h
users associated with
h h h
haccounting.
2. Explain the building blocks of 6, 7, 8, 9, 10
h h h h h h h h h 2 3, 4h
accounting:
h ethics, h
principles,and assumptions.
h h h
3. State the accounting h h 11, 12, 13, 14.
h h h 1, 2, 3, 4, 5
h h h h 3 5
equation, and define
h h h 22
itscomponents.
h h
4. Analyze the effects of h h h 15, 16, 18
h h 6, 7, 8, 9
h h h 4 6, 7, 8
h h 1A, 2A, 4A,
h h
business transactions on
h h h 5A
theaccounting equation.
h h h
5. Describe the four financial h h h 17, 19, 20, 21,
h h h 10, 11 h 5 8, 9, 10, 11,
h 2A, 3A, 4A,
h h h h
statements and how they
h h h h 12, 13, 14, 15, 5A
h h h
areprepared.
h h 16, 17, 18 h h
© 2021 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
h h h h h h h h h h h h h h h h h h h h h h h
transmitted,in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice
h h h h h h h h h h h h h h h h h h h h
obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
h h h h h h h h h
, h on how to
h h
1-2 © h2021 hJohn hWiley h& hSons, hInc. hAll hrights hreserved. h Weygandt, hFinancial h& hManagerial hAccounting h4e, hSolutions hManual h h h (For h Instructor hUse
hOnly)
, ANSWERS TO QUESTIONS h h
1. True. Virtually every organization and person in our society uses accounting information.
h h h h h h h h h h h
Businesses, investors, creditors, government agencies, and not-for-profit organizations must use
h h h h h h h h h h
accounting information to operate effectively.
h h h h h
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
h h h h h h h h h h h h h h h
2. Accounting is the process of identifying, recording, and communicating the economic events of
h h h h h h h h h h h h
an organization to interested users of the information. The first activity of the accounting process is
h h h h h h h h h h h h h h h h
to identify economic events that are relevant to a particular business. Once identified and
h h h h h h h h h h h h h h
measured, the events are recorded to provide a history of the financial activities of the
h h h h h h h h h h h h h h h
organization. Recording consists of keeping a chronological diary of these measured events in an
h h h h h h h h h h h h h h
orderly and systematic manner. The information is communicated through the preparation and
h h h h h h h h h h h h
distribution of accounting reports, the most common of which are called financial
h h h h h h h h h h h h
statements. A vital element in the communication process is the accountant’s ability and
h h h h h h h h h h h h h
responsibility to analyze and interpret the reported information.
h h h h h h h h
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
h h h h h h h h h h h h h h h
3. (a) Internal users are those who plan, organize, and run the business and therefore are officers
h h h h h h h h h h h h h h h
and other decision makers.
h h h h
(b) To assist management, accounting provides internal reports. Examples include financial
h h h h h h h h h
comparisons of operating alternatives, projections of income from new sales campaigns,
h h h h h h h h h h h
and forecasts of cash needs for the next year.
h h h h h h h h h
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
h h h h h h h h h h h h h h h
4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
h h h h h h h h h h h h h
(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
h h h h h h h h h h h h h
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
h h h h h h h h h h h h h h h
5. False. Bookkeeping usually involves only the recording of economic events and therefore is just
h h h h h h h h h h h h h
one part of the entire accounting process. Accounting, on the other hand, involves the entire
h h h h h h h h h h h h h h h
process of identifying, recording, and communicating economic events.
h h h h h h h h
LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
h h h h h h h h h h h h h h h
6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance
h h h h h h h h h h h h h h
sheet. This is true not only at the time the land is purchased, but also over the time the land is held.
h h h h h h h h h h h h h h h h h h h h h h
In determining which measurement principle to use (historical cost or fair value) companies weigh
h h h h h h h h h h h h h h
the factual nature of cost figures versus the relevance of fair value. In general, companies use
h h h h h h h h h h h h h h h h
historical cost. Only in situations where assets are actively traded do companies apply the fair
h h h h h h h h h h h h h h h
value principle.
h h
LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:
h h h h h h h h h h h h h h h h h
Reporting h
7. The monetary unit assumption requires that only transaction data capable of being expressed in
h h h h h h h h h h h h h
terms of money be included in the accounting records. This assumption enables accounting to
h h h h h h h h h h h h h h
quantify (measure) economic events.
h h h h
LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:
h h h h h h h h h h h h h h h h h
Reporting h
obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
h h h h h h h h h
,
Financial And Managerial Accounting 4th Edition by Jerry J h h h h h h h h
Weygandt, Paul D Kimmel, Jill E Mitchel
h h h h h h h
CHAPTER 1 h
Accounting in Action h h
ASSIGNMENT CLASSIFICATION TABLE h h
Brief A
Learning Objectives h Questions Exercises
h Do It! h Exercises Problems
1. Identify the activities and h h h 1, 2, 3, 4, 5
h h h h 1 1, 2h
users associated with
h h h
haccounting.
2. Explain the building blocks of 6, 7, 8, 9, 10
h h h h h h h h h 2 3, 4h
accounting:
h ethics, h
principles,and assumptions.
h h h
3. State the accounting h h 11, 12, 13, 14.
h h h 1, 2, 3, 4, 5
h h h h 3 5
equation, and define
h h h 22
itscomponents.
h h
4. Analyze the effects of h h h 15, 16, 18
h h 6, 7, 8, 9
h h h 4 6, 7, 8
h h 1A, 2A, 4A,
h h
business transactions on
h h h 5A
theaccounting equation.
h h h
5. Describe the four financial h h h 17, 19, 20, 21,
h h h 10, 11 h 5 8, 9, 10, 11,
h 2A, 3A, 4A,
h h h h
statements and how they
h h h h 12, 13, 14, 15, 5A
h h h
areprepared.
h h 16, 17, 18 h h
© 2021 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
h h h h h h h h h h h h h h h h h h h h h h h
transmitted,in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice
h h h h h h h h h h h h h h h h h h h h
obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
h h h h h h h h h
, h on how to
h h
1-2 © h2021 hJohn hWiley h& hSons, hInc. hAll hrights hreserved. h Weygandt, hFinancial h& hManagerial hAccounting h4e, hSolutions hManual h h h (For h Instructor hUse
hOnly)
, ANSWERS TO QUESTIONS h h
1. True. Virtually every organization and person in our society uses accounting information.
h h h h h h h h h h h
Businesses, investors, creditors, government agencies, and not-for-profit organizations must use
h h h h h h h h h h
accounting information to operate effectively.
h h h h h
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
h h h h h h h h h h h h h h h
2. Accounting is the process of identifying, recording, and communicating the economic events of
h h h h h h h h h h h h
an organization to interested users of the information. The first activity of the accounting process is
h h h h h h h h h h h h h h h h
to identify economic events that are relevant to a particular business. Once identified and
h h h h h h h h h h h h h h
measured, the events are recorded to provide a history of the financial activities of the
h h h h h h h h h h h h h h h
organization. Recording consists of keeping a chronological diary of these measured events in an
h h h h h h h h h h h h h h
orderly and systematic manner. The information is communicated through the preparation and
h h h h h h h h h h h h
distribution of accounting reports, the most common of which are called financial
h h h h h h h h h h h h
statements. A vital element in the communication process is the accountant’s ability and
h h h h h h h h h h h h h
responsibility to analyze and interpret the reported information.
h h h h h h h h
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
h h h h h h h h h h h h h h h
3. (a) Internal users are those who plan, organize, and run the business and therefore are officers
h h h h h h h h h h h h h h h
and other decision makers.
h h h h
(b) To assist management, accounting provides internal reports. Examples include financial
h h h h h h h h h
comparisons of operating alternatives, projections of income from new sales campaigns,
h h h h h h h h h h h
and forecasts of cash needs for the next year.
h h h h h h h h h
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
h h h h h h h h h h h h h h h
4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
h h h h h h h h h h h h h
(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
h h h h h h h h h h h h h
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
h h h h h h h h h h h h h h h
5. False. Bookkeeping usually involves only the recording of economic events and therefore is just
h h h h h h h h h h h h h
one part of the entire accounting process. Accounting, on the other hand, involves the entire
h h h h h h h h h h h h h h h
process of identifying, recording, and communicating economic events.
h h h h h h h h
LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
h h h h h h h h h h h h h h h
6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance
h h h h h h h h h h h h h h
sheet. This is true not only at the time the land is purchased, but also over the time the land is held.
h h h h h h h h h h h h h h h h h h h h h h
In determining which measurement principle to use (historical cost or fair value) companies weigh
h h h h h h h h h h h h h h
the factual nature of cost figures versus the relevance of fair value. In general, companies use
h h h h h h h h h h h h h h h h
historical cost. Only in situations where assets are actively traded do companies apply the fair
h h h h h h h h h h h h h h h
value principle.
h h
LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:
h h h h h h h h h h h h h h h h h
Reporting h
7. The monetary unit assumption requires that only transaction data capable of being expressed in
h h h h h h h h h h h h h
terms of money be included in the accounting records. This assumption enables accounting to
h h h h h h h h h h h h h h
quantify (measure) economic events.
h h h h
LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:
h h h h h h h h h h h h h h h h h
Reporting h
obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
h h h h h h h h h
,
