Test Bank for Accounting Principles 14th Edition Weygandt Kimmel Mitchell

Test Bank for Accounting Principles 14th Edition Jerry J.
S S S S S S S S




Weygandt, Paul D. Kimmel, Jill E. Mitchell
S S S S S S S

,Test Bank for Accounting Principles, 14th Edition by Jerry J. Weygandt, Paul D.Kimmel
S S S S S S S S S S S S S




CHAPTER 1 S




ACCOUNTING IN ACTION S S




CHAPTER LEARNING OBJECTIVES
S S



1. SIdentifyStheSactivitiesSandSusersSassociatedSwithSaccounting.SAccountingSisSanSinformationSsystemSth
atSidentifies,Srecords,SandScommunicatesStheSeconomicSeventsSofSanSorganizationStoSinterestedSusers.STheSmaj
orSusersSandSusesSofSaccountingSareSasSfollows:S(a)SManagementSusesSaccountingSinformationStoSplan,Sorganiz
e,SandSrunStheSbusiness.S(b)SInvestorsS(owners)SdecideS whetherStoSbuy,Shold,SorSsellStheirSfinancialSinterestsSonS
theSbasisSofSaccountingSdata.S(c)CreditorsS(suppliersSandSbankers)SevaluateStheSrisksSofSgrantingScreditSorSlendi
ngSmoneySontheSbasisSofSaccountingSinformation.SOtherSgroupsSthatSuseSaccountingSinformationSareStaxin
gSauthorities,S regulatorySagencies,Scustomers,SandSlaborSunions.
2. ExplainStheSbuildingSblocksSofSaccounting:Sethics,Sprinciples,SandSassumptions.SEthicsSareStheS standardsSo
fSconductSbySwhichSactionsSareSjudgedSasSrightSorSwrong.SEffectiveSfinancialSreportingS dependsSonSsoundSethica
lSbehavior.
GenerallySacceptedSaccountingSprinciplesSareSaScommonSsetSofSstandardsSusedSbySaccountants.STheSprimarySa
ccountingSstandard-settingSbodySinStheSUnitedSStatesSisStheSFinancialSAccountingS StandardsSBoard.


3. StateStheSaccountingSequation,SandSdefineSitsScomponents.STheSbasicS accountingSequationSis:S AssetsS=
LiabilitiesS+SOwner'sSEquity
AssetsSareSresourcesS aSbusinessSowns.SLiabilitiesSareScreditorshipS claimsSonStotalSassets.
Owner'sSequitySisStheSownershipSclaimSonStotalSassets.S TheSexpan
dedSaccountingSequationSis:
AssetsS LiabilitiesS+SOwner'sSCapital
S S Owner'sSDrawingsS+SRevenuesS
Expenses
S


InvestmentsSbySownersS(assetsStheSownerSputsSintoStheSbusiness)SareSrecordedSinSaScategoryS calledSowner’
sScapital.SOwner’sSdrawingsSareStheSwithdrawalSofSassetsSbyStheSownerSforSpersonalS use.SRevenuesSareStheSgro
ssSincreaseSinSowner’sSequitySfromSbusinessSactivitiesSforStheSpurposeSofSearningSincome.SExpensesSareStheScost
sSofSassetsSconsumedSorSservicesSusedSinStheSprocessSofS earningSrevenue.SOwner’sSequitySisSincreasedSb
ySanSowner’sSinvestmentsandSbySrevenuesSfromSbusinessSoperations.SOwner’sSequitySisSdecreasedSbySanSo
wner’sSwithdrawalsSofSassetsSandSbySexpenses.
4. AnalyzeStheSeffectsSofSbusinessStransactionsSonStheSaccountingSequation.SEachSbusinessStransactionSmus
tShaveSaSdualSeffectSonStheSaccountingSequation.SForSexample,SifSanSindividualS assetSincreases,SthereSmustSbeS
aScorrespondingS(1)SdecreaseSinSanotherSasset,SorS(2)SincreaseSinSaS specificSliability,SorS(3)SincreaseSinSowner'sSequit
y.
5. DescribeStheSfourSfinancialSstatementsSandShowStheySareSprepared.SAnSincomeSstatementSpresentsSth
eSrevenuesSandSexpenses,SandSresultingSnetSincomeSorSnetS lossS forS aS specificSperiodSofStime.SAnSowner
'sSequitySstatementSsummarizesStheSchangesSinSowner'sSequitySforSaSspecificSperiodSofStime.SASbalanceSsh
eetSreportsStheSassets,Sliabilities,SandSowner'sSequitySatSaSspecificSdate.SASstatementSofScashSflowsSsumma
rizesSinformationSaboutStheScashSinflowsS(receipts)S andSoutflowsS(payments)SforSaSspecificSperiodSofStime.

,
, 1S-S2 TestSBankSforSAccountingSPrinciples,SFourteenthSEdition

a6.SExplainStheScareerSopportunitiesSinSaccounting.SAccountingSoffersSmanySdifferentSjobsSinSfieldsS suchSasSpubli

cSandSprivateSaccounting,Sgovernmental,SandSforensicSaccounting.SAccountingSisSaSpopularSmajorSbecauseSther
eSareSmanySdifferentStypesSofSjobs,SwithSunlimitedSpotentialSforScareerSadvancement.