FULL SOLUTION MANUAL FOR
Financial And Managerial Accounting 4th Edition by Jerry JWeygandt, Paul D Kimmel, Jill E
Mitchel
CHAPTER1
AccountinginAction
ASSIGNMENTCLASSIFICATIONTABLE
BriefExer A
LearningObjectives Questions cises DoIt! Exercises Problems
1. 1,2,3,4,5 1 1,2
Identifytheactivitiesandu
sersassociatedwithacco
unting.
2.Explainthebuildingblocksofacco 6,7,8,9,10 2 3,4
unting:ethics,principles,anda
ssumptions.
3. 11,12,13,14. 1,2,3,4,5 3 5
Statetheaccountingeq 22
uation,anddefineitscom
ponents.
4. 15,16,18 6,7,8,9 4 6,7,8 1A,2A,4A,
Analyzetheeffectsofbusines 5A
stransactionsontheaccountin
gequation.
5. 17,19,20,21, 10,11 5 8,9,10,11, 2A,3A,4A,
Describethefourfinancialstat 12,13,14,15, 5A
ementsandhowtheyareprepa 16,17,18
red.
©2021JohnWiley&Sons,Inc.Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted,inanyformorbya
obtainpermissiontoreusethismaterialisavailableathttp://www.wiley.com/go/permissions.
, nymeans,electronic,mechanical,photocopying,recordingorotherwise,exceptaspermittedbylaw.Adviceonhowto
1-2 ©2021JohnWiley&Sons,Inc.Allrightsreserved.Weygandt,Financial&ManagerialAccounting4e,SolutionsManual(ForInstructorUseOnly)
, ANSWERSTOQUESTIONS
1. True.Virtuallyeveryorganizationandpersoninoursocietyusesaccountinginformation.Businesses,inv
estors,creditors,governmentagencies,andnot-for-
profitorganizationsmustuseaccountinginformationtooperateeffectively.
LO1,BT:K,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Reporting,IMA:Reporting
2. Accountingistheprocessofidentifying,recording,andcommunicatingtheeconomiceventsofanorganiz
ationtointerestedusersoftheinformation.Thefirstactivityoftheaccountingprocessistoidentifyeconomi
ceventsthatarerelevanttoaparticularbusiness.Onceidentifiedandmeasured,theeventsarerecordedt
oprovideahistoryofthefinancialactivitiesoftheorganization.Recordingconsistsofkeepingachronologi
caldiaryofthesemeasuredeventsinanorderlyandsystematicmanner.Theinformationiscommunicated
throughthepreparationanddistributionofaccountingreports,themostcommonofwhicharecalledfinanc
ialstatements.Avitalelementinthecommunicationprocessistheaccountant’sabilityandresponsibilityt
oanalyzeandinterpretthereportedinformation.
LO1,BT:K,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Reporting,IMA:Reporting
3. (a)Internalusersarethosewhoplan,organize,andrunthebusinessandthereforeareofficersandotherde
cisionmakers.
(b) Toassistmanagement,accountingprovidesinternalreports.Examplesincludefinancialcomparis
onsofoperatingalternatives,projectionsofincomefromnewsalescampaigns,andforecastsofcas
hneedsforthenextyear.
LO1,BT:K,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Reporting,IMA:Reporting
4. (a) Investors(owners)useaccountinginformationtomakedecisionstobuy,hold,orsellstock.
(b) Creditorsuseaccountinginformationtoevaluatetherisksofgrantingcreditorlendingmoney.
LO1,BT:K,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Reporting,IMA:Reporting
5. False.Bookkeepingusuallyinvolvesonlytherecordingofeconomiceventsandthereforeisjustonepartof
theentireaccountingprocess.Accounting,ontheotherhand,involvestheentireprocessofidentifying,rec
ording,andcommunicatingeconomicevents.
LO1,BT:C,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Reporting,IMA:Reporting
6. HarperTravelAgencyshouldreportthelandat$85,000onitsDecember31,2022balancesheet.Thisistru
enotonlyatthetimethelandispurchased,butalsooverthetimethelandisheld.Indeterminingwhichmeas
urementprincipletouse(historicalcostorfairvalue)companiesweighthefactualnatureofcostfiguresver
sustherelevanceoffairvalue.Ingeneral,companiesusehistoricalcost.Onlyinsituationswhereassetsar
eactivelytradeddocompaniesapplythefairvalueprinciple.
LO2,BT:C,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Measurement,AnalysisandInterpretationIMA:Reporting
7. Themonetaryunitassumptionrequiresthatonlytransactiondatacapableofbeingexpressedintermsofm
oneybeincludedintheaccountingrecords.Thisassumptionenablesaccountingtoquantify(measure)ec
onomicevents.
LO2,BT:K,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Measurement,AnalysisandInterpretationIMA:Reporting
obtainpermissiontoreusethismaterialisavailableathttp://www.wiley.com/go/permissions.
,
Financial And Managerial Accounting 4th Edition by Jerry JWeygandt, Paul D Kimmel, Jill E
Mitchel
CHAPTER1
AccountinginAction
ASSIGNMENTCLASSIFICATIONTABLE
BriefExer A
LearningObjectives Questions cises DoIt! Exercises Problems
1. 1,2,3,4,5 1 1,2
Identifytheactivitiesandu
sersassociatedwithacco
unting.
2.Explainthebuildingblocksofacco 6,7,8,9,10 2 3,4
unting:ethics,principles,anda
ssumptions.
3. 11,12,13,14. 1,2,3,4,5 3 5
Statetheaccountingeq 22
uation,anddefineitscom
ponents.
4. 15,16,18 6,7,8,9 4 6,7,8 1A,2A,4A,
Analyzetheeffectsofbusines 5A
stransactionsontheaccountin
gequation.
5. 17,19,20,21, 10,11 5 8,9,10,11, 2A,3A,4A,
Describethefourfinancialstat 12,13,14,15, 5A
ementsandhowtheyareprepa 16,17,18
red.
©2021JohnWiley&Sons,Inc.Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted,inanyformorbya
obtainpermissiontoreusethismaterialisavailableathttp://www.wiley.com/go/permissions.
, nymeans,electronic,mechanical,photocopying,recordingorotherwise,exceptaspermittedbylaw.Adviceonhowto
1-2 ©2021JohnWiley&Sons,Inc.Allrightsreserved.Weygandt,Financial&ManagerialAccounting4e,SolutionsManual(ForInstructorUseOnly)
, ANSWERSTOQUESTIONS
1. True.Virtuallyeveryorganizationandpersoninoursocietyusesaccountinginformation.Businesses,inv
estors,creditors,governmentagencies,andnot-for-
profitorganizationsmustuseaccountinginformationtooperateeffectively.
LO1,BT:K,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Reporting,IMA:Reporting
2. Accountingistheprocessofidentifying,recording,andcommunicatingtheeconomiceventsofanorganiz
ationtointerestedusersoftheinformation.Thefirstactivityoftheaccountingprocessistoidentifyeconomi
ceventsthatarerelevanttoaparticularbusiness.Onceidentifiedandmeasured,theeventsarerecordedt
oprovideahistoryofthefinancialactivitiesoftheorganization.Recordingconsistsofkeepingachronologi
caldiaryofthesemeasuredeventsinanorderlyandsystematicmanner.Theinformationiscommunicated
throughthepreparationanddistributionofaccountingreports,themostcommonofwhicharecalledfinanc
ialstatements.Avitalelementinthecommunicationprocessistheaccountant’sabilityandresponsibilityt
oanalyzeandinterpretthereportedinformation.
LO1,BT:K,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Reporting,IMA:Reporting
3. (a)Internalusersarethosewhoplan,organize,andrunthebusinessandthereforeareofficersandotherde
cisionmakers.
(b) Toassistmanagement,accountingprovidesinternalreports.Examplesincludefinancialcomparis
onsofoperatingalternatives,projectionsofincomefromnewsalescampaigns,andforecastsofcas
hneedsforthenextyear.
LO1,BT:K,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Reporting,IMA:Reporting
4. (a) Investors(owners)useaccountinginformationtomakedecisionstobuy,hold,orsellstock.
(b) Creditorsuseaccountinginformationtoevaluatetherisksofgrantingcreditorlendingmoney.
LO1,BT:K,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Reporting,IMA:Reporting
5. False.Bookkeepingusuallyinvolvesonlytherecordingofeconomiceventsandthereforeisjustonepartof
theentireaccountingprocess.Accounting,ontheotherhand,involvestheentireprocessofidentifying,rec
ording,andcommunicatingeconomicevents.
LO1,BT:C,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Reporting,IMA:Reporting
6. HarperTravelAgencyshouldreportthelandat$85,000onitsDecember31,2022balancesheet.Thisistru
enotonlyatthetimethelandispurchased,butalsooverthetimethelandisheld.Indeterminingwhichmeas
urementprincipletouse(historicalcostorfairvalue)companiesweighthefactualnatureofcostfiguresver
sustherelevanceoffairvalue.Ingeneral,companiesusehistoricalcost.Onlyinsituationswhereassetsar
eactivelytradeddocompaniesapplythefairvalueprinciple.
LO2,BT:C,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Measurement,AnalysisandInterpretationIMA:Reporting
7. Themonetaryunitassumptionrequiresthatonlytransactiondatacapableofbeingexpressedintermsofm
oneybeincludedintheaccountingrecords.Thisassumptionenablesaccountingtoquantify(measure)ec
onomicevents.
LO2,BT:K,Difficulty:Easy,TOT:2min.,AACSB:None,AICPAFC:Measurement,AnalysisandInterpretationIMA:Reporting
obtainpermissiontoreusethismaterialisavailableathttp://www.wiley.com/go/permissions.
,
