TEST BANK Financial Accounting Tools For Business Decision Making, 10th Edition, Paul D. Kimmel, Chapters 1 – 13, Complete

TEST BANK
Financial Accounting Tools For Business Decision
Making, 10th Edition, Paul D. Kimmel,
Chapters 1 – 13, Complete




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nly)

,TABLE OF CONTENTS W W




1 Introduction to Financial Statements
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2 A Further Look at Financial Statements
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3 The Accounting Information System
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4 Accrual Accounting Concepts
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5 Merchandising Operations and the Multiple-Step Income Statement
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6 Reporting and Analyzing Inventory
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7 Fraud, Internal Control, and Cash
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8 Reporting and Analyzing Receivables
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9 Reporting and Analyzing Long-Lived Assets
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10 Reporting and Analyzing Liabilities
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11 Reporting and Analyzing Stockholders’ Equity
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12 Statement of Cash Flows
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13 Financial Analysis: The Big Picture
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,CHAPTER 1 W




INTRODUCTION TO FINANCIAL STATEMENTS
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CHAPTERWLEARNINGWOBJECTIVES
1. IdentifyWtheWformsWofWbusinessWorganizationWandWtheWusesWofWaccountingWinformation.WAWsoleWpro
prietorshipWisWaWbusinessWownedWbyWoneWperson.WAWpartnershipWisWaWbusinessWownedWbyWtwoWorWmore
WpeopleWassociatedWasWpartners.WAWcorporationWisWaWseparateWlegalWentityWforWwhichWevidenceWofWown

ershipWisWprovidedWbyWsharesWofWstock.WInternalWusersWareWmanagersWwhoWneedWaccountingWinformati
onWtoWplan,Worganize,WandWrunWbusinessWoperations.WTheWprimaryWexternalWusersWareWinvestorsWandWcr
editors.WInvestorsW(stockholders)WuseWaccountingWinformationWtoWdecideWwhetherWtoWbuy,Whold,WorWsel
lWsharesWofWaWcompany‘sWstock.WCreditorsW(suppliersWandWbankers)WuseWaccountingWinformationW toW ass
essWtheW riskW ofW grantingW creditWorWloaningW moneyWtoWaWbusiness.WOtherWgroupsWwhoWhaveWanWindirect
WinterestWinWaWbusinessWareWtaxingWauthorities,Wcustomers,WlaborWunions,WandW regulatoryWagencies.



2. ExplainWtheWthreeWprincipalWtypesWofWbusinessWactivity.WFinancingWactivitiesW involveWcollectingWtheWn
ecessaryWfundsWtoWsupportWtheWbusiness.WInvestingWactivitiesWinvolveWacquiringWtheWresourcesWnecessa
ryWtoWrunWtheWbusiness.WOperatingWactivitiesWinvolveWputtingW theWresourcesWofW theWbusinessWintoWacti
onWtoWgenerateWaWprofit.
3. DescribeWtheWfourWfinancialWstatementsWandWhowWtheyWareWprepared.WAnWincomeWstatementWprese
ntsWtheWrevenuesWandWexpensesWofWaWcompanyWforWaWspecificWperiodWofWtime.WAWretainedWearningsWsta
tementWsummarizesWtheWchangesWinWretainedWearningsWthatWhaveWoccurredWforWaWspecificWperiodWofWti
me.WAWbalanceWsheetWreportsWtheWassets,Wliabilities,WandWstockholders‘WequityWofWaWbusinessWatWaWspec
ificWdate.WAWstatementWofWcashWflowsW summarizesW informationWconcerningWtheWcashWinflowsW(receipt
s)WandWoutflowsW(payments)WforWaWspecificWperiodWofWtime.WAssetsWareWresourcesWownedWbyWaWbusines
s.WLiabilitiesWareWtheWdebtsWandWobligationsWofWtheWbusiness.WLiabilitiesWrepresentWclaimsWofWcreditorsW
onWtheWassetsWofWtheWbusiness.WStockholders‘WequityWrepresentsWtheWclaimsWofWownersWonWtheWassetsW
ofWtheWbusiness.WStockholders‘WequityWisWsubdividedWintoWtwoWparts:WcommonWstockWandWretainedWear
nings.WTheWbasicWaccountingWequationWisWAssetsW=WLiabilitiesW+WStockholders‘WEquity.WWithinWtheWannu
alWreport,WtheWmanagementWdiscussionWandWanalysisWprovidesWmanagement‘sWinterpretationWofWtheWc
ompany‘sWresultsWandWfinancialWpositionWasWwellWasWaWdiscussionWofWplansWforWtheWfuture.WNotesWtoWthe
WfinancialWstatementsWprovideWadditionalWexplanationWorWdetailWtoWmakeWtheWfinancialWstatementsWmo

reWinformative.WTheWauditor‘sWreportWexpressesWanWopinionWasWtoWwhetherWtheWfinancialWstatementsWpr
esentWfairlyWtheWcompany‘sWresultsWofWoperationsWandWfinancialWposition.
*4.WExplainWtheWcareerWopportunitiesWinWaccounting.WAccountingWoffersWmanyWdifferentWjobsWinWfieldsWsu
chWasWpublicWandWprivateWaccounting,Wgovernmental,WandWforensicWaccounting.WAccountingWisWaWpopul
arWmajorWbecauseWthereWareWmanyWdifferentWtypesWofWjobs,WwithWunlimitedWpotentialWforWcareerWadva
ncement




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, 2-2 TestWBankWforWKimmel,WFinancialWAccounting:WToolsWforWBusinessWDecisionWMaking,W1
0e
Difficulties:
Easy:W143
Medium:W101
Hard:W12

QuestionWListWbyWSection
BusinessWOrganizationWandWAccountingWInformationWUses:WFor
msWofWBusinessWOrganization;W47,W48,W202,W246
SoleWProprietorship:W5,W44,W49,W58,W59
Partnership:W1,W4,W46,W56
Corporation:W2,W3,W45,W50,W51,W52,W53,W55,W57,W233,W245
HybridWFormsWofWOrganization:W60,W61
UsersWandWUsesWofWFinancialWInformation:W6,W7,W11,W74,W87
InternalWUsers:W62,W63,W64,W75,W77,W82,W234
ExternalWUsers:W8,W9,W10,W12,W65,W76,W78,W79,W80,W81,W83,W84,W85,W86,W88,W89
DataWAnalytics:W66,W67,W68,W69,W70,W235,W236
EthicsWinWFinancialWReporting:W71,W72,W73,W237,W255WTh
eWThreeWTypesWofWBusinessWActivity:W97
FinancingWActivities:W13,W15,W18,W90,W91,W93,W94,W95,W96,W97,W102,W109,W117,W118,W119,W238
InvestingWActivities:W14,W16,W98,W99,W115,W116
OperatingWActivities:W17,W19,W20,W100,W101,W103,W104,W105,W106,W107,W108,W110,W111,W112,W113,
114
TheWFourWFinancialWStatements:
IncomeWStatement:W21,W22,W23,W24,127,W128,W132,W133,W134,W138,W142,W143
RetainedWEarningsWStatement:W120,W122,W123,W 124,W125,W126,W129,W130,W131,W135,W137,W139,W140,
141,W144,W145,W146,W147,W148,W149,W150,W154,W164,W169,W178,W181,W252
BalanceWSheet:W25,W27,W28,W29,W30,W31,W32,W33,W34,W35,W136,W151,W152,W153,W163,W165,W166,W168,
170,W173,W177,W179,W180,W182,W185,W186,W187,W188,W199,W200,W201,W207,W208,W213,W214,W215,W216,
217,W218,W219,W220,W221,W222,W225,W229,W239,W240,W241,W253
StatementWofWCashWFlows:W26,W121,W171,W174,W183,W242,W249
InterrelationshipsWofWStatements:W155,W156,W157,W158,W159,W160,W161,W162,W167,W175,W176,W184,
250,W251,W256
ElementsWofWanWAnnualWReport:W36,W41,W192,W196,W197
ManagementWDiscussionWandWAnalysis:W40,W191
NotesWtoWtheWFinancialWStatements:W37,W42,W190,W193,W194,W198,W254
Auditor‘sWReport:W38,W39,W195




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