TEST BANK
Financial Accounting Tools For Business Decision
Making, 10th Edition, Paul D. Kimmel,
Chapters 1 – 13, Complete
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
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,TABLE OF CONTENTS BE BE
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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Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
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,CHAPTER 1 be
INTRODUCTION TO FINANCIAL STATEMENTS be be be
CHAPTER LEARNINGOBJECTIVES be be
1. Identify the forms of business organization and the uses of accounting information. A sole proprietorship
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is a business owned by one person. A partnership is a business owned by two or more people associated as p
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artners. A corporation is a separate legal entity for which evidence of ownership is provided by shares of sto
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ck. Internal users are managers who need accounting information to plan, organize, and run business oper
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ations. The primary external users are investors and creditors. Investors (stockholders) use accounting info
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rmation to decide whether to buy, hold, or sell shares of a company‘s stock. Creditors (suppliers and banker
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s) use accounting information to assess the risk of granting credit or loaning money toa business. Other g
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roups who have an indirect interest in a business are taxing authorities, customers, labor unions, and regul
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atory agencies. be
2. Explain the three principal types of business activity. Financing activities involve collecting the necessary
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funds to support the business. Investing activities involve acquiring the resources necessary to run the busi
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ness. Operating activities involve putting the resources of the business into action to generate a profit.
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3. Describe the four financial statements and how they are prepared. An income statement presents the rev be be be be be be be be be be be be be be be
enues and expenses of a company for a specific period of time. A retained earnings statement summarizes t
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he changes in retained earnings that have occurred for a specific period of time. A balance sheet reports the
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assets, liabilities, and stockholders‘ equity of a business at a specific date. A statement of cash flows sum
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marizes information concerning the cash inflows (receipts) and outflows (payments) for a specific period
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of time. Assets are resources owned by a business. Liabilities are the debts and obligations of the business. L
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iabilities represent claims of creditors on the assets of the business. Stockholders‘ equity represents the cla
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ims of owners on the assets of the business. Stockholders‘ equity is subdivided into two parts: common sto
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ck and retained earnings. The basic accounting equation is Assets = Liabilities + Stockholders‘ Equity. Withi
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n the annual report, the management discussion and analysis provides management‘s interpretation of th
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e company‘sresults and financial position as well as a discussion of plans for the future. Notes to the financi
be e
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al statements provide additional explanation or detail to make the financial statements more informative.
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The auditor‘s report expresses an opinion as to whether the financialstatements presentfairly the compan
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y‘s results of operations and financial position.
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*4. Explain the career opportunities in accounting. Accounting offers many different jobs in fields such as publi
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c and private accounting, governmental, and forensic accounting. Accounting is a popular major because t
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here are many different types of jobs, with unlimited potential for career advancement
be be be be be be be be be be be be
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only) be be be be be be be be be be be
, 2-2 Test Bank for Kimmel, Financial Accounting: Tools for Business Decision Making, 10e
be be be be be be be be be be be
Difficulties:
Easy: 143 be
Medium: 101 be
Hard: 12 be
Question List bySection be be be
Business Organization and Accounting Information Uses:Forms
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of Business Organization; 47, 48, 202, 246
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Sole Proprietorship: 5, 44, 49, 58, 59 be be be be be be
Partnership: 1, 4, 46, 56 be be be be
Corporation: 2, 3, 45, 50, 51, 52, 53, 55, 57, 233, 245 be be be be be be be be be be be
Hybrid Forms of Organization: 60, 61 be be be be be
Users and Uses of Financial Information: 6, 7, 11, 74, 87
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Internal Users: 62, 63, 64, 75, 77, 82, 234 be be be be be be be be
External Users: 8, 9, 10, 12, 65, 76, 78, 79, 80, 81, 83, 84, 85, 86, 88, 89 be be be be be be be be be be be be be be be be be
Data Analytics: 66, 67, 68, 69, 70, 235, 236
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Ethics in Financial Reporting: 71, 72, 73, 237, 255The Thr
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ee Types of Business Activity: 97
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Financing Activities: 13, 15, 18, 90, 91, 93, 94, 95, 96, 97, 102, 109, 117, 118, 119, 238
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Investing Activities: 14, 16, 98, 99, 115, 116 be be be be be be be
Operating Activities: 17, 19, 20, 100, 101, 103, 104, 105, 106, 107, 108, 110, 111, 112, 113,
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114
The Four Financial Statements:
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Income Statement: 21, 22, 23, 24,127, 128, 132, 133, 134, 138, 142, 143
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Retained Earnings Statement: 120, 122, 123, 124, 125, 126, 129, 130, 131, 135, 137, 139, 140,
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141, 144, 145, 146, 147, 148, 149, 150, 154, 164, 169, 178, 181, 252
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Balance Sheet: 25, 27, 28, 29, 30, 31, 32, 33, 34, 35, 136, 151, 152, 153, 163, 165, 166, 168, be be be be be be be be be be be be be be be be be be be
170, 173, 177, 179, 180, 182, 185, 186, 187, 188, 199, 200, 201, 207, 208, 213, 214, 215, 216, be be be be be be be be be be be be be be be be be be
217, 218, 219, 220, 221, 222, 225, 229, 239, 240, 241, 253
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Statement of Cash Flows: 26, 121, 171, 174, 183, 242, 249 be be be be be be be be be be
Interrelationships of Statements: 155, 156, 157, 158, 159, 160, 161, 162, 167, 175, 176, 184, be be be be be be be be be be be be be be
250, 251, 256
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Elements of an Annual Report: 36, 41, 192, 196, 197 be be be be be be be be be
Management Discussion and Analysis: 40, 191 be be be be be
Notes to the Financial Statements: 37, 42, 190, 193, 194, 198, 254
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Auditor‘s Report: 38, 39, 195 be be be be
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only) be be be be be be be be be be be
Financial Accounting Tools For Business Decision
Making, 10th Edition, Paul D. Kimmel,
Chapters 1 – 13, Complete
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
be be be be be be be be be be be
,TABLE OF CONTENTS BE BE
1 Introduction to Financial Statements
be be be be be
2 A Further Look at Financial Statements
be be be be be be be
3 The Accounting Information System
be be be be be
4 Accrual Accounting Concepts
be be be be
5 Merchandising Operations and the Multiple-Step Income Statement
be be be be be be be be
6 Reporting and Analyzing Inventory
be be be be be
7 Fraud, Internal Control, and Cash
be be be be be be
8 Reporting and Analyzing Receivables
be be be be be
9 Reporting and Analyzing Long-Lived Assets
be be be be be be
10 Reporting and Analyzing Liabilities
be be be be be
11 Reporting and Analyzing Stockholders’ Equity
be be be be be be
12 Statement of Cash Flows
be be be be be
13 Financial Analysis: The Big Picture
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Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
be be be be be be be be be be be
,CHAPTER 1 be
INTRODUCTION TO FINANCIAL STATEMENTS be be be
CHAPTER LEARNINGOBJECTIVES be be
1. Identify the forms of business organization and the uses of accounting information. A sole proprietorship
be be be be be be be be be be be be be be be
is a business owned by one person. A partnership is a business owned by two or more people associated as p
be be be be be be be be be be be be be be be be be be be be
artners. A corporation is a separate legal entity for which evidence of ownership is provided by shares of sto
be be be be be be be be be be be be be be be be be be
ck. Internal users are managers who need accounting information to plan, organize, and run business oper
be be be be be be be be be be be be be be be
ations. The primary external users are investors and creditors. Investors (stockholders) use accounting info
be be be be be be be be be be be be be
rmation to decide whether to buy, hold, or sell shares of a company‘s stock. Creditors (suppliers and banker
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s) use accounting information to assess the risk of granting credit or loaning money toa business. Other g
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roups who have an indirect interest in a business are taxing authorities, customers, labor unions, and regul
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atory agencies. be
2. Explain the three principal types of business activity. Financing activities involve collecting the necessary
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funds to support the business. Investing activities involve acquiring the resources necessary to run the busi
be be be be be be be be be be be be be be be be
ness. Operating activities involve putting the resources of the business into action to generate a profit.
be be be be b e be be b e be be be be be be be
3. Describe the four financial statements and how they are prepared. An income statement presents the rev be be be be be be be be be be be be be be be
enues and expenses of a company for a specific period of time. A retained earnings statement summarizes t
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he changes in retained earnings that have occurred for a specific period of time. A balance sheet reports the
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assets, liabilities, and stockholders‘ equity of a business at a specific date. A statement of cash flows sum
e be be be be be be be be be be be be be be be be b e
marizes information concerning the cash inflows (receipts) and outflows (payments) for a specific period
b e be be be be be be be be be be be be be
of time. Assets are resources owned by a business. Liabilities are the debts and obligations of the business. L
be be be be be be be be be be be be be be be be be be
iabilities represent claims of creditors on the assets of the business. Stockholders‘ equity represents the cla
be be be be be be be be be be be be be be be
ims of owners on the assets of the business. Stockholders‘ equity is subdivided into two parts: common sto
be be be be be be be be be be be be be be be be be
ck and retained earnings. The basic accounting equation is Assets = Liabilities + Stockholders‘ Equity. Withi
be be be be be be be be be be be be be be be
n the annual report, the management discussion and analysis provides management‘s interpretation of th
be be be be be be be be be be be be be
e company‘sresults and financial position as well as a discussion of plans for the future. Notes to the financi
be e
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al statements provide additional explanation or detail to make the financial statements more informative.
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The auditor‘s report expresses an opinion as to whether the financialstatements presentfairly the compan
be be be be be be be be be be e
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y‘s results of operations and financial position.
be be be be be be
*4. Explain the career opportunities in accounting. Accounting offers many different jobs in fields such as publi
be be be be be be be be be be be be be be be be
c and private accounting, governmental, and forensic accounting. Accounting is a popular major because t
be be be be be be be be be be be be be be
here are many different types of jobs, with unlimited potential for career advancement
be be be be be be be be be be be be
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only) be be be be be be be be be be be
, 2-2 Test Bank for Kimmel, Financial Accounting: Tools for Business Decision Making, 10e
be be be be be be be be be be be
Difficulties:
Easy: 143 be
Medium: 101 be
Hard: 12 be
Question List bySection be be be
Business Organization and Accounting Information Uses:Forms
be be be be be e
b be
of Business Organization; 47, 48, 202, 246
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Sole Proprietorship: 5, 44, 49, 58, 59 be be be be be be
Partnership: 1, 4, 46, 56 be be be be
Corporation: 2, 3, 45, 50, 51, 52, 53, 55, 57, 233, 245 be be be be be be be be be be be
Hybrid Forms of Organization: 60, 61 be be be be be
Users and Uses of Financial Information: 6, 7, 11, 74, 87
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Internal Users: 62, 63, 64, 75, 77, 82, 234 be be be be be be be be
External Users: 8, 9, 10, 12, 65, 76, 78, 79, 80, 81, 83, 84, 85, 86, 88, 89 be be be be be be be be be be be be be be be be be
Data Analytics: 66, 67, 68, 69, 70, 235, 236
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Ethics in Financial Reporting: 71, 72, 73, 237, 255The Thr
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ee Types of Business Activity: 97
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Financing Activities: 13, 15, 18, 90, 91, 93, 94, 95, 96, 97, 102, 109, 117, 118, 119, 238
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Investing Activities: 14, 16, 98, 99, 115, 116 be be be be be be be
Operating Activities: 17, 19, 20, 100, 101, 103, 104, 105, 106, 107, 108, 110, 111, 112, 113,
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114
The Four Financial Statements:
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Income Statement: 21, 22, 23, 24,127, 128, 132, 133, 134, 138, 142, 143
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Retained Earnings Statement: 120, 122, 123, 124, 125, 126, 129, 130, 131, 135, 137, 139, 140,
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141, 144, 145, 146, 147, 148, 149, 150, 154, 164, 169, 178, 181, 252
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Balance Sheet: 25, 27, 28, 29, 30, 31, 32, 33, 34, 35, 136, 151, 152, 153, 163, 165, 166, 168, be be be be be be be be be be be be be be be be be be be
170, 173, 177, 179, 180, 182, 185, 186, 187, 188, 199, 200, 201, 207, 208, 213, 214, 215, 216, be be be be be be be be be be be be be be be be be be
217, 218, 219, 220, 221, 222, 225, 229, 239, 240, 241, 253
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Statement of Cash Flows: 26, 121, 171, 174, 183, 242, 249 be be be be be be be be be be
Interrelationships of Statements: 155, 156, 157, 158, 159, 160, 161, 162, 167, 175, 176, 184, be be be be be be be be be be be be be be
250, 251, 256
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Elements of an Annual Report: 36, 41, 192, 196, 197 be be be be be be be be be
Management Discussion and Analysis: 40, 191 be be be be be
Notes to the Financial Statements: 37, 42, 190, 193, 194, 198, 254
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Auditor‘s Report: 38, 39, 195 be be be be
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only) be be be be be be be be be be be
