Solution,Manual,For,Financial,Accounting,,7th
Canadian,Edition,by,Libby,,Hodge,,Kanaan,,St
,
erling,Chapters,1,-,13,,Complete
1-1
,TABLE OF CONTENTS, , ,
CHAPTER,ONE
Financial,Statements,and,Business,Decisions
CHAPTER,TWO
Investing,and,Financing,Decisions,and,the,Accounting,System
CHAPTER,THREE
Operating,Decisions,and,the,Accounting,System
CHAPTER,FOUR
Adjustments,,Financial,Statements,,and,the,Closing,Process
CHAPTER,FIVE
Reporting,and,Interpreting,Sales,Revenue,,Receivables,,and,Cash
CHAPTER,SIX
Reporting,and,Interpreting,Cost,of,Sales,and,Inventory
CHAPTER,SEVEN
Reporting,and,Interpreting,Long-Lived,Assets
CHAPTER,EIGHT
Reporting,and,Interpreting,Current,Liabilities
CHAPTER,NINE
Reporting,and,Interpreting,Non-current,Liabilities
CHAPTER,TEN
Reporting,and,Interpreting,Shareholders',Equity
CHAPTER,ELEVEN
Statement,of,Cash,Flows
CHAPTER,TWELVE
Communicating,Accounting,Information,and,Analyzing,Financial,Statements
CHAPTER,THIRTEEN
Reporting,and,Interpreting,Investments,in,Other,Corporations
1-2
,CHAPTER,ONE
Financial,Statements,and,Business,Decisions
ANSWERS,TO,QUESTIONS
1. Accounting,is,a,system,that,collects,and,processes,(analyzes,,measures,,and,recor
ds),financial,information,about,an,organization,and,reports,that,information,to,decisi
on,makers.
2. Financial,accounting,involves,preparation,of,the,four,basic,financial,statements,and,r
elated,disclosures,for,external,decision,makers.,Managerial,accounting,involves,the
,preparation,of,detailed,plans,,budgets,,forecasts,,and,performance,reports,for,inter
nal,decision,makers.
3. Financial,reports,are,used,by,both,internal,and,external,groups,and,individuals.,The,i
nternal,groups,are,comprised,of,the,various,managers,of,the,entity.,The,external,gro
ups,include,the,owners,,investors,,creditors,,governmental,agencies,,other,intereste
d,parties,,and,the,public,at,large.
4. Investors,purchase,all,or,part,of,a,business,and,hope,to,gain,by,receiving,part,of,wha
t,the,company,earns,and/or,selling,the,company,in,the,future,at,a,higher,price,than,th
ey,paid.,Creditors,lend,money,to,a,company,for,a,specific,length,of,time,and,hope,to,
gain,by,charging,interest,on,the,loan.
5. In,a,society,each,organization,can,be,defined,as,a,separate,accounting,entity.,An,ac
counting,entity,is,the,organization,for,which,financial,data,are,to,be,collected.,Typica
l,accounting,entities,are,a,business,,a,church,,a,governmental,unit,,a,university,and,
other,nonprofit,organizations,such,as,a,hospital,and,a,welfare,organization.,A,busin
ess,typically,is,defined,and,treated,as,a,separate, entity,because,the,owners,,credito
rs,,investors,,and,other,interested,parties,need,to,evaluate,its,performance,and,its,p
otential,separately,from,other,entities,and,from,its,owners.
6. Name,of,Statement Alternative,Title
1-3
, (a) Income,Statement (a), Statement,of,Earnings;,Statement,of
Income;,Statement,of,Operations
(b) Balance,Sheet (b),Statement,of,Financial,Position
(c) Audit,Report (c), Report,of,Independent,Accountants
1-4
Canadian,Edition,by,Libby,,Hodge,,Kanaan,,St
,
erling,Chapters,1,-,13,,Complete
1-1
,TABLE OF CONTENTS, , ,
CHAPTER,ONE
Financial,Statements,and,Business,Decisions
CHAPTER,TWO
Investing,and,Financing,Decisions,and,the,Accounting,System
CHAPTER,THREE
Operating,Decisions,and,the,Accounting,System
CHAPTER,FOUR
Adjustments,,Financial,Statements,,and,the,Closing,Process
CHAPTER,FIVE
Reporting,and,Interpreting,Sales,Revenue,,Receivables,,and,Cash
CHAPTER,SIX
Reporting,and,Interpreting,Cost,of,Sales,and,Inventory
CHAPTER,SEVEN
Reporting,and,Interpreting,Long-Lived,Assets
CHAPTER,EIGHT
Reporting,and,Interpreting,Current,Liabilities
CHAPTER,NINE
Reporting,and,Interpreting,Non-current,Liabilities
CHAPTER,TEN
Reporting,and,Interpreting,Shareholders',Equity
CHAPTER,ELEVEN
Statement,of,Cash,Flows
CHAPTER,TWELVE
Communicating,Accounting,Information,and,Analyzing,Financial,Statements
CHAPTER,THIRTEEN
Reporting,and,Interpreting,Investments,in,Other,Corporations
1-2
,CHAPTER,ONE
Financial,Statements,and,Business,Decisions
ANSWERS,TO,QUESTIONS
1. Accounting,is,a,system,that,collects,and,processes,(analyzes,,measures,,and,recor
ds),financial,information,about,an,organization,and,reports,that,information,to,decisi
on,makers.
2. Financial,accounting,involves,preparation,of,the,four,basic,financial,statements,and,r
elated,disclosures,for,external,decision,makers.,Managerial,accounting,involves,the
,preparation,of,detailed,plans,,budgets,,forecasts,,and,performance,reports,for,inter
nal,decision,makers.
3. Financial,reports,are,used,by,both,internal,and,external,groups,and,individuals.,The,i
nternal,groups,are,comprised,of,the,various,managers,of,the,entity.,The,external,gro
ups,include,the,owners,,investors,,creditors,,governmental,agencies,,other,intereste
d,parties,,and,the,public,at,large.
4. Investors,purchase,all,or,part,of,a,business,and,hope,to,gain,by,receiving,part,of,wha
t,the,company,earns,and/or,selling,the,company,in,the,future,at,a,higher,price,than,th
ey,paid.,Creditors,lend,money,to,a,company,for,a,specific,length,of,time,and,hope,to,
gain,by,charging,interest,on,the,loan.
5. In,a,society,each,organization,can,be,defined,as,a,separate,accounting,entity.,An,ac
counting,entity,is,the,organization,for,which,financial,data,are,to,be,collected.,Typica
l,accounting,entities,are,a,business,,a,church,,a,governmental,unit,,a,university,and,
other,nonprofit,organizations,such,as,a,hospital,and,a,welfare,organization.,A,busin
ess,typically,is,defined,and,treated,as,a,separate, entity,because,the,owners,,credito
rs,,investors,,and,other,interested,parties,need,to,evaluate,its,performance,and,its,p
otential,separately,from,other,entities,and,from,its,owners.
6. Name,of,Statement Alternative,Title
1-3
, (a) Income,Statement (a), Statement,of,Earnings;,Statement,of
Income;,Statement,of,Operations
(b) Balance,Sheet (b),Statement,of,Financial,Position
(c) Audit,Report (c), Report,of,Independent,Accountants
1-4
