SOLUTION MANUAL
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLEOFCONTENTS
Chapter 1. Accounting in Action
Chapter 2. The Recording Process
Chapter 3. Adjusting the Accounts
Chapter 4. Completing the Accounting Cycle
Chapter 5. Accounting for Merchandising Operations
Chapter 6. Inventories
Chapter 7. Fraud, Internal Control and Cash
Chapter 8. Accounting for Receivables
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
Chapter 10. Liabilities
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq
uity
Chapter 12. Statement of Cash Flows
Chapter 13. Financial Analysis: The Big Picture
,CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief Exerci A
Learning Objectives Questions ses Do It! Exercises Problems
1. 1, 2, 3, 4, 5 1 1, 2
Identify the activities and
users associated with acco
unting.
2. Explain the building blocks of acco 6, 7, 8, 9, 10 2 3, 4
unting: ethics, principles,and as
sumptions.
3. 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
State the accounting eq 22
uation, and define itsco
mponents.
4. 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
Analyze the effects of busines 5A
s transactions on theaccountin
g equation.
5. 17, 19, 20, 21, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
Describe the four financial stat 12, 13, 14, 15, 5A
ements and how they areprep 16, 17, 18
ared.
, ANSWERS TO QUESTIONS
1. True. Virtually every organization and person in our society uses accounting information. Businesses, inve
stors, creditors, government agencies, and not-for-
profit organizations must use accounting information to operate effectively.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
2. Accounting is the process of identifying, recording, and communicating the economic events of an organ
ization to interested users of the information. The first activity of the accounting process is to identify eco
nomic events that are relevant to a particular business. Once identified and measured, the events are rec
orded to provide a history of the financial activities of the organization. Recording consists of keeping a c
hronological diary of these measured events in anorderly and systematic manner. The information is com
municated through the preparation and distribution of accounting reports, the most common of whic
h are called financial statements.A vital element in the communication process is the accountant’s ability
and responsibility to analyze and interpret the reported information.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and other
decision makers.
(b) To assist management, accounting provides internal reports. Examples include financial comparison
s of operating alternatives, projections of income from new sales campaigns,and forecasts of cash
needs for the next year.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
(b) Creditors2use accounting information to evaluate the risks of granting credit or lending money.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one part
of the entire accounting process. Accounting, on the other hand, involves the entire process of identifying
, recording, and communicating economic events.
LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA2 FC: Reporting, IMA: Reporting
6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. This is
true not only at the time the land is purchased, but also over the time the land is held. In determining whi
ch measurement principle to use (historical cost or fair value) companies weigh the factual nature of cost
figures versus the relevance of fair value. In general, companies use historical cost. Only in situations whe
re assets are actively traded do companies apply the fair value principle.
LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA: Reporting
7. The monetary unit assumption requires that only transaction data capable of being expressed in terms of
money be included in the accounting records. This assumption enables accounting to quantify (measure)
economic events.
LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:Reporting
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLEOFCONTENTS
Chapter 1. Accounting in Action
Chapter 2. The Recording Process
Chapter 3. Adjusting the Accounts
Chapter 4. Completing the Accounting Cycle
Chapter 5. Accounting for Merchandising Operations
Chapter 6. Inventories
Chapter 7. Fraud, Internal Control and Cash
Chapter 8. Accounting for Receivables
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
Chapter 10. Liabilities
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq
uity
Chapter 12. Statement of Cash Flows
Chapter 13. Financial Analysis: The Big Picture
,CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief Exerci A
Learning Objectives Questions ses Do It! Exercises Problems
1. 1, 2, 3, 4, 5 1 1, 2
Identify the activities and
users associated with acco
unting.
2. Explain the building blocks of acco 6, 7, 8, 9, 10 2 3, 4
unting: ethics, principles,and as
sumptions.
3. 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
State the accounting eq 22
uation, and define itsco
mponents.
4. 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
Analyze the effects of busines 5A
s transactions on theaccountin
g equation.
5. 17, 19, 20, 21, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
Describe the four financial stat 12, 13, 14, 15, 5A
ements and how they areprep 16, 17, 18
ared.
, ANSWERS TO QUESTIONS
1. True. Virtually every organization and person in our society uses accounting information. Businesses, inve
stors, creditors, government agencies, and not-for-
profit organizations must use accounting information to operate effectively.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
2. Accounting is the process of identifying, recording, and communicating the economic events of an organ
ization to interested users of the information. The first activity of the accounting process is to identify eco
nomic events that are relevant to a particular business. Once identified and measured, the events are rec
orded to provide a history of the financial activities of the organization. Recording consists of keeping a c
hronological diary of these measured events in anorderly and systematic manner. The information is com
municated through the preparation and distribution of accounting reports, the most common of whic
h are called financial statements.A vital element in the communication process is the accountant’s ability
and responsibility to analyze and interpret the reported information.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and other
decision makers.
(b) To assist management, accounting provides internal reports. Examples include financial comparison
s of operating alternatives, projections of income from new sales campaigns,and forecasts of cash
needs for the next year.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
(b) Creditors2use accounting information to evaluate the risks of granting credit or lending money.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one part
of the entire accounting process. Accounting, on the other hand, involves the entire process of identifying
, recording, and communicating economic events.
LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA2 FC: Reporting, IMA: Reporting
6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. This is
true not only at the time the land is purchased, but also over the time the land is held. In determining whi
ch measurement principle to use (historical cost or fair value) companies weigh the factual nature of cost
figures versus the relevance of fair value. In general, companies use historical cost. Only in situations whe
re assets are actively traded do companies apply the fair value principle.
LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA: Reporting
7. The monetary unit assumption requires that only transaction data capable of being expressed in terms of
money be included in the accounting records. This assumption enables accounting to quantify (measure)
economic events.
LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:Reporting
