TEST BANK hh hh
Financial Accounting Tools For Business Decision
hh hh hh hh hh
hh Making, 10th Edition, Paul D. Kimmel,
hh hh hh hh hh hh
hh Chapters 1 – 13, Complete
hh hh hh hh
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
,TABLE OF CONTENTS HH HH
1 Introduction to Financial Statements
hh hh hh hh hh
2 A Further Look at Financial Statements
hh hh hh hh hh hh hh
3 The Accounting Information System
hh hh hh hh hh
4 Accrual Accounting Concepts
hh hh hh hh
5 Merchandising Operations and the Multiple-Step Income
hh hh hh hh hh hh
Statement
hh hh
6 Reporting and Analyzing Inventory
hh hh hh hh hh
7 Fraud, Internal Control, and Cash
hh hh hh hh hh hh
8 Reporting and Analyzing Receivables
hh hh hh hh hh
9 Reporting and Analyzing Long-Lived Assets
hh hh hh hh hh hh
10 Reporting and Analyzing Liabilities
hh hh hh hh hh
11 Reporting and Analyzing Stockholders’ Equity
hh hh hh hh hh hh
12 Statement of Cash Flows
hh hh hh hh hh
13 Financial Analysis: The Big Picture
hh hh hh hh hh hh
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
,CHAPTER 1 hh
INTRODUCTION TO FINANCIAL STATEMENTS
hh hh hh
CHAPTER hhLEARNING hhOBJECTIVES
1. Identify hhthe hhforms hhof hhbusiness hhorganization hhand hhthe hhuses hhof hhaccounting hhinformation. hhA
hhsole hhproprietorship hhis hha hhbusiness hhowned hhby hhone hhperson. hhA hhpartnership hhis hha hhbusiness
hhowned hhby hhtwo hhor hhmore hhpeople hhassociated hhas hhpartners. hhA hhcorporation hhis hha hhseparate
hhlegal hhentity hhfor hhwhich hhevidence hhof hhownership hhis hhprovided hhby hhshares hhof hhstock. hhInternal
hhusers hhare hhmanagers hhwho hhneed hhaccounting hhinformation hhto hhplan, hhorganize, hhand hhrun
hhbusiness hhoperations. hhThe hhprimary hhexternal hhusers hhare hhinvestors hhand hhcreditors. hhInvestors
hh(stockholders) hhuse hhaccounting hhinformation hhto hhdecide hhwhether hhto hhbuy, hhhold, hhor hhsell
hhshares hhof hha hhcompany‘s hhstock. hhCreditors hh(suppliers hhand hhbankers) hh use hh accounting
hh information hh to hh assess hh the hh risk hh of hh granting hh credit hh or hh loaning hh money hh to ha hhbusiness.
hhOther hhgroups hhwho hhhave hhan hhindirect hhinterest hhin hha hhbusiness hhare hhtaxing hhauthorities,
hhcustomers, hhlabor hhunions, hhand hh regulatory hhagencies.
2. Explain hhthe hhthree hhprincipal hhtypes hhof hhbusiness hhactivity. hhFinancing hhactivities h h involve
hhcollecting hhthe hhnecessary hhfunds hhto hhsupport hhthe hhbusiness. hhInvesting hhactivities hhinvolve
hhacquiring hhthe hhresources hhnecessary hhto hhrun hhthe hhbusiness. hhOperating hhactivities hhinvolve
hhputting h h the hhresources hhof hh the hhbusiness hhinto hhaction hhto hhgenerate hha hh profit.
3. Describe hhthe hhfour hhfinancial hhstatements hhand hhhow hhthey hhare hhprepared. hhAn hhincome
hhstatement hhpresents hhthe hhrevenues hhand hhexpenses hhof hha hhcompany hhfor hha hhspecific hhperiod hhof
hhtime. hhA hhretained hhearnings hhstatement hhsummarizes hhthe hhchanges hhin hhretained hhearnings hhthat
hhhave hhoccurred hhfor hha hhspecific hhperiod hhof hhtime. hhA hhbalance hhsheet hhreports hhthe hhassets,
hhliabilities, hhand hhstockholders‘ hhequity hhof hha hhbusiness hhat hha hhspecific hhdate. hhA hhstatement hhof
hhcash hhflows h h summarizes h h information hhconcerning hhthe hhcash hhinflows hh(receipts) hhand
hhoutflows hh(payments) hhfor hha hhspecific hhperiod hhof hhtime. hhAssets hhare hhresources hhowned hhby hha
hhbusiness. hhLiabilities hhare hhthe hhdebts hhand hhobligations hhof hhthe hhbusiness. hhLiabilities hhrepresent
hhclaims hhof hhcreditors hhon hhthe hhassets hhof hhthe hhbusiness. hhStockholders‘ hhequity hhrepresents hhthe
hhclaims hhof hhowners hhon hhthe hhassets hhof hhthe hhbusiness. hhStockholders‘ hhequity hhis hhsubdivided hhinto
hhtwo hhparts: hhcommon hhstock hhand hhretained hhearnings. hhThe hhbasic hhaccounting hhequation hhis
hhAssets hh= hhLiabilities hh+ hhStockholders‘ hhEquity. hhWithin hhthe hhannual hhreport, hhthe hhmanagement
hhdiscussion hhand hhanalysis hhprovides hhmanagement‘s hhinterpretation hhof hhthe hhcompany‘s hresults
hhand hhfinancial hhposition hhas hhwell hhas hha hhdiscussion hhof hhplans hhfor hhthe hhfuture. hhNotes hhto hhthe
hhfinancial hhstatements hhprovide hhadditional hhexplanation hhor hhdetail hhto hhmake hhthe hhfinancial
hhstatements hhmore hhinformative. hhThe hhauditor‘s hhreport hhexpresses hhan hhopinion hhas hhto hhwhether
hhthe hhfinancial hstatements hhpresent hhfairly hhthe hhcompany‘s hhresults hhof hhoperations hhand hhfinancial
hhposition.
*4. hhExplain hhthe hhcareer hhopportunities hhin hhaccounting. hhAccounting hhoffers hhmany hhdifferent hhjobs hhin
hhfields hhsuch hhas hhpublic hhand hhprivate hhaccounting, hhgovernmental, hhand hhforensic hhaccounting.
hhAccounting hhis hha hhpopular hhmajor hhbecause hhthere hhare hhmany hhdifferent hhtypes hhof hhjobs, hhwith
hhunlimited hhpotential hhfor hhcareer hhadvancement
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
, 2-2 Test Bank for Kimmel, Financial Accounting: Tools for Business Decision Making, 10e
Difficulties:
Easy: hh143
Medium: hh101
Hard: hh12
Question hhList hhby hhSection
Business hhOrganization hhand hhAccounting hhInformation hhUses:
hForms hhof hhBusiness hhOrganization; hh47, hh48, hh202, hh246
Sole hhProprietorship: hh5, hh44, hh49, hh58, hh59
Partnership: hh1, hh4, hh46, hh56
Corporation: hh2, hh3, hh45, hh50, hh51, hh52, hh53, hh55, hh57, hh233, hh245
Hybrid hhForms hhof hhOrganization: hh60, hh61
Users hhand hhUses hhof hhFinancial hhInformation: hh6, hh7, hh11, hh74, hh87
Internal hhUsers: hh62, hh63, hh64, hh75, hh77, hh82, hh234
External hhUsers: hh8, hh9, hh10, hh12, hh65, hh76, hh78, hh79, hh80, hh81, hh83, hh84, hh85, hh86, hh88, hh89
Data hhAnalytics: hh66, hh67, hh68, hh69, hh70, hh235, hh236
Ethics hhin hhFinancial hhReporting: hh71, hh72, hh73, hh237,
hh255hThe hh Three hh Types hhof hh Business hhActivity: hh97
Financing hhActivities: hh13, hh15, hh18, hh90, hh91, hh93, hh94, hh95, hh96, hh97, hh102, hh109, hh117, hh118, hh119, hh238
Investing hhActivities: hh14, hh16, hh98, hh99, hh115, hh116
Operating hhActivities: hh17, hh19, hh20, hh100, hh101, hh103, hh104, hh105, hh106, hh107, hh108, hh110, hh111, hh112, hh113,
114
The hhFour hhFinancial hhStatements:
Income hhStatement: hh21, hh22, hh23, hh24,127, hh128, hh132, hh133, hh134, hh138, hh142, hh143
Retained hhEarnings hhStatement: hh120, hh122, hh123, hh 124, hh125, hh126, hh129, hh130, hh131, hh135, hh137, hh139, hh140,
141, hh144, hh145, hh146, hh147, hh148, hh149, hh150, hh154, hh164, hh169, hh178, hh181, hh252
Balance hhSheet: hh25, hh27, hh28, hh29, hh30, hh31, hh32, hh33, hh34, hh35, hh136, hh151, hh152, hh153, hh163, hh165, hh166,
hh168,
170, hh173, hh177, hh179, hh180, hh182, hh185, hh186, hh187, hh188, hh199, hh200, hh201, hh207, hh208, hh213, hh214, hh215,
hh216,
217, hh218, hh219, hh220, hh221, hh222, hh225, hh229, hh239, hh240, hh241, hh253
Statement hhof hhCash hhFlows: hh26, hh121, hh171, hh174, hh183, hh242, hh249
Interrelationships hhof hhStatements: hh155, hh156, hh157, hh158, hh159, hh160, hh161, hh162, hh167, hh175, hh176, hh184,
250, hh251, hh256
Elements hhof hhan hhAnnual hhReport: hh36, hh41, hh192, hh196, hh197
Management hhDiscussion hhand hhAnalysis: hh40, hh191
Notes hhto hhthe hhFinancial hhStatements: hh37, hh42, hh190, hh193, hh194, hh198, hh254
Auditor‘s hhReport: hh38, hh39, hh195
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
Financial Accounting Tools For Business Decision
hh hh hh hh hh
hh Making, 10th Edition, Paul D. Kimmel,
hh hh hh hh hh hh
hh Chapters 1 – 13, Complete
hh hh hh hh
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
,TABLE OF CONTENTS HH HH
1 Introduction to Financial Statements
hh hh hh hh hh
2 A Further Look at Financial Statements
hh hh hh hh hh hh hh
3 The Accounting Information System
hh hh hh hh hh
4 Accrual Accounting Concepts
hh hh hh hh
5 Merchandising Operations and the Multiple-Step Income
hh hh hh hh hh hh
Statement
hh hh
6 Reporting and Analyzing Inventory
hh hh hh hh hh
7 Fraud, Internal Control, and Cash
hh hh hh hh hh hh
8 Reporting and Analyzing Receivables
hh hh hh hh hh
9 Reporting and Analyzing Long-Lived Assets
hh hh hh hh hh hh
10 Reporting and Analyzing Liabilities
hh hh hh hh hh
11 Reporting and Analyzing Stockholders’ Equity
hh hh hh hh hh hh
12 Statement of Cash Flows
hh hh hh hh hh
13 Financial Analysis: The Big Picture
hh hh hh hh hh hh
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
,CHAPTER 1 hh
INTRODUCTION TO FINANCIAL STATEMENTS
hh hh hh
CHAPTER hhLEARNING hhOBJECTIVES
1. Identify hhthe hhforms hhof hhbusiness hhorganization hhand hhthe hhuses hhof hhaccounting hhinformation. hhA
hhsole hhproprietorship hhis hha hhbusiness hhowned hhby hhone hhperson. hhA hhpartnership hhis hha hhbusiness
hhowned hhby hhtwo hhor hhmore hhpeople hhassociated hhas hhpartners. hhA hhcorporation hhis hha hhseparate
hhlegal hhentity hhfor hhwhich hhevidence hhof hhownership hhis hhprovided hhby hhshares hhof hhstock. hhInternal
hhusers hhare hhmanagers hhwho hhneed hhaccounting hhinformation hhto hhplan, hhorganize, hhand hhrun
hhbusiness hhoperations. hhThe hhprimary hhexternal hhusers hhare hhinvestors hhand hhcreditors. hhInvestors
hh(stockholders) hhuse hhaccounting hhinformation hhto hhdecide hhwhether hhto hhbuy, hhhold, hhor hhsell
hhshares hhof hha hhcompany‘s hhstock. hhCreditors hh(suppliers hhand hhbankers) hh use hh accounting
hh information hh to hh assess hh the hh risk hh of hh granting hh credit hh or hh loaning hh money hh to ha hhbusiness.
hhOther hhgroups hhwho hhhave hhan hhindirect hhinterest hhin hha hhbusiness hhare hhtaxing hhauthorities,
hhcustomers, hhlabor hhunions, hhand hh regulatory hhagencies.
2. Explain hhthe hhthree hhprincipal hhtypes hhof hhbusiness hhactivity. hhFinancing hhactivities h h involve
hhcollecting hhthe hhnecessary hhfunds hhto hhsupport hhthe hhbusiness. hhInvesting hhactivities hhinvolve
hhacquiring hhthe hhresources hhnecessary hhto hhrun hhthe hhbusiness. hhOperating hhactivities hhinvolve
hhputting h h the hhresources hhof hh the hhbusiness hhinto hhaction hhto hhgenerate hha hh profit.
3. Describe hhthe hhfour hhfinancial hhstatements hhand hhhow hhthey hhare hhprepared. hhAn hhincome
hhstatement hhpresents hhthe hhrevenues hhand hhexpenses hhof hha hhcompany hhfor hha hhspecific hhperiod hhof
hhtime. hhA hhretained hhearnings hhstatement hhsummarizes hhthe hhchanges hhin hhretained hhearnings hhthat
hhhave hhoccurred hhfor hha hhspecific hhperiod hhof hhtime. hhA hhbalance hhsheet hhreports hhthe hhassets,
hhliabilities, hhand hhstockholders‘ hhequity hhof hha hhbusiness hhat hha hhspecific hhdate. hhA hhstatement hhof
hhcash hhflows h h summarizes h h information hhconcerning hhthe hhcash hhinflows hh(receipts) hhand
hhoutflows hh(payments) hhfor hha hhspecific hhperiod hhof hhtime. hhAssets hhare hhresources hhowned hhby hha
hhbusiness. hhLiabilities hhare hhthe hhdebts hhand hhobligations hhof hhthe hhbusiness. hhLiabilities hhrepresent
hhclaims hhof hhcreditors hhon hhthe hhassets hhof hhthe hhbusiness. hhStockholders‘ hhequity hhrepresents hhthe
hhclaims hhof hhowners hhon hhthe hhassets hhof hhthe hhbusiness. hhStockholders‘ hhequity hhis hhsubdivided hhinto
hhtwo hhparts: hhcommon hhstock hhand hhretained hhearnings. hhThe hhbasic hhaccounting hhequation hhis
hhAssets hh= hhLiabilities hh+ hhStockholders‘ hhEquity. hhWithin hhthe hhannual hhreport, hhthe hhmanagement
hhdiscussion hhand hhanalysis hhprovides hhmanagement‘s hhinterpretation hhof hhthe hhcompany‘s hresults
hhand hhfinancial hhposition hhas hhwell hhas hha hhdiscussion hhof hhplans hhfor hhthe hhfuture. hhNotes hhto hhthe
hhfinancial hhstatements hhprovide hhadditional hhexplanation hhor hhdetail hhto hhmake hhthe hhfinancial
hhstatements hhmore hhinformative. hhThe hhauditor‘s hhreport hhexpresses hhan hhopinion hhas hhto hhwhether
hhthe hhfinancial hstatements hhpresent hhfairly hhthe hhcompany‘s hhresults hhof hhoperations hhand hhfinancial
hhposition.
*4. hhExplain hhthe hhcareer hhopportunities hhin hhaccounting. hhAccounting hhoffers hhmany hhdifferent hhjobs hhin
hhfields hhsuch hhas hhpublic hhand hhprivate hhaccounting, hhgovernmental, hhand hhforensic hhaccounting.
hhAccounting hhis hha hhpopular hhmajor hhbecause hhthere hhare hhmany hhdifferent hhtypes hhof hhjobs, hhwith
hhunlimited hhpotential hhfor hhcareer hhadvancement
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
, 2-2 Test Bank for Kimmel, Financial Accounting: Tools for Business Decision Making, 10e
Difficulties:
Easy: hh143
Medium: hh101
Hard: hh12
Question hhList hhby hhSection
Business hhOrganization hhand hhAccounting hhInformation hhUses:
hForms hhof hhBusiness hhOrganization; hh47, hh48, hh202, hh246
Sole hhProprietorship: hh5, hh44, hh49, hh58, hh59
Partnership: hh1, hh4, hh46, hh56
Corporation: hh2, hh3, hh45, hh50, hh51, hh52, hh53, hh55, hh57, hh233, hh245
Hybrid hhForms hhof hhOrganization: hh60, hh61
Users hhand hhUses hhof hhFinancial hhInformation: hh6, hh7, hh11, hh74, hh87
Internal hhUsers: hh62, hh63, hh64, hh75, hh77, hh82, hh234
External hhUsers: hh8, hh9, hh10, hh12, hh65, hh76, hh78, hh79, hh80, hh81, hh83, hh84, hh85, hh86, hh88, hh89
Data hhAnalytics: hh66, hh67, hh68, hh69, hh70, hh235, hh236
Ethics hhin hhFinancial hhReporting: hh71, hh72, hh73, hh237,
hh255hThe hh Three hh Types hhof hh Business hhActivity: hh97
Financing hhActivities: hh13, hh15, hh18, hh90, hh91, hh93, hh94, hh95, hh96, hh97, hh102, hh109, hh117, hh118, hh119, hh238
Investing hhActivities: hh14, hh16, hh98, hh99, hh115, hh116
Operating hhActivities: hh17, hh19, hh20, hh100, hh101, hh103, hh104, hh105, hh106, hh107, hh108, hh110, hh111, hh112, hh113,
114
The hhFour hhFinancial hhStatements:
Income hhStatement: hh21, hh22, hh23, hh24,127, hh128, hh132, hh133, hh134, hh138, hh142, hh143
Retained hhEarnings hhStatement: hh120, hh122, hh123, hh 124, hh125, hh126, hh129, hh130, hh131, hh135, hh137, hh139, hh140,
141, hh144, hh145, hh146, hh147, hh148, hh149, hh150, hh154, hh164, hh169, hh178, hh181, hh252
Balance hhSheet: hh25, hh27, hh28, hh29, hh30, hh31, hh32, hh33, hh34, hh35, hh136, hh151, hh152, hh153, hh163, hh165, hh166,
hh168,
170, hh173, hh177, hh179, hh180, hh182, hh185, hh186, hh187, hh188, hh199, hh200, hh201, hh207, hh208, hh213, hh214, hh215,
hh216,
217, hh218, hh219, hh220, hh221, hh222, hh225, hh229, hh239, hh240, hh241, hh253
Statement hhof hhCash hhFlows: hh26, hh121, hh171, hh174, hh183, hh242, hh249
Interrelationships hhof hhStatements: hh155, hh156, hh157, hh158, hh159, hh160, hh161, hh162, hh167, hh175, hh176, hh184,
250, hh251, hh256
Elements hhof hhan hhAnnual hhReport: hh36, hh41, hh192, hh196, hh197
Management hhDiscussion hhand hhAnalysis: hh40, hh191
Notes hhto hhthe hhFinancial hhStatements: hh37, hh42, hh190, hh193, hh194, hh198, hh254
Auditor‘s hhReport: hh38, hh39, hh195
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use Only)
