TEST BANK For Accounting Principles, 14th Edition by Jerry J. Weygandt, Paul D. Kimmel, Verified Chapters 1 - 27, Complete Newest Version

TESTBANK
Accounting Principles 14th Edition
k k k




by Jerry J. Weygandt, Paul D. Kimmel
k k k k k k




kChapters 1 - 27, Complete
k k k k

,TABLE OF CONTENTS k k




1 Accounting in Action
k k k k




2 The Recording Process
k k k k




3 Adjusting the Accounts
k k k




4 Completing the Accounting Cycle
k k k k




5 Accounting for Merchandising Operations
k k k k




6 Inventories
k k




7 Accounting Information Systems
k k k k




8 Fraud, Internal Control, and Cash
k k k k k k




9 Accounting for Receivables
k k k k




10 Plant Assets, Natural Resources, and Intangible Assets
k k k k k k k




11 Current Liabilities and Payroll Accounting
k k k k k




12 Accounting for Partnerships
k k k




13 Corporations: Organization and Capital Stock
k k k k k


Transactions
k




14 Corporations: Dividends, Retained Earnings, and Income
k k k k k k

,k Reporting

15 Long-Term Liabilities
k k




16 Investments
k




17 Statement of Cash Flows
k k k k




18 Financial Analysis: The Big Picture
k k k k k k




19 Managerial Accounting
k k k




20 Job Order Costing
k k k k




21 Process Costing
k k k




22 Cost-Volume-Profit
k k




23 Incremental Analysis
k k k




24 Budgetary Planning
k k




25 Budgetary Control and Responsibility Accounting
k k k k k k




26 Standard Costs and Balanced Scorecard
k k k k k k




27 Planning for Capital Investments
k k k k k

, CHAPTER 1 k




ACCOUNTING IN ACTION k k




CHAPTER kLEARNING kOBJECTIVES
1. Identify kthe kactivities kand kusers kassociated kwith kaccounting. kAccounting kis kan kinformation ksystem
kthat kidentifies, krecords, kand kcommunicates kthe keconomic kevents kof kan korganization kto kinterested

kusers. kThe kmajor kusers kand kuses kof kaccounting kare kas kfollows: k(a) kManagement kuses kaccounting

kinformation kto kplan, korganize, kand krun kthe kbusiness. k(b) kInvestors k(owners) kdecide kwhether kto

kbuy, khold, kor ksell ktheir kfinancial kinterests kon kthe kbasis kof kaccounting kdata. k(c) kCreditors k(suppliers

kand kbankers) kevaluate kthe krisks kof kgranting kcredit kor klending k money k on kthe kbasis kof kaccounting

kinformation. kOther kgroups kthat kuse kaccounting kinformation kare ktaxing kauthorities, kregulatory

kagencies, kcustomers, k and klabor kunions.


2. Explain kthe kbuilding kblocks kof kaccounting: kethics, kprinciples, kand kassumptions. kEthics kare kthe
kstandards kof kconduct kby kwhich kactions kare kjudged kas kright kor kwrong. kEffective kfinancial kreporting

kdepends kon k sound kethical kbehavior.


Generally kaccepted kaccounting kprinciples kare ka kcommon kset kof kstandards kused kby kaccountants.
kThe kprimary kaccounting kstandard-setting kbody kin kthe kUnited kStates kis kthe kFinancial kAccounting

kStandards kBoard.




3. State kthe kaccounting kequation, kand kdefine kits kcomponents. kThe kbasic k accounting kequation kis:
Assets k= kLiabilities k+ kOwner's kEquity
Assets k are k resources k a k business k owns. k Liabilities k are k creditorship k claims k on k total k assets.
kOwner's kequity kis kthe kownership kclaim kon ktotal kassets.


The kexpanded kaccounting kequation kis:
Assets k kLiabilities k+ kOwner's kCapital k kOwner's kDrawings k+ kRevenues k
Expenses
Investments kby kowners k(assets kthe kowner kputs kinto kthe kbusiness) kare krecorded kin ka kcategory
kcalled kowner‘s kcapital. kOwner‘s kdrawings kare kthe kwithdrawal kof kassets kby kthe kowner kfor kpersonal

kuse. kRevenues kare kthe kgross kincrease kin kowner‘s kequity kfrom kbusiness kactivities kfor kthe kpurpose

kof kearning kincome. kExpenses kare kthe kcosts kof kassets kconsumed kor kservices kused kin k the k process

k of k earning k revenue. k Owner‘s k equity k is k increased k by k an k owner‘s k investments kand kby

krevenues kfrom kbusiness koperations. kOwner‘s kequity kis kdecreased kby kan kowner‘s kwithdrawals kof

k assets kand kby kexpenses.


4. Analyze kthe keffects kof kbusiness ktransactions kon kthe kaccounting kequation. kEach kbusiness
ktransaction kmust khave ka kdual keffect kon kthe kaccounting kequation. kFor kexample, kif kan kindividual

kasset kincreases, kthere kmust kbe ka kcorresponding k(1) kdecrease kin kanother kasset, kor k(2) kincrease kin

k a k specific kliability, kor k(3) kincrease kin kowner's kequity.


5. Describe kthe kfour kfinancial kstatements kand khow kthey kare kprepared. kAn kincome kstatement
kpresents kthe krevenues kand kexpenses, kand kresulting knet kincome kor knet k loss kfor ka k specific

kperiod kof ktime. kAn kowner's kequity kstatement ksummarizes kthe kchanges kin kowner's kequity kfor ka

kspecific kperiod kof ktime. kA kbalance ksheet kreports kthe kassets, kliabilities, kand kowner's kequity kat ka

kspecific kdate. kA kstatement kof kcash kflows ksummarizes kinformation kabout kthe kcash kinflows