SOLUTION MANUAL FOR Financial And Managerial Accounting 4th Edition by Jerry J Weygandt, Paul D Kimmel, Jill E Mitchel

FULL SOLUTION MANUAL FOR g g g




Financial And Managerial Accounting 4th Edition byJerryJ g g g g g g g g




Weygandt, Paul D Kimmel, Jill E Mitchel
g g g g g g g




CHAPTER 1 g




Accounting in Action g g




ASSIGNMENT CLASSIFICATION TABLE g g




Brief A
Learning Objectives g g Questions Exercises g Do It!
g g Exercises Problems

1. Identify the activities g g 1, 2, 3, 4, 5
g g g 1 1, 2
and users associated
g g




with accounting. g




2. Explain the building blocks 6, 7, 8, 9,
g g g g g g g g g 2 3, 4
of accounting: ethics, 10
principles, and
assumptions.

3. State the accounting g g 11, 12, 13, g 1, 2, 3, 4, 5 3 5
equation, and define g g 14.
its components. g 22

4. Analyze the effects g g 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
g g




gof
business transactions on g 5A
the accounting equation.
g g




5. g Describe the four financial g g g 17, 19, g 10, 11 g 5 8, 9, 10,
g g 2A, 3A, 4A,
g g




statements and how they
g g g g g20, g11, 5A
areprepared.
g g
21, 12, 13, 14,
g g




15,
16, 17, 18
g g




obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
g g g g g g g g g

,1-2 © 2021 John Wiley & Sons, Inc. All rights reserved.
g g g g g g g g g g Weygandt, Financial & Managerial Accounting 4e, Solutions Manual
g g g g g g g g (For Instructor Use Only)
g g g

,© g 2021 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be
g g g g g g g g g g g g g g g



g reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,
g g g g g g g g g g g g g g g



g mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to
g g g g g g g g g g g g g




obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
g g g g g g g g g

, ANSWERS TO QUESTIONS g g




1. True. Virtually every organization and person in our society uses accounting information.
g g g g g g g g g g g




Businesses, investors, creditors, government agencies, and not-for-profit organizations
g g g g g g g g




must use accounting information to operate effectively.
g g g g g g g




LO g g 1, g g BT: g g K, g g Difficulty: g g Easy, g g TOT: g g 2 g g min., g g AACSB: g g None, g g AICPA g g FC: g g Reporting, g g IMA: g g Reporting

2. Accounting is the process of identifying, recording, and communicating the g g g g g g g g g




economic events of an organization to interested users of the information. The first activity of the
g g g g g g g g g g g g g g g g




accounting process is to identify economic events that are relevant to a
g g g g g g g g g g g g




particular business. Once identified and measured, the events are recorded to
g g g g g g g g g g g




provide a history of the financial activities of the organization. Recording consists
g g g g g g g g g g g g




of keeping a chronological diary of these measured events in an orderly and systematic manner.
g g g g g g g g g g g g g g g




The information is communicated through the preparation and distribution of
g g g g g g g g g g




accounting reports,
g the most common of which are called financial g g g g g g g g g g g g g g g




statements. A vital element in the communication process is the accountant’s ability and
g g g g g g g g g g g g g




responsibility to analyze and interpret the reported information.
g g g g g g g g




LO g g 1, g g BT: g g K, g g Difficulty: g g Easy, g g TOT: g g 2 g g min., g g AACSB: g g None, g g AICPA g g FC: g g Reporting, g g IMA: g g Reporting

3. (a) Internal users are those who plan, organize, and run the business and therefore are
g g g g g g g g g g g g g g




officers and other decision makers.
g g g g g




(b) To assist management, accounting provides internal reports. Examples include
g g g g g g g g g




financial comparisons of operating alternatives, projections of
g income from g g g g g g g g g




new sales campaigns, and forecasts of cash needs for the next year.
g g g g g g g g g g g g




LO g g 1, g g BT: g g K, g g Difficulty: g g Easy, g g TOT: g g 2 g g min., g g AACSB: g g None, g g AICPA g g FC: g g Reporting, g g IMA: g g Reporting

(a) Investors (owners) use accounting information to make decisions to buy, hold, or
4. g g g g g g g g g g g g




sell g




stock.
(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
g g g g g g g g g g g g g




LO g g 1, g g BT: g g K, g g Difficulty: g g Easy, g g TOT: g g 2 g g min., g g AACSB: g g None, g g AICPA g g FC: g g Reporting, g g IMA: g g Reporting

5. False. Bookkeeping usually involves only the recording of economic events and
g g g g g g g g g g




therefore is just one part of the entire accounting process. Accounting, on the
g g g g g g g g g g g g g




other
g hand, involves the entire process of identifying, recording,gand g g g g g g g g




communicating economic events.
g g g




LO g g 1, g g BT: g g C, g g Difficulty: g g Easy, g g TOT: g g 2 g g min., g g AACSB: g g None, g g AICPA g g FC: g g Reporting, g g IMA: g g Reporting

6. Harper Travel Agency should report the land at $85,000 on its December 31,
g g g g g g g g g g g g




2022 balance sheet. This is true not only at the time the land is purchased,
g g g g g g g g g g g g g g g




but also over the time the land is held. In determining which measurement principle to
g g g g g g g g g g g g g g g




use (historical cost or fair value) companies weigh the factual nature of cost
g g g g g g g g g g g g g




figures versus the relevance of fair value. In general, companies use historical
g g g g g g g g g g g g




cost. Only in situations where assets are actively traded do
g g companies apply g g g g g g g g g g g




the fair value principle.
g g g g




LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, g Analysis and
Interpretation IMA: Reporting
g g




7. The monetary unit assumption requires that only transaction data capable of being
g g g g g g g g g g g




expressed in terms of money be included in the accounting records. This assumption
g g g g g g g g g g g g g




enables accounting to quantify (measure) economic events.
g g g g g g g




LO g 2, g BT: g K, g Difficulty: g Easy, g TOT: g 2 g min., g AACSB: g None, g AICPA g FC: g Measurement,
1-4 © 2021 John Wiley & Sons, Inc. All rights reserved.
g g g g g g g g g g Weygandt, Financial & Managerial Accounting 4e, Solutions Manual g g g g g g g g (For Instructor Use Only)
g g g