Solution Manual for Financial Accounting 11th Edition by Jerry J. Weygandt, Paul D. Kimmel & Donald E. Kieso – Latest 2025/2026 Update

SOLUTION MANUAL FOR

Financial Accounting 11th Edition
by Robert Libby, All Chapters 1 - 13

,TABLE OF CONTENTS
CHAPTER 1: Financial Statements and Business Decisions
Focus Company: Le-Nature’s Inc.
CHAPTER 2: Investing and Financing Decisions and the Accounting System
Focus Company: Chipotle Mexican Grill
CHAPTER 3: Operating Decisions and the Accounting System
Focus Company: Chipotle Mexican Grill
CHAPTER 4: Adjustments, Financial Statements, and the Closing Process
Focus Company: Chipotle Mexican Grill
CHAPTER 5: Communicating and Analyzing Accounting Information
Focus Company: Apple Inc.
CHAPTER 6: Reporting and Interpreting Sales Revenue, Receivables, and Cash
Focus Company: Skechers U.S.A.
CHAPTER 7: Reporting and Interpreting Cost of Goods Sold and Inventory
Focus Company: Harley-Davidson, Inc.
CHAPTER 8: Reporting and Interpreting Property, Plant, and Equipment; Intangibles; and Natural
Resources
Focus Company: FedEx Corporation
CHAPTER 9: Reporting and Interpreting Liabilities
Focus Company: Starbucks
CHAPTER 10: Reporting and Interpreting Bond Securities
Focus Company: Amazon
CHAPTER 11: Reporting and Interpreting Stockholders’ Equity
Focus Company: Microsoft
CHAPTER 12: Statement of Cash Flows
Focus Company: National Beverage Corporation
CHAPTER 13: Analyzing Financial Statements
Focus Company: The Home Depot

,Chapter 1 D




Financial Statements and Business Decisions D D D D




ANSWERS TO QUESTIONS D D




1. Accounting is a system that collects and processes (analyzes, measures, and
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records) financial information about an organization and reports that information
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todecision makers.
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2. Financial accounting involves preparation of the four basic financial statements
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andrelated disclosures for external decision makers. Managerial accounting
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involves the preparation of detailed plans, budgets, forecasts, and performance
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reports for internal decision makers.
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3. Financial reports are used by both internal and external groups and individuals.
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Theinternal groups are comprised of the various managers of the entity. The
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external groups include the owners, investors, creditors, governmental agencies,
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other interested parties, and the public at large.
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4. Investors purchase all or part of a business and hope to gain by receiving part
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of what the company earns and/or selling their ownership interest in the
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company in the future at a higher price than they paid. Creditors lend money to
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a company fora specific length of time and hope to gain by charging interest on
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the loan.
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, 5. In a society, each organization can be defined as a separate accounting entity.
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An accounting entity is the organization for which financial data are to be
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collected. Typical accounting entities are a business, a church, a governmental
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unit, a university and other nonprofit organizations such as a hospital and a
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welfare organization. A business typically is defined and treated as a separate
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entity because the owners, creditors, investors, and other interested parties need
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to evaluate its performance and its potential separately from other entities and
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from itsowners.
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6. Name of Statement D D Alternative Title D


(a) Income Statement D (a) Statement of Earnings; Statement of
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Income; Statement of Operations D D D


(b) Balance Sheet D (b) Statement of Financial Position
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(c) Cash Flow Statement D D (c) Statement of Cash Flows
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7. The heading of each of the four required financial statements should include
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thefollowing:
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(a) Name of the entity D D D


(b) Name of the statement D D D


(c) Date of the statement, or the period of time
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(d) Unit of measure D D




8. (a) The purpose of the income statement is to present information about the
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revenues, expenses, and the net income of an entity for a specified period
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oftime.
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(b) The purpose of the balance sheet is to report the financial position of an
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entityat a given date, that is, to report information about the assets,
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liabilities and stockholders’ equity of the entity as of a specific date.
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(c) The purpose of the statement of cash flows is to present information about
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theflow of cash into the entity (sources), the flow of cash out of the entity
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(uses), and the net increase or decrease in cash during the period.
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(d) The statement of stockholders’ equity reports the changes in each of the
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company’s stockholders’ equity accounts during the accounting period,
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including issue and repurchase of stock and the way that net income and
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distribution of dividends affected the retained earnings of the company
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duringthat period.
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9. The income statement and the statement of cash flows are dated ―For the
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Year Ended December 31‖ because they report the inflows and outflows of
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resources during a period of time. In contrast, the balance sheet is dated ―At
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December 31‖because it represents the resources, obligations, and
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stockholders’ equity at a specific date.
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