SOLUTION MANUAL
All Chapters Included
, Financial Accounting 11th Edition by Jerry J. Weygandt, Paul D. Kimmel Chapters 1 - 13
TABLE OF CONTENTS
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’ Equity
Chapter 12. Statement of Cash Flows
Chapter 13. Financial Analysis: The Big Picture
,CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify the 1, 2, 3, 4, 5 1 1, 2
activities andusers
associated with
accounting.
2. Explain the building 6, 7, 8, 9, 10 2 3, 4
blocks of accounting:
ethics, principles, and
assumptions.
3. State the 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
accounting 22
equation, and
define its
components.
4. Analyze the effects of 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
business transactions 5A
on theaccounting
equation.
5. Describe the four 17, 19, 20, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
financial statements and 21, 12, 13, 14, 15, 5A
how they areprepared. 16, 17, 18
, ANSWERS TO QUESTIONS
True. Virtually every organization and person in our society uses accounting information.
1.
Businesses, investors, 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 organization to interested users of the information. The first activity of the
accounting process is to identify economic events that are relevant to a particular business.
Once identified and measured, the events are recorded to provide a history of the financial
activities of the organization. Recording consists of keeping a chronological diary of these
measured events in an orderly and systematic manner. The information is communicated
through the preparation and distribution of accounting reports, the most common of
which 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
(a) Internal users are those who plan, organize, and run the business and therefore are
3.
officers and other decision makers.
(b) To assist management, accounting provides internal reports. Examples include
financial comparisons 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) Creditors use 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
False. Bookkeeping usually involves only the recording of economic events and therefore is
5.
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, AICPA FC: Reporting, IMA: Reporting
Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance
6.
sheet. This is true not only at the time the land is purchased, but also over the time the
land is held. In determining which 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 where 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
The monetary unit assumption requires that only transaction data capable of being
7.
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
All Chapters Included
, Financial Accounting 11th Edition by Jerry J. Weygandt, Paul D. Kimmel Chapters 1 - 13
TABLE OF CONTENTS
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’ Equity
Chapter 12. Statement of Cash Flows
Chapter 13. Financial Analysis: The Big Picture
,CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify the 1, 2, 3, 4, 5 1 1, 2
activities andusers
associated with
accounting.
2. Explain the building 6, 7, 8, 9, 10 2 3, 4
blocks of accounting:
ethics, principles, and
assumptions.
3. State the 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
accounting 22
equation, and
define its
components.
4. Analyze the effects of 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
business transactions 5A
on theaccounting
equation.
5. Describe the four 17, 19, 20, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
financial statements and 21, 12, 13, 14, 15, 5A
how they areprepared. 16, 17, 18
, ANSWERS TO QUESTIONS
True. Virtually every organization and person in our society uses accounting information.
1.
Businesses, investors, 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 organization to interested users of the information. The first activity of the
accounting process is to identify economic events that are relevant to a particular business.
Once identified and measured, the events are recorded to provide a history of the financial
activities of the organization. Recording consists of keeping a chronological diary of these
measured events in an orderly and systematic manner. The information is communicated
through the preparation and distribution of accounting reports, the most common of
which 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
(a) Internal users are those who plan, organize, and run the business and therefore are
3.
officers and other decision makers.
(b) To assist management, accounting provides internal reports. Examples include
financial comparisons 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) Creditors use 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
False. Bookkeeping usually involves only the recording of economic events and therefore is
5.
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, AICPA FC: Reporting, IMA: Reporting
Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance
6.
sheet. This is true not only at the time the land is purchased, but also over the time the
land is held. In determining which 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 where 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
The monetary unit assumption requires that only transaction data capable of being
7.
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
