SOLUTION MANUAL
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,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 activities and 1, 2, 3, 4, 5 1 1, 2
users associated with
accounting.
2. Explain the building blocks of 6, 7, 8, 9, 10 2 3, 4
accounting: ethics, principles,
and assumptions.
3. State the accounting 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
equation, and define its 22
components.
4. Analyze the effects of business 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
transactions on theaccounting 5A
equation.
5. Describe the four financial 17, 19, 20, 21, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
statements and how they are 12, 13, 14, 15, 5A
prepared. 16, 17, 18
, ANSWERS TO QUESTIONS
1. True. Virtually every organization and person in our society uses accounting information. 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 bmeasured, bthe
bevents bare brecorded bto bprovide ba bhistory bof bthe bfinancial bactivities bof bthe borganization.
bRecording bconsists bof bkeeping ba bchronological bdiary bof bthese bmeasured bevents bin banborderly band
bsystematic bmanner. bThe binformation bis bcommunicated bthrough bthe bpreparation band bdistribution
bof baccounting b reports, b the b most b common b of b which bare b called bfinancial bstatements. bA
bvital belement bin bthe bcommunication bprocess bis bthe baccountant’s bability band bresponsibility bto
banalyze band binterpret bthe breported binformation.
LO b 1, b BT: b K, b Difficulty: b Easy, b TOT: b 2 b min., b AACSB: b None, b AICPA b FC: b Reporting, b IMA: b Reporting
3. (a) bInternal busers bare bthose bwho bplan, borganize, band brun bthe bbusiness band btherefore bare
bofficers band bother bdecision bmakers.
(b) To bassist bmanagement, baccounting bprovides binternal breports. bExamples binclude bfinancial
bcomparisons bof boperating balternatives, bprojections bof b income bfrom bnew bsales b campaigns,
band bforecasts bof b cash bneeds bfor bthe bnext byear.
LO b 1, b BT: b K, b Difficulty: b Easy, b TOT: b 2 b min., b AACSB: b None, b AICPA b FC: b Reporting, b IMA: b Reporting
4. (a) Investors b(owners) buse baccounting binformation bto bmake bdecisions bto bbuy, bhold, bor bsell bstock.
(b) Creditors buse baccounting binformation bto bevaluate bthe brisks bof bgranting bcredit bor blending bmoney.
LO b 1, b BT: b K, b Difficulty: b Easy, b TOT: b 2 b min., b AACSB: b None, b AICPA b FC: b Reporting, b IMA: b Reporting
5. False. bBookkeeping busually binvolves bonly bthe brecording bof beconomic bevents band btherefore bis bjust
bone bpart bof bthe bentire baccounting bprocess. bAccounting, bon bthe bother bhand, binvolves bthe bentire
bprocess bof bidentifying, brecording, band bcommunicating beconomic bevents.
LO b 1, b BT: b C, b Difficulty: b Easy, b TOT: b 2 b min., b AACSB: b None, b AICPA b FC: b Reporting, b IMA: b Reporting
6. Harper bTravel bAgency bshould breport bthe bland bat b$85,000 bon bits bDecember b31, b 2022 b balance
bsheet. bThis bis btrue bnot bonly bat bthe btime bthe bland bis bpurchased, bbut balso bover bthe btime bthe
bland bis bheld. bIn bdetermining bwhich bmeasurement bprinciple bto buse b(historical bcost bor bfair bvalue)
bcompanies bweigh bthe bfactual bnature bof bcost bfigures bversus bthe brelevance bof bfair bvalue. bIn
bgeneral, bcompanies buse bhistorical bcost. bOnly bin bsituations bwhere bassets bare bactively btraded bdo
b companies bapply bthe bfair bvalue bprinciple.
LO b 2, b BT: b C, b Difficulty: b Easy, b TOT: b 2 b min., b AACSB: b None, b AICPA b FC: b Measurement, b Analysis b and
b Interpretation b IMA: bReporting
7. The bmonetary bunit bassumption brequires bthat bonly btransaction bdata bcapable bof bbeing bexpressed
bin bterms bof bmoney bbe bincluded bin bthe baccounting brecords. bThis bassumption benables baccounting
bto bquantify b(measure) beconomic bevents.
LO b2, bBT: bK, bDifficulty: bEasy, bTOT: b2 bmin., bAACSB: bNone, bAICPA bFC: bMeasurement, bAnalysis band bInterpretation b IMA:
bReporting
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,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 activities and 1, 2, 3, 4, 5 1 1, 2
users associated with
accounting.
2. Explain the building blocks of 6, 7, 8, 9, 10 2 3, 4
accounting: ethics, principles,
and assumptions.
3. State the accounting 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
equation, and define its 22
components.
4. Analyze the effects of business 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
transactions on theaccounting 5A
equation.
5. Describe the four financial 17, 19, 20, 21, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
statements and how they are 12, 13, 14, 15, 5A
prepared. 16, 17, 18
, ANSWERS TO QUESTIONS
1. True. Virtually every organization and person in our society uses accounting information. 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 bmeasured, bthe
bevents bare brecorded bto bprovide ba bhistory bof bthe bfinancial bactivities bof bthe borganization.
bRecording bconsists bof bkeeping ba bchronological bdiary bof bthese bmeasured bevents bin banborderly band
bsystematic bmanner. bThe binformation bis bcommunicated bthrough bthe bpreparation band bdistribution
bof baccounting b reports, b the b most b common b of b which bare b called bfinancial bstatements. bA
bvital belement bin bthe bcommunication bprocess bis bthe baccountant’s bability band bresponsibility bto
banalyze band binterpret bthe breported binformation.
LO b 1, b BT: b K, b Difficulty: b Easy, b TOT: b 2 b min., b AACSB: b None, b AICPA b FC: b Reporting, b IMA: b Reporting
3. (a) bInternal busers bare bthose bwho bplan, borganize, band brun bthe bbusiness band btherefore bare
bofficers band bother bdecision bmakers.
(b) To bassist bmanagement, baccounting bprovides binternal breports. bExamples binclude bfinancial
bcomparisons bof boperating balternatives, bprojections bof b income bfrom bnew bsales b campaigns,
band bforecasts bof b cash bneeds bfor bthe bnext byear.
LO b 1, b BT: b K, b Difficulty: b Easy, b TOT: b 2 b min., b AACSB: b None, b AICPA b FC: b Reporting, b IMA: b Reporting
4. (a) Investors b(owners) buse baccounting binformation bto bmake bdecisions bto bbuy, bhold, bor bsell bstock.
(b) Creditors buse baccounting binformation bto bevaluate bthe brisks bof bgranting bcredit bor blending bmoney.
LO b 1, b BT: b K, b Difficulty: b Easy, b TOT: b 2 b min., b AACSB: b None, b AICPA b FC: b Reporting, b IMA: b Reporting
5. False. bBookkeeping busually binvolves bonly bthe brecording bof beconomic bevents band btherefore bis bjust
bone bpart bof bthe bentire baccounting bprocess. bAccounting, bon bthe bother bhand, binvolves bthe bentire
bprocess bof bidentifying, brecording, band bcommunicating beconomic bevents.
LO b 1, b BT: b C, b Difficulty: b Easy, b TOT: b 2 b min., b AACSB: b None, b AICPA b FC: b Reporting, b IMA: b Reporting
6. Harper bTravel bAgency bshould breport bthe bland bat b$85,000 bon bits bDecember b31, b 2022 b balance
bsheet. bThis bis btrue bnot bonly bat bthe btime bthe bland bis bpurchased, bbut balso bover bthe btime bthe
bland bis bheld. bIn bdetermining bwhich bmeasurement bprinciple bto buse b(historical bcost bor bfair bvalue)
bcompanies bweigh bthe bfactual bnature bof bcost bfigures bversus bthe brelevance bof bfair bvalue. bIn
bgeneral, bcompanies buse bhistorical bcost. bOnly bin bsituations bwhere bassets bare bactively btraded bdo
b companies bapply bthe bfair bvalue bprinciple.
LO b 2, b BT: b C, b Difficulty: b Easy, b TOT: b 2 b min., b AACSB: b None, b AICPA b FC: b Measurement, b Analysis b and
b Interpretation b IMA: bReporting
7. The bmonetary bunit bassumption brequires bthat bonly btransaction bdata bcapable bof bbeing bexpressed
bin bterms bof bmoney bbe bincluded bin bthe baccounting brecords. bThis bassumption benables baccounting
bto bquantify b(measure) beconomic bevents.
LO b2, bBT: bK, bDifficulty: bEasy, bTOT: b2 bmin., bAACSB: bNone, bAICPA bFC: bMeasurement, bAnalysis band bInterpretation b IMA:
bReporting
