Solution Manual For Financial Accounting, 11th Edition by Jerry J. Weygandt, Paul D. Kimmel, Verified Chapters 1 - 13, Complete Newest Version

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Financial Accounting 11th Edition
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by Jerry J. Weygandt, Paul D. Kimmel Chapters
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1 - 13 | Complete
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,TABLEOFCONTENTS
Chapter 1. Accounting in Action Chapte
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r 2. The Recording Process Chapter 3. Adj
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usting the Accounts pc pc




Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations Ch
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apter 6. Inventories
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Chapter 7. Fraud, Internal Control and Cash Cha
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pter 8. Accounting for Receivables
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Chapter 9. PlantAssets, NaturalResources and Intangible Assets C
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hapter 10. Liabilities pc pc




Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq u
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y
Chapter 12. Statement of Cash Flows
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Chapter 13. Financial Analysis: The Big Picture
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,CHAPTER1
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Accounting in Action pc pc




ASSIGNMENT CLASSIFICATION TABLE pc pc




Brief Exerci
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Learning Objectives
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1. 1, 2, 3, 4, 5
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Identify the activities an pc pc pc


d users associated with a
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cco unting.pc




2. Explain the building blocks of ac
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co unting: ethics, principles,an
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d as sumptions.
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3. 11, 12, 13, 14.
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State the accounting e
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q uation, and define it
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sco mponents.
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4. 15, 16, 18
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Analyze the effects of busine
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tin g equation.
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5. 17, 19, 20, 21,
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Describe the four financial statpc pc pc pc pc
12, 13, 14, 15,
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ements and how they areprep
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16, 17, 18
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ared.

, ANSWERS TO QUESTIONS pc pc




1. True. Virtually every organization and person in our society uses accounting information. Businesses, i
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nve stors, creditors, government agencies, and not-for-
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profit organizations must use accounting information to operate effectively.
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LOp c 1,p c BT:p c K,p c Difficulty:p c Easy,p c TOT:p c 2p c min.,p c AACSB:p c None,p c AICPAp c FC:p c Reporting,p c IMA:p c Reporting


2. Accounting is the process of identifying, recording, and communicating the economic events of an o
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rgan ization to interested users of the information. The first activity of the accounting process is to id
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entify eco nomic events that are relevant to a particular business. Once identified and measured, the
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events are rec orded to provide a history of the financial activities of the organization. Recording con
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sists of keeping a c hronological diary of these measured events in anorderly and systematic manner.
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The information is com municated through the preparation and distribution of accounting reports, t
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he most common of whic h are called financial statements.A vital element in the communicatio
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n process is the accountant’s ability and responsibility to analyze and interpret the reported informati
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on.
LOp c 1,p c BT:p c K,p c Difficulty:p c Easy,p c TOT:p c 2p c min.,p c AACSB:p c None,p c AICPAp c FC:p c Reporting,p c IMA:p c Reporting


3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and o
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ther decision makers. pc pc


(b) To assist management, accounting provides internal reports. Examples include financial compari
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son s of operating alternatives, projections of income from new sales campaigns,and forecasts
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of cash needs for the next year.
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LOp c 1,p c BT:p c K,p c Difficulty:p c Easy,p c TOT:p c 2p c min.,p c AACSB:p c None,p c AICPAp c FC:p c Reporting,p c IMA:p c Reporting


4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
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(b) Creditors2use accounting information to evaluate the risks of granting credit or lending money.
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LOp c 1,p c BT:p c K,p c Difficulty:p c Easy,p c TOT:p c 2p c min.,p c AACSB:p c None,p c AICPAp c FC:p c Reporting,p c IMA:p c Reporting


5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one p
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art of the entire accounting process. Accounting, on the other hand, involves the entire process of ide
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ntifying
, recording, and communicating economic events.
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LOp c 1,p c BT:p c C,p c Difficulty:p c Easy,p c TOT:p c 2p c min.,p c AACSB:p c None,p c AICPA2pcFC:p c Reporting,p c IMA:p c Reporting


6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. T
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his is true not only at the time the land is purchased, but also over the time the land is held. In dete
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rmining whi ch measurement principle to use (historical cost or fair value) companies weigh the factu
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al nature of cost figures versus the relevance of fair value. In general, companies use historical cost.
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Only in situations whe re assets are actively traded do companies apply the fair value principle.
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LOp c 2,p c BT:p c C,p c Difficulty:p c Easy,p c TOT:p c 2p c min.,p c AACSB:p c None,p c AICPAp c FC:p c Measurement,p c Analysisp c andp c Interpretationp c IMA:p c Reporting


7. The monetary unit assumption requires that only transaction data capable of being expressed in term
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s of money be included in the accounting records. This assumption enables accounting to quantify (
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measure) economic events. pc pc


LOpc 2,pc BT:pc K,p c Difficulty:p c Easy,pc TOT:pc 2pc min.,pc AACSB:p c None,p c AICPAp c FC:p c Measurement,p c Analysisp c andp c Interpretationp c IMA:Reporting