TEST BANK A A
Financial Accounting Tools For Business Decision Makin
A A A A A A
g, 10th Edition, Paul D. Kimmel,
A A A A A A
Chapters 1 – 13, Complete
A A A A A
CopyrightA©A2022AJohnAWileyA&ASons,AInc.A(ForAInstructorAUseAOnl
y)
,TABLE OF CONTENTS A A
1 Introduction to Financial Statements
A A A A A
2 A Further Look at Financial Statements
A A A A A A A
3 The Accounting Information System
A A A A A
4 Accrual Accounting Concepts
A A A A
5 Merchandising Operations and the Multiple-Step Income Statement
A A A A A A A A
6 Reporting and Analyzing Inventory
A A A A A
7 Fraud, Internal Control, and Cash
A A A A A A
8 Reporting and Analyzing Receivables
A A A A A
9 Reporting and Analyzing Long-Lived Assets
A A A A A A
10 Reporting and Analyzing Liabilities
A A A A A
11 Reporting and Analyzing Stockholders’ Equity
A A A A A A
12 Statement of Cash Flows
A A A A A
13 Financial Analysis: The Big Picture
A A A A A A
CopyrightA©A2022AJohnAWileyA&ASons,AInc.A(ForAInstructorAUseAOnl
y)
,CHAPTER 1 A
INTRODUCTION TO FINANCIAL STATEMENTS
A A A
CHAPTER LEARNING OBJECTIVES
A A
1. IdentifyAtheAformsAofAbusinessAorganizationAandAtheAusesAofAaccountingAinformation.AAAsoleApropriet
orshipAisAaAbusinessAownedAbyAoneAperson.AAApartnershipAisAaAbusinessAownedAbyAtwoAorAmoreApeopleA
associatedAasApartners.AAAcorporationAisAaAseparateAlegalAentityAforAwhichAevidenceAofAownershipAisApr
ovidedAbyAsharesAofAstock.AInternalAusersAareAmanagersAwhoAneedAaccountingAinformationAtoAplan,Aorg
anize,AandArunAbusinessAoperations.ATheAprimaryAexternalAusersAareAinvestorsAandAcreditors.AInvestorsA
(stockholders)AuseAaccountingAinformationAtoAdecideAwhetherAtoAbuy,Ahold,AorAsellAsharesAofAaAcompan
y‘sAstock.ACreditorsA(suppliersAandAbankers)AuseAaccountingAinformationA toA assessAtheA riskA ofA granting
A creditA orA loaningA moneyA toA
aAbusiness.AOtherAgroupsAwhoAhaveAanAindirectAinterestAinAaAbusinessAareAt
axingAauthorities,Acustomers,AlaborAunions,AandA regulatoryAagencies.
2. ExplainAtheAthreeAprincipalAtypesAofAbusinessAactivity.AFinancingAactivitiesA involveAcollectingAtheAnece
ssaryAfundsAtoAsupportAtheAbusiness.AInvestingAactivitiesAinvolveAacquiringAtheAresourcesAnecessaryAtoA
runAtheAbusiness.AOperatingAactivitiesAinvolveAputtingA theAresourcesAofA theAbusinessAintoAactionAtoAge
nerateAaAprofit.
3. DescribeAtheAfourAfinancialAstatementsAandAhowAtheyAareAprepared.AAnAincomeAstatementApresentsAt
heArevenuesAandAexpensesAofAaAcompanyAforAaAspecificAperiodAofAtime.AAAretainedAearningsAstatementA
summarizesAtheAchangesAinAretainedAearningsAthatAhaveAoccurredAforAaAspecificAperiodAofAtime.AAAbala
nceAsheetAreportsAtheAassets,Aliabilities,AandAstockholders‘AequityAofAaAbusinessAatAaAspecificAdate.AAAst
atementAofAcashAflowsA summarizesA informationAconcerningAtheAcashAinflowsA(receipts)AandAoutflowsA
(payments)AforAaAspecificAperiodAofAtime.AAssetsAareAresourcesAownedAbyAaAbusiness.ALiabilitiesAareAthe
AdebtsAandAobligationsAofAtheAbusiness.ALiabilitiesArepresentAclaimsAofAcreditorsAonAtheAassetsAofAtheAbu
siness.AStockholders‘AequityArepresentsAtheAclaimsAofAownersAonAtheAassetsAofAtheAbusiness.AStockhold
ers‘AequityAisAsubdividedAintoAtwoAparts:AcommonAstockAandAretainedAearnings.ATheAbasicAaccountingAe
quationAisAAssetsA=ALiabilitiesA+AStockholders‘AEquity.AWithinAtheAannualAreport,AtheAmanagementAdisc
ussionAandAanalysisAprovidesAmanagement‘sAinterpretationAofAtheAcompany‘sAresultsAandAfinancialAposi
tionAasAwellAasAaAdiscussionAofAplansAforAtheAfuture.ANotesAtoAtheAfinancialAstatementsAprovideAaddition
alAexplanationAorAdetailAtoAmakeAtheAfinancialAstatementsAmoreAinformative.ATheAauditor‘sAreportAexpr
essesAanAopinionAasAtoAwhetherAtheAfinancialAstatementsApresentAfairlyAtheAcompany‘sAresultsAofAopera
tionsAandAfinancialAposition.
*4.AExplainAtheAcareerAopportunitiesAinAaccounting.AAccountingAoffersAmanyAdifferentAjobsAinAfieldsAsuchA
asApublicAandAprivateAaccounting,Agovernmental,AandAforensicAaccounting.AAccountingAisAaApopularAma
jorAbecauseAthereAareAmanyAdifferentAtypesAofAjobs,AwithAunlimitedApotentialAforAcareerAadvancement
CopyrightA©A2022AJohnAWileyA&ASons,AInc.A(ForAInstructorAUseAOnl
y)
, 2-2 TestABankAforAKimmel,AFinancialAAccounting:AToolsAforABusinessADecisionAMaking,A10
e
Difficulties:
Easy:A143
Medium:A101
Hard:A12
Question List by Section
A A A
BusinessAOrganizationAandAAccountingAInformationAUses:AForm
sAofABusinessAOrganization;A47,A48,A202,A246
SoleAProprietorship:A5,A44,A49,A58,A59
Partnership:A1,A4,A46,A56
Corporation:A2,A3,A45,A50,A51,A52,A53,A55,A57,A233,A245
HybridAFormsAofAOrganization:A60,A61
UsersAandAUsesAofAFinancialAInformation:A6,A7,A11,A74,A87
InternalAUsers:A62,A63,A64,A75,A77,A82,A234
ExternalAUsers:A8,A9,A10,A12,A65,A76,A78,A79,A80,A81,A83,A84,A85,A86,A88,A89
DataAAnalytics:A66,A67,A68,A69,A70,A235,A236
EthicsAinAFinancialAReporting:A71,A72,A73,A237,A255ATheA
ThreeATypesAofABusinessAActivity:A97
FinancingAActivities:A13,A15,A18,A90,A91,A93,A94,A95,A96,A97,A102,A109,A117,A118,A119,A238
InvestingAActivities:A14,A16,A98,A99,A115,A116
OperatingAActivities:A17,A19,A20,A100,A101,A103,A104,A105,A106,A107,A108,A110,A111,A112,A113,
114
TheAFourAFinancialAStatements:
IncomeAStatement:A21,A22,A23,A24,127,A128,A132,A133,A134,A138,A142,A143
RetainedAEarningsAStatement:A120,A122,A123,A 124,A125,A126,A129,A130,A131,A135,A137,A139,A140,
141,A144,A145,A146,A147,A148,A149,A150,A154,A164,A169,A178,A181,A252
BalanceASheet:A25,A27,A28,A29,A30,A31,A32,A33,A34,A35,A136,A151,A152,A153,A163,A165,A166,A168,
170,A173,A177,A179,A180,A182,A185,A186,A187,A188,A199,A200,A201,A207,A208,A213,A214,A215,A216,
217,A218,A219,A220,A221,A222,A225,A229,A239,A240,A241,A253
StatementAofACashAFlows:A26,A121,A171,A174,A183,A242,A249
InterrelationshipsAofAStatements:A155,A156,A157,A158,A159,A160,A161,A162,A167,A175,A176,A184,
250,A251,A256
ElementsAofAanAAnnualAReport:A36,A41,A192,A196,A197
ManagementADiscussionAandAAnalysis:A40,A191
NotesAtoAtheAFinancialAStatements:A37,A42,A190,A193,A194,A198,A254
Auditor‘sAReport:A38,A39,A195
CopyrightA©A2022AJohnAWileyA&ASons,AInc.A(ForAInstructorAUseAOnl
y)
Financial Accounting Tools For Business Decision Makin
A A A A A A
g, 10th Edition, Paul D. Kimmel,
A A A A A A
Chapters 1 – 13, Complete
A A A A A
CopyrightA©A2022AJohnAWileyA&ASons,AInc.A(ForAInstructorAUseAOnl
y)
,TABLE OF CONTENTS A A
1 Introduction to Financial Statements
A A A A A
2 A Further Look at Financial Statements
A A A A A A A
3 The Accounting Information System
A A A A A
4 Accrual Accounting Concepts
A A A A
5 Merchandising Operations and the Multiple-Step Income Statement
A A A A A A A A
6 Reporting and Analyzing Inventory
A A A A A
7 Fraud, Internal Control, and Cash
A A A A A A
8 Reporting and Analyzing Receivables
A A A A A
9 Reporting and Analyzing Long-Lived Assets
A A A A A A
10 Reporting and Analyzing Liabilities
A A A A A
11 Reporting and Analyzing Stockholders’ Equity
A A A A A A
12 Statement of Cash Flows
A A A A A
13 Financial Analysis: The Big Picture
A A A A A A
CopyrightA©A2022AJohnAWileyA&ASons,AInc.A(ForAInstructorAUseAOnl
y)
,CHAPTER 1 A
INTRODUCTION TO FINANCIAL STATEMENTS
A A A
CHAPTER LEARNING OBJECTIVES
A A
1. IdentifyAtheAformsAofAbusinessAorganizationAandAtheAusesAofAaccountingAinformation.AAAsoleApropriet
orshipAisAaAbusinessAownedAbyAoneAperson.AAApartnershipAisAaAbusinessAownedAbyAtwoAorAmoreApeopleA
associatedAasApartners.AAAcorporationAisAaAseparateAlegalAentityAforAwhichAevidenceAofAownershipAisApr
ovidedAbyAsharesAofAstock.AInternalAusersAareAmanagersAwhoAneedAaccountingAinformationAtoAplan,Aorg
anize,AandArunAbusinessAoperations.ATheAprimaryAexternalAusersAareAinvestorsAandAcreditors.AInvestorsA
(stockholders)AuseAaccountingAinformationAtoAdecideAwhetherAtoAbuy,Ahold,AorAsellAsharesAofAaAcompan
y‘sAstock.ACreditorsA(suppliersAandAbankers)AuseAaccountingAinformationA toA assessAtheA riskA ofA granting
A creditA orA loaningA moneyA toA
aAbusiness.AOtherAgroupsAwhoAhaveAanAindirectAinterestAinAaAbusinessAareAt
axingAauthorities,Acustomers,AlaborAunions,AandA regulatoryAagencies.
2. ExplainAtheAthreeAprincipalAtypesAofAbusinessAactivity.AFinancingAactivitiesA involveAcollectingAtheAnece
ssaryAfundsAtoAsupportAtheAbusiness.AInvestingAactivitiesAinvolveAacquiringAtheAresourcesAnecessaryAtoA
runAtheAbusiness.AOperatingAactivitiesAinvolveAputtingA theAresourcesAofA theAbusinessAintoAactionAtoAge
nerateAaAprofit.
3. DescribeAtheAfourAfinancialAstatementsAandAhowAtheyAareAprepared.AAnAincomeAstatementApresentsAt
heArevenuesAandAexpensesAofAaAcompanyAforAaAspecificAperiodAofAtime.AAAretainedAearningsAstatementA
summarizesAtheAchangesAinAretainedAearningsAthatAhaveAoccurredAforAaAspecificAperiodAofAtime.AAAbala
nceAsheetAreportsAtheAassets,Aliabilities,AandAstockholders‘AequityAofAaAbusinessAatAaAspecificAdate.AAAst
atementAofAcashAflowsA summarizesA informationAconcerningAtheAcashAinflowsA(receipts)AandAoutflowsA
(payments)AforAaAspecificAperiodAofAtime.AAssetsAareAresourcesAownedAbyAaAbusiness.ALiabilitiesAareAthe
AdebtsAandAobligationsAofAtheAbusiness.ALiabilitiesArepresentAclaimsAofAcreditorsAonAtheAassetsAofAtheAbu
siness.AStockholders‘AequityArepresentsAtheAclaimsAofAownersAonAtheAassetsAofAtheAbusiness.AStockhold
ers‘AequityAisAsubdividedAintoAtwoAparts:AcommonAstockAandAretainedAearnings.ATheAbasicAaccountingAe
quationAisAAssetsA=ALiabilitiesA+AStockholders‘AEquity.AWithinAtheAannualAreport,AtheAmanagementAdisc
ussionAandAanalysisAprovidesAmanagement‘sAinterpretationAofAtheAcompany‘sAresultsAandAfinancialAposi
tionAasAwellAasAaAdiscussionAofAplansAforAtheAfuture.ANotesAtoAtheAfinancialAstatementsAprovideAaddition
alAexplanationAorAdetailAtoAmakeAtheAfinancialAstatementsAmoreAinformative.ATheAauditor‘sAreportAexpr
essesAanAopinionAasAtoAwhetherAtheAfinancialAstatementsApresentAfairlyAtheAcompany‘sAresultsAofAopera
tionsAandAfinancialAposition.
*4.AExplainAtheAcareerAopportunitiesAinAaccounting.AAccountingAoffersAmanyAdifferentAjobsAinAfieldsAsuchA
asApublicAandAprivateAaccounting,Agovernmental,AandAforensicAaccounting.AAccountingAisAaApopularAma
jorAbecauseAthereAareAmanyAdifferentAtypesAofAjobs,AwithAunlimitedApotentialAforAcareerAadvancement
CopyrightA©A2022AJohnAWileyA&ASons,AInc.A(ForAInstructorAUseAOnl
y)
, 2-2 TestABankAforAKimmel,AFinancialAAccounting:AToolsAforABusinessADecisionAMaking,A10
e
Difficulties:
Easy:A143
Medium:A101
Hard:A12
Question List by Section
A A A
BusinessAOrganizationAandAAccountingAInformationAUses:AForm
sAofABusinessAOrganization;A47,A48,A202,A246
SoleAProprietorship:A5,A44,A49,A58,A59
Partnership:A1,A4,A46,A56
Corporation:A2,A3,A45,A50,A51,A52,A53,A55,A57,A233,A245
HybridAFormsAofAOrganization:A60,A61
UsersAandAUsesAofAFinancialAInformation:A6,A7,A11,A74,A87
InternalAUsers:A62,A63,A64,A75,A77,A82,A234
ExternalAUsers:A8,A9,A10,A12,A65,A76,A78,A79,A80,A81,A83,A84,A85,A86,A88,A89
DataAAnalytics:A66,A67,A68,A69,A70,A235,A236
EthicsAinAFinancialAReporting:A71,A72,A73,A237,A255ATheA
ThreeATypesAofABusinessAActivity:A97
FinancingAActivities:A13,A15,A18,A90,A91,A93,A94,A95,A96,A97,A102,A109,A117,A118,A119,A238
InvestingAActivities:A14,A16,A98,A99,A115,A116
OperatingAActivities:A17,A19,A20,A100,A101,A103,A104,A105,A106,A107,A108,A110,A111,A112,A113,
114
TheAFourAFinancialAStatements:
IncomeAStatement:A21,A22,A23,A24,127,A128,A132,A133,A134,A138,A142,A143
RetainedAEarningsAStatement:A120,A122,A123,A 124,A125,A126,A129,A130,A131,A135,A137,A139,A140,
141,A144,A145,A146,A147,A148,A149,A150,A154,A164,A169,A178,A181,A252
BalanceASheet:A25,A27,A28,A29,A30,A31,A32,A33,A34,A35,A136,A151,A152,A153,A163,A165,A166,A168,
170,A173,A177,A179,A180,A182,A185,A186,A187,A188,A199,A200,A201,A207,A208,A213,A214,A215,A216,
217,A218,A219,A220,A221,A222,A225,A229,A239,A240,A241,A253
StatementAofACashAFlows:A26,A121,A171,A174,A183,A242,A249
InterrelationshipsAofAStatements:A155,A156,A157,A158,A159,A160,A161,A162,A167,A175,A176,A184,
250,A251,A256
ElementsAofAanAAnnualAReport:A36,A41,A192,A196,A197
ManagementADiscussionAandAAnalysis:A40,A191
NotesAtoAtheAFinancialAStatements:A37,A42,A190,A193,A194,A198,A254
Auditor‘sAReport:A38,A39,A195
CopyrightA©A2022AJohnAWileyA&ASons,AInc.A(ForAInstructorAUseAOnl
y)
