Test bank for accounting principles 14th edition by jerry j weygandt paul d kimmel

TESTBANK
Accounting Principles 14th Edition
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by Jerry J. Weygandt, Paul D. Kimmel Chapter
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s 1 - 27, Complete
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,TABLE OF CONTENTS
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1 Accounting in Action
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2 The Recording Process
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3 Adjusting the Accounts
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4 Completing the Accounting Cycle
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5 Accounting for Merchandising Operations
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6 Inventories
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7 Accounting Information Systems
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8 Fraud, Internal Control, and Cash
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9 Accounting for Receivables
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10 Plant Assets, Natural Resources, and Intangible Assets
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11 Current Liabilities and Payroll Accounting
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12 Accounting for Partnerships
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13 Corporations: Organization and Capital Stock Transactio
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ns

14 Corporations: Dividends, Retained Earnings, and Income
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,m Reporting

15 Long-Term Liabilities
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16 Investments
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17 Statement of Cash Flows
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18 Financial Analysis: The Big Picture
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19 Managerial Accounting
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20 Job Order Costing
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21 Process Costing
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22 Cost-Volume-Profit
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23 Incremental Analysis
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24 Budgetary Planning
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25 Budgetary Control and Responsibility Accounting
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26 Standard Costs and Balanced Scorecard
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27 Planning for Capital Investments
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, CHAPTER 1 m



ACCOUNTINGmINmACTION
CHAPTERmLEARNINGmOBJECTIVES
1. Identifymthemactivitiesmandmusersmassociatedmwithmaccounting.mAccountingmismanminformationmsys
temmthatmidentifies,mrecords,mandmcommunicatesmthemeconomicmeventsmofmanmorganizationmtomint
erestedmusers.mThemmajormusersmandmusesmofmaccountingmaremasmfollows:m(a)mManagementmusesm
accountingminformationmtomplan,morganize,mandmrunmthembusiness.m(b)mInvestorsm(owners)mdecide
mwhethermtombuy,mhold,mormsellmtheirmfinancialminterestsmonmthembasismofmaccountingmdata.m(c)mCr
editorsm(suppliersmandmbankers)mevaluatemthemrisksmofmgrantingmcreditmormlendingm moneym onmth
embasismofmaccountingminformation.mOthermgroupsmthatmusemaccountingminformationmaremtaxingma
uthorities,mregulatorymagencies,mcustomers,mandmlabormunions.
2. Explainmthembuildingmblocksmofmaccounting:methics,mprinciples,mandmassumptions.mEthicsmaremthe
mstandardsmofmconductmbymwhichmactionsmaremjudgedmasmrightmormwrong.mEffectivemfinancialmrepo
rtingmdependsmonmsoundmethicalmbehavior.
Generallymacceptedmaccountingmprinciplesmaremamcommonmsetmofmstandardsmusedmbymaccountants
.mThemprimarymaccountingmstandard-
settingmbodyminmthemUnitedmStatesmismthemFinancialmAccountingmStandardsmBoard.


3. Statemthemaccountingmequation,mandmdefinemitsmcomponents.mThembasicm accountingmequationmis
:
Assetsm=mLiabilitiesm+mOwner'smEquity
Assetsm arem resourcesm am businessm owns.m Liabilitiesm arem creditorshipm claimsm onm totalm assets.mOwn
er'smequitymismthemownershipmclaimmonmtotalmassets.
Themexpandedmaccountingmequationmis:
Assetsm mLiabilitiesm+mOwner'smCapitalm m Owner'smDrawingsm+mRevenuesm
Expenses
Investmentsmbymownersm(assetsmthemownermputsmintomthembusiness)maremrecordedminmamcategory
mcalledmowner‘smcapital.mOwner‘smdrawingsmaremthemwithdrawalmofmassetsmbymthemownermformper
sonalmuse.mRevenuesmaremthemgrossmincreaseminmowner‘smequitymfrommbusinessmactivitiesmformthe
mpurposemofmearningmincome.mExpensesmaremthemcostsmofmassetsmconsumedmormservicesmusedmin
m them processm ofm earningm revenue.m Owner‘sm equitym ism increasedm bym anm owner‘sm investmentsm
andmbymrevenuesmfrommbusinessmoperations.mOwner‘smequitymismdecreasedmbymanmowner‘smwithd
rawalsmofmassetsmandmbymexpenses.
4. Analyzemthemeffectsmofmbusinessmtransactionsmonmthemaccountingmequation.mEachmbusinessmtrans
actionmmustmhavemamdualmeffectmonmthemaccountingmequation.mFormexample,mifmanmindividualmass
etmincreases,mtheremmustmbemamcorrespondingm(1)mdecreaseminmanothermasset,morm(2)mincreasemin
mamspecificmliability,morm(3)mincreaseminmowner'smequity.

5. Describemthemfourmfinancialmstatementsmandmhowmtheymaremprepared.mAnmincomemstatementmpr
esentsmthemrevenuesmandmexpenses,mandmresultingmnetmincomemormnetm lossmformam specificmperio
dmofmtime.mAnmowner'smequitymstatementmsummarizesmthemchangesminmowner'smequitymformamspe
cificmperiodmofmtime.mAmbalancemsheetmreportsmthemassets,mliabilities,mandmowner'smequitymatmams