SOLUTIONS MANUAL
TU
Principles of Accounting: Volume 1 —
VI
Financial Accounting
A2
Mitchell Franklin, Patty Graybeal, and Dixon Cooper
──────────────────────────────────────────────────
1st Edition
6_
AP
PR
OV
ED
??
,ST
TABLE OF CONTENTS
UV
Solutions Manual: Principles of Accounting, Volume 1: Financial Accounting, 1st Edition
By Mitchell Franklin, Patty Graybeal, and Dixon Cooper
Chapter 1 Role of Accounting in Society
IA
Chapter 2 Introduction to Financial Statements
Chapter 3 Analyzing and Recording Transactions
26
Chapter 4 The Adjustment Process
Chapter 5 Completing the Accounting Cycle
_A
Chapter 6 Merchandising Transactions
Chapter 7 Accounting Information Systems
Chapter 8 Fraud, Internal Controls, and Cash
PP
Chapter 9 Accounting for Receivables
Chapter 10 Inventory
Chapter 11 Long-Term Assets
RO
Chapter 12 Current Liabilities
Chapter 13 Long-Term Liabilities
Chapter 14 Corporation Accounting
VE
Chapter 15 Partnership Accounting
Chapter 16 Statement of Cash Flows
D?
?
1
, Solutions Manual for Principles Of Accounting (Volume 1) Financial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 1: Financial Accounting
Chapter 1: Role of Accounting in Society
ST
Principles of Accounting, Volume 1: Financial Accounting
Chapter 1: Role of Accounting in Society
UV
Multiple Choice
1. LO 1.1 Accounting is sometimes called the “language of .”
A. Wall Street
IA
B. business
C. Main Street
D. financial statements
26
Solution
B
2. LO 1.2 Financial accounting information .
A. should be incomplete in order to confuse competitors
B. should be prepared differently by each company
_A
C. provides investors guarantees about the future
D. summarizes what has already occurred
Solution
D
PP
3. LO 1.2 External users of financial accounting information include all of the following except
.
A. lenders such as bankers
B. governmental agencies such as the IRS
RO
C. employees of a business
D. potential investors
Solution
C
4. LO 1.2 Which of the following groups would have access to managerial accounting
information?
VE
A. bankers
B. investors
C. competitors of the business
D. managers
D?
Solution
D
5. LO 1.2 All of the following are examples of managerial accounting activities except
.
A. preparing external financial statements in compliance with GAAP
?
B. deciding whether or not to use automation
C. making equipment repair or replacement decisions
D. measuring costs of production for each product produced
Solution
A
6. LO 1.3 Which of the following is not true?
A. Organizations share a common purpose or mission.
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Solutions Manual for Principles Of Accounting (Volume 1) Financial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 1: Financial Accounting
Chapter 1: Role of Accounting in Society
ST
B. Organizations have inflows and outflows of resources.
C. Organizations add value to society.
D. Organizations need accounting information.
UV
Solution
A
7. LO 1.3 The primary purpose of what type of business is to serve a particular need in the
community?
A. for-profit
IA
B. not-for-profit
C. manufacturing
D. retail
Solution
26
B
8. LO 1.3 Which of the following is not an example of a retailer?
A. electronics store
B. grocery store
_A
C. car dealership
D. computer manufacturer
E. jewelry store
Solution
D
PP
9. LO 1.3 A governmental agency can best be described by which of the following statements?
A. has a primary purpose of making a profit
B. has a primary purpose of using taxpayer funds to provide services
C. produces goods for sale to the public
RO
D. has regular shareholder meetings
Solution
B
10. LO 1.3 Which of the following is likely not a type of not-for-profit entity?
A. public library
VE
B. community foundation
C. university
D. local movie theater
Solution
D?
D
11. LO 1.4 Which of the following is not considered a stakeholder of an organization?
A. creditors
B. lenders
C. employees
?
D. community residents
E. a business in another industry
Solution
E
12. LO 1.4 Stockholders can best be defined as which of the following?
A. investors who lend money to a business for a short period of time
B. investors who lend money to a business for a long period of time
TU
Principles of Accounting: Volume 1 —
VI
Financial Accounting
A2
Mitchell Franklin, Patty Graybeal, and Dixon Cooper
──────────────────────────────────────────────────
1st Edition
6_
AP
PR
OV
ED
??
,ST
TABLE OF CONTENTS
UV
Solutions Manual: Principles of Accounting, Volume 1: Financial Accounting, 1st Edition
By Mitchell Franklin, Patty Graybeal, and Dixon Cooper
Chapter 1 Role of Accounting in Society
IA
Chapter 2 Introduction to Financial Statements
Chapter 3 Analyzing and Recording Transactions
26
Chapter 4 The Adjustment Process
Chapter 5 Completing the Accounting Cycle
_A
Chapter 6 Merchandising Transactions
Chapter 7 Accounting Information Systems
Chapter 8 Fraud, Internal Controls, and Cash
PP
Chapter 9 Accounting for Receivables
Chapter 10 Inventory
Chapter 11 Long-Term Assets
RO
Chapter 12 Current Liabilities
Chapter 13 Long-Term Liabilities
Chapter 14 Corporation Accounting
VE
Chapter 15 Partnership Accounting
Chapter 16 Statement of Cash Flows
D?
?
1
, Solutions Manual for Principles Of Accounting (Volume 1) Financial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 1: Financial Accounting
Chapter 1: Role of Accounting in Society
ST
Principles of Accounting, Volume 1: Financial Accounting
Chapter 1: Role of Accounting in Society
UV
Multiple Choice
1. LO 1.1 Accounting is sometimes called the “language of .”
A. Wall Street
IA
B. business
C. Main Street
D. financial statements
26
Solution
B
2. LO 1.2 Financial accounting information .
A. should be incomplete in order to confuse competitors
B. should be prepared differently by each company
_A
C. provides investors guarantees about the future
D. summarizes what has already occurred
Solution
D
PP
3. LO 1.2 External users of financial accounting information include all of the following except
.
A. lenders such as bankers
B. governmental agencies such as the IRS
RO
C. employees of a business
D. potential investors
Solution
C
4. LO 1.2 Which of the following groups would have access to managerial accounting
information?
VE
A. bankers
B. investors
C. competitors of the business
D. managers
D?
Solution
D
5. LO 1.2 All of the following are examples of managerial accounting activities except
.
A. preparing external financial statements in compliance with GAAP
?
B. deciding whether or not to use automation
C. making equipment repair or replacement decisions
D. measuring costs of production for each product produced
Solution
A
6. LO 1.3 Which of the following is not true?
A. Organizations share a common purpose or mission.
Page 1 of 11
, classmerit.com — The Marketplace to Buy and Sell Study Materials
Solutions Manual for Principles Of Accounting (Volume 1) Financial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 1: Financial Accounting
Chapter 1: Role of Accounting in Society
ST
B. Organizations have inflows and outflows of resources.
C. Organizations add value to society.
D. Organizations need accounting information.
UV
Solution
A
7. LO 1.3 The primary purpose of what type of business is to serve a particular need in the
community?
A. for-profit
IA
B. not-for-profit
C. manufacturing
D. retail
Solution
26
B
8. LO 1.3 Which of the following is not an example of a retailer?
A. electronics store
B. grocery store
_A
C. car dealership
D. computer manufacturer
E. jewelry store
Solution
D
PP
9. LO 1.3 A governmental agency can best be described by which of the following statements?
A. has a primary purpose of making a profit
B. has a primary purpose of using taxpayer funds to provide services
C. produces goods for sale to the public
RO
D. has regular shareholder meetings
Solution
B
10. LO 1.3 Which of the following is likely not a type of not-for-profit entity?
A. public library
VE
B. community foundation
C. university
D. local movie theater
Solution
D?
D
11. LO 1.4 Which of the following is not considered a stakeholder of an organization?
A. creditors
B. lenders
C. employees
?
D. community residents
E. a business in another industry
Solution
E
12. LO 1.4 Stockholders can best be defined as which of the following?
A. investors who lend money to a business for a short period of time
B. investors who lend money to a business for a long period of time
