SOLUTION MANUAL Financial Accounting 11th Edition by Jerry J. Weygandt, Paul D. Kimmel Chapters 1 - 13 | Complete

SOLUTION MANUAL
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete

,TABLE OF CONTENTS ud ud




Chapter 1. Accounting in Action
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Chapter 2. The Recording Process
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Chapter 3. Adjusting the Accounts
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Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations
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Chapter 6. Inventories
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Chapter 7. Fraud, Internal Control and Cash
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Chapter 8. Accounting for Receivables
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Chapter 9. Plant Assets, Natural Resources and Intangible Assets
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Chapter 10. Liabilities
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Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ E
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quity
Chapter 12. Statement of Cash Flows
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Chapter 13. Financial Analysis: The Big Picture
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,CHAPTER 1
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Accounting in Action ud ud




ASSIGNMENT CLASSIFICATION TABLE ud ud




Brief Exerc
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Learning Objectives
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1. 1, 2, 3, 4, 5
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Identify the activities and
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users associated with acc
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ounting.

2. Explain the building blocks of acc
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ounting: ethics, principles,andud ud d
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assumptions.

3. 11, 12, 13, 14.
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State the accounting eq
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uation, and define itsco
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mponents.

4. 15, 16, 18
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Analyze the effects of busines
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s transactions on theaccounti
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ng equation.
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5. 17, 19, 20, 21,
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Describe the four financial sta
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12, 13, 14, 15,
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tements and how they arepre
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16, 17, 18
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pared.

, ANSWERS TO QUESTIONS ud ud




1. True. Virtually every organization and person in our society uses accounting information. Businesses, in
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vestors, creditors, government agencies, and not-for-
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profit organizations must use accounting information to operate effectively.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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2. Accounting is the process of identifying, recording, and communicating the economic events of an or
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ganization to interested users of the information. The first activity of the accounting process is to identi
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fy economic events that are relevant to a particular business. Once identified and measured, the events
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are recorded to provide a history of the financial activities of the organization. Recording consists of ke
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eping a chronological diary of these measured events in anorderly and systematic manner. The informat
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ion is communicated through the preparation and distribution of accounting reports, the most co
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mmon of which are called financial statements.A vital element in the communication process is the
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accountant’s ability and responsibility to analyze and interpret the reported information.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and oth
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er decision makers. ud ud



(b) To assist management, accounting provides internal reports. Examples include financial compariso
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ns of operating alternatives, projections of income from new sales campaigns,and forecasts of c
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ash needs for the next year. ud ud ud ud ud



LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
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(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one par
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t of the entire accounting process. Accounting, on the other hand, involves the entire process of identif
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ying, recording, and communicating economic events.
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LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. Thi
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s is true not only at the time the land is purchased, but also over the time the land is held. In determini
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ng which measurement principle to use (historical cost or fair value) companies weigh the factual natur
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e of cost figures versus the relevance of fair value. In general, companies use historical cost. Only in sit
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uations where assets are actively traded do companies apply the fair value principle.
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LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:
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Reporting
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7. The monetary unit assumption requires that only transaction data capable of being expressed in terms
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of money be included in the accounting records. This assumption enables accounting to quantify (meas
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ure) economic events. ud ud



LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:Reporting
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