SOLUTION MANUAL FOR FINANCIAL
ACCOUNTING 12TH EDITION COMPREHENSIVE
QUESTIONS AND SOLUTIONS
◉ Economic Enity Assumption.
Answer: Requires activites of an entity be kept separate and distinct
from the activities of its owner and all other economic entities
◉ Forms of Business Ownership.
Answer: proprietorship, partnership, corporation
◉ Accounting Equation.
Answer: Assets = Liabilities + Stockholders' Equity
◉ Asset.
Answer: Anything of value that is owned
◉ Liabilities.
Answer: Amounts owed to creditors or obligations
◉ Stockholders' Equity.
, Answer: Ownership on corporation's total assets
◉ retianed earnings.
Answer: income that has been retained within the business
net income - dividends
◉ net income (lose).
Answer: Revenue - expenses
◉ revenue.
Answer: the increase in assets or decrease in liabilities resulting
from the sale of goods or the performance of services in the normal
course of business
◉ expenses.
Answer: The cost of assets consumed or services used in the process
of generating revenues.
◉ dividends.
Answer: earnings distributed to stockholders from corporations
ACCOUNTING 12TH EDITION COMPREHENSIVE
QUESTIONS AND SOLUTIONS
◉ Economic Enity Assumption.
Answer: Requires activites of an entity be kept separate and distinct
from the activities of its owner and all other economic entities
◉ Forms of Business Ownership.
Answer: proprietorship, partnership, corporation
◉ Accounting Equation.
Answer: Assets = Liabilities + Stockholders' Equity
◉ Asset.
Answer: Anything of value that is owned
◉ Liabilities.
Answer: Amounts owed to creditors or obligations
◉ Stockholders' Equity.
, Answer: Ownership on corporation's total assets
◉ retianed earnings.
Answer: income that has been retained within the business
net income - dividends
◉ net income (lose).
Answer: Revenue - expenses
◉ revenue.
Answer: the increase in assets or decrease in liabilities resulting
from the sale of goods or the performance of services in the normal
course of business
◉ expenses.
Answer: The cost of assets consumed or services used in the process
of generating revenues.
◉ dividends.
Answer: earnings distributed to stockholders from corporations
