Solution Manual For Financial Accounting,
7th Canadian Edition by Libby, Hodge,
Kanaan, Sterling Chapters 1 - 13, Complete
1-1
,TABLE OF CONTENTSP P P
CHAPTERPONE
FinancialPStatementsPandPBusinessPDecisions
CHAPTERPTWO
InvestingPandPFinancingPDecisionsPandPthePAccountingPSystem
CHAPTERPTHREE
OperatingPDecisionsPandPthePAccountingPSystem
CHAPTERPFOUR
Adjustments,PFinancialPStatements,PandPthePClosingPProcess
CHAPTERPFIVE
ReportingPandPInterpretingPSalesPRevenue,PReceivables,PandPCash
CHAPTERPSIX
ReportingPandPInterpretingPCostPofPSalesPandPInventory
CHAPTERPSEVEN
ReportingPandPInterpretingPLong-LivedPAssets
CHAPTERPEIGHT
ReportingPandPInterpretingPCurrentPLiabilities
CHAPTERPNINE
ReportingPandPInterpretingPNon-currentPLiabilities
CHAPTERPTEN
ReportingPandPInterpretingPShareholders'PEquity
CHAPTERPELEVEN
StatementPofPCashPFlows
CHAPTERPTWELVE
CommunicatingPAccountingPInformationPandPAnalyzingPFinancialPStatements
CHAPTERPTHIRTEEN
ReportingPandPInterpretingPInvestmentsPinPOtherPCorporations
1-2
,CHAPTER ONE P
Financial Statements and Business Decisions
P P P P
ANSWERSPTOPQUESTIONS
1. AccountingPisPaPsystemPthatPcollectsPandPprocessesP(analyzes,Pmeasures,PandPre
cords)PfinancialPinformationPaboutPanPorganizationPandPreportsPthatPinformationPtoP
decisionPmakers.
2. FinancialPaccountingPinvolvesPpreparationPofPthePfourPbasicPfinancialPstatementsPa
ndPrelatedPdisclosuresPforPexternalPdecisionPmakers.PManagerialPaccountingPinvolv
esPthePpreparationPofPdetailedPplans,Pbudgets,Pforecasts,PandPperformancePreports
PforPinternalPdecisionPmakers.
3. FinancialPreportsParePusedPbyPbothPinternalPandPexternalPgroupsPandPindividuals.PT
hePinternalPgroupsParePcomprisedPofPthePvariousPmanagersPofPthePentity.PThePexter
nalPgroupsPincludePthePowners,Pinvestors,Pcreditors,PgovernmentalPagencies,PotherP
interestedPparties,PandPthePpublicPatPlarge.
4. InvestorsPpurchasePallPorPpartPofPaPbusinessPandPhopePtoPgainPbyPreceivingPpartPofP
whatPthePcompanyPearnsPand/orPsellingPthePcompanyPinPthePfuturePatPaPhigherPprice
PthanPtheyPpaid.P CreditorsPlendPmoneyPtoPaPcompanyPforPaPspecificPlengthPofPtimePa
ndPhopePtoPgainPbyPchargingPinterestPonPthePloan.
5. InPaPsocietyPeachPorganizationPcanPbePdefinedPasPaPseparatePaccountingPentity.PAn
PaccountingPentityPisPthePorganizationPforPwhichPfinancialPdataParePtoPbePcollected.P
TypicalPaccountingPentitiesParePaPbusiness,PaPchurch,PaPgovernmentalPunit,PaPunive
rsityPandPotherPnonprofitPorganizationsPsuchPasPaPhospitalPandPaPwelfarePorganizati
on.PAPbusinessPtypicallyPisPdefinedPandPtreatedPasPaPseparateP entityPbecausePthePo
wners,Pcreditors,Pinvestors,PandPotherPinterestedPpartiesPneedPtoPevaluatePitsPperfor
mancePandPitsPpotentialPseparatelyPfromPotherPentitiesPandPfromPitsPowners.
6. NamePofPStatement AlternativePTitle
1-3
, (a) IncomePStatement (a)P StatementPofPEarnings;PStatementPof
Income;PStatementPofPOperations
(b) BalancePSheet (b)PStatementPofPFinancialPPosition
(c) AuditPReport (c)P ReportPofPIndependentPAccountants
1-4
7th Canadian Edition by Libby, Hodge,
Kanaan, Sterling Chapters 1 - 13, Complete
1-1
,TABLE OF CONTENTSP P P
CHAPTERPONE
FinancialPStatementsPandPBusinessPDecisions
CHAPTERPTWO
InvestingPandPFinancingPDecisionsPandPthePAccountingPSystem
CHAPTERPTHREE
OperatingPDecisionsPandPthePAccountingPSystem
CHAPTERPFOUR
Adjustments,PFinancialPStatements,PandPthePClosingPProcess
CHAPTERPFIVE
ReportingPandPInterpretingPSalesPRevenue,PReceivables,PandPCash
CHAPTERPSIX
ReportingPandPInterpretingPCostPofPSalesPandPInventory
CHAPTERPSEVEN
ReportingPandPInterpretingPLong-LivedPAssets
CHAPTERPEIGHT
ReportingPandPInterpretingPCurrentPLiabilities
CHAPTERPNINE
ReportingPandPInterpretingPNon-currentPLiabilities
CHAPTERPTEN
ReportingPandPInterpretingPShareholders'PEquity
CHAPTERPELEVEN
StatementPofPCashPFlows
CHAPTERPTWELVE
CommunicatingPAccountingPInformationPandPAnalyzingPFinancialPStatements
CHAPTERPTHIRTEEN
ReportingPandPInterpretingPInvestmentsPinPOtherPCorporations
1-2
,CHAPTER ONE P
Financial Statements and Business Decisions
P P P P
ANSWERSPTOPQUESTIONS
1. AccountingPisPaPsystemPthatPcollectsPandPprocessesP(analyzes,Pmeasures,PandPre
cords)PfinancialPinformationPaboutPanPorganizationPandPreportsPthatPinformationPtoP
decisionPmakers.
2. FinancialPaccountingPinvolvesPpreparationPofPthePfourPbasicPfinancialPstatementsPa
ndPrelatedPdisclosuresPforPexternalPdecisionPmakers.PManagerialPaccountingPinvolv
esPthePpreparationPofPdetailedPplans,Pbudgets,Pforecasts,PandPperformancePreports
PforPinternalPdecisionPmakers.
3. FinancialPreportsParePusedPbyPbothPinternalPandPexternalPgroupsPandPindividuals.PT
hePinternalPgroupsParePcomprisedPofPthePvariousPmanagersPofPthePentity.PThePexter
nalPgroupsPincludePthePowners,Pinvestors,Pcreditors,PgovernmentalPagencies,PotherP
interestedPparties,PandPthePpublicPatPlarge.
4. InvestorsPpurchasePallPorPpartPofPaPbusinessPandPhopePtoPgainPbyPreceivingPpartPofP
whatPthePcompanyPearnsPand/orPsellingPthePcompanyPinPthePfuturePatPaPhigherPprice
PthanPtheyPpaid.P CreditorsPlendPmoneyPtoPaPcompanyPforPaPspecificPlengthPofPtimePa
ndPhopePtoPgainPbyPchargingPinterestPonPthePloan.
5. InPaPsocietyPeachPorganizationPcanPbePdefinedPasPaPseparatePaccountingPentity.PAn
PaccountingPentityPisPthePorganizationPforPwhichPfinancialPdataParePtoPbePcollected.P
TypicalPaccountingPentitiesParePaPbusiness,PaPchurch,PaPgovernmentalPunit,PaPunive
rsityPandPotherPnonprofitPorganizationsPsuchPasPaPhospitalPandPaPwelfarePorganizati
on.PAPbusinessPtypicallyPisPdefinedPandPtreatedPasPaPseparateP entityPbecausePthePo
wners,Pcreditors,Pinvestors,PandPotherPinterestedPpartiesPneedPtoPevaluatePitsPperfor
mancePandPitsPpotentialPseparatelyPfromPotherPentitiesPandPfromPitsPowners.
6. NamePofPStatement AlternativePTitle
1-3
, (a) IncomePStatement (a)P StatementPofPEarnings;PStatementPof
Income;PStatementPofPOperations
(b) BalancePSheet (b)PStatementPofPFinancialPPosition
(c) AuditPReport (c)P ReportPofPIndependentPAccountants
1-4
