TEST BANK
Financial Accounting Tools For Business Decision
Making, 10th Edition, Paul D. Kimmel,
Chapters 1–13, Complete
CopyrightY©Y2022YJohnYWileyY&YSons,YInc.Y(ForYInstructorYUseYOnl
y)
,TABLE OF CONTENTS Y Y
1 Introduction to Financial Statements
Y Y Y Y Y
2 A Further Look at Financial Statements
Y Y Y Y Y Y Y
3 The Accounting Information System
Y Y Y Y Y
4 Accrual Accounting Concepts
Y Y Y Y
5 Merchandising Operations and the Multiple-Step Income Statement
Y Y Y Y Y Y Y Y
6 Reporting and Analyzing Inventory
Y Y Y Y Y
7 Fraud, Internal Control, and Cash
Y Y Y Y Y Y
8 Reporting and Analyzing Receivables
Y Y Y Y Y
9 Reporting and Analyzing Long-Lived Assets
Y Y Y Y Y Y
10 Reporting and Analyzing Liabilities
Y Y Y Y Y
11 Reporting and Analyzing Stockholders’ Equity
Y Y Y Y Y Y
12 Statement of Cash Flows
Y Y Y Y Y
13 Financial Analysis: The Big Picture
Y Y Y Y Y Y
CopyrightY©Y2022YJohnYWileyY&YSons,YInc.Y(ForYInstructorYUseYOnl
y)
,CHAPTER 1 Y
INTRODUCTION TO FINANCIAL STATEMENTS
Y Y Y
CHAPTERYLEARNINGYOBJECTIVES
1. IdentifyYtheYformsYofYbusinessYorganizationYandYtheYusesYofYaccountingYinformation.YAYsoleYpropr
ietorshipYisYaYbusinessYownedYbyYoneYperson.YAYpartnershipYisYaYbusinessYownedYbyYtwoYorYmoreYpeo
pleYassociatedYasYpartners.YAYcorporationYisYaYseparateYlegalYentityYforYwhichYevidenceYofYownershipYi
sYprovidedYbyYsharesYofYstock.YInternalYusersYareYmanagersYwhoYneedYaccountingYinformationYtoYplan,
Yorganize,YandYrunYbusinessYoperations.YTheYprimaryYexternalYusersYareYinvestorsYandYcreditors.YInvest
orsY(stockholders)YuseYaccountingYinformationYtoYdecideYwhetherYtoYbuy,Yhold,YorYsellYsharesYofYaYco
mpany‘sYstock.YCreditorsY(suppliersYandYbankers)YuseY accountingY informationY toY assessYtheY riskY ofY g
rantingY creditY orY loaningY moneyYtoYaYbusiness.YOtherYgroupsYwhoYhaveYanYindirectYinterestYinYaYbusine
ssYareYtaxingYauthorities,Ycustomers,YlaborYunions,YandY regulatoryYagencies.
2. ExplainYtheYthreeYprincipalYtypesYofYbusinessYactivity.YFinancingYactivitiesY involveYcollectingYtheYn
ecessaryYfundsYtoYsupportYtheYbusiness.YInvestingYactivitiesYinvolveYacquiringYtheYresourcesYnecessar
yYtoYrunYtheYbusiness.YOperatingYactivitiesYinvolveYputtingY theYresourcesYofY theYbusinessYintoYactionYt
oYgenerateYaYprofit.
3. DescribeYtheYfourYfinancialYstatementsYandYhowYtheyYareYprepared.YAnYincomeYstatementYpresent
sYtheYrevenuesYandYexpensesYofYaYcompanyYforYaYspecificYperiodYofYtime.YAYretainedYearningsYstatem
entYsummarizesYtheYchangesYinYretainedYearningsYthatYhaveYoccurredYforYaYspecificYperiodYofYtime.YAY
balanceYsheetYreportsYtheYassets,Yliabilities,YandYstockholders‘YequityYofYaYbusinessYatYaYspecificYdate
.YAYstatementYofYcashYflowsY summarizesY informationYconcerningYtheYcashYinflowsY(receipts)YandYout
flowsY(payments)YforYaYspecificYperiodYofYtime.YAssetsYareYresourcesYownedYbyYaYbusiness.YLiabilities
YareYtheYdebtsYandYobligationsYofYtheYbusiness.YLiabilitiesYrepresentYclaimsYofYcreditorsYonYtheYassetsY
ofYtheYbusiness.YStockholders‘YequityYrepresentsYtheYclaimsYofYownersYonYtheYassetsYofYtheYbusiness.
YStockholders‘YequityYisYsubdividedYintoYtwoYparts:YcommonYstockYandYretainedYearnings.YTheYbasicYa
ccountingYequationYisYAssetsY=YLiabilitiesY+YStockholders‘YEquity.YWithinYtheYannualYreport,YtheYmana
gementYdiscussionYandYanalysisYprovidesYmanagement‘sYinterpretationYofYtheYcompany‘sYresultsYandYf
inancialYpositionYasYwellYasYaYdiscussionYofYplansYforYtheYfuture.YNotesYtoYtheYfinancialYstatementsYpr
ovideYadditionalYexplanationYorYdetailYtoYmakeYtheYfinancialYstatementsYmoreYinformative.YTheYauditor
‘sYreportYexpressesYanYopinionYasYtoYwhetherYtheYfinancialYstatementsYpresentYfairlyYtheYcompany‘sYre
sultsYofYoperationsYandYfinancialYposition.
*4.YExplainYtheYcareerYopportunitiesYinYaccounting.YAccountingYoffersYmanyYdifferentYjobsYinYfieldsYsuch
YasYpublicYandYprivateYaccounting,Ygovernmental,YandYforensicYaccounting.YAccountingYisYaYpopularYm
ajorYbecauseYthereYareYmanyYdifferentYtypesYofYjobs,YwithYunlimitedYpotentialYforYcareerYadvancement
CopyrightY©Y2022YJohnYWileyY&YSons,YInc.Y(ForYInstructorYUseYOnl
y)
, 2-2 TestYBankYforYKimmel,YFinancialYAccounting:YToolsYforYBusinessYDecisionYMaking,Y
10e
Difficulties:
Easy:Y143
Medium:Y101
Hard:Y12
QuestionYListYbyYSection
BusinessYOrganizationYandYAccountingYInformationYUses:YFor
msYofYBusinessYOrganization;Y47,Y48,Y202,Y246
SoleYProprietorship:Y5,Y44,Y49,Y58,Y59
Partnership:Y1,Y4,Y46,Y56
Corporation:Y2,Y3,Y45,Y50,Y51,Y52,Y53,Y55,Y57,Y233,Y245
HybridYFormsYofYOrganization:Y60,Y61
UsersYandYUsesYofY FinancialYInformation:Y6,Y7,Y11,Y74,Y87
InternalYUsers:Y62,Y63,Y64,Y75,Y77,Y82,Y234
ExternalYUsers:Y8,Y9,Y10,Y12,Y65,Y76,Y78,Y79,Y80,Y81,Y83,Y84,Y85,Y86,Y88,Y89
DataYAnalytics:Y66,Y67,Y68,Y69,Y70,Y235,Y236
EthicsYinYFinancialYReporting:Y71,Y72,Y73,Y237,Y255YThe
Y ThreeY TypesYofY BusinessYActivity:Y97
FinancingYActivities:Y13,Y15,Y18,Y90,Y91,Y93,Y94,Y95,Y96,Y97,Y102,Y109,Y117,Y118,Y119,Y238
InvestingYActivities:Y14,Y16,Y98,Y99,Y115,Y116
OperatingYActivities:Y17,Y19,Y20,Y100,Y101,Y103,Y104,Y105,Y106,Y107,Y108,Y110,Y111,Y112,Y113,
114
TheYFourYFinancialYStatements:
IncomeYStatement:Y21,Y22,Y23,Y24,127,Y128,Y132,Y133,Y134,Y138,Y142,Y143
RetainedYEarningsYStatement:Y120,Y122,Y123,Y 124,Y125,Y126,Y129,Y130,Y131,Y135,Y137,Y139,Y140,
141,Y144,Y145,Y146,Y147,Y148,Y149,Y150,Y154,Y164,Y169,Y178,Y181,Y252
BalanceYSheet:Y25,Y27,Y28,Y29,Y30,Y31,Y32,Y33,Y34,Y35,Y136,Y151,Y152,Y153,Y163,Y165,Y166,Y168,
170,Y173,Y177,Y179,Y180,Y182,Y185,Y186,Y187,Y188,Y199,Y200,Y201,Y207,Y208,Y213,Y214,Y215,Y216,
217,Y218,Y219,Y220,Y221,Y222,Y225,Y229,Y239,Y240,Y241,Y253
StatementYofY CashYFlows:Y26,Y121,Y171,Y174,Y183,Y242,Y249
InterrelationshipsYofYStatements:Y155,Y156,Y157,Y158,Y159,Y160,Y161,Y162,Y167,Y175,Y176,Y184,
250,Y251,Y256
ElementsYofYanYAnnualYReport:Y36,Y41,Y192,Y196,Y197
ManagementYDiscussionYandYAnalysis:Y40,Y191
NotesYtoYtheYFinancialYStatements:Y37,Y42,Y190,Y193,Y194,Y198,Y254
Auditor‘sYReport:Y38,Y39,Y195
CopyrightY©Y2022YJohnYWileyY&YSons,YInc.Y(ForYInstructorYUseYOnl
y)
Financial Accounting Tools For Business Decision
Making, 10th Edition, Paul D. Kimmel,
Chapters 1–13, Complete
CopyrightY©Y2022YJohnYWileyY&YSons,YInc.Y(ForYInstructorYUseYOnl
y)
,TABLE OF CONTENTS Y Y
1 Introduction to Financial Statements
Y Y Y Y Y
2 A Further Look at Financial Statements
Y Y Y Y Y Y Y
3 The Accounting Information System
Y Y Y Y Y
4 Accrual Accounting Concepts
Y Y Y Y
5 Merchandising Operations and the Multiple-Step Income Statement
Y Y Y Y Y Y Y Y
6 Reporting and Analyzing Inventory
Y Y Y Y Y
7 Fraud, Internal Control, and Cash
Y Y Y Y Y Y
8 Reporting and Analyzing Receivables
Y Y Y Y Y
9 Reporting and Analyzing Long-Lived Assets
Y Y Y Y Y Y
10 Reporting and Analyzing Liabilities
Y Y Y Y Y
11 Reporting and Analyzing Stockholders’ Equity
Y Y Y Y Y Y
12 Statement of Cash Flows
Y Y Y Y Y
13 Financial Analysis: The Big Picture
Y Y Y Y Y Y
CopyrightY©Y2022YJohnYWileyY&YSons,YInc.Y(ForYInstructorYUseYOnl
y)
,CHAPTER 1 Y
INTRODUCTION TO FINANCIAL STATEMENTS
Y Y Y
CHAPTERYLEARNINGYOBJECTIVES
1. IdentifyYtheYformsYofYbusinessYorganizationYandYtheYusesYofYaccountingYinformation.YAYsoleYpropr
ietorshipYisYaYbusinessYownedYbyYoneYperson.YAYpartnershipYisYaYbusinessYownedYbyYtwoYorYmoreYpeo
pleYassociatedYasYpartners.YAYcorporationYisYaYseparateYlegalYentityYforYwhichYevidenceYofYownershipYi
sYprovidedYbyYsharesYofYstock.YInternalYusersYareYmanagersYwhoYneedYaccountingYinformationYtoYplan,
Yorganize,YandYrunYbusinessYoperations.YTheYprimaryYexternalYusersYareYinvestorsYandYcreditors.YInvest
orsY(stockholders)YuseYaccountingYinformationYtoYdecideYwhetherYtoYbuy,Yhold,YorYsellYsharesYofYaYco
mpany‘sYstock.YCreditorsY(suppliersYandYbankers)YuseY accountingY informationY toY assessYtheY riskY ofY g
rantingY creditY orY loaningY moneyYtoYaYbusiness.YOtherYgroupsYwhoYhaveYanYindirectYinterestYinYaYbusine
ssYareYtaxingYauthorities,Ycustomers,YlaborYunions,YandY regulatoryYagencies.
2. ExplainYtheYthreeYprincipalYtypesYofYbusinessYactivity.YFinancingYactivitiesY involveYcollectingYtheYn
ecessaryYfundsYtoYsupportYtheYbusiness.YInvestingYactivitiesYinvolveYacquiringYtheYresourcesYnecessar
yYtoYrunYtheYbusiness.YOperatingYactivitiesYinvolveYputtingY theYresourcesYofY theYbusinessYintoYactionYt
oYgenerateYaYprofit.
3. DescribeYtheYfourYfinancialYstatementsYandYhowYtheyYareYprepared.YAnYincomeYstatementYpresent
sYtheYrevenuesYandYexpensesYofYaYcompanyYforYaYspecificYperiodYofYtime.YAYretainedYearningsYstatem
entYsummarizesYtheYchangesYinYretainedYearningsYthatYhaveYoccurredYforYaYspecificYperiodYofYtime.YAY
balanceYsheetYreportsYtheYassets,Yliabilities,YandYstockholders‘YequityYofYaYbusinessYatYaYspecificYdate
.YAYstatementYofYcashYflowsY summarizesY informationYconcerningYtheYcashYinflowsY(receipts)YandYout
flowsY(payments)YforYaYspecificYperiodYofYtime.YAssetsYareYresourcesYownedYbyYaYbusiness.YLiabilities
YareYtheYdebtsYandYobligationsYofYtheYbusiness.YLiabilitiesYrepresentYclaimsYofYcreditorsYonYtheYassetsY
ofYtheYbusiness.YStockholders‘YequityYrepresentsYtheYclaimsYofYownersYonYtheYassetsYofYtheYbusiness.
YStockholders‘YequityYisYsubdividedYintoYtwoYparts:YcommonYstockYandYretainedYearnings.YTheYbasicYa
ccountingYequationYisYAssetsY=YLiabilitiesY+YStockholders‘YEquity.YWithinYtheYannualYreport,YtheYmana
gementYdiscussionYandYanalysisYprovidesYmanagement‘sYinterpretationYofYtheYcompany‘sYresultsYandYf
inancialYpositionYasYwellYasYaYdiscussionYofYplansYforYtheYfuture.YNotesYtoYtheYfinancialYstatementsYpr
ovideYadditionalYexplanationYorYdetailYtoYmakeYtheYfinancialYstatementsYmoreYinformative.YTheYauditor
‘sYreportYexpressesYanYopinionYasYtoYwhetherYtheYfinancialYstatementsYpresentYfairlyYtheYcompany‘sYre
sultsYofYoperationsYandYfinancialYposition.
*4.YExplainYtheYcareerYopportunitiesYinYaccounting.YAccountingYoffersYmanyYdifferentYjobsYinYfieldsYsuch
YasYpublicYandYprivateYaccounting,Ygovernmental,YandYforensicYaccounting.YAccountingYisYaYpopularYm
ajorYbecauseYthereYareYmanyYdifferentYtypesYofYjobs,YwithYunlimitedYpotentialYforYcareerYadvancement
CopyrightY©Y2022YJohnYWileyY&YSons,YInc.Y(ForYInstructorYUseYOnl
y)
, 2-2 TestYBankYforYKimmel,YFinancialYAccounting:YToolsYforYBusinessYDecisionYMaking,Y
10e
Difficulties:
Easy:Y143
Medium:Y101
Hard:Y12
QuestionYListYbyYSection
BusinessYOrganizationYandYAccountingYInformationYUses:YFor
msYofYBusinessYOrganization;Y47,Y48,Y202,Y246
SoleYProprietorship:Y5,Y44,Y49,Y58,Y59
Partnership:Y1,Y4,Y46,Y56
Corporation:Y2,Y3,Y45,Y50,Y51,Y52,Y53,Y55,Y57,Y233,Y245
HybridYFormsYofYOrganization:Y60,Y61
UsersYandYUsesYofY FinancialYInformation:Y6,Y7,Y11,Y74,Y87
InternalYUsers:Y62,Y63,Y64,Y75,Y77,Y82,Y234
ExternalYUsers:Y8,Y9,Y10,Y12,Y65,Y76,Y78,Y79,Y80,Y81,Y83,Y84,Y85,Y86,Y88,Y89
DataYAnalytics:Y66,Y67,Y68,Y69,Y70,Y235,Y236
EthicsYinYFinancialYReporting:Y71,Y72,Y73,Y237,Y255YThe
Y ThreeY TypesYofY BusinessYActivity:Y97
FinancingYActivities:Y13,Y15,Y18,Y90,Y91,Y93,Y94,Y95,Y96,Y97,Y102,Y109,Y117,Y118,Y119,Y238
InvestingYActivities:Y14,Y16,Y98,Y99,Y115,Y116
OperatingYActivities:Y17,Y19,Y20,Y100,Y101,Y103,Y104,Y105,Y106,Y107,Y108,Y110,Y111,Y112,Y113,
114
TheYFourYFinancialYStatements:
IncomeYStatement:Y21,Y22,Y23,Y24,127,Y128,Y132,Y133,Y134,Y138,Y142,Y143
RetainedYEarningsYStatement:Y120,Y122,Y123,Y 124,Y125,Y126,Y129,Y130,Y131,Y135,Y137,Y139,Y140,
141,Y144,Y145,Y146,Y147,Y148,Y149,Y150,Y154,Y164,Y169,Y178,Y181,Y252
BalanceYSheet:Y25,Y27,Y28,Y29,Y30,Y31,Y32,Y33,Y34,Y35,Y136,Y151,Y152,Y153,Y163,Y165,Y166,Y168,
170,Y173,Y177,Y179,Y180,Y182,Y185,Y186,Y187,Y188,Y199,Y200,Y201,Y207,Y208,Y213,Y214,Y215,Y216,
217,Y218,Y219,Y220,Y221,Y222,Y225,Y229,Y239,Y240,Y241,Y253
StatementYofY CashYFlows:Y26,Y121,Y171,Y174,Y183,Y242,Y249
InterrelationshipsYofYStatements:Y155,Y156,Y157,Y158,Y159,Y160,Y161,Y162,Y167,Y175,Y176,Y184,
250,Y251,Y256
ElementsYofYanYAnnualYReport:Y36,Y41,Y192,Y196,Y197
ManagementYDiscussionYandYAnalysis:Y40,Y191
NotesYtoYtheYFinancialYStatements:Y37,Y42,Y190,Y193,Y194,Y198,Y254
Auditor‘sYReport:Y38,Y39,Y195
CopyrightY©Y2022YJohnYWileyY&YSons,YInc.Y(ForYInstructorYUseYOnl
y)
