FULL SOLUTION MANUAL FOR
-- -- --
Financial And Managerial Accounting 4th Edition by Jerry J
-- -- -- -- -- -- -- -- --
Weygandt, Paul D Kimmel, Jill E Mitchel
-- -- -- -- -- --
CHAPTER 1 --
Accounting in Action - - - -
ASSIGNMENT CLASSIFICATION TABLE -- - -
Brief A
Learning- - Objectives - - Questions Exercises - - Do- - It! - - Exercises Problems
1. Identify- - the- - 1,- - 2,- - 3,- - 5 1 1, 2
activities 4,
and--users- - associated
with- - accounting.
2.- - - - Explain- - - - the- - - - blocks 6,- - 7,- - 8,- - 2 3, 4
building 9,
of accounting: ethics, 10
principles, and
assumptions.
3. State- - the- - 11,- - 12, 13, 1, 2, 3, 4, 5 3 5
accounting
equation,- - and- - define 14.
its--components. 22
4. Analyze- - the- - effects- 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A,- - 2A,- -
- of 4A,
business- - transactions on 5A
the--accounting- - equation.
5.- - Describe--the--four--financial-- 17,- - 19,- - 10,- - 11 5 8,- - 9,- - 10,- - 2A,- - 3A,- - 4A,
statements--and--how--they-- 20, 11, 5A
are--prepared. 21, 12,- - 13,- - 14,
15,
16,- - 17,- - 18
obtain--permission--to--reuse--this--material--is--available--at--
http://www.wiley.com/go/permissions.
,1-2 ©--2021--John--Wiley--&--Sons,--Inc.--All--rights--reserved.- - Weygandt,--Financial--&--Managerial--Accounting--4e,--Solutions--Manual- - (For--Instructor--
Use--Only)
,©- - 2021- - John- - Wiley- - &- - Sons,- - Inc.- - All- - rights- - reserved.- - No- - part- - of- - this- - publication- - may- - be- -
reproduced,- - stored- - in- - a--retrieval- - system,- - or- - transmitted,- - in- - any- - form- - or- - by- - any- - means,- - electronic,-
- mechanical,- - photocopying,- - recording- - or--otherwise,- - except- - as- - permitted- - by- - law.- - Advice- - on- - how- - to
obtain--permission--to--reuse--this--material--is--available--at--
http://www.wiley.com/go/permissions.
, ANSWERS TO QUESTIONS -- --
1. True.--Virtually--every--organization--and--person--in--our--society--uses--accounting--information.--
Businesses,- - investors,- - creditors,- - government- - agencies,- - and- - not-for-profit- -
organizations--must- - use- - accounting- - information- - to- - operate- - effectively.
LO- - - - 1,- - - - BT:- - - - K,- - - - Difficulty:- - - - Easy,- - - - TOT:- - - - 2- - - - min.,- - - - AACSB:- - - - None,- - - - AICPA- - - - FC:- - - - Reporting,- - - - IMA:- - - - Reporting
2. Accounting- - is- - the- - process- - of- - identifying,- - recording,- - and- - communicating- - the- -
economic--events--of--an--organization--to--interested--users--of--the--information.--The--first--activity--of--
the--accounting- - process- - is- - to- - identify- - economic- - events- - that- - are- - relevant- - to- - a- -
particular--business.- - Once- - identified- - and- - measured,- - the- - events- - are- - recorded- - to- -
provide- - a- - history--of- - the- - financial- - activities- - of- - the- - organization.- - Recording- -
consists- - of- - keeping- - a--chronological--diary--of--these--measured--events--in--an--orderly--and--
systematic--manner.--The--information- - is- - communicated- - through- - the- - preparation- - and- -
distribution- - of- - accounting--reports,- - - - the- - - - most- - - - common- - - - of- - - - which- - are- - - -
called- - financial- - statements.- - A- - vital--element- - in- - the- - communication- - process- - is- - the- -
accountant’s- - ability- - and- - responsibility- - to--analyze- - and- - interpret- - the- - reported- - information.
LO- - - - 1,- - - - BT:- - - - K,- - - - Difficulty:- - - - Easy,- - - - TOT:- - - - 2- - - - min.,- - - - AACSB:- - - - None,- - - - AICPA- - - - FC:- - - - Reporting,- - - - IMA:- - - - Reporting
3. (a)- - Internal- - users- - are- - those- - who- - plan,- - organize,- - and- - run- - the- - business- - and- - therefore- -
are--officers- - and- - other- - decision- - makers.
(b)- - To- - assist- - management,- - accounting- - provides- - internal- - reports.- - Examples- -
include--financial- - comparisons- - of- - operating- - alternatives,- - projections- - of- - - - income-
- from- - new--sales- - campaigns,- - and- - forecasts- - of- - cash- - needs- - for- - the- - next- -
year.
LO- - - - 1,- - - - BT:- - - - K,- - - - Difficulty:- - - - Easy,- - - - TOT:- - - - 2- - - - min.,- - - - AACSB:- - - - None,- - - - AICPA- - - - FC:- - - - Reporting,- - - - IMA:- - - - Reporting
4. (a)- - Investors- - (owners)- - use- - accounting- - information- - to- - make- - decisions- - to- - buy,- - hold,- -
or- - sell
stock.
(b) Creditors- - use- - accounting- - information- - to- - evaluate- - the- - risks- - of- - granting- - credit- - or- - lending- -
money.
LO- - - - 1,- - - - BT:- - - - K,- - - - Difficulty:- - - - Easy,- - - - TOT:- - - - 2- - - - min.,- - - - AACSB:- - - - None,- - - - AICPA- - - - FC:- - - - Reporting,- - - - IMA:- - - - Reporting
5. False.- - Bookkeeping- - usually- - involves- - only- - the- - recording- - of- - economic- - events- - and- -
therefore--is- - just- - one- - part- - of- - the- - entire- - accounting- - process.- - Accounting,- - on- -
the- - other- - hand,--involves- - the- - entire- - process- - of- - identifying,- - recording,- - and- -
communicating- - economic- - events.
LO- - - - 1,- - - - BT:- - - - C,- - - - Difficulty:- - - - Easy,- - - - TOT:- - - - 2- - - - min.,- - - - AACSB:- - - - None,- - - - AICPA- - - - FC:- - - - Reporting,- - - - IMA:- - - - Reporting
6. Harper- - Travel- - Agency- - should- - report- - the- - land- - at- - $85,000- - on- - its- - December- -
31,- - 2022--balance- - sheet.- - This- - is- - true- - not- - only- - at- - the- - time- - the- - land- - is- -
purchased,- - but- - also- - over--the- - time- - the- - land- - is- - held.- - In- - determining- - which- -
measurement- - principle- - to- - use- - (historical- - cost- - or- - fair- - value)- - companies- - weigh- - the-
- factual- - nature- - of- - cost- - figures- - versus- - the--relevance- - of- - fair- - value.- - In- - general,- -
companies- - use- - historical- - cost.- - Only- - in- - situations--where- - assets- - are- - actively- -
traded- - do- - - - companies- - apply- - the- - fair- - value- - principle.
LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement,- - Analysis
and--Interpretation IMA:- - Reporting
7. The- - monetary- - unit- - assumption- - requires- - that- - only- - transaction- - data- - capable- - of- - being- -
expressed- - in- - terms- - of- - money- - be- - included- - in- - the- - accounting- - records.- - This- - assumption--
1-4 ©--2021--John--Wiley--&--Sons,--Inc.--All--rights--reserved.- - Weygandt,--Financial--&--Managerial--Accounting--4e,--Solutions--Manual- - (For--Instructor--
Use--Only)
-- -- --
Financial And Managerial Accounting 4th Edition by Jerry J
-- -- -- -- -- -- -- -- --
Weygandt, Paul D Kimmel, Jill E Mitchel
-- -- -- -- -- --
CHAPTER 1 --
Accounting in Action - - - -
ASSIGNMENT CLASSIFICATION TABLE -- - -
Brief A
Learning- - Objectives - - Questions Exercises - - Do- - It! - - Exercises Problems
1. Identify- - the- - 1,- - 2,- - 3,- - 5 1 1, 2
activities 4,
and--users- - associated
with- - accounting.
2.- - - - Explain- - - - the- - - - blocks 6,- - 7,- - 8,- - 2 3, 4
building 9,
of accounting: ethics, 10
principles, and
assumptions.
3. State- - the- - 11,- - 12, 13, 1, 2, 3, 4, 5 3 5
accounting
equation,- - and- - define 14.
its--components. 22
4. Analyze- - the- - effects- 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A,- - 2A,- -
- of 4A,
business- - transactions on 5A
the--accounting- - equation.
5.- - Describe--the--four--financial-- 17,- - 19,- - 10,- - 11 5 8,- - 9,- - 10,- - 2A,- - 3A,- - 4A,
statements--and--how--they-- 20, 11, 5A
are--prepared. 21, 12,- - 13,- - 14,
15,
16,- - 17,- - 18
obtain--permission--to--reuse--this--material--is--available--at--
http://www.wiley.com/go/permissions.
,1-2 ©--2021--John--Wiley--&--Sons,--Inc.--All--rights--reserved.- - Weygandt,--Financial--&--Managerial--Accounting--4e,--Solutions--Manual- - (For--Instructor--
Use--Only)
,©- - 2021- - John- - Wiley- - &- - Sons,- - Inc.- - All- - rights- - reserved.- - No- - part- - of- - this- - publication- - may- - be- -
reproduced,- - stored- - in- - a--retrieval- - system,- - or- - transmitted,- - in- - any- - form- - or- - by- - any- - means,- - electronic,-
- mechanical,- - photocopying,- - recording- - or--otherwise,- - except- - as- - permitted- - by- - law.- - Advice- - on- - how- - to
obtain--permission--to--reuse--this--material--is--available--at--
http://www.wiley.com/go/permissions.
, ANSWERS TO QUESTIONS -- --
1. True.--Virtually--every--organization--and--person--in--our--society--uses--accounting--information.--
Businesses,- - investors,- - creditors,- - government- - agencies,- - and- - not-for-profit- -
organizations--must- - use- - accounting- - information- - to- - operate- - effectively.
LO- - - - 1,- - - - BT:- - - - K,- - - - Difficulty:- - - - Easy,- - - - TOT:- - - - 2- - - - min.,- - - - AACSB:- - - - None,- - - - AICPA- - - - FC:- - - - Reporting,- - - - IMA:- - - - Reporting
2. Accounting- - is- - the- - process- - of- - identifying,- - recording,- - and- - communicating- - the- -
economic--events--of--an--organization--to--interested--users--of--the--information.--The--first--activity--of--
the--accounting- - process- - is- - to- - identify- - economic- - events- - that- - are- - relevant- - to- - a- -
particular--business.- - Once- - identified- - and- - measured,- - the- - events- - are- - recorded- - to- -
provide- - a- - history--of- - the- - financial- - activities- - of- - the- - organization.- - Recording- -
consists- - of- - keeping- - a--chronological--diary--of--these--measured--events--in--an--orderly--and--
systematic--manner.--The--information- - is- - communicated- - through- - the- - preparation- - and- -
distribution- - of- - accounting--reports,- - - - the- - - - most- - - - common- - - - of- - - - which- - are- - - -
called- - financial- - statements.- - A- - vital--element- - in- - the- - communication- - process- - is- - the- -
accountant’s- - ability- - and- - responsibility- - to--analyze- - and- - interpret- - the- - reported- - information.
LO- - - - 1,- - - - BT:- - - - K,- - - - Difficulty:- - - - Easy,- - - - TOT:- - - - 2- - - - min.,- - - - AACSB:- - - - None,- - - - AICPA- - - - FC:- - - - Reporting,- - - - IMA:- - - - Reporting
3. (a)- - Internal- - users- - are- - those- - who- - plan,- - organize,- - and- - run- - the- - business- - and- - therefore- -
are--officers- - and- - other- - decision- - makers.
(b)- - To- - assist- - management,- - accounting- - provides- - internal- - reports.- - Examples- -
include--financial- - comparisons- - of- - operating- - alternatives,- - projections- - of- - - - income-
- from- - new--sales- - campaigns,- - and- - forecasts- - of- - cash- - needs- - for- - the- - next- -
year.
LO- - - - 1,- - - - BT:- - - - K,- - - - Difficulty:- - - - Easy,- - - - TOT:- - - - 2- - - - min.,- - - - AACSB:- - - - None,- - - - AICPA- - - - FC:- - - - Reporting,- - - - IMA:- - - - Reporting
4. (a)- - Investors- - (owners)- - use- - accounting- - information- - to- - make- - decisions- - to- - buy,- - hold,- -
or- - sell
stock.
(b) Creditors- - use- - accounting- - information- - to- - evaluate- - the- - risks- - of- - granting- - credit- - or- - lending- -
money.
LO- - - - 1,- - - - BT:- - - - K,- - - - Difficulty:- - - - Easy,- - - - TOT:- - - - 2- - - - min.,- - - - AACSB:- - - - None,- - - - AICPA- - - - FC:- - - - Reporting,- - - - IMA:- - - - Reporting
5. False.- - Bookkeeping- - usually- - involves- - only- - the- - recording- - of- - economic- - events- - and- -
therefore--is- - just- - one- - part- - of- - the- - entire- - accounting- - process.- - Accounting,- - on- -
the- - other- - hand,--involves- - the- - entire- - process- - of- - identifying,- - recording,- - and- -
communicating- - economic- - events.
LO- - - - 1,- - - - BT:- - - - C,- - - - Difficulty:- - - - Easy,- - - - TOT:- - - - 2- - - - min.,- - - - AACSB:- - - - None,- - - - AICPA- - - - FC:- - - - Reporting,- - - - IMA:- - - - Reporting
6. Harper- - Travel- - Agency- - should- - report- - the- - land- - at- - $85,000- - on- - its- - December- -
31,- - 2022--balance- - sheet.- - This- - is- - true- - not- - only- - at- - the- - time- - the- - land- - is- -
purchased,- - but- - also- - over--the- - time- - the- - land- - is- - held.- - In- - determining- - which- -
measurement- - principle- - to- - use- - (historical- - cost- - or- - fair- - value)- - companies- - weigh- - the-
- factual- - nature- - of- - cost- - figures- - versus- - the--relevance- - of- - fair- - value.- - In- - general,- -
companies- - use- - historical- - cost.- - Only- - in- - situations--where- - assets- - are- - actively- -
traded- - do- - - - companies- - apply- - the- - fair- - value- - principle.
LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement,- - Analysis
and--Interpretation IMA:- - Reporting
7. The- - monetary- - unit- - assumption- - requires- - that- - only- - transaction- - data- - capable- - of- - being- -
expressed- - in- - terms- - of- - money- - be- - included- - in- - the- - accounting- - records.- - This- - assumption--
1-4 ©--2021--John--Wiley--&--Sons,--Inc.--All--rights--reserved.- - Weygandt,--Financial--&--Managerial--Accounting--4e,--Solutions--Manual- - (For--Instructor--
Use--Only)
