Solution Manual For Financial Accounting,
7th Canadian Edition by Libby, Hodge,
Kanaan, Sterling Chapters 1 - 13, Complete
1-1
,TABLE OF CONTENTSF F F
CHAPTERFONE
FinancialFStatementsFandFBusinessFDecisions
CHAPTERFTWO
InvestingFandFFinancingFDecisionsFandFtheFAccountingFSystem
CHAPTERFTHREE
OperatingFDecisionsFandFtheFAccountingFSystem
CHAPTERFFOUR
Adjustments,FFinancialFStatements,FandFtheFClosingFProcess
CHAPTERFFIVE
ReportingFandFInterpretingFSalesFRevenue,FReceivables,FandFCash
CHAPTERFSIX
ReportingFandFInterpretingFCostFofFSalesFandFInventory
CHAPTERFSEVEN
ReportingFandFInterpretingFLong-LivedFAssets
CHAPTERFEIGHT
ReportingFandFInterpretingFCurrentFLiabilities
CHAPTERFNINE
ReportingFandFInterpretingFNon-currentFLiabilities
CHAPTERFTEN
ReportingFandFInterpretingFShareholders'FEquity
CHAPTERFELEVEN
StatementFofFCashFFlows
CHAPTERFTWELVE
CommunicatingFAccountingFInformationFandFAnalyzingFFinancialFStatements
CHAPTERFTHIRTEEN
ReportingFandFInterpretingFInvestmentsFinFOtherFCorporations
1-2
,CHAPTER ONE F
Financial Statements and Business Decisions
F F F F
ANSWERSFTOFQUESTIONS
1. AccountingFisFaFsystemFthatFcollectsFandFprocessesF(analyzes,Fmeasures,FandFrecor
ds)FfinancialFinformationFaboutFanForganizationFandFreportsFthatFinformationFtoFdecisio
nFmakers.
2. FinancialFaccountingFinvolvesFpreparationFofFtheFfourFbasicFfinancialFstatementsFandFr
elatedFdisclosuresFforFexternalFdecisionFmakers.FManagerialFaccountingFinvolvesFtheF
preparationFofFdetailedFplans,Fbudgets,Fforecasts,FandFperformanceFreportsFforFintern
alFdecisionFmakers.
3. FinancialFreportsFareFusedFbyFbothFinternalFandFexternalFgroupsFandFindividuals.FTheFin
ternalFgroupsFareFcomprisedFofFtheFvariousFmanagersFofFtheFentity.FTheFexternalFgroup
sFincludeFtheFowners,Finvestors,Fcreditors,FgovernmentalFagencies,FotherFinterestedFp
arties,FandFtheFpublicFatFlarge.
4. InvestorsFpurchaseFallForFpartFofFaFbusinessFandFhopeFtoFgainFbyFreceivingFpartFofFwhatFt
heFcompanyFearnsFand/orFsellingFtheFcompanyFinFtheFfutureFatFaFhigherFpriceFthanFtheyF
paid.FCreditorsFlendFmoneyFtoFaFcompanyFforFaFspecificFlengthFofFtimeFandFhopeFtoFgainF
byFchargingFinterestFonFtheFloan.
5. InFaFsocietyFeachForganizationFcanFbeFdefinedFasFaFseparateFaccountingFentity.FAnFacc
ountingFentityFisFtheForganizationFforFwhichFfinancialFdataFareFtoFbeFcollected.FTypicalFa
ccountingFentitiesFareFaFbusiness,FaFchurch,FaFgovernmentalFunit,FaFuniversityFandFoth
erFnonprofitForganizationsFsuchFasFaFhospitalFandFaFwelfareForganization.FAFbusinessFt
ypicallyFisFdefinedFandFtreatedFasFaFseparateF entityFbecauseFtheFowners,Fcreditors,Finv
estors,FandFotherFinterestedFpartiesFneedFtoFevaluateFitsFperformanceFandFitsFpotentialF
separatelyFfromFotherFentitiesFandFfromFitsFowners.
6. NameFofFStatement AlternativeFTitle
1-3
, (a) IncomeFStatement (a)F StatementFofFEarnings;FStatementFof
Income;FStatementFofFOperations
(b) BalanceFSheet (b)F StatementFofFFinancialFPosition
(c) AuditFReport (c)F ReportFofFIndependentFAccountants
1-4
7th Canadian Edition by Libby, Hodge,
Kanaan, Sterling Chapters 1 - 13, Complete
1-1
,TABLE OF CONTENTSF F F
CHAPTERFONE
FinancialFStatementsFandFBusinessFDecisions
CHAPTERFTWO
InvestingFandFFinancingFDecisionsFandFtheFAccountingFSystem
CHAPTERFTHREE
OperatingFDecisionsFandFtheFAccountingFSystem
CHAPTERFFOUR
Adjustments,FFinancialFStatements,FandFtheFClosingFProcess
CHAPTERFFIVE
ReportingFandFInterpretingFSalesFRevenue,FReceivables,FandFCash
CHAPTERFSIX
ReportingFandFInterpretingFCostFofFSalesFandFInventory
CHAPTERFSEVEN
ReportingFandFInterpretingFLong-LivedFAssets
CHAPTERFEIGHT
ReportingFandFInterpretingFCurrentFLiabilities
CHAPTERFNINE
ReportingFandFInterpretingFNon-currentFLiabilities
CHAPTERFTEN
ReportingFandFInterpretingFShareholders'FEquity
CHAPTERFELEVEN
StatementFofFCashFFlows
CHAPTERFTWELVE
CommunicatingFAccountingFInformationFandFAnalyzingFFinancialFStatements
CHAPTERFTHIRTEEN
ReportingFandFInterpretingFInvestmentsFinFOtherFCorporations
1-2
,CHAPTER ONE F
Financial Statements and Business Decisions
F F F F
ANSWERSFTOFQUESTIONS
1. AccountingFisFaFsystemFthatFcollectsFandFprocessesF(analyzes,Fmeasures,FandFrecor
ds)FfinancialFinformationFaboutFanForganizationFandFreportsFthatFinformationFtoFdecisio
nFmakers.
2. FinancialFaccountingFinvolvesFpreparationFofFtheFfourFbasicFfinancialFstatementsFandFr
elatedFdisclosuresFforFexternalFdecisionFmakers.FManagerialFaccountingFinvolvesFtheF
preparationFofFdetailedFplans,Fbudgets,Fforecasts,FandFperformanceFreportsFforFintern
alFdecisionFmakers.
3. FinancialFreportsFareFusedFbyFbothFinternalFandFexternalFgroupsFandFindividuals.FTheFin
ternalFgroupsFareFcomprisedFofFtheFvariousFmanagersFofFtheFentity.FTheFexternalFgroup
sFincludeFtheFowners,Finvestors,Fcreditors,FgovernmentalFagencies,FotherFinterestedFp
arties,FandFtheFpublicFatFlarge.
4. InvestorsFpurchaseFallForFpartFofFaFbusinessFandFhopeFtoFgainFbyFreceivingFpartFofFwhatFt
heFcompanyFearnsFand/orFsellingFtheFcompanyFinFtheFfutureFatFaFhigherFpriceFthanFtheyF
paid.FCreditorsFlendFmoneyFtoFaFcompanyFforFaFspecificFlengthFofFtimeFandFhopeFtoFgainF
byFchargingFinterestFonFtheFloan.
5. InFaFsocietyFeachForganizationFcanFbeFdefinedFasFaFseparateFaccountingFentity.FAnFacc
ountingFentityFisFtheForganizationFforFwhichFfinancialFdataFareFtoFbeFcollected.FTypicalFa
ccountingFentitiesFareFaFbusiness,FaFchurch,FaFgovernmentalFunit,FaFuniversityFandFoth
erFnonprofitForganizationsFsuchFasFaFhospitalFandFaFwelfareForganization.FAFbusinessFt
ypicallyFisFdefinedFandFtreatedFasFaFseparateF entityFbecauseFtheFowners,Fcreditors,Finv
estors,FandFotherFinterestedFpartiesFneedFtoFevaluateFitsFperformanceFandFitsFpotentialF
separatelyFfromFotherFentitiesFandFfromFitsFowners.
6. NameFofFStatement AlternativeFTitle
1-3
, (a) IncomeFStatement (a)F StatementFofFEarnings;FStatementFof
Income;FStatementFofFOperations
(b) BalanceFSheet (b)F StatementFofFFinancialFPosition
(c) AuditFReport (c)F ReportFofFIndependentFAccountants
1-4
