Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Kanaan, Sterling Chapters 1 - 13, Complete newest version

Solution Manual For Financial Accounting,
8th Canadian Edition by Libby, Hodge,
Kanaan, Sterling Chapters 1 - 13, Complete




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,TABLE OF CONTENTS vx vx vx




CHAPTER ONE vx




Financial Statements and Business Decisions
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CHAPTER TWO vx




Investing and Financing Decisions and the Accounting System
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CHAPTER THREE vx




Operating Decisions and the Accounting System
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CHAPTER FOUR vx




Adjustments, Financial Statements, and the Closing Process
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CHAPTER FIVE vx




Reporting and Interpreting Sales Revenue, Receivables, and Cash
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CHAPTER SIX vx




Reporting and Interpreting Cost of Sales and Inventory
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CHAPTER SEVEN vx




Reporting and Interpreting Long-Lived Assets
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CHAPTER EIGHT vx




Reporting and Interpreting Current Liabilities
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CHAPTER NINE vx




Reporting and Interpreting Non-current Liabilities
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CHAPTER TEN vx




Reporting and Interpreting Shareholders' Equity
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CHAPTER ELEVEN vx




Statement of Cash Flows
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CHAPTER TWELVE vx




Communicating Accounting Information and Analyzing Financial Statements
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CHAPTER THIRTEEN vx




Reporting and Interpreting Investments in Other Corporations
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,CHAPTER ONE vx




Financial Statements and Business Decisions vx vx vx vx




ANSWERS TO QUESTIONS vx vx




1. Accounting is a system that collects and processes (analyzes, measures, and records) vx vx vx vx vx vx vx vx vx vx vx vx




financial information about an organization and reports that information todecision ma
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kers.

2. Financial accounting involves preparation of the four basic financial statements andrela
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ted disclosures for external decision makers. Managerial accounting involves the prepa
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ration of detailed plans, budgets, forecasts, and performance reports for internal decisio
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n makers.
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3. Financial reports are used by both internal and external groups and individuals. Theinter
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nal groups are comprised of the various managers of the entity. The external groups inclu
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de the owners, investors, creditors, governmental agencies, other interested parties, an
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d the public at large.
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4. Investors purchase all or part of a business and hope to gain by receiving part of what the c
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ompany earns and/or selling the company in the future at a higher price than they paid. Cr
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editors lend money to a company for a specific length of time andhope to gain by charging
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interest on the loan. vx vx vx




5. In a society each organization can be defined as a separate accounting entity. An accoun
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ting entity is the organization for which financial data are to be collected. Typical accounti
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ng entities are a business, a church, a governmental unit, a university and other nonprofit
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organizations such as a hospital and a welfare organization. A business typically is defin vx vx vx vx vx vx vx vx vx vx vx vx vx




ed and treated as a separate entity because the owners, creditors, investors, and other i
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nterested parties need to evaluate its performance and its potential separately from othe vx vx vx vx vx vx vx vx vx vx vx vx




r entities and from itsowners.
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6. Name of Statement vx vx Alternative Title vx




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, (a) Income Statement
vx (a) Statement of Earnings; Statement of
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Income; Statement of Operations
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(b) Balance Sheet vx (b) Statement of Financial Position
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(c) Audit Report
vx (c) Report of Independent Accountants
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