TEST BANK j j
Financial Accounting Tools For Business Decision
j j j j j
j Making, 10th Edition, Paul D. Kimmel,
j j j j j j
j Chapters 1 – 13, Complete
j j j j
Copyright j© j2022 jJohn jWiley j& jSons, jInc. j(For jInstructor jUse
jOnly)
,TABLE OF CONTENTS J J
1 Introduction to Financial Statements
j j j j j
2 A Further Look at Financial Statements
j j j j j j j
3 The Accounting Information System
j j j j j
4 Accrual Accounting Concepts
j j j j
5 Merchandising Operations and the Multiple-Step Income Statement
j j j j j j j j
6 Reporting and Analyzing Inventory
j j j j j
7 Fraud, Internal Control, and Cash
j j j j j j
8 Reporting and Analyzing Receivables
j j j j j
9 Reporting and Analyzing Long-Lived Assets
j j j j j j
10 Reporting and Analyzing Liabilities
j j j j j
11 Reporting and Analyzing Stockholders’ Equity
j j j j j j
12 Statement of Cash Flows
j j j j j
13 Financial Analysis: The Big Picture
j j j j j j
Copyright j© j2022 jJohn jWiley j& jSons, jInc. j(For jInstructor jUse
jOnly)
,CHAPTER 1 j
INTRODUCTION TO FINANCIAL STATEMENTS
j j j
CHAPTER jLEARNING jOBJECTIVES
1. Identify jthe jforms jof jbusiness jorganization jand jthe juses jof jaccounting jinformation. jA jsole
jproprietorship jis ja jbusiness jowned jby jone jperson. jA jpartnership jis ja jbusiness jowned jby jtwo jor jmore
jpeople jassociated jas jpartners. jA jcorporation jis ja jseparate jlegal jentity jfor jwhich jevidence jof
jownership jis jprovided jby jshares jof jstock. jInternal jusers jare jmanagers jwho jneed jaccounting
jinformation jto jplan, jorganize, jand jrun jbusiness joperations. jThe jprimary jexternal jusers jare jinvestors
jand jcreditors. jInvestors j(stockholders) juse jaccounting jinformation jto jdecide jwhether jto jbuy, jhold,
jor jsell jshares jof ja jcompany‘s jstock. jCreditors j(suppliers jand jbankers) j use j accounting j information j to
j assess j the j risk j of j granting j credit j or j loaning j money j toja jbusiness. jOther jgroups jwho jhave jan jindirect
jinterest jin ja jbusiness jare jtaxing jauthorities, jcustomers, jlabor junions, jand j regulatory jagencies.
2. Explain jthe jthree jprincipal jtypes jof jbusiness jactivity. jFinancing jactivities j involve jcollecting jthe
jnecessary jfunds jto jsupport jthe jbusiness. jInvesting jactivities jinvolve jacquiring jthe jresources
jnecessary jto jrun jthe jbusiness. jOperating jactivities jinvolve jputting j the jresources jof j the jbusiness
jinto jaction jto jgenerate ja j profit.
3. Describe jthe jfour jfinancial jstatements jand jhow jthey jare jprepared. jAn jincome jstatement jpresents
jthe jrevenues jand jexpenses jof ja jcompany jfor ja jspecific jperiod jof jtime. jA jretained jearnings jstatement
jsummarizes jthe jchanges jin jretained jearnings jthat jhave joccurred jfor ja jspecific jperiod jof jtime. jA
jbalance jsheet jreports jthe jassets, jliabilities, jand jstockholders‘ jequity jof ja jbusiness jat ja jspecific jdate.
jA jstatement jof jcash jflows j summarizes j information jconcerning jthe jcash jinflows j(receipts) jand
joutflows j(payments) jfor ja jspecific jperiod jof jtime. jAssets jare jresources jowned jby ja jbusiness.
jLiabilities jare jthe jdebts jand jobligations jof jthe jbusiness. jLiabilities jrepresent jclaims jof jcreditors jon
jthe jassets jof jthe jbusiness. jStockholders‘ jequity jrepresents jthe jclaims jof jowners jon jthe jassets jof jthe
jbusiness. jStockholders‘ jequity jis jsubdivided jinto jtwo jparts: jcommon jstock jand jretained jearnings.
jThe jbasic jaccounting jequation jis jAssets j= jLiabilities j+ jStockholders‘ jEquity. jWithin jthe jannual jreport,
jthe jmanagement jdiscussion jand janalysis jprovides jmanagement‘s jinterpretation jof jthe
jcompany‘s jresults jand jfinancial jposition jas jwell jas ja jdiscussion jof jplans jfor jthe jfuture. jNotes jto jthe
jfinancial jstatements jprovide jadditional jexplanation jor jdetail jto jmake jthe jfinancial jstatements jmore
jinformative. jThe jauditor‘s jreport jexpresses jan jopinion jas jto jwhether jthe jfinancial jstatements
jpresent jfairly jthe jcompany‘s jresults jof joperations jand jfinancial jposition.
*4. jExplain jthe jcareer jopportunities jin jaccounting. jAccounting joffers jmany jdifferent jjobs jin jfields jsuch
jas jpublic jand jprivate jaccounting, jgovernmental, jand jforensic jaccounting. jAccounting jis ja jpopular
jmajor jbecause jthere jare jmany jdifferent jtypes jof jjobs, jwith junlimited jpotential jfor jcareer
jadvancement
Copyright j© j2022 jJohn jWiley j& jSons, jInc. j(For jInstructor jUse
jOnly)
, 2-2 Test jBank jfor jKimmel, jFinancial jAccounting: jTools jfor jBusiness jDecision jMaking,
j 10e
Difficulties:
Easy: j143
Medium: j101
Hard: j12
Question jList jby jSection
Business jOrganization jand jAccounting jInformation
jUses:jForms jof jBusiness jOrganization; j47, j48, j202, j246
Sole jProprietorship: j5, j44, j49, j58, j59
Partnership: j1, j4, j46, j56
Corporation: j2, j3, j45, j50, j51, j52, j53, j55, j57, j233, j245
Hybrid jForms jof jOrganization: j60, j61
Users jand jUses jof j Financial jInformation: j6, j7, j11, j74, j87
Internal jUsers: j62, j63, j64, j75, j77, j82, j234
External jUsers: j8, j9, j10, j12, j65, j76, j78, j79, j80, j81, j83, j84, j85, j86, j88, j89
Data jAnalytics: j66, j67, j68, j69, j70, j235, j236
Ethics jin jFinancial jReporting: j71, j72, j73, j237, j255jThe
j Three j Types jof j Business jActivity: j97
Financing jActivities: j13, j15, j18, j90, j91, j93, j94, j95, j96, j97, j102, j109, j117, j118, j119, j238
Investing jActivities: j14, j16, j98, j99, j115, j116
Operating jActivities: j17, j19, j20, j100, j101, j103, j104, j105, j106, j107, j108, j110, j111, j112, j113,
114
The jFour jFinancial jStatements:
Income jStatement: j21, j22, j23, j24,127, j128, j132, j133, j134, j138, j142, j143
Retained jEarnings jStatement: j120, j122, j123, j 124, j125, j126, j129, j130, j131, j135, j137, j139, j140,
141, j144, j145, j146, j147, j148, j149, j150, j154, j164, j169, j178, j181, j252
Balance jSheet: j25, j27, j28, j29, j30, j31, j32, j33, j34, j35, j136, j151, j152, j153, j163, j165, j166, j168,
170, j173, j177, j179, j180, j182, j185, j186, j187, j188, j199, j200, j201, j207, j208, j213, j214, j215, j216,
217, j218, j219, j220, j221, j222, j225, j229, j239, j240, j241, j253
Statement jof j Cash jFlows: j26, j121, j171, j174, j183, j242, j249
Interrelationships jof jStatements: j155, j156, j157, j158, j159, j160, j161, j162, j167, j175, j176, j184,
250, j251, j256
Elements jof jan jAnnual jReport: j36, j41, j192, j196, j197
Management jDiscussion jand jAnalysis: j40, j191
Notes jto jthe jFinancial jStatements: j37, j42, j190, j193, j194, j198, j254
Auditor‘s jReport: j38, j39, j195
Copyright j© j2022 jJohn jWiley j& jSons, jInc. j(For jInstructor jUse
jOnly)
Financial Accounting Tools For Business Decision
j j j j j
j Making, 10th Edition, Paul D. Kimmel,
j j j j j j
j Chapters 1 – 13, Complete
j j j j
Copyright j© j2022 jJohn jWiley j& jSons, jInc. j(For jInstructor jUse
jOnly)
,TABLE OF CONTENTS J J
1 Introduction to Financial Statements
j j j j j
2 A Further Look at Financial Statements
j j j j j j j
3 The Accounting Information System
j j j j j
4 Accrual Accounting Concepts
j j j j
5 Merchandising Operations and the Multiple-Step Income Statement
j j j j j j j j
6 Reporting and Analyzing Inventory
j j j j j
7 Fraud, Internal Control, and Cash
j j j j j j
8 Reporting and Analyzing Receivables
j j j j j
9 Reporting and Analyzing Long-Lived Assets
j j j j j j
10 Reporting and Analyzing Liabilities
j j j j j
11 Reporting and Analyzing Stockholders’ Equity
j j j j j j
12 Statement of Cash Flows
j j j j j
13 Financial Analysis: The Big Picture
j j j j j j
Copyright j© j2022 jJohn jWiley j& jSons, jInc. j(For jInstructor jUse
jOnly)
,CHAPTER 1 j
INTRODUCTION TO FINANCIAL STATEMENTS
j j j
CHAPTER jLEARNING jOBJECTIVES
1. Identify jthe jforms jof jbusiness jorganization jand jthe juses jof jaccounting jinformation. jA jsole
jproprietorship jis ja jbusiness jowned jby jone jperson. jA jpartnership jis ja jbusiness jowned jby jtwo jor jmore
jpeople jassociated jas jpartners. jA jcorporation jis ja jseparate jlegal jentity jfor jwhich jevidence jof
jownership jis jprovided jby jshares jof jstock. jInternal jusers jare jmanagers jwho jneed jaccounting
jinformation jto jplan, jorganize, jand jrun jbusiness joperations. jThe jprimary jexternal jusers jare jinvestors
jand jcreditors. jInvestors j(stockholders) juse jaccounting jinformation jto jdecide jwhether jto jbuy, jhold,
jor jsell jshares jof ja jcompany‘s jstock. jCreditors j(suppliers jand jbankers) j use j accounting j information j to
j assess j the j risk j of j granting j credit j or j loaning j money j toja jbusiness. jOther jgroups jwho jhave jan jindirect
jinterest jin ja jbusiness jare jtaxing jauthorities, jcustomers, jlabor junions, jand j regulatory jagencies.
2. Explain jthe jthree jprincipal jtypes jof jbusiness jactivity. jFinancing jactivities j involve jcollecting jthe
jnecessary jfunds jto jsupport jthe jbusiness. jInvesting jactivities jinvolve jacquiring jthe jresources
jnecessary jto jrun jthe jbusiness. jOperating jactivities jinvolve jputting j the jresources jof j the jbusiness
jinto jaction jto jgenerate ja j profit.
3. Describe jthe jfour jfinancial jstatements jand jhow jthey jare jprepared. jAn jincome jstatement jpresents
jthe jrevenues jand jexpenses jof ja jcompany jfor ja jspecific jperiod jof jtime. jA jretained jearnings jstatement
jsummarizes jthe jchanges jin jretained jearnings jthat jhave joccurred jfor ja jspecific jperiod jof jtime. jA
jbalance jsheet jreports jthe jassets, jliabilities, jand jstockholders‘ jequity jof ja jbusiness jat ja jspecific jdate.
jA jstatement jof jcash jflows j summarizes j information jconcerning jthe jcash jinflows j(receipts) jand
joutflows j(payments) jfor ja jspecific jperiod jof jtime. jAssets jare jresources jowned jby ja jbusiness.
jLiabilities jare jthe jdebts jand jobligations jof jthe jbusiness. jLiabilities jrepresent jclaims jof jcreditors jon
jthe jassets jof jthe jbusiness. jStockholders‘ jequity jrepresents jthe jclaims jof jowners jon jthe jassets jof jthe
jbusiness. jStockholders‘ jequity jis jsubdivided jinto jtwo jparts: jcommon jstock jand jretained jearnings.
jThe jbasic jaccounting jequation jis jAssets j= jLiabilities j+ jStockholders‘ jEquity. jWithin jthe jannual jreport,
jthe jmanagement jdiscussion jand janalysis jprovides jmanagement‘s jinterpretation jof jthe
jcompany‘s jresults jand jfinancial jposition jas jwell jas ja jdiscussion jof jplans jfor jthe jfuture. jNotes jto jthe
jfinancial jstatements jprovide jadditional jexplanation jor jdetail jto jmake jthe jfinancial jstatements jmore
jinformative. jThe jauditor‘s jreport jexpresses jan jopinion jas jto jwhether jthe jfinancial jstatements
jpresent jfairly jthe jcompany‘s jresults jof joperations jand jfinancial jposition.
*4. jExplain jthe jcareer jopportunities jin jaccounting. jAccounting joffers jmany jdifferent jjobs jin jfields jsuch
jas jpublic jand jprivate jaccounting, jgovernmental, jand jforensic jaccounting. jAccounting jis ja jpopular
jmajor jbecause jthere jare jmany jdifferent jtypes jof jjobs, jwith junlimited jpotential jfor jcareer
jadvancement
Copyright j© j2022 jJohn jWiley j& jSons, jInc. j(For jInstructor jUse
jOnly)
, 2-2 Test jBank jfor jKimmel, jFinancial jAccounting: jTools jfor jBusiness jDecision jMaking,
j 10e
Difficulties:
Easy: j143
Medium: j101
Hard: j12
Question jList jby jSection
Business jOrganization jand jAccounting jInformation
jUses:jForms jof jBusiness jOrganization; j47, j48, j202, j246
Sole jProprietorship: j5, j44, j49, j58, j59
Partnership: j1, j4, j46, j56
Corporation: j2, j3, j45, j50, j51, j52, j53, j55, j57, j233, j245
Hybrid jForms jof jOrganization: j60, j61
Users jand jUses jof j Financial jInformation: j6, j7, j11, j74, j87
Internal jUsers: j62, j63, j64, j75, j77, j82, j234
External jUsers: j8, j9, j10, j12, j65, j76, j78, j79, j80, j81, j83, j84, j85, j86, j88, j89
Data jAnalytics: j66, j67, j68, j69, j70, j235, j236
Ethics jin jFinancial jReporting: j71, j72, j73, j237, j255jThe
j Three j Types jof j Business jActivity: j97
Financing jActivities: j13, j15, j18, j90, j91, j93, j94, j95, j96, j97, j102, j109, j117, j118, j119, j238
Investing jActivities: j14, j16, j98, j99, j115, j116
Operating jActivities: j17, j19, j20, j100, j101, j103, j104, j105, j106, j107, j108, j110, j111, j112, j113,
114
The jFour jFinancial jStatements:
Income jStatement: j21, j22, j23, j24,127, j128, j132, j133, j134, j138, j142, j143
Retained jEarnings jStatement: j120, j122, j123, j 124, j125, j126, j129, j130, j131, j135, j137, j139, j140,
141, j144, j145, j146, j147, j148, j149, j150, j154, j164, j169, j178, j181, j252
Balance jSheet: j25, j27, j28, j29, j30, j31, j32, j33, j34, j35, j136, j151, j152, j153, j163, j165, j166, j168,
170, j173, j177, j179, j180, j182, j185, j186, j187, j188, j199, j200, j201, j207, j208, j213, j214, j215, j216,
217, j218, j219, j220, j221, j222, j225, j229, j239, j240, j241, j253
Statement jof j Cash jFlows: j26, j121, j171, j174, j183, j242, j249
Interrelationships jof jStatements: j155, j156, j157, j158, j159, j160, j161, j162, j167, j175, j176, j184,
250, j251, j256
Elements jof jan jAnnual jReport: j36, j41, j192, j196, j197
Management jDiscussion jand jAnalysis: j40, j191
Notes jto jthe jFinancial jStatements: j37, j42, j190, j193, j194, j198, j254
Auditor‘s jReport: j38, j39, j195
Copyright j© j2022 jJohn jWiley j& jSons, jInc. j(For jInstructor jUse
jOnly)
