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 FULL l2 l2



SOLUTION MANUAL FOR
Financial And Managerial Accounting 4th Edition by Jerry J
Weygandt, Paul D Kimmel, Jill E Mitchel




CHAPTER 1
Accounting in Action



Briefl2Exe A
Learningl2Objectives Questions rcises Dol2It! Exercises Problems

1. 1,l22,l23,l24,l25 1 1,l22
Identifyl2thel2activitiesl2a
nd2lusersl2associatedl2wit
hl2accounting.

2.l2Explainl2thel2buildingl2blocksl2ofl 6,l27,l28,l29,l210 2 3,l24
2accounting:l2ethics,l2principle

s,2landl2assumptions.

3. 11,l212,l213,l214 1,l22,l23,l24,l25 3 5
Statel2thel2accountingl2 .
equation,l2andl2definel2i 22
ts2lcomponents.

4. 15,l216,l218 6,l27,l28,l29 4 6,l27,l28 1A,l22A,l24A,
Analyzel2thel2effectsl2ofl2busi 5A
nessl2transactionsl2onl2the2lac
countingl2equation.
5. 17,l219,l220,l221 10,l211 5 8,l29,l210,l211, 2A,l23A,l24A,
Describel2thel2fourl2financiall2 , 12,l213,l214,l215 5A
statementsl2andl2howl2theyl2a ,
re2lprepared. 16,l217,l218




obtainl2permissionl2tol2reusel2thisl2materiall2isl2availablel2atl2http://www.wiley.com/go/permis
sions.

, ©l22021l2Johnl2Wileyl2&l2Sons,l2Inc.l2Alll2rightsl2reserved.l2Nol2partl2ofl2thisl2publicationl2mayl2bel2reproduced,l2storedl2inl2al2retrievall2system,l
2orl2transmitted,2 linl2anyl2forml2orl2byl2anyl2means,l2electronic,l2mechanical,l2photocopying,l2recordingl2orl2otherwise,l2exceptl2 asl2 permittedl2b
yl2law.l2Advicel 2 onl2howl2to




1-2 ©l22021l2 Johnl2Wileyl2&l2Sons,l2Inc.l2Alll2rightsl2reserved.l 2 Weygandt,l2Financiall2&l2Manageriall2Accountingl24e,l2Solutionsl2Manuall2l2l 2 (Forl2 I
nstructorl2Usel2Only)

, ANSWERS TO QUESTIONS l2 l2




1. True.l2Virtuallyl2everyl2organizationl2andl2personl2inl2ourl2societyl2usesl2accountingl2information.l2Bus
inesses,l2investors,l2creditors,l2governmentl2agencies,l2andl2not-for-
profitl2organizationsl2mustl2usel2accountingl2informationl2tol2operatel2effectively.
LOl 2 1,l 2 BT:l 2 K,l 2 Difficulty:l 2 Easy,l 2 TOT:l 2 2l 2 min.,l 2 AACSB:l 2 None,l 2 AICPAl 2 FC:l 2 Reporting,l 2 IMA:l 2 Reporting

2. Accountingl2isl2thel2processl2ofl2identifying,l2recording,l2andl 2 communicatingl 2 thel2economicl2event
sl2ofl2anl2organizationl2tol2interestedl2usersl2ofl2thel2information.l2Thel2firstl2activityl2ofl2thel2accountingl
2processl2isl2tol2identifyl2economicl2eventsl2thatl2arel2relevantl2tol2al2particularl2business.l2Oncel2identi

fiedl2andl2measured,l2thel2eventsl2arel2recordedl2tol2providel2al2historyl2ofl2thel2financiall2activitiesl2ofl2
thel2organization.l2Recordingl2consistsl2ofl2keepingl2al2chronologicall2diaryl2ofl2thesel2measuredl2eve
ntsl2inl2an2lorderlyl2andl2systematicl2manner.l2Thel2informationl2isl2communicatedl2throughl2thel2prepa
rationl2andl2distributionl2ofl2accountingl 2 reports,l 2 thel 2 mostl 2 commonl 2 ofl 2 whichl2arel 2 calledl2fi
nanciall2statements.2lAl2vitall2elementl2inl2thel2communicationl2processl2isl2thel2accountant’sl2abilityl2a
ndl2responsibilityl2tol2analyzel2andl2interpretl2thel2reportedl2information.
LOl 2 1,l 2 BT:l 2 K,l 2 Difficulty:l 2 Easy,l 2 TOT:l 2 2l 2 min.,l 2 AACSB:l 2 None,l 2 AICPAl 2 FC:l 2 Reporting,l 2 IMA:l 2 Reporting

3. (a)l2Internall2usersl2arel2thosel2whol2plan,l2organize,l2andl2runl2thel2businessl2andl2thereforel2arel2offic
ersl2andl2otherl2decisionl2makers.
(b) Tol2assistl2management,l2accountingl2providesl2internall2reports.l2Examplesl2includel2financiall2
comparisonsl2ofl2operatingl2alternatives,l2projectionsl2ofl 2 incomel2froml2newl2salesl2campaigns
,l2andl2forecastsl2ofl2 cashl2needsl2forl2thel2nextl2year.
LOl 2 1,l 2 BT:l 2 K,l 2 Difficulty:l 2 Easy,l 2 TOT:l 2 2l 2 min.,l 2 AACSB:l 2 None,l 2 AICPAl 2 FC:l 2 Reporting,l 2 IMA:l 2 Reporting

4. (a) Investorsl2(owners)l2usel2accountingl2informationl2tol2makel2decisionsl2tol2buy,l2hold,l2orl2selll2stock.
(b) Creditorsl2usel2accountingl2informationl2tol2evaluatel2thel2risksl2ofl2grantingl2creditl2orl2lendingl2money.
LOl 2 1,l 2 BT:l 2 K,l 2 Difficulty:l 2 Easy,l 2 TOT:l 2 2l 2 min.,l 2 AACSB:l 2 None,l 2 AICPAl 2 FC:l 2 Reporting,l 2 IMA:l 2 Reporting

5. False.l2Bookkeepingl2usuallyl2involvesl2onlyl2thel2recordingl2ofl2economicl2eventsl2andl2thereforel2isl2j
ustl2onel2partl2ofl2thel2entirel2accountingl2process.l2Accounting,l2onl2thel2otherl2hand,l2involvesl2thel2e
ntirel2processl2ofl2identifying,l2recording,l2andl2communicatingl2economicl2events.
LOl 2 1,l 2 BT:l 2 C,l 2 Difficulty:l 2 Easy,l 2 TOT:l 2 2l 2 min.,l 2 AACSB:l 2 None,l 2 AICPAl 2 FC:l 2 Reporting,l 2 IMA:l 2 Reporting

6. Harperl2Travell2Agencyl2shouldl2reportl2thel2landl2atl2$85,000l2onl2itsl2Decemberl231,l 2 2022l 2 balanc
el2sheet.l2Thisl2isl2truel2notl2onlyl2atl2thel2timel2thel2landl2isl2purchased,l2butl2alsol2overl2thel2timel2thel2l
andl2isl2held.l2Inl2determiningl2whichl2measurementl2principlel2tol2usel2(historicall2costl2orl2fairl2value)l2
companiesl2weighl2thel2factuall2naturel2ofl2costl2figuresl2versusl2thel2relevancel2ofl2fairl2value.l2Inl2gen
eral,l2companiesl2usel2historicall2cost.l2Onlyl2inl2situationsl2wherel2assetsl2arel2activelyl2tradedl2dol 2 c
ompaniesl2applyl2thel2fairl2valuel2principle.
LOl 2 2,l 2 BT:l 2 C,l 2 Difficulty:l 2 Easy,l 2 TOT:l 2 2l 2 min.,l 2 AACSB:l 2 None,l 2 AICPAl 2 FC:l 2 Measurement,l 2 Analysisl 2 andl 2 Interpretati
onl 2 IMA:l2Reporting

7. Thel2monetaryl2unitl2assumptionl2requiresl2thatl2onlyl2transactionl2datal2capablel2ofl2beingl2expresse
dl2inl2termsl2ofl2moneyl2bel2includedl2inl2thel2accountingl2records.l2Thisl2assumptionl2enablesl2accoun
tingl2tol2quantifyl2(measure)l2economicl2events.
LOl22,l2BT:l2K,l2Difficulty:l2Easy,l2TOT:l22l2min.,l2AACSB:l2None,l2AICPAl2FC:l2Measurement,l2Analysisl2andl2Interpretationl 2 I
MA:2lReporting




obtainl2permissionl2tol2reusel2thisl2materiall2isl2availablel2atl2http://www.wiley.com/go/permis
sions.

,