obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
, CHAPTER 1
Accounting In Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify The 1, 2, 3, 4, 5 1 1, 2
Activities And Users
Associated With
Accounting.
2. Explain The Building 6, 7, 8, 9, 10 2 3, 4
Blocks Of Accounting:
Ethics, Principles, And
Assumptions.
3. State The Accounting 11, 12, 13, 1, 2, 3, 4, 5 3 5
14.
Equation, And Define Its 22
Components.
4. Analyze The Effects Of 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A,
4A,
Business Transactions On 5A
The
Accounting Equation.
5. Describe The Four 17, 19, 20, 10, 11 5 8, 9, 10, 11, 2A, 3A,
Financial 21, 4A,
Statements And How They 12, 13, 14, 5A
Are 15,
Prepared. 16, 17, 18
© 2020 John Wiley & Sons, Inc. All Rights Reserved. No Part Of This Publication May Be
1-2 © 2020 John Wiley & Sons, Inc. A ll rights reserv ed. Weygandt, Financial Accounting 11e, Solutions M anual (For Instructor Use Only)
,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
True. Virtually Every Organization And Person In Our Society Uses Accounting
1.
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
Accounting Is The Process Of Identifying, Recording, And Communicating The Economic
2.
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
(A) Internal Users Are Those Who Plan, Organize, And Run The Business And
3.
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
(A) Investors (Owners) Use Accounting Information To Make Decisions To Buy, Hold, Or
4.
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
False. Bookkeeping Usually Involves Only The Recording Of Economic Events And
5.
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
Harper Travel Agency Should Report The Land At $85,000 On Its December 31, 2022
6.
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
1-4 © 2020 John Wiley & Sons, Inc. A ll rights reserv ed. Weygandt, Financial Accounting 11e, Solutions M anual (For Instructor Use Only)
, CHAPTER 1
Accounting In Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify The 1, 2, 3, 4, 5 1 1, 2
Activities And Users
Associated With
Accounting.
2. Explain The Building 6, 7, 8, 9, 10 2 3, 4
Blocks Of Accounting:
Ethics, Principles, And
Assumptions.
3. State The Accounting 11, 12, 13, 1, 2, 3, 4, 5 3 5
14.
Equation, And Define Its 22
Components.
4. Analyze The Effects Of 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A,
4A,
Business Transactions On 5A
The
Accounting Equation.
5. Describe The Four 17, 19, 20, 10, 11 5 8, 9, 10, 11, 2A, 3A,
Financial 21, 4A,
Statements And How They 12, 13, 14, 5A
Are 15,
Prepared. 16, 17, 18
© 2020 John Wiley & Sons, Inc. All Rights Reserved. No Part Of This Publication May Be
1-2 © 2020 John Wiley & Sons, Inc. A ll rights reserv ed. Weygandt, Financial Accounting 11e, Solutions M anual (For Instructor Use Only)
,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
True. Virtually Every Organization And Person In Our Society Uses Accounting
1.
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
Accounting Is The Process Of Identifying, Recording, And Communicating The Economic
2.
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
(A) Internal Users Are Those Who Plan, Organize, And Run The Business And
3.
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
(A) Investors (Owners) Use Accounting Information To Make Decisions To Buy, Hold, Or
4.
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
False. Bookkeeping Usually Involves Only The Recording Of Economic Events And
5.
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
Harper Travel Agency Should Report The Land At $85,000 On Its December 31, 2022
6.
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
1-4 © 2020 John Wiley & Sons, Inc. A ll rights reserv ed. Weygandt, Financial Accounting 11e, Solutions M anual (For Instructor Use Only)
