SOLUTION
MANUAL
ACCOUNTING
PRINCIPLES 12TH
EDITION
WEYGANDT
KIMMEL KIESO
,ASSIGNMENT CHARACTERISTICS TABLE
Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Solutions Manual
BLOOM‘S TAXONOMY TABLE
Correlation Chart Between Bloom‘s Taxonomy, Learning Objectives And End-Of-Chapter Exercises And Problems
Learning Objective Knowledge Comprehension Application Analysis Synthesis Evaluation
1. Identify The Activities And Users DI1-1 Q1-1 Q1-5
Associated With Accounting. Q1-2 E1-1
Q1-3 E1-2
Q1-4
3. Explain The Building Blocks Of Q1-7 Q1-6
Accounting: Ethics, Q1-8 E1-3
Principles, And Assumptions. Q1-9 E1-4
Q1-10
DI1-1
3. State The Accounting Equation, DI1-2 Q1-11 BE1-9 BE1-1 P1-1A
And Define Its Components. BE1-5 Q1-12 E1-5 BE1-2 P1-2A
Q1-13 BE1-3 P1-4A
BE1-4 DI1-5
BE1-8
4. Analyze The Effects Of Q1-14 BE1-6 DI1-4 P1-4A
Business Transactions On The Q1-15 BE1-7 E1-8 P1-5A
Accounting Equation. Q1-16 E1-6 P1-1A
Q1-18 E1-7 P1-2A
5. Describe The Four Financial Q1-17 Q1-20 E1-14 E1-13
Statements And How They Are Q1-19 Q1-21 E1-15
Prepared. BE1-11 BE1-10 E1-16
DI1-5 E1-17
E1-8 P1-2A
E1-9 P1-3A
E1-10 P1-4A
E1-11 P1-5A
E1-12
Broadening Your Perspective Real–World Focus FASB Codification Financial Reporting All About You
Considering Comparative Analysis Comparative Analysis
(For Instructor Use Only)
People, Planet, Decision–Making Across
And Profit The Organization
Communication Activity
Ethics Case
1-5
,
, ANSWERS TO QUESTIONSS
1. Yes, This Is Correct. Virtually Every Organization And Person In Our Society Uses Accounting
Information. Businesses, Investors, Creditors, Government Agencies, And Not-For-Profit
Organizations Must Use Accounting Information To Operate Effectively.
2. Accounting Is The Process Of Identifying, Recording, And Communicating The Economic Events
Of An Organization To Interested Users Of The Information. The First Step Of The Accounting
Process Is Therefore 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.
3. (A) Internal Users Are Those Who Plan, Organize, And Run The Business And Therefore Are
Officers And Other Decision Makers.
(b) To Assist Management, Managerial 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.
4. (A) Investors (Owners) Use Accounting Information To Make Decisions To Buy, Hold, Or Sell
Owner- Ship Shares Of A Company.
(b) Creditors Use Accounting Information To Evaluate The Risks Of Granting Credit Or Lending Money.
5. No, This Is Incorrect. Bookkeeping Usually Involves Only The Recording Of Economic Events
And 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.
6. Trenton Travel Agency Should Report The Land At $90,000 On Its December 31, 2017 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 (Cost Or Fair Value)
Companies Weigh The Factual Nature Of Cost Figures Versus The Relevance Of Fair Value. In
General, Companies Use Cost. Only In Situations Where Assets Are Actively Traded Do
Companies Apply The Fair Value Principle. An Important Concept That Accountants Follow Is
The Historical Cost Principle.
7. The Monetary Unit Assumption Requires That Only Transaction Data That Can Be Expressed In
Terms Of Money Be Included In The Accounting Records. This Assumption Enables Accounting
To Quantify (Measure) Economic Events.
8. The Economic Entity Assumption Requires That The Activities Of The Entity Be Kept Separate
And Distinct From The Activities Of Its Owners And All Other Economic Entities.
9. The Three Basic Forms Of Business Organizations Are: (1) Proprietorship, (2) Partnership, And
(3) Corporation.
1-6 Weygandt, Accounting Principles, 12/e, Solutions Manual (For Instructor Use Only)
MANUAL
ACCOUNTING
PRINCIPLES 12TH
EDITION
WEYGANDT
KIMMEL KIESO
,ASSIGNMENT CHARACTERISTICS TABLE
Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Solutions Manual
BLOOM‘S TAXONOMY TABLE
Correlation Chart Between Bloom‘s Taxonomy, Learning Objectives And End-Of-Chapter Exercises And Problems
Learning Objective Knowledge Comprehension Application Analysis Synthesis Evaluation
1. Identify The Activities And Users DI1-1 Q1-1 Q1-5
Associated With Accounting. Q1-2 E1-1
Q1-3 E1-2
Q1-4
3. Explain The Building Blocks Of Q1-7 Q1-6
Accounting: Ethics, Q1-8 E1-3
Principles, And Assumptions. Q1-9 E1-4
Q1-10
DI1-1
3. State The Accounting Equation, DI1-2 Q1-11 BE1-9 BE1-1 P1-1A
And Define Its Components. BE1-5 Q1-12 E1-5 BE1-2 P1-2A
Q1-13 BE1-3 P1-4A
BE1-4 DI1-5
BE1-8
4. Analyze The Effects Of Q1-14 BE1-6 DI1-4 P1-4A
Business Transactions On The Q1-15 BE1-7 E1-8 P1-5A
Accounting Equation. Q1-16 E1-6 P1-1A
Q1-18 E1-7 P1-2A
5. Describe The Four Financial Q1-17 Q1-20 E1-14 E1-13
Statements And How They Are Q1-19 Q1-21 E1-15
Prepared. BE1-11 BE1-10 E1-16
DI1-5 E1-17
E1-8 P1-2A
E1-9 P1-3A
E1-10 P1-4A
E1-11 P1-5A
E1-12
Broadening Your Perspective Real–World Focus FASB Codification Financial Reporting All About You
Considering Comparative Analysis Comparative Analysis
(For Instructor Use Only)
People, Planet, Decision–Making Across
And Profit The Organization
Communication Activity
Ethics Case
1-5
,
, ANSWERS TO QUESTIONSS
1. Yes, This Is Correct. Virtually Every Organization And Person In Our Society Uses Accounting
Information. Businesses, Investors, Creditors, Government Agencies, And Not-For-Profit
Organizations Must Use Accounting Information To Operate Effectively.
2. Accounting Is The Process Of Identifying, Recording, And Communicating The Economic Events
Of An Organization To Interested Users Of The Information. The First Step Of The Accounting
Process Is Therefore 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.
3. (A) Internal Users Are Those Who Plan, Organize, And Run The Business And Therefore Are
Officers And Other Decision Makers.
(b) To Assist Management, Managerial 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.
4. (A) Investors (Owners) Use Accounting Information To Make Decisions To Buy, Hold, Or Sell
Owner- Ship Shares Of A Company.
(b) Creditors Use Accounting Information To Evaluate The Risks Of Granting Credit Or Lending Money.
5. No, This Is Incorrect. Bookkeeping Usually Involves Only The Recording Of Economic Events
And 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.
6. Trenton Travel Agency Should Report The Land At $90,000 On Its December 31, 2017 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 (Cost Or Fair Value)
Companies Weigh The Factual Nature Of Cost Figures Versus The Relevance Of Fair Value. In
General, Companies Use Cost. Only In Situations Where Assets Are Actively Traded Do
Companies Apply The Fair Value Principle. An Important Concept That Accountants Follow Is
The Historical Cost Principle.
7. The Monetary Unit Assumption Requires That Only Transaction Data That Can Be Expressed In
Terms Of Money Be Included In The Accounting Records. This Assumption Enables Accounting
To Quantify (Measure) Economic Events.
8. The Economic Entity Assumption Requires That The Activities Of The Entity Be Kept Separate
And Distinct From The Activities Of Its Owners And All Other Economic Entities.
9. The Three Basic Forms Of Business Organizations Are: (1) Proprietorship, (2) Partnership, And
(3) Corporation.
1-6 Weygandt, Accounting Principles, 12/e, Solutions Manual (For Instructor Use Only)
