Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patricia Libby, & Frank Hodge (Complete Chapters 1-13)

SOLUTION MANUAL FOR

FinancialAccounting 11th Edition
by Robert Libby, all Chapters 1 - 13

,TABLE OF CONTENTS
H H H




CHAPTERH1:HFinancialHStatementsHandHBusinessHDecisions
FocusHCompany:HLe-Nature’sHInc.
CHAPTERH2:HInvestingHandHFinancingHDecisionsHandHtheHAccountingHSystem
FocusHCompany:HChipotleHMexicanHGrill
CHAPTERH3:HOperatingHDecisionsHandHtheHAccountingHSystem
FocusHCompany:HChipotleHMexicanHGrill
CHAPTERH4:HAdjustments,HFinancialHStatements,HandHtheHClosingHProcess
FocusHCompany:HChipotleHMexicanHGrill
CHAPTERH5:HCommunicatingHandHAnalyzingHAccountingHInformation
FocusHCompany:HAppleHInc.
CHAPTERH6:HReportingHandHInterpretingHSalesHRevenue,HReceivables,HandHCash
FocusHCompany:HSkechersHU.S.A.
CHAPTERH7:HReportingHandHInterpretingHCostHofHGoodsHSoldHandHInventory
FocusHCompany:HHarley-Davidson,HInc.
CHAPTERH8:HReportingHandHInterpretingHProperty,HPlant,HandHEquipment;HIntangibles;HandHNaturalH
Resources
FocusHCompany:HFedExHCorporation
CHAPTERH9:HReportingHandHInterpretingHLiabilities
FocusHCompany:HStarbucks
CHAPTERH10:HReportingHandHInterpretingHBondHSecurities
FocusHCompany:HAmazon
CHAPTERH11:HReportingHandHInterpretingHStockholders’HEquity
FocusHCompany:HMicrosoft
CHAPTERH12:HStatementHofHCashHFlows
FocusHCompany:HNationalHBeverageHCorporation
CHAPTERH13:HAnalyzingHFinancialHStatements
FocusHCompany:HTheHHomeHDepot

,Chapter 1 H




Financial Statements and Business Decisions
H H H H




ANSWERS TO QUESTIONS
H H




1. AccountingHisHaHsystemHthatHcollectsHandHprocessesH(analyzes,Hmeasures,HandHrec
ords)HfinancialHinformationHaboutHanHorganizationHandHreportsHthatHinformationHtoHd
ecisionHmakers.

2. FinancialHaccountingHinvolvesHpreparationHofHtheHfourHbasicHfinancialHstatementsHan
dHrelatedHdisclosuresHforHexternalHdecisionHmakers.HManagerialHaccountingHinvolves
HtheHpreparationHofHdetailedHplans,Hbudgets,Hforecasts,HandHperformanceHreportsHfor

HinternalH decisionH makers.




3. FinancialHreportsHareHusedHbyHbothHinternalHandHexternalHgroupsHandHindividuals.HTh
eHinternalHgroupsHareHcomprisedHofHtheHvariousHmanagersHofHtheHentity.HTheHexternal
HgroupsHincludeHtheHowners,Hinvestors,Hcreditors,HgovernmentalHagencies,HotherHinte

restedHparties,HandHtheHpublicHatHlarge.

4. InvestorsHpurchaseHallHorHpartHofHaHbusinessHandHhopeHtoHgainHbyHreceivingHpartHofH
whatHtheHcompanyHearnsHand/orHsellingHtheirHownershipHinterestHinHtheHcompanyHin
HtheHfutureHatHaHhigherHpriceHthanHtheyHpaid.HCreditorsHlendHmoneyHtoHaHcompanyHf

orHaHspecificHlengthHofHtimeHandHhopeHtoHgainHbyHchargingHinterestHonHtheHloan.

, 5. InHaHsociety,HeachHorganizationHcanHbeHdefinedHasHaHseparateHaccountingHentity.HAnH
accountingHentityHisHtheHorganizationHforHwhichHfinancialHdataHareHtoHbeHcollected.HTy
picalHaccountingHentitiesHareHaHbusiness,HaHchurch,HaHgovernmentalHunit,HaHuniversit
yHandHotherHnonprofitHorganizationsHsuchHasHaHhospitalHandHaHwelfareHorganization.H
AHbusinessHtypicallyHisHdefinedHandHtreatedHasHaHseparateHentityHbecauseHtheHowner
s,Hcreditors,Hinvestors,HandHotherHinterestedHpartiesHneedHtoHevaluateHitsHperformanc
eHandHitsHpotentialHseparatelyHfromHotherHentitiesHandHfromHitsHowners.

6. NameHofHStatement AlternativeHTitle
(a) IncomeHStatement (a)HStatementHofHEarnings;HStatementHof
Income;HStatementHofHOperations
(b) BalanceHSheet (b)HStatementHofHFinancialHPosition
(c) CashHFlowHStatement (c)H StatementHofHCashHFlows

7. TheHheadingHofHeachHofHtheHfourHrequiredHfinancialHstatementsHshouldHincludeHth
eHfollowing:
(a) NameHofHtheHentity
(b) NameHofHtheHstatement
(c) DateHofHtheHstatement,HorHtheHperiodHofHtime
(d) UnitHofHmeasure

8. (a)
TheHpurposeHofHtheHincomeHstatementHisHtoHpresentHinformationHaboutHtheHr
evenues,Hexpenses,HandHtheHnetHincomeHofHanHentityHforHaHspecifiedHperiodHo
fHtime.
(b) TheHpurposeHofHtheHbalanceHsheetHisHtoHreportHtheHfinancialHpositionHofHanHentit
yHatHaHgivenHdate,HthatHis,HtoHreportHinformationHaboutHtheHassets,HliabilitiesHand
Hstockholders’HequityHofHtheHentityHasHofHaHspecificHdate.

(c) TheHpurposeHofHtheHstatementHofHcashHflowsHisHtoHpresentHinformationHaboutHth
eHflowHofHcashHintoHtheHentityH(sources),HtheHflowHofHcashHoutHofHtheHentityH(uses
),HandHtheHnetHincreaseHorHdecreaseHinHcashHduringHtheHperiod.
(d) TheHstatementHofHstockholders’HequityHreportsHtheHchangesHinHeachHofHtheHco
mpany’sHstockholders’HequityHaccountsHduringHtheHaccountingHperiod,Hincludi
ngHissueHandHrepurchaseHofHstockHandHtheHwayHthatHnetHincomeHandHdistributi
onHofHdividendsHaffectedHtheHretainedHearningsHofHtheHcompanyHduringHthatHper
iod.

9. TheHincomeHstatementHandHtheHstatementHofHcashHflowsHareHdatedH―ForHtheHYear
HEndedHDecemberH31‖HbecauseHtheyHreportHtheHinflowsHandHoutflowsHofHresource

sHduringHaHperiodHofHtime.HInHcontrast,HtheHbalanceHsheetHisHdatedH―AtHDecemberH
31‖HbecauseHitHrepresentsHtheHresources,Hobligations,HandHstockholders’HequityHat
HaHspecificHdate.