ProcessQCosting21AQ-Q1
TESTBANK
Accounting Principles 14th Edition
By Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 27, Complete
, 21AQ-Q2
QTestQBankQforQAccountingQPrinciples,QFourteenthQEdition
TABLE OF CONTENTS
Q Q
1 Q Accounting Q in Q Action Q
2 Q The Q Recording Q Process Q
3 Q Adjusting Q the Q Accounts
4 Q Completing Q the Q Accounting Q Cycle
5 Q Accounting Q for Q Merchandising Q Operations
6 Q Inventories Q
7 Q Accounting Q Information Q Systems Q
8 Q Fraud, Q Internal Q Control, Q and Q Cash Q
9 Q Accounting Q for Q Receivables Q
10 Q Plant Q Assets, Q Natural Q Resources, Q and Q Intangible Q Assets
11 Q Current Q Liabilities Q and Q Payroll Q Accounting
12 Q Accounting Q for Q Partnerships
13 Q Corporations: Q Organization Q and Q Capital Q Stock Q Transactio
ns
14 Q Corporations: Q Dividends, Q Retained Q Earnings, Q and Q Incom
e Q Reporting
, ProcessQCosting21AQ-Q3
15 Q Long-Term Q Liabilities
16 Q Investments
17 Q Statement Q of Q Cash Q Flows
18 Q Financial Q Analysis: Q The Q Big Q Picture Q
19 Q Managerial Q Accounting Q
20 Q Job Q Order Q Costing Q
21 Q Process Q Costing Q
22 Q Cost-Volume-Profit Q
23 Q Incremental Q Analysis Q
24 Q Budgetary Q Planning
25 Q Budgetary Q Control Q and Q Responsibility Q Accounting Q
26 Q Standard Q Costs Q and Q Balanced Q Scorecard Q
27 Q Planning Q for Q Capital Q Investments Q
, 21AQ-Q4
QTestQBankQforQAccountingQPrinciples,QFourteenthQEdition
CHAPTER Q 1
ACCOUNTINGQINQACTION
CHAPTERQLEARNINGQOBJECTIVES
1. IdentifyQtheQactivitiesQandQusersQassociatedQwithQaccounting.QAccountingQisQanQinformationQ
systemQthatQidentifies,Qrecords,QandQcommunicatesQtheQeconomicQeventsQofQanQorganization
QtoQinterestedQusers.QTheQmajorQusersQandQusesQofQaccountingQareQasQfollows:Q(a)QManage
mentQusesQaccountingQinformationQtoQplan,Qorganize,QandQrunQtheQbusiness.Q(b)QInvestorsQ(o
wners)QdecideQwhetherQtoQbuy,Qhold,QorQsellQtheirQfinancialQinterestsQonQtheQbasisQofQaccou
ntingQdata.Q(c)QCreditorsQ(suppliersQandQbankers)QevaluateQtheQrisksQofQgrantingQcreditQorQle
ndingQ moneyQ onQtheQbasisQofQaccountingQinformation.QOtherQgroupsQthatQuseQaccountingQi
nformationQareQtaxingQauthorities,QregulatoryQagencies,Qcustomers,QandQlaborQunions.
2. ExplainQtheQbuildingQblocksQofQaccounting:Qethics,Qprinciples,QandQassumptions.QEthicsQareQt
heQstandardsQofQconductQbyQwhichQactionsQareQjudgedQasQrightQorQwrong.QEffectiveQfinancial
QreportingQdependsQonQsoundQethicalQbehavior.
GenerallyQacceptedQaccountingQprinciplesQareQaQcommonQsetQofQstandardsQusedQbyQaccounta
nts.QTheQprimaryQaccountingQstandard-
settingQbodyQinQtheQUnitedQStatesQisQtheQFinancialQAccountingQStandardsQBoard.
3. StateQtheQaccountingQequation,QandQdefineQitsQcomponents.QTheQbasicQ accountingQequation
Qis:
AssetsQ=QLiabilitiesQ+QOwner'sQEquity
AssetsQ areQ resourcesQ aQ businessQ owns.Q LiabilitiesQ areQ creditorshipQ claimsQ onQ totalQ assets.QO
wner'sQequityQisQtheQownershipQclaimQonQtotalQassets.
TheQexpandedQaccountingQequationQis:
AssetsQ QLiabilitiesQ+QOwner'sQCapitalQ QOwner'sQDrawingsQ+QRevenuesQ
Expenses
InvestmentsQbyQownersQ(assetsQtheQownerQputsQintoQtheQbusiness)QareQrecordedQinQaQcateg
oryQcalledQowner‘sQcapital.QOwner‘sQdrawingsQareQtheQwithdrawalQofQassetsQbyQtheQownerQf
orQpersonalQuse.QRevenuesQareQtheQgrossQincreaseQinQowner‘sQequityQfromQbusinessQactivitie
sQforQtheQpurposeQofQearningQincome.QExpensesQareQtheQcostsQofQassetsQconsumedQorQservi
cesQusedQinQ theQ processQ ofQ earningQ revenue.Q Owner‘sQ equityQ isQ increasedQ byQ anQ owner‘
sQ investmentsQandQbyQrevenuesQfromQbusinessQoperations.QOwner‘sQequityQisQdecreasedQbyQ
anQowner‘sQwithdrawalsQofQassetsQandQbyQexpenses.
4. AnalyzeQtheQeffectsQofQbusinessQtransactionsQonQtheQaccountingQequation.QEachQbusinessQtra
nsactionQmustQhaveQaQdualQeffectQonQtheQaccountingQequation.QForQexample,QifQanQindividu
alQassetQincreases,QthereQmustQbeQaQcorrespondingQ(1)QdecreaseQinQanotherQasset,QorQ(2)Qin
creaseQinQaQspecificQliability,QorQ(3)QincreaseQinQowner'sQequity.
5. DescribeQtheQfourQfinancialQstatementsQandQhowQtheyQareQprepared.QAnQincomeQstatement
QpresentsQtheQrevenuesQandQexpenses,QandQresultingQnetQincomeQorQnetQ lossQforQaQ specifi
cQperiodQofQtime.QAnQowner'sQequityQstatementQsummarizesQtheQchangesQinQowner'sQequity
QforQaQspecificQperiodQofQtime.QAQbalanceQsheetQreportsQtheQassets,Qliabilities,QandQowner's
TESTBANK
Accounting Principles 14th Edition
By Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 27, Complete
, 21AQ-Q2
QTestQBankQforQAccountingQPrinciples,QFourteenthQEdition
TABLE OF CONTENTS
Q Q
1 Q Accounting Q in Q Action Q
2 Q The Q Recording Q Process Q
3 Q Adjusting Q the Q Accounts
4 Q Completing Q the Q Accounting Q Cycle
5 Q Accounting Q for Q Merchandising Q Operations
6 Q Inventories Q
7 Q Accounting Q Information Q Systems Q
8 Q Fraud, Q Internal Q Control, Q and Q Cash Q
9 Q Accounting Q for Q Receivables Q
10 Q Plant Q Assets, Q Natural Q Resources, Q and Q Intangible Q Assets
11 Q Current Q Liabilities Q and Q Payroll Q Accounting
12 Q Accounting Q for Q Partnerships
13 Q Corporations: Q Organization Q and Q Capital Q Stock Q Transactio
ns
14 Q Corporations: Q Dividends, Q Retained Q Earnings, Q and Q Incom
e Q Reporting
, ProcessQCosting21AQ-Q3
15 Q Long-Term Q Liabilities
16 Q Investments
17 Q Statement Q of Q Cash Q Flows
18 Q Financial Q Analysis: Q The Q Big Q Picture Q
19 Q Managerial Q Accounting Q
20 Q Job Q Order Q Costing Q
21 Q Process Q Costing Q
22 Q Cost-Volume-Profit Q
23 Q Incremental Q Analysis Q
24 Q Budgetary Q Planning
25 Q Budgetary Q Control Q and Q Responsibility Q Accounting Q
26 Q Standard Q Costs Q and Q Balanced Q Scorecard Q
27 Q Planning Q for Q Capital Q Investments Q
, 21AQ-Q4
QTestQBankQforQAccountingQPrinciples,QFourteenthQEdition
CHAPTER Q 1
ACCOUNTINGQINQACTION
CHAPTERQLEARNINGQOBJECTIVES
1. IdentifyQtheQactivitiesQandQusersQassociatedQwithQaccounting.QAccountingQisQanQinformationQ
systemQthatQidentifies,Qrecords,QandQcommunicatesQtheQeconomicQeventsQofQanQorganization
QtoQinterestedQusers.QTheQmajorQusersQandQusesQofQaccountingQareQasQfollows:Q(a)QManage
mentQusesQaccountingQinformationQtoQplan,Qorganize,QandQrunQtheQbusiness.Q(b)QInvestorsQ(o
wners)QdecideQwhetherQtoQbuy,Qhold,QorQsellQtheirQfinancialQinterestsQonQtheQbasisQofQaccou
ntingQdata.Q(c)QCreditorsQ(suppliersQandQbankers)QevaluateQtheQrisksQofQgrantingQcreditQorQle
ndingQ moneyQ onQtheQbasisQofQaccountingQinformation.QOtherQgroupsQthatQuseQaccountingQi
nformationQareQtaxingQauthorities,QregulatoryQagencies,Qcustomers,QandQlaborQunions.
2. ExplainQtheQbuildingQblocksQofQaccounting:Qethics,Qprinciples,QandQassumptions.QEthicsQareQt
heQstandardsQofQconductQbyQwhichQactionsQareQjudgedQasQrightQorQwrong.QEffectiveQfinancial
QreportingQdependsQonQsoundQethicalQbehavior.
GenerallyQacceptedQaccountingQprinciplesQareQaQcommonQsetQofQstandardsQusedQbyQaccounta
nts.QTheQprimaryQaccountingQstandard-
settingQbodyQinQtheQUnitedQStatesQisQtheQFinancialQAccountingQStandardsQBoard.
3. StateQtheQaccountingQequation,QandQdefineQitsQcomponents.QTheQbasicQ accountingQequation
Qis:
AssetsQ=QLiabilitiesQ+QOwner'sQEquity
AssetsQ areQ resourcesQ aQ businessQ owns.Q LiabilitiesQ areQ creditorshipQ claimsQ onQ totalQ assets.QO
wner'sQequityQisQtheQownershipQclaimQonQtotalQassets.
TheQexpandedQaccountingQequationQis:
AssetsQ QLiabilitiesQ+QOwner'sQCapitalQ QOwner'sQDrawingsQ+QRevenuesQ
Expenses
InvestmentsQbyQownersQ(assetsQtheQownerQputsQintoQtheQbusiness)QareQrecordedQinQaQcateg
oryQcalledQowner‘sQcapital.QOwner‘sQdrawingsQareQtheQwithdrawalQofQassetsQbyQtheQownerQf
orQpersonalQuse.QRevenuesQareQtheQgrossQincreaseQinQowner‘sQequityQfromQbusinessQactivitie
sQforQtheQpurposeQofQearningQincome.QExpensesQareQtheQcostsQofQassetsQconsumedQorQservi
cesQusedQinQ theQ processQ ofQ earningQ revenue.Q Owner‘sQ equityQ isQ increasedQ byQ anQ owner‘
sQ investmentsQandQbyQrevenuesQfromQbusinessQoperations.QOwner‘sQequityQisQdecreasedQbyQ
anQowner‘sQwithdrawalsQofQassetsQandQbyQexpenses.
4. AnalyzeQtheQeffectsQofQbusinessQtransactionsQonQtheQaccountingQequation.QEachQbusinessQtra
nsactionQmustQhaveQaQdualQeffectQonQtheQaccountingQequation.QForQexample,QifQanQindividu
alQassetQincreases,QthereQmustQbeQaQcorrespondingQ(1)QdecreaseQinQanotherQasset,QorQ(2)Qin
creaseQinQaQspecificQliability,QorQ(3)QincreaseQinQowner'sQequity.
5. DescribeQtheQfourQfinancialQstatementsQandQhowQtheyQareQprepared.QAnQincomeQstatement
QpresentsQtheQrevenuesQandQexpenses,QandQresultingQnetQincomeQorQnetQ lossQforQaQ specifi
cQperiodQofQtime.QAnQowner'sQequityQstatementQsummarizesQtheQchangesQinQowner'sQequity
QforQaQspecificQperiodQofQtime.QAQbalanceQsheetQreportsQtheQassets,Qliabilities,QandQowner's
