Test bank for Solution Manual for Financial
Accounting 11th Edition by Robert Libby, Patricia
Libby latest update Grade A+ all chapters covered.
,TABLE OF CONTENTS
CHAPTER 1: Financial Statements And Business Decisions
Focus Company: Le-Nature’s Inc.
CHAPTER 2: Investing And Financing Decisions And The Accounting System
Focus Company: Chipotle Mexican Grill
CHAPTER 3: Operating Decisions And The Accounting System
Focus Company: Chipotle Mexican Grill
CHAPTER 4: Adjustments, Financial Statements, And The Closing Process
Focus Company: Chipotle Mexican Grill
CHAPTER 5: Communicating And Analyzing Accounting Information
Focus Company: Apple Inc.
CHAPTER 6: Reporting And Interpreting Sales Revenue, Receivables, And Cash
Focus Company: Skechers U.S.A.
CHAPTER 7: Reporting And Interpreting Cost Of Goods Sold And Inventory
Focus Company: Harley-Davidson, Inc.
CHAPTER 8: Reporting And Interpreting Property, Plant, And Equipment; Intangibles; And Natural
Resources
Focus Company: Fedex Corporation
CHAPTER 9: Reporting And Interpreting Liabilities
Focus Company: Starbucks
CHAPTER 10: Reporting And Interpreting Bond Securities
Focus Company: Amazon
CHAPTER 11: Reporting And Interpreting Stockholders’ Equity
Focus Company: Microsoft
CHAPTER 12: Statement Of Cash Flows
Focus Company: National Beverage Corporation
CHAPTER 13: Analyzing Financial Statements
Focus Company: The Home Depot
,Chapter 1
Financial Statements And Business Decisions
ANSWERS TO QUESTIONS
1. Accounting Is A System That Collects And Processes (Analyzes, Measures, And
Records) Financial Information About An Organization And Reports That
Information To Decision Makers.
2. Financial Accounting Involves Preparation Of The Four Basic Financial Statements
And Related Disclosures For External Decision Makers. Managerial Accounting
Involves The Preparation Of Detailed Plans, Budgets, Forecasts, And Performance
Reports For Internal Decision Makers.
3. Financial Reports Are Used By Both Internal And External Groups And Individuals.
The Internal Groups Are Comprised Of The Various Managers Of The Entity. The
External Groups Include The Owners, Investors, Creditors, Governmental
Agencies, Other Interested Parties, And The Public At Large.
4. Investors Purchase All Or Part Of A Business And Hope To Gain By Receiving
Part Of What The Company Earns And/Or Selling Their Ownership Interest In
The Company In The Future At A Higher Price Than They Paid. Creditors Lend
Money To A Company For A Specific Length Of Time And Hope To Gain By
Charging Interest On The Loan.
, 5. In A Society, Each Organization Can Be Defined As A Separate Accounting Entity.
An Accounting Entity Is The Organization For Which Financial Data Are To Be
Collected. Typical Accounting Entities Are A Business, A Church, A Governmental
Unit, A University And Other Nonprofit Organizations Such As A Hospital And A
Welfare Organization. A Business Typically Is Defined And Treated As A Separate
Entity Because The Owners, Creditors, Investors, And Other Interested Parties
Need To Evaluate Its Performance And Its Potential Separately From Other Entities
And From Its Owners.
6. Name Of Statement Alternative Title
(a) Income Statement (A) Statement Of Earnings; Statement Of
Income; Statement Of Operations
(b) Balance Sheet (B) Statement Of Financial Position
(c) Cash Flow Statement (C) Statement Of Cash Flows
7. The Heading Of Each Of The Four Required Financial Statements Should
Include The Following:
(a) Name Of The Entity
(b) Name Of The Statement
(c) Date Of The Statement, Or The Period Of Time
(d) Unit Of Measure
8. (A) The Purpose Of The Income Statement Is To Present Information About The
Revenues, Expenses, And The Net Income Of An Entity For A Specified
Period Of Time.
(b) The Purpose Of The Balance Sheet Is To Report The Financial Position Of An
Entity At A Given Date, That Is, To Report Information About The Assets,
Liabilities And Stockholders’ Equity Of The Entity As Of A Specific Date.
(c) The Purpose Of The Statement Of Cash Flows Is To Present Information
About The Flow Of Cash Into The Entity (Sources), The Flow Of Cash Out Of
The Entity (Uses), And The Net Increase Or Decrease In Cash During The
Period.
(d) The Statement Of Stockholders’ Equity Reports The Changes In Each Of
The Company’s Stockholders’ Equity Accounts During The Accounting
Period, Including Issue And Repurchase Of Stock And The Way That Net
Income And Distribution Of Dividends Affected The Retained Earnings Of
The Company During That Period.
9. The Income Statement And The Statement Of Cash Flows Are Dated ―For The
Year Ended December 31‖ Because They Report The Inflows And Outflows Of
Resources During A Period Of Time. In Contrast, The Balance Sheet Is Dated
―At December 31‖ Because It Represents The Resources, Obligations, And
Stockholders’ Equity At A Specific Date.
Accounting 11th Edition by Robert Libby, Patricia
Libby latest update Grade A+ all chapters covered.
,TABLE OF CONTENTS
CHAPTER 1: Financial Statements And Business Decisions
Focus Company: Le-Nature’s Inc.
CHAPTER 2: Investing And Financing Decisions And The Accounting System
Focus Company: Chipotle Mexican Grill
CHAPTER 3: Operating Decisions And The Accounting System
Focus Company: Chipotle Mexican Grill
CHAPTER 4: Adjustments, Financial Statements, And The Closing Process
Focus Company: Chipotle Mexican Grill
CHAPTER 5: Communicating And Analyzing Accounting Information
Focus Company: Apple Inc.
CHAPTER 6: Reporting And Interpreting Sales Revenue, Receivables, And Cash
Focus Company: Skechers U.S.A.
CHAPTER 7: Reporting And Interpreting Cost Of Goods Sold And Inventory
Focus Company: Harley-Davidson, Inc.
CHAPTER 8: Reporting And Interpreting Property, Plant, And Equipment; Intangibles; And Natural
Resources
Focus Company: Fedex Corporation
CHAPTER 9: Reporting And Interpreting Liabilities
Focus Company: Starbucks
CHAPTER 10: Reporting And Interpreting Bond Securities
Focus Company: Amazon
CHAPTER 11: Reporting And Interpreting Stockholders’ Equity
Focus Company: Microsoft
CHAPTER 12: Statement Of Cash Flows
Focus Company: National Beverage Corporation
CHAPTER 13: Analyzing Financial Statements
Focus Company: The Home Depot
,Chapter 1
Financial Statements And Business Decisions
ANSWERS TO QUESTIONS
1. Accounting Is A System That Collects And Processes (Analyzes, Measures, And
Records) Financial Information About An Organization And Reports That
Information To Decision Makers.
2. Financial Accounting Involves Preparation Of The Four Basic Financial Statements
And Related Disclosures For External Decision Makers. Managerial Accounting
Involves The Preparation Of Detailed Plans, Budgets, Forecasts, And Performance
Reports For Internal Decision Makers.
3. Financial Reports Are Used By Both Internal And External Groups And Individuals.
The Internal Groups Are Comprised Of The Various Managers Of The Entity. The
External Groups Include The Owners, Investors, Creditors, Governmental
Agencies, Other Interested Parties, And The Public At Large.
4. Investors Purchase All Or Part Of A Business And Hope To Gain By Receiving
Part Of What The Company Earns And/Or Selling Their Ownership Interest In
The Company In The Future At A Higher Price Than They Paid. Creditors Lend
Money To A Company For A Specific Length Of Time And Hope To Gain By
Charging Interest On The Loan.
, 5. In A Society, Each Organization Can Be Defined As A Separate Accounting Entity.
An Accounting Entity Is The Organization For Which Financial Data Are To Be
Collected. Typical Accounting Entities Are A Business, A Church, A Governmental
Unit, A University And Other Nonprofit Organizations Such As A Hospital And A
Welfare Organization. A Business Typically Is Defined And Treated As A Separate
Entity Because The Owners, Creditors, Investors, And Other Interested Parties
Need To Evaluate Its Performance And Its Potential Separately From Other Entities
And From Its Owners.
6. Name Of Statement Alternative Title
(a) Income Statement (A) Statement Of Earnings; Statement Of
Income; Statement Of Operations
(b) Balance Sheet (B) Statement Of Financial Position
(c) Cash Flow Statement (C) Statement Of Cash Flows
7. The Heading Of Each Of The Four Required Financial Statements Should
Include The Following:
(a) Name Of The Entity
(b) Name Of The Statement
(c) Date Of The Statement, Or The Period Of Time
(d) Unit Of Measure
8. (A) The Purpose Of The Income Statement Is To Present Information About The
Revenues, Expenses, And The Net Income Of An Entity For A Specified
Period Of Time.
(b) The Purpose Of The Balance Sheet Is To Report The Financial Position Of An
Entity At A Given Date, That Is, To Report Information About The Assets,
Liabilities And Stockholders’ Equity Of The Entity As Of A Specific Date.
(c) The Purpose Of The Statement Of Cash Flows Is To Present Information
About The Flow Of Cash Into The Entity (Sources), The Flow Of Cash Out Of
The Entity (Uses), And The Net Increase Or Decrease In Cash During The
Period.
(d) The Statement Of Stockholders’ Equity Reports The Changes In Each Of
The Company’s Stockholders’ Equity Accounts During The Accounting
Period, Including Issue And Repurchase Of Stock And The Way That Net
Income And Distribution Of Dividends Affected The Retained Earnings Of
The Company During That Period.
9. The Income Statement And The Statement Of Cash Flows Are Dated ―For The
Year Ended December 31‖ Because They Report The Inflows And Outflows Of
Resources During A Period Of Time. In Contrast, The Balance Sheet Is Dated
―At December 31‖ Because It Represents The Resources, Obligations, And
Stockholders’ Equity At A Specific Date.
