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Accounting,
8th Canadian Edition by Libby,
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Hodge,
Kanaan, Sterling Chapters 1 - 13,
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Complete
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,TABLE OF u vv u
CONTENTS
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CHAPTER ONE vv
Financial Statements and Business Decisions
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CHAPTER TWO vv
Investing and Financing Decisions and the Accounting System
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CHAPTER THREE vv
Operating Decisions and the Accounting System
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CHAPTER FOUR vv
Adjustments, Financial Statements, and the Closing Process
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CHAPTER FIVE vv
Reporting and Interpreting Sales Revenue, Receivables, and Cash
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CHAPTER SIX vv
Reporting and Interpreting Cost of Sales and Inventory
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CHAPTER SEVEN vv
Reporting and Interpreting Long-Lived Assets
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CHAPTER EIGHT vv
Reporting and Interpreting Current Liabilities
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CHAPTER NINE vv
Reporting and Interpreting Non-current Liabilities
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CHAPTER TEN vv
Reporting and Interpreting Shareholders' Equity
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CHAPTER ELEVEN vv
Statement of Cash Flows
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CHAPTER TWELVE vv
Communicating Accounting Information and Analyzing Financial Statements
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CHAPTER THIRTEEN vv
Reporting and Interpreting Investments in Other Corporations
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,CHAPTER u
ONE
Financial Statements and Business
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Decisions
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ANSWERS TO QUESTIONS vv vv
1. Accounting is a system that collects and processes (analyzes, measures, and
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records) financial information about an organization and reports that
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information to decision makers.
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2. Financial accounting involves preparation of the four basic financial
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statements andrelated disclosures for external decision makers. Managerial
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accounting involves the preparation of detailed plans, budgets, forecasts,
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and performance reports for internal decision makers.
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3. Financial reports are used by both internal and external groups and individuals.
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The internal groups are comprised of the various managers of the entity. The
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external groups include the owners, investors, creditors, governmental
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agencies, other interested parties, and the public at large.
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4. Investors purchase all or part of a business and hope to gain by receiving part
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of what the company earns and/or selling the company in the future at a
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higher price than they paid. Creditors lend money to a company for a specific
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length of time and hope to gain by charging interest on the loan.
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5. In a society each organization can be defined as a separate accounting entity.
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An accounting entity is the organization for which financial data are to be
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collected. Typical accounting entities are a business, a church, a governmental
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unit, a university and other nonprofit organizations such as a hospital and a
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welfare organization. A business typically is defined and treated as a separate
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entity because the owners, creditors, investors, and other interested parties
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need to evaluate its performance and its potential separately from other entities
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and from its owners.
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, 6. Name of Statement
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(a) Income Statement
vv (a) Statement of Earnings; Statement of
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Income; Statement of Operations
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(b) Balance Sheet vv (b) Statement of Financial Position
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(c) Audit Report
vv (c) Report of Independent Accountants
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