TEST BANK
Financial Accounting Tools For Business Decision
Making, 10th Edition, Paul D. Kimmel,
Chapters 1 – 13, Complete
CopyrightX©X2022XJohnXWileyX&XSons,XInc.X(ForXInstructorXUse
XOnly)
,TABLE OF CONTENTS
X X
1XIntroductionXtoXFinancialXStatementsX
2XAXFurtherXLookXatXFinancialXStatementsX
3XTheXAccountingXInformationXSystemX
4XAccrualXAccountingXConceptsX
5XMerchandisingXOperationsXandXtheXMultiple-StepXIncomeXStatementX
6XReportingXandXAnalyzingXInventoryX
7XFraud,XInternalXControl,XandXCashX
8XReportingXandXAnalyzingXReceivablesX
9XReportingXandXAnalyzingXLong-LivedXAssetsX
10XReportingXandXAnalyzingXLiabilitiesX
11XReportingXandXAnalyzingXStockholders’XEquityX
12XStatementXofXCashXFlowsX
13XFinancialXAnalysis:XTheXBigXPictureX
CopyrightX©X2022XJohnXWileyX&XSons,XInc.X(ForXInstructorXUse
XOnly)
,CHAPTERX1
INTRODUCTIONXTOXFINANCIALXSTATEMENTS
CHAPTERXLEARNINGXOBJECTIVES
1. IdentifyXtheXformsXofXbusinessXorganizationXandXtheXusesXofXaccountingXinformation.XAXsoleXpr
oprietorshipXisXaXbusinessXownedXbyXoneXperson.XAXpartnershipXisXaXbusinessXownedXbyXtwoXorX
moreXpeopleXassociatedXasXpartners.XAXcorporationXisXaXseparateXlegalXentityXforXwhichXevidence
XofXownershipXisXprovidedXbyXsharesXofXstock.XInternalXusersXareXmanagersXwhoXneedXaccounting
XinformationXtoXplan,Xorganize,XandXrunXbusinessXoperations.XTheXprimaryXexternalXusersXareXinv
estorsXandXcreditors.XInvestorsX(stockholders)XuseXaccountingXinformationXtoXdecideXwhetherXtoXb
uy,Xhold,XorXsellXsharesXofXaXcompany‘sXstock.XCreditorsX(suppliersXandXbankers)X useX accountingX i
nformationX toX assessXtheX riskX ofX grantingX creditXorX loaningX moneyXtoXaXbusiness.XOtherXgroupsX
whoXhaveXanXindirectXinterestXinXaXbusinessXareXtaxingXauthorities,Xcustomers,XlaborXunions,Xand
X regulatoryXagencies.
2. ExplainXtheXthreeXprincipalXtypesXofXbusinessXactivity.XFinancingXactivitiesX involveXcollectingXthe
XnecessaryXfundsXtoXsupportXtheXbusiness.XInvestingXactivitiesXinvolveXacquiringXtheXresourcesXne
cessaryXtoXrunXtheXbusiness.XOperatingXactivitiesXinvolveXputtingX theXresourcesXofX theXbusinessXi
ntoXactionXtoXgenerateXaXprofit.
3. DescribeXtheXfourXfinancialXstatementsXandXhowXtheyXareXprepared.XAnXincomeXstatementXpres
entsXtheXrevenuesXandXexpensesXofXaXcompanyXforXaXspecificXperiodXofXtime.XAXretainedXearning
sXstatementXsummarizesXtheXchangesXinXretainedXearningsXthatXhaveXoccurredXforXaXspecificXperi
odXofXtime.XAXbalanceXsheetXreportsXtheXassets,Xliabilities,XandXstockholders‘XequityXofXaXbusiness
XatXaXspecificXdate.XAXstatementXofXcashXflowsX summarizesX informationXconcerningXtheXcashXinfl
owsX(receipts)XandXoutflowsX(payments)XforXaXspecificXperiodXofXtime.XAssetsXareXresourcesXowne
dXbyXaXbusiness.XLiabilitiesXareXtheXdebtsXandXobligationsXofXtheXbusiness.XLiabilitiesXrepresentXcl
aimsXofXcreditorsXonXtheXassetsXofXtheXbusiness.XStockholders‘XequityXrepresentsXtheXclaimsXofXo
wnersXonXtheXassetsXofXtheXbusiness.XStockholders‘XequityXisXsubdividedXintoXtwoXparts:Xcommon
XstockXandXretainedXearnings.XTheXbasicXaccountingXequationXisXAssetsX=XLiabilitiesX+XStockholder
s‘XEquity.XWithinXtheXannualXreport,XtheXmanagementXdiscussionXandXanalysisXprovidesXmanagem
ent‘sXinterpretationXofXtheXcompany‘sXresultsXandXfinancialXpositionXasXwellXasXaXdiscussionXofXpla
nsXforXtheXfuture.XNotesXtoXtheXfinancialXstatementsXprovideXadditionalXexplanationXorXdetailXtoX
makeXtheXfinancialXstatementsXmoreXinformative.XTheXauditor‘sXreportXexpressesXanXopinionXasXt
oXwhetherXtheXfinancialXstatementsXpresentXfairlyXtheXcompany‘sXresultsXofXoperationsXandXfinanc
ialXposition.
*4.XExplainXtheXcareerXopportunitiesXinXaccounting.XAccountingXoffersXmanyXdifferentXjobsXinXfieldsX
suchXasXpublicXandXprivateXaccounting,Xgovernmental,XandXforensicXaccounting.XAccountingXisXaXp
opularXmajorXbecauseXthereXareXmanyXdifferentXtypesXofXjobs,XwithXunlimitedXpotentialXforXcaree
rXadvancement
CopyrightX©X2022XJohnXWileyX&XSons,XInc.X(ForXInstructorXUse
XOnly)
, 2-2 TestXBankXforXKimmel,XFinancialXAccounting:XToolsXforXBusinessXDecisionXMaki
ng,X10e
Difficulties:
Easy:X143
Medium:X101
Hard:X12
QuestionXListXbyXSection
BusinessXOrganizationXandXAccountingXInformationXUses:XFo
rmsXofXBusinessXOrganization;X47,X48,X202,X246
SoleXProprietorship:X5,X44,X49,X58,X59
Partnership:X1,X4,X46,X56
Corporation:X2,X3,X45,X50,X51,X52,X53,X55,X57,X233,X245
HybridXFormsXofXOrganization:X60,X61
UsersXandXUsesXofX FinancialXInformation:X6,X7,X11,X74,X87
InternalXUsers:X62,X63,X64,X75,X77,X82,X234
ExternalXUsers:X8,X9,X10,X12,X65,X76,X78,X79,X80,X81,X83,X84,X85,X86,X88,X89
DataXAnalytics:X66,X67,X68,X69,X70,X235,X236
EthicsXinXFinancialXReporting:X71,X72,X73,X237,X255XT
heXThreeXTypesXofXBusinessXActivity:X97
FinancingXActivities:X13,X15,X18,X90,X91,X93,X94,X95,X96,X97,X102,X109,X117,X118,X119,X238
InvestingXActivities:X14,X16,X98,X99,X115,X116
OperatingXActivities:X17,X19,X20,X100,X101,X103,X104,X105,X106,X107,X108,X110,X111,X112,X113,
114
TheXFourXFinancialXStatements:
IncomeXStatement:X21,X22,X23,X24,127,X128,X132,X133,X134,X138,X142,X143
RetainedXEarningsXStatement:X120,X122,X123,X 124,X125,X126,X129,X130,X131,X135,X137,X139,X140,
141,X144,X145,X146,X147,X148,X149,X150,X154,X164,X169,X178,X181,X252
BalanceXSheet:X25,X27,X28,X29,X30,X31,X32,X33,X34,X35,X136,X151,X152,X153,X163,X165,X166,X168,
170,X173,X177,X179,X180,X182,X185,X186,X187,X188,X199,X200,X201,X207,X208,X213,X214,X215,X216,
217,X218,X219,X220,X221,X222,X225,X229,X239,X240,X241,X253
StatementXofX CashXFlows:X26,X121,X171,X174,X183,X242,X249
InterrelationshipsXofXStatements:X155,X156,X157,X158,X159,X160,X161,X162,X167,X175,X176,X184,
250,X251,X256
ElementsXofXanXAnnualXReport:X36,X41,X192,X196,X197
ManagementXDiscussionXandXAnalysis:X40,X191
NotesXtoXtheXFinancialXStatements:X37,X42,X190,X193,X194,X198,X254
Auditor‘sXReport:X38,X39,X195
CopyrightX©X2022XJohnXWileyX&XSons,XInc.X(ForXInstructorXUse
XOnly)
Financial Accounting Tools For Business Decision
Making, 10th Edition, Paul D. Kimmel,
Chapters 1 – 13, Complete
CopyrightX©X2022XJohnXWileyX&XSons,XInc.X(ForXInstructorXUse
XOnly)
,TABLE OF CONTENTS
X X
1XIntroductionXtoXFinancialXStatementsX
2XAXFurtherXLookXatXFinancialXStatementsX
3XTheXAccountingXInformationXSystemX
4XAccrualXAccountingXConceptsX
5XMerchandisingXOperationsXandXtheXMultiple-StepXIncomeXStatementX
6XReportingXandXAnalyzingXInventoryX
7XFraud,XInternalXControl,XandXCashX
8XReportingXandXAnalyzingXReceivablesX
9XReportingXandXAnalyzingXLong-LivedXAssetsX
10XReportingXandXAnalyzingXLiabilitiesX
11XReportingXandXAnalyzingXStockholders’XEquityX
12XStatementXofXCashXFlowsX
13XFinancialXAnalysis:XTheXBigXPictureX
CopyrightX©X2022XJohnXWileyX&XSons,XInc.X(ForXInstructorXUse
XOnly)
,CHAPTERX1
INTRODUCTIONXTOXFINANCIALXSTATEMENTS
CHAPTERXLEARNINGXOBJECTIVES
1. IdentifyXtheXformsXofXbusinessXorganizationXandXtheXusesXofXaccountingXinformation.XAXsoleXpr
oprietorshipXisXaXbusinessXownedXbyXoneXperson.XAXpartnershipXisXaXbusinessXownedXbyXtwoXorX
moreXpeopleXassociatedXasXpartners.XAXcorporationXisXaXseparateXlegalXentityXforXwhichXevidence
XofXownershipXisXprovidedXbyXsharesXofXstock.XInternalXusersXareXmanagersXwhoXneedXaccounting
XinformationXtoXplan,Xorganize,XandXrunXbusinessXoperations.XTheXprimaryXexternalXusersXareXinv
estorsXandXcreditors.XInvestorsX(stockholders)XuseXaccountingXinformationXtoXdecideXwhetherXtoXb
uy,Xhold,XorXsellXsharesXofXaXcompany‘sXstock.XCreditorsX(suppliersXandXbankers)X useX accountingX i
nformationX toX assessXtheX riskX ofX grantingX creditXorX loaningX moneyXtoXaXbusiness.XOtherXgroupsX
whoXhaveXanXindirectXinterestXinXaXbusinessXareXtaxingXauthorities,Xcustomers,XlaborXunions,Xand
X regulatoryXagencies.
2. ExplainXtheXthreeXprincipalXtypesXofXbusinessXactivity.XFinancingXactivitiesX involveXcollectingXthe
XnecessaryXfundsXtoXsupportXtheXbusiness.XInvestingXactivitiesXinvolveXacquiringXtheXresourcesXne
cessaryXtoXrunXtheXbusiness.XOperatingXactivitiesXinvolveXputtingX theXresourcesXofX theXbusinessXi
ntoXactionXtoXgenerateXaXprofit.
3. DescribeXtheXfourXfinancialXstatementsXandXhowXtheyXareXprepared.XAnXincomeXstatementXpres
entsXtheXrevenuesXandXexpensesXofXaXcompanyXforXaXspecificXperiodXofXtime.XAXretainedXearning
sXstatementXsummarizesXtheXchangesXinXretainedXearningsXthatXhaveXoccurredXforXaXspecificXperi
odXofXtime.XAXbalanceXsheetXreportsXtheXassets,Xliabilities,XandXstockholders‘XequityXofXaXbusiness
XatXaXspecificXdate.XAXstatementXofXcashXflowsX summarizesX informationXconcerningXtheXcashXinfl
owsX(receipts)XandXoutflowsX(payments)XforXaXspecificXperiodXofXtime.XAssetsXareXresourcesXowne
dXbyXaXbusiness.XLiabilitiesXareXtheXdebtsXandXobligationsXofXtheXbusiness.XLiabilitiesXrepresentXcl
aimsXofXcreditorsXonXtheXassetsXofXtheXbusiness.XStockholders‘XequityXrepresentsXtheXclaimsXofXo
wnersXonXtheXassetsXofXtheXbusiness.XStockholders‘XequityXisXsubdividedXintoXtwoXparts:Xcommon
XstockXandXretainedXearnings.XTheXbasicXaccountingXequationXisXAssetsX=XLiabilitiesX+XStockholder
s‘XEquity.XWithinXtheXannualXreport,XtheXmanagementXdiscussionXandXanalysisXprovidesXmanagem
ent‘sXinterpretationXofXtheXcompany‘sXresultsXandXfinancialXpositionXasXwellXasXaXdiscussionXofXpla
nsXforXtheXfuture.XNotesXtoXtheXfinancialXstatementsXprovideXadditionalXexplanationXorXdetailXtoX
makeXtheXfinancialXstatementsXmoreXinformative.XTheXauditor‘sXreportXexpressesXanXopinionXasXt
oXwhetherXtheXfinancialXstatementsXpresentXfairlyXtheXcompany‘sXresultsXofXoperationsXandXfinanc
ialXposition.
*4.XExplainXtheXcareerXopportunitiesXinXaccounting.XAccountingXoffersXmanyXdifferentXjobsXinXfieldsX
suchXasXpublicXandXprivateXaccounting,Xgovernmental,XandXforensicXaccounting.XAccountingXisXaXp
opularXmajorXbecauseXthereXareXmanyXdifferentXtypesXofXjobs,XwithXunlimitedXpotentialXforXcaree
rXadvancement
CopyrightX©X2022XJohnXWileyX&XSons,XInc.X(ForXInstructorXUse
XOnly)
, 2-2 TestXBankXforXKimmel,XFinancialXAccounting:XToolsXforXBusinessXDecisionXMaki
ng,X10e
Difficulties:
Easy:X143
Medium:X101
Hard:X12
QuestionXListXbyXSection
BusinessXOrganizationXandXAccountingXInformationXUses:XFo
rmsXofXBusinessXOrganization;X47,X48,X202,X246
SoleXProprietorship:X5,X44,X49,X58,X59
Partnership:X1,X4,X46,X56
Corporation:X2,X3,X45,X50,X51,X52,X53,X55,X57,X233,X245
HybridXFormsXofXOrganization:X60,X61
UsersXandXUsesXofX FinancialXInformation:X6,X7,X11,X74,X87
InternalXUsers:X62,X63,X64,X75,X77,X82,X234
ExternalXUsers:X8,X9,X10,X12,X65,X76,X78,X79,X80,X81,X83,X84,X85,X86,X88,X89
DataXAnalytics:X66,X67,X68,X69,X70,X235,X236
EthicsXinXFinancialXReporting:X71,X72,X73,X237,X255XT
heXThreeXTypesXofXBusinessXActivity:X97
FinancingXActivities:X13,X15,X18,X90,X91,X93,X94,X95,X96,X97,X102,X109,X117,X118,X119,X238
InvestingXActivities:X14,X16,X98,X99,X115,X116
OperatingXActivities:X17,X19,X20,X100,X101,X103,X104,X105,X106,X107,X108,X110,X111,X112,X113,
114
TheXFourXFinancialXStatements:
IncomeXStatement:X21,X22,X23,X24,127,X128,X132,X133,X134,X138,X142,X143
RetainedXEarningsXStatement:X120,X122,X123,X 124,X125,X126,X129,X130,X131,X135,X137,X139,X140,
141,X144,X145,X146,X147,X148,X149,X150,X154,X164,X169,X178,X181,X252
BalanceXSheet:X25,X27,X28,X29,X30,X31,X32,X33,X34,X35,X136,X151,X152,X153,X163,X165,X166,X168,
170,X173,X177,X179,X180,X182,X185,X186,X187,X188,X199,X200,X201,X207,X208,X213,X214,X215,X216,
217,X218,X219,X220,X221,X222,X225,X229,X239,X240,X241,X253
StatementXofX CashXFlows:X26,X121,X171,X174,X183,X242,X249
InterrelationshipsXofXStatements:X155,X156,X157,X158,X159,X160,X161,X162,X167,X175,X176,X184,
250,X251,X256
ElementsXofXanXAnnualXReport:X36,X41,X192,X196,X197
ManagementXDiscussionXandXAnalysis:X40,X191
NotesXtoXtheXFinancialXStatements:X37,X42,X190,X193,X194,X198,X254
Auditor‘sXReport:X38,X39,X195
CopyrightX©X2022XJohnXWileyX&XSons,XInc.X(ForXInstructorXUse
XOnly)
