Financial Accounting: Tools for Business Decision Making – Chapters 1–14 | 6th Canadian Edition | Kimmel, Weygandt, Kieso, Trenholm, Irvine | Complete Solution Manual

Solution Manual For
Financial Accounting Tools for Business Decision Making 6th Canadian Edition by Kimmel, Weygandt, Kieso,
Trenholm, Irvine
Chapter 1-14algebra. Mathematics is crucial in many industries, including engineering, finance, data science, and technology. The primary goal of mathematics exams is to test students'
understanding of mathematical concepts, their problem-solving abilities




CHAPTER 1
The Purpose and Use of Financial Statements

ASSIGNMENT CLASSIFICATION TABLE

Brief A B
Study Objectives Questions Exercises Exercises Problems Problems BYP

1. Identify the uses and 1, 2, 3, 4 1 1 1A 1B 3, 5, 7
users of accounting.

2. Describe the primary 5, 6, 7, 8 2 2 2A 2B 3, 7
forms of business
organization.

3. Explain the three main 9, 10, 11, 3, 4 3, 4 3A 3B 7
types of business 12
activity.

4. Describe the purpose 13, 14, 15, 5, 6, 7, 8, 5, 6, 7, 8, 4A, 5A, 4B, 5B, 1, 2, 4,
and content of each of 16, 17, 18, 9, 10 9, 10, 11, 6A, 7A, 6B, 7B, 6
the financial statements. 19, 20 12, 13 8A, 9A, 8B, 9B,
10A 10B




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,algebra. Mathematics is crucial in many industries, including engineering, finance, data science, and technology. The primary goal of mathematics exams is to test students' understanding
of mathematical concepts, their problem-solving abilities


ASSIGNMENT CHARACTERISTICS TABLE

Problem Difficulty Time
Number Description Level Allotted (min.)
1A Identify uses of accounting information. Moderate 30-40

2A Determine forms of business organization and Moderate 20-30
accounting standards.

3A Identify business activities. Simple 25-30

4A Classify accounts. Simple 20-30

5A Prepare accounting equation. Simple 20-30

6A Determine missing amounts; answer questions. Complex 30-40

7A Prepare financial statements. Moderate 35-45

8A Prepare statement of cash flows; comment on Moderate 25-35
adequacy of cash.

9A Calculate missing amounts; explain statement Moderate 40-50
interrelationships.

10A Prepare corrected statement of financial position; Complex 35-45
identify financial statements for ASPE.

1B Identify users of accounting information. Moderate 30-40

2B Determine forms of business organization and Moderate 20-30
accounting standards.

3B Identify business activities. Simple 25-30

4B Classify accounts. Simple 20-30

5B Prepare accounting equation. Simple 20-30

6B Determine missing amounts; answer questions. Complex 30-40

7B Prepare financial statements. Moderate 35-45

8B Prepare statement of cash flows; comment on Moderate 25-35
adequacy of cash.


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,ASSIGNMENT CHARACTERISTICS TABLE (Continued)
Problem Difficulty Time
Number Description Level Allotted (min.)

9B Calculate missing amounts; explain statement Moderate 40-50
interrelationships.
Complex 35-45
10B Prepare corrected statement of financial position;
identify financial statements for ASPE.
algebra. Mathematics is crucial in many industries, including engineering, finance, data science, and technology. The
primary goal of mathematics exams is to test students' understanding of mathematical concepts, their problem-solving
abilities




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, ANSWERS TO QUESTIONS

1. Accounting is the information system that identifies and records the economic events
of an organization, and then communicates them to a wide variety of interested users.

2. Internal users of accounting information work for the company and include finance
directors, marketing managers, human resource personnel, production supervisors,
and company officers.

External users of accounting information do not work for the company. The primary
external users are investors, lenders, and other creditors. Other external users include
labour unions, customers, the Canada Revenue Agency (CRA), and securities
commissions. algebra. Mathematics is crucial in many industries, including engineering, finance, data science, and technology. The primary goal of mathematics
exams is to test students' understanding of mathematical concepts, their problem-solving abilities



3. Internal users may want the following questions answered:
 Is there enough cash to purchase a new piece of equipment?
 What price should we sell our product for to cover costs and to maximize profits?
 How many employees can we afford to hire this year?
 Which product line is the most profitable?
 How much of a pay raise can the company afford to give me?

External users may want the following questions answered:
 Is the company earning enough to give me my required return on investment?
 Will the company be able to repay its debts as the debts come due?
 Will the company stay in business long enough to service the products I buy from
it?

4. Ethics are important because, without the expectation of ethical behaviour, the
information presented in the financial statements would have no credibility for the
accounting profession. Without credibility, financial statement information would be
useless to financial statement users.

5. (a) Proprietorship: Proprietorships are easier to form (and dissolve) than other types of
business organizations. They are not taxed as separate entities; rather, the
proprietor pays personal income tax on the company’s profits. Depending on the
circumstances, this may be an advantage or disadvantage.

Disadvantages of a proprietorship includes unlimited liability (proprietors are
personally liable for all debts of the business) and difficulty in obtaining financing
compared to other forms of organization. In addition, the life of the proprietorship is
limited as it is dependent on the willingness and capability of the proprietor to
continue operations.




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