SOLUTION MANUAL
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLE OF CONTENTS ud ud
Chapter 1. Accounting in Action
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Chapter 2. The Recording Process
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Chapter 3. Adjusting the Accounts
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Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations
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Chapter 6. Inventories
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Chapter 7. Fraud, Internal Control and Cash
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Chapter 8. Accounting for Receivables
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Chapter 9. Plant Assets, Natural Resources and Intangible Assets
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Chapter 10. Liabilities
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Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ E
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quity
Chapter 12. Statement of Cash Flows
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Chapter 13. Financial Analysis: The Big Picture
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,CHAPTER 1
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Accounting in Action ud ud
ASSIGNMENT CLASSIFICATION TABLE ud ud
Brief Exerc
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Learning Objectives
ud Questions ises Do It!
ud Exercises Problems
1. 1, 2, 3, 4, 5
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Identify the activities and
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users associated with acc
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ounting.
2. Explain the building blocks of acc
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ounting: ethics, principles,andud ud d
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assumptions.
3. 11, 12, 13, 14.
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State the accounting eq
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uation, and define itsco
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mponents.
4. 15, 16, 18
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Analyze the effects of busines
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s transactions on theaccounti
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ng equation.
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5. 17, 19, 20, 21,
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ud ud ud 2A, 3A, 4A,
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Describe the four financial sta
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12, 13, 14, 15,
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tements and how they arepre
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16, 17, 18
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pared.
, ANSWERS TO QUESTIONS ud ud
1. True. Virtually every organization and person in our society uses accounting information. Businesses, in
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vestors, creditors, government agencies, and not-for-
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profit organizations must use accounting information to operate effectively.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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2. Accounting is the process of identifying, recording, and communicating the economic events of an or
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ganization to interested users of the information. The first activity of the accounting process is to identi
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fy economic events that are relevant to a particular business. Once identified and measured, the events
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are recorded to provide a history of the financial activities of the organization. Recording consists of ke
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eping a chronological diary of these measured events in anorderly and systematic manner. The informat
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ion is communicated through the preparation and distribution of accounting reports, the most co
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mmon of which are called financial statements.A vital element in the communication process is the
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accountant’s ability and responsibility to analyze and interpret the reported information.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and oth
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er decision makers. ud ud
(b) To assist management, accounting provides internal reports. Examples include financial compariso
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ns of operating alternatives, projections of income from new sales campaigns,and forecasts of c
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ash needs for the next year. ud ud ud ud ud
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
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(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one par
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t of the entire accounting process. Accounting, on the other hand, involves the entire process of identif
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ying, recording, and communicating economic events.
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LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. Thi
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s is true not only at the time the land is purchased, but also over the time the land is held. In determini
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ng which measurement principle to use (historical cost or fair value) companies weigh the factual natur
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e of cost figures versus the relevance of fair value. In general, companies use historical cost. Only in sit
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uations where assets are actively traded do companies apply the fair value principle.
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LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:
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Reporting
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7. The monetary unit assumption requires that only transaction data capable of being expressed in terms
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of money be included in the accounting records. This assumption enables accounting to quantify (meas
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ure) economic events. ud ud
LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:Reporting
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Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLE OF CONTENTS ud ud
Chapter 1. Accounting in Action
ud ud ud ud
Chapter 2. The Recording Process
ud ud ud ud
Chapter 3. Adjusting the Accounts
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Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations
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Chapter 6. Inventories
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Chapter 7. Fraud, Internal Control and Cash
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Chapter 8. Accounting for Receivables
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Chapter 9. Plant Assets, Natural Resources and Intangible Assets
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Chapter 10. Liabilities
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Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ E
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quity
Chapter 12. Statement of Cash Flows
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Chapter 13. Financial Analysis: The Big Picture
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,CHAPTER 1
ud
Accounting in Action ud ud
ASSIGNMENT CLASSIFICATION TABLE ud ud
Brief Exerc
ud A
Learning Objectives
ud Questions ises Do It!
ud Exercises Problems
1. 1, 2, 3, 4, 5
ud ud ud ud 1 1, 2ud
Identify the activities and
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u
users associated with acc
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ounting.
2. Explain the building blocks of acc
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ud ud ud ud 2 3, 4ud
ounting: ethics, principles,andud ud d
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assumptions.
3. 11, 12, 13, 14.
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ud ud ud ud 3 5
State the accounting eq
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uation, and define itsco
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mponents.
4. 15, 16, 18
ud ud 6, 7, 8, 9
ud ud ud 4 6, 7, 8
ud ud 1A, 2A, 4A,
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Analyze the effects of busines
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s transactions on theaccounti
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u
ng equation.
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5. 17, 19, 20, 21,
ud ud ud 10, 11 ud 5 8, 9, 10, 11,
ud ud ud 2A, 3A, 4A,
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Describe the four financial sta
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12, 13, 14, 15,
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tements and how they arepre
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16, 17, 18
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pared.
, ANSWERS TO QUESTIONS ud ud
1. True. Virtually every organization and person in our society uses accounting information. Businesses, in
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vestors, creditors, government agencies, and not-for-
ud ud ud ud ud
profit organizations must use accounting information to operate effectively.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud
2. Accounting is the process of identifying, recording, and communicating the economic events of an or
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ganization to interested users of the information. The first activity of the accounting process is to identi
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fy economic events that are relevant to a particular business. Once identified and measured, the events
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are recorded to provide a history of the financial activities of the organization. Recording consists of ke
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eping a chronological diary of these measured events in anorderly and systematic manner. The informat
ud ud ud ud ud ud ud ud ud d
u ud ud ud ud ud
ion is communicated through the preparation and distribution of accounting reports, the most co
ud ud ud ud ud ud ud ud ud u d u d u d u d
mmon of which are called financial statements.A vital element in the communication process is the
u d u d ud u d ud ud d
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accountant’s ability and responsibility to analyze and interpret the reported information.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud
3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and oth
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er decision makers. ud ud
(b) To assist management, accounting provides internal reports. Examples include financial compariso
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ns of operating alternatives, projections of income from new sales campaigns,and forecasts of c
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u ud ud ud
ash needs for the next year. ud ud ud ud ud
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud
4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
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(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud
5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one par
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t of the entire accounting process. Accounting, on the other hand, involves the entire process of identif
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ying, recording, and communicating economic events.
ud ud ud ud ud
LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
ud ud ud u d ud ud ud ud ud u d ud ud ud ud ud
6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. Thi
ud ud ud ud ud ud ud ud ud ud ud ud u d u d ud ud
s is true not only at the time the land is purchased, but also over the time the land is held. In determini
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud
ng which measurement principle to use (historical cost or fair value) companies weigh the factual natur
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e of cost figures versus the relevance of fair value. In general, companies use historical cost. Only in sit
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uations where assets are actively traded do companies apply the fair value principle.
ud ud ud ud ud ud u d ud ud ud ud ud
LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:
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Reporting
d
7. The monetary unit assumption requires that only transaction data capable of being expressed in terms
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of money be included in the accounting records. This assumption enables accounting to quantify (meas
ud ud ud ud ud ud ud ud ud ud ud ud ud ud
ure) economic events. ud ud
LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:Reporting
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