TEST BANK FOR solutions to accounting ALL CHAPTERS 2022
CONTENTS
Preface to the Instructor
Chapter 1 Financial Accounting and Accounting Standards
Chapter 2 Conceptual Framework Underlying Financial Accounting
Chapter 3 The Accounting Information System
Chapter 4 Income Statement and Related Information
Chapter 5 Balance Sheet and Statement of Cash Flows
Chapter 6 Accounting and the Time Value of Money
Chapter 7 Cash and Receivables
Chapter 8 Valuation of Inventories: A Cost Basis Approach
Chapter 9 Inventories: Additional Valuation Issues
Chapter 10 Acquisition and Disposition of Property, Plant, and Equipment
Chapter 11 Depreciation, Impairments, and Depletion
Chapter 12 Intangible Assets
Chapter 13 Current Liabilities and Contingencies
Chapter 14 Long-Term Liabilities
Chapter 15 Stockholders’ Equity
Chapter 16 Dilutive Securities and Earnings Per Share
Chapter 17 Investments
Chapter 18 Revenue Recognition
Chapter 19 Accounting for Income Taxes
Chapter 20 Accounting for Pensions and Postretirement Benefits
Chapter 21 Accounting for Leases
Chapter 22 Accounting Changes and Error Analysis
Chapter 23 Statement of Cash Flows
Chapter 24 Full Disclosure in Financial Reporting
iii
, TEST BANK FOR solutions to accounting ALL CHAPTERS 2022
PREFACE—TO THE INSTRUCTOR
The presentation of the subject matter in each of the chapters in Intermediate Accounting,
12e is followed by questions, brief exercises, exercises, problems, and concepts for analysis.
Another section entitled ―Using Your Judgment‖ is also provided (financial reporting, financial
statement analysis, comparative analysis, research, international reporting, professional re-
search and professional simulation). Note that writing, group, and ethics cases have been in-
tegrated into the exercises, problems, and concepts for analysis and are identified with icons in
the text margins. This manual contains complete solutions to all exercises, problems, and
cases in the ―Using Your Judgment‖ section as well as suggested answers to the questions
and concepts for analysis.
Assignment Classification Table (Topic and Learning Objective). A unique feature of our
Solutions Manual is a table that categorizes four types of end-of-chapter items (questions, ex-
ercises, problems, and concepts for analysis) by key topics in the chapter. New to Intermedi-
ate Accounting, 12e is a classification table organizing solutions by textbook learning objective.
Assignment Characteristics Table. Each chapter of this manual contains a table offering:
(1) a short description of each exercise, problem, and case, (2) an indication of the level of dif-
ficulty (simple, moderate, or complex), and (3) the estimated time in minutes.
An estimated average minimum and maximum time (in minutes) is given for each exercise,
problem, and case in the text. Although many of the estimated times are based on actual
classroom experience, it should be recognized that they are only averages. On any given
problem or case even a superior student may encounter difficulty because of a mechanical er-
ror or misinterpretation of the problem and spend more time than on other problems of similar
difficulty.
The estimated time to complete each exercise is also indicated at the right of each exercise
number. For problems and cases the estimated time also appears with the list of ―purposes‖
that precedes each set of problems and each set of cases.
We hope these classifications, descriptions, and times will prove helpful to instructors in tailor-
ing homework assignments to the capacities of their students and to the time available.
Purpose. A statement of the purpose of each problem and each case appears in a list pre-
ceding the sets of problems and cases in each chapter.
Questions. The questions at the end of the chapter provide a basis for classroom discussion
of the topics presented in the chapter and serve as an aid to the students in testing their un-
derstanding of the text material. They deal with both conceptual and procedural matters. The
sequence of questions generally corresponds to the topical coverage in the text. Full and com-
plete answers to these questions are presented in this manual.
Brief Exercises. Each brief exercise focuses on one concept or procedure. Because these
brief exercises are straightforward and simple, they build the student‘s confidence and test ba-
sic skills.
Exercises. Generally, the exercises cover a specific topic and require less time and effort to
solve than the problems. In addition to serving as supplemental assignment material, the exer-
cises may be used for class discussion and for examination purposes.
iv
,TEST BANK FOR solutions to accounting ALL CHAPTERS 2022
Problems. Whereas the goal of the exercises is brevity of solution time and coverage of es-
sential principles or methodology with minimum difficulty, the problems are designed to de-
velop a professional level of achievement and, therefore, are generally more challenging to
solve. We have arranged the problems, as much as possible, from least to most difficult in the
same order as the discussion in the chapter. Some of the problems are routine and can be
solved by following procedures that are illustrated in the textbook. The more difficult problems
may blend a diversity of principles into a single situation requiring a series of steps, computa-
tions, or solutions and demand interpretation, analysis, and judgment.
Many of the problems (indicated by AICPA, CMA, or CIA Adapted) have been adapted from
the Uniform CPA, CMA, or CIA Examinations. In most instances, the solutions to these prob-
lems include all the information from the unofficial CPA, CMA, or CIA examination solution.
Generally, the students will not furnish a solution in the same detail.
Additionally, a far greater number of problems has been provided than the instructor can rea-
sonably use in a single offering of the course.
Concepts For Analysis. The concepts for analysis, many of which are adoptions from the
Uniform CPA Examination, generally require essay as opposed to quantitative solutions. They
are intended to confront the student with situations, frequently unstructured, calling for in-depth
analysis and the exercise of judgment in identifying problems and evaluating alternatives.
Using Your Judgment. This section of assignment material has been greatly expanded and
revised for this 12th edition. The financial reporting problems have been adapted to the Annual
Report financial information found in the text. Many of the financial statement analysis cases
(using real-world companies), the comparative analysis cases, and the research cases (many
of which require either library research or Internet research), have been updated for this edi-
tion. This edition also includes updated and expanded international reporting cases and a new
feature called ―Professional Research‖. The professional simulations are patterned after the
computerized CPA exam, which was introduced in 2004.
SUMMARY
The solutions have been painstakingly prepared, reviewed, and tested to provide instructors
error-free materials. To the extent that we have not, we invite the users of our textbook to in-
form us directly of the reactions and suggested improvements. All solutions manuals are avail-
able at no cost for use by instructors adopting the textbook.
ACKNOWLEDGMENTS
We sincerely thank the following individuals for their expert assistance in reviewing and
checking the material contained in this Solutions Manual: John Borke, University of Wiscon-
sin—Platteville; Jack Cathey, University of North Carolina – Charlotte; Robert Derstine, Villa-
nova University; Gregory Dold, Southwestern College; James M. Emig, Villanova University;
Larry Falcetto, Emporia State University; Paul Robertson, Henderson State University; Alice
Sineath, Forsyth Technical Community College; Dick Wasson, Southwestern College. We
thank development editor, Ann Torbert, Ed Brislin of John Wiley & Sons, and Alicia Gmeiner
of Elm Street Publishing Services for preparing this manual for publication.
Donald E. Kieso
Jerry J. Weygandt
Terry D. Warfield
, TEST BANK FOR solutions to accounting ALL CHAPTERS 2022
v
CONTENTS
Preface to the Instructor
Chapter 1 Financial Accounting and Accounting Standards
Chapter 2 Conceptual Framework Underlying Financial Accounting
Chapter 3 The Accounting Information System
Chapter 4 Income Statement and Related Information
Chapter 5 Balance Sheet and Statement of Cash Flows
Chapter 6 Accounting and the Time Value of Money
Chapter 7 Cash and Receivables
Chapter 8 Valuation of Inventories: A Cost Basis Approach
Chapter 9 Inventories: Additional Valuation Issues
Chapter 10 Acquisition and Disposition of Property, Plant, and Equipment
Chapter 11 Depreciation, Impairments, and Depletion
Chapter 12 Intangible Assets
Chapter 13 Current Liabilities and Contingencies
Chapter 14 Long-Term Liabilities
Chapter 15 Stockholders’ Equity
Chapter 16 Dilutive Securities and Earnings Per Share
Chapter 17 Investments
Chapter 18 Revenue Recognition
Chapter 19 Accounting for Income Taxes
Chapter 20 Accounting for Pensions and Postretirement Benefits
Chapter 21 Accounting for Leases
Chapter 22 Accounting Changes and Error Analysis
Chapter 23 Statement of Cash Flows
Chapter 24 Full Disclosure in Financial Reporting
iii
, TEST BANK FOR solutions to accounting ALL CHAPTERS 2022
PREFACE—TO THE INSTRUCTOR
The presentation of the subject matter in each of the chapters in Intermediate Accounting,
12e is followed by questions, brief exercises, exercises, problems, and concepts for analysis.
Another section entitled ―Using Your Judgment‖ is also provided (financial reporting, financial
statement analysis, comparative analysis, research, international reporting, professional re-
search and professional simulation). Note that writing, group, and ethics cases have been in-
tegrated into the exercises, problems, and concepts for analysis and are identified with icons in
the text margins. This manual contains complete solutions to all exercises, problems, and
cases in the ―Using Your Judgment‖ section as well as suggested answers to the questions
and concepts for analysis.
Assignment Classification Table (Topic and Learning Objective). A unique feature of our
Solutions Manual is a table that categorizes four types of end-of-chapter items (questions, ex-
ercises, problems, and concepts for analysis) by key topics in the chapter. New to Intermedi-
ate Accounting, 12e is a classification table organizing solutions by textbook learning objective.
Assignment Characteristics Table. Each chapter of this manual contains a table offering:
(1) a short description of each exercise, problem, and case, (2) an indication of the level of dif-
ficulty (simple, moderate, or complex), and (3) the estimated time in minutes.
An estimated average minimum and maximum time (in minutes) is given for each exercise,
problem, and case in the text. Although many of the estimated times are based on actual
classroom experience, it should be recognized that they are only averages. On any given
problem or case even a superior student may encounter difficulty because of a mechanical er-
ror or misinterpretation of the problem and spend more time than on other problems of similar
difficulty.
The estimated time to complete each exercise is also indicated at the right of each exercise
number. For problems and cases the estimated time also appears with the list of ―purposes‖
that precedes each set of problems and each set of cases.
We hope these classifications, descriptions, and times will prove helpful to instructors in tailor-
ing homework assignments to the capacities of their students and to the time available.
Purpose. A statement of the purpose of each problem and each case appears in a list pre-
ceding the sets of problems and cases in each chapter.
Questions. The questions at the end of the chapter provide a basis for classroom discussion
of the topics presented in the chapter and serve as an aid to the students in testing their un-
derstanding of the text material. They deal with both conceptual and procedural matters. The
sequence of questions generally corresponds to the topical coverage in the text. Full and com-
plete answers to these questions are presented in this manual.
Brief Exercises. Each brief exercise focuses on one concept or procedure. Because these
brief exercises are straightforward and simple, they build the student‘s confidence and test ba-
sic skills.
Exercises. Generally, the exercises cover a specific topic and require less time and effort to
solve than the problems. In addition to serving as supplemental assignment material, the exer-
cises may be used for class discussion and for examination purposes.
iv
,TEST BANK FOR solutions to accounting ALL CHAPTERS 2022
Problems. Whereas the goal of the exercises is brevity of solution time and coverage of es-
sential principles or methodology with minimum difficulty, the problems are designed to de-
velop a professional level of achievement and, therefore, are generally more challenging to
solve. We have arranged the problems, as much as possible, from least to most difficult in the
same order as the discussion in the chapter. Some of the problems are routine and can be
solved by following procedures that are illustrated in the textbook. The more difficult problems
may blend a diversity of principles into a single situation requiring a series of steps, computa-
tions, or solutions and demand interpretation, analysis, and judgment.
Many of the problems (indicated by AICPA, CMA, or CIA Adapted) have been adapted from
the Uniform CPA, CMA, or CIA Examinations. In most instances, the solutions to these prob-
lems include all the information from the unofficial CPA, CMA, or CIA examination solution.
Generally, the students will not furnish a solution in the same detail.
Additionally, a far greater number of problems has been provided than the instructor can rea-
sonably use in a single offering of the course.
Concepts For Analysis. The concepts for analysis, many of which are adoptions from the
Uniform CPA Examination, generally require essay as opposed to quantitative solutions. They
are intended to confront the student with situations, frequently unstructured, calling for in-depth
analysis and the exercise of judgment in identifying problems and evaluating alternatives.
Using Your Judgment. This section of assignment material has been greatly expanded and
revised for this 12th edition. The financial reporting problems have been adapted to the Annual
Report financial information found in the text. Many of the financial statement analysis cases
(using real-world companies), the comparative analysis cases, and the research cases (many
of which require either library research or Internet research), have been updated for this edi-
tion. This edition also includes updated and expanded international reporting cases and a new
feature called ―Professional Research‖. The professional simulations are patterned after the
computerized CPA exam, which was introduced in 2004.
SUMMARY
The solutions have been painstakingly prepared, reviewed, and tested to provide instructors
error-free materials. To the extent that we have not, we invite the users of our textbook to in-
form us directly of the reactions and suggested improvements. All solutions manuals are avail-
able at no cost for use by instructors adopting the textbook.
ACKNOWLEDGMENTS
We sincerely thank the following individuals for their expert assistance in reviewing and
checking the material contained in this Solutions Manual: John Borke, University of Wiscon-
sin—Platteville; Jack Cathey, University of North Carolina – Charlotte; Robert Derstine, Villa-
nova University; Gregory Dold, Southwestern College; James M. Emig, Villanova University;
Larry Falcetto, Emporia State University; Paul Robertson, Henderson State University; Alice
Sineath, Forsyth Technical Community College; Dick Wasson, Southwestern College. We
thank development editor, Ann Torbert, Ed Brislin of John Wiley & Sons, and Alicia Gmeiner
of Elm Street Publishing Services for preparing this manual for publication.
Donald E. Kieso
Jerry J. Weygandt
Terry D. Warfield
, TEST BANK FOR solutions to accounting ALL CHAPTERS 2022
v
