Complete Solution Manual for Intermediate Accounting, 11th Edition
Solution Manual For
Intermediate Accounting
By David Spiceland, Mark Nelson
11th Edition
,Answers to Questions (continued)
Table Of Content
Section 1: The Role Of Accounting As An Information System
Chapter 1: Environment And Theoretical Structure Of Financial Accounting
Chapter 2: Review Of The Accounting Process
Chapter 3: The Balance Sheet And Financial Disclosures
Chapter 4: The Income Statement, Comprehensive Income, And The Statement Of Cash Flows
Chapter 5: Time Value Of Money Concepts
Chapter 6: Revenue Recognition
Section 2: Assets
Chapter 7: Cash And Receivables
Chapter 8: Inventories: Measurement
Chapter 9: Inventories: Additional Issues
Chapter 10: Property, Plant, And Equipment And Intangible Assets: Acquisition
Chapter 11: Property, Plant, And Equipment And Intangible Assets: Utilization And Disposition
Chapter 12: Investments
Section 3: Liabilities And Shareholders’ Equity
Chapter 13: Current Liabilities And Contingencies
Chapter 14: Bonds And Long-Term Notes
Chapter 15: Leases
Chapter 16: Accounting For Income Taxes
Chapter 17: Pensions And Other Postretirement Benefits
Chapter 18: Shareholders’ Equity
Section 4: Additional Financial Reporting Issues
Chapter 19: Share-Based Compensation And Earnings Per Share
Chapter 20: Accounting Changes And Error Corrections
Chapter 21: The Statement Of Cash Flows Revisited
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,Complete Solution Manual for Intermediate Accounting, 11th Edition
Chapter 1 Environment And Theoretical Structure Of
Financial Accounting
Question 1–1
Financial Accounting Is Concerned With Providing Relevant Financial
Information About Various Kinds Of Organizations To Different Types Of External
Users. The Primary Focus Of Financial Accounting Is On The Financial
Information Provided By Profit- Oriented Companies To Their Present And Potential
Investors And Creditors.
Question 1–2
Resources Are Efficiently Allocated If They Are Given To Enterprises That Will
Use Them To Provide Goods And Services Desired By Society And Not To
Enterprises That Will Waste Them. The Capital Markets Are The Mechanism
That Fosters This Efficient Allocation Of Resources.
Question 1–3
Two Extremely Important Variables That Must Be Considered In Any
Investment Decision Are The Expected Rate Of Return And The Uncertainty Or Risk
Of That Expected Return.
Question 1–4
In The Long Run, A Company Will Be Able To Provide Investors And Creditors
With A
Rate Of Return Only If It Can Generate A Profit. That Is, It Must Be Able To Use
The Resources Provided To It To Generate Cash Receipts From Selling A Product Or
Service That Exceed The Cash Disbursements Necessary To Provide That Product Or
Service.
Question 1–5
The Primary Objective Of Financial Accounting Is To Provide Investors
And
Creditors With Information That Will Help Them Make Investment And Credit
Decisions.
Question 1–6
Net Operating Cash Flows Are The Difference Between Cash Receipts And
Cash
Disbursements During A Period Of Time From Transactions Related To Providing
Goods And Services To Customers. Net Operating Cash Flows May Not Be A Good
Indicator Of Future Cash Flows Because, By Ignoring Uncompleted Transactions,
They May Not Match The Accomplishments And Sacrifices Of The Period.
, Answers to Questions (continued)
Solutions Manual, Chapter 2 2–1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Solution Manual For
Intermediate Accounting
By David Spiceland, Mark Nelson
11th Edition
,Answers to Questions (continued)
Table Of Content
Section 1: The Role Of Accounting As An Information System
Chapter 1: Environment And Theoretical Structure Of Financial Accounting
Chapter 2: Review Of The Accounting Process
Chapter 3: The Balance Sheet And Financial Disclosures
Chapter 4: The Income Statement, Comprehensive Income, And The Statement Of Cash Flows
Chapter 5: Time Value Of Money Concepts
Chapter 6: Revenue Recognition
Section 2: Assets
Chapter 7: Cash And Receivables
Chapter 8: Inventories: Measurement
Chapter 9: Inventories: Additional Issues
Chapter 10: Property, Plant, And Equipment And Intangible Assets: Acquisition
Chapter 11: Property, Plant, And Equipment And Intangible Assets: Utilization And Disposition
Chapter 12: Investments
Section 3: Liabilities And Shareholders’ Equity
Chapter 13: Current Liabilities And Contingencies
Chapter 14: Bonds And Long-Term Notes
Chapter 15: Leases
Chapter 16: Accounting For Income Taxes
Chapter 17: Pensions And Other Postretirement Benefits
Chapter 18: Shareholders’ Equity
Section 4: Additional Financial Reporting Issues
Chapter 19: Share-Based Compensation And Earnings Per Share
Chapter 20: Accounting Changes And Error Corrections
Chapter 21: The Statement Of Cash Flows Revisited
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
,Complete Solution Manual for Intermediate Accounting, 11th Edition
Chapter 1 Environment And Theoretical Structure Of
Financial Accounting
Question 1–1
Financial Accounting Is Concerned With Providing Relevant Financial
Information About Various Kinds Of Organizations To Different Types Of External
Users. The Primary Focus Of Financial Accounting Is On The Financial
Information Provided By Profit- Oriented Companies To Their Present And Potential
Investors And Creditors.
Question 1–2
Resources Are Efficiently Allocated If They Are Given To Enterprises That Will
Use Them To Provide Goods And Services Desired By Society And Not To
Enterprises That Will Waste Them. The Capital Markets Are The Mechanism
That Fosters This Efficient Allocation Of Resources.
Question 1–3
Two Extremely Important Variables That Must Be Considered In Any
Investment Decision Are The Expected Rate Of Return And The Uncertainty Or Risk
Of That Expected Return.
Question 1–4
In The Long Run, A Company Will Be Able To Provide Investors And Creditors
With A
Rate Of Return Only If It Can Generate A Profit. That Is, It Must Be Able To Use
The Resources Provided To It To Generate Cash Receipts From Selling A Product Or
Service That Exceed The Cash Disbursements Necessary To Provide That Product Or
Service.
Question 1–5
The Primary Objective Of Financial Accounting Is To Provide Investors
And
Creditors With Information That Will Help Them Make Investment And Credit
Decisions.
Question 1–6
Net Operating Cash Flows Are The Difference Between Cash Receipts And
Cash
Disbursements During A Period Of Time From Transactions Related To Providing
Goods And Services To Customers. Net Operating Cash Flows May Not Be A Good
Indicator Of Future Cash Flows Because, By Ignoring Uncompleted Transactions,
They May Not Match The Accomplishments And Sacrifices Of The Period.
, Answers to Questions (continued)
Solutions Manual, Chapter 2 2–1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
