, CONTENTS
Preface To 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
, PREFACE—TO THE INSTRUCTOR
The Presentation Of The Subject Matter In Each Of The Chapters In Intermediate Accounting,
18e 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 InThe 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, 18e 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.
, CHAPTER 1
Financial Accounting And Accounting Standards
ASSIGNMENT CLASSIFICATION TABLE
Topics Questions Cases
1. Subject Matter Of Accounting. 1 1
2. Environment Of Accounting. 2, 3, 4 3, 4
3. Role Of Principles, Objectives, 5, 6, 7 2
Standards, And Accounting
Theory.
4. Historical Development Of 8, 9, 10, 11 5, 16
AccountingStandards.
5. Authoritative Pronouncements 12, 13, 14, 15, 6, 7, 8, 9, 10, 11,
And Standards-Setting 16, 17, 18, 19, 12, 15
Bodies. 20, 21, 22, 23
6. Role Of Pressure Groups. 23, 24, 25, 26, 17, 18
27, 28
7. International Accounting. 29, 30 14
8. Ethical Issues. 31 13, 16
Preface To 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
, PREFACE—TO THE INSTRUCTOR
The Presentation Of The Subject Matter In Each Of The Chapters In Intermediate Accounting,
18e 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 InThe 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, 18e 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.
, CHAPTER 1
Financial Accounting And Accounting Standards
ASSIGNMENT CLASSIFICATION TABLE
Topics Questions Cases
1. Subject Matter Of Accounting. 1 1
2. Environment Of Accounting. 2, 3, 4 3, 4
3. Role Of Principles, Objectives, 5, 6, 7 2
Standards, And Accounting
Theory.
4. Historical Development Of 8, 9, 10, 11 5, 16
AccountingStandards.
5. Authoritative Pronouncements 12, 13, 14, 15, 6, 7, 8, 9, 10, 11,
And Standards-Setting 16, 17, 18, 19, 12, 15
Bodies. 20, 21, 22, 23
6. Role Of Pressure Groups. 23, 24, 25, 26, 17, 18
27, 28
7. International Accounting. 29, 30 14
8. Ethical Issues. 31 13, 16
