Solution Manual For Financial Accounting, Canadian Edition, 7th Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version

Solution Manual For Financial Accounting,
7th Canadian Edition by Libby, Hodge,
Kanaan, Sterling Chapters 1 - 13, Complete




1-1

,TABLEOFCONTENTS ht ht ht




CHAPTER ONE ht




Financial Statements and Business Decisions
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CHAPTER TWO ht




Investing and Financing Decisions and the Accounting System
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CHAPTER THREE ht




Operating Decisions and the Accounting System
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CHAPTER FOUR ht




Adjustments, Financial Statements, and the Closing Process
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CHAPTER FIVE ht




Reporting and Interpreting Sales Revenue, Receivables, and Cash
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CHAPTER SIX ht




Reporting and Interpreting Cost of Sales and Inventory
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CHAPTER SEVEN ht




Reporting and Interpreting Long-Lived Assets
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CHAPTER EIGHT ht




Reporting and Interpreting Current Liabilities
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CHAPTER NINE ht




Reporting and Interpreting Non-current Liabilities
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CHAPTER TEN ht




Reporting and Interpreting Shareholders' Equity
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CHAPTER ELEVEN ht




Statement of Cash Flows
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CHAPTER TWELVE ht




Communicating Accounting Information and Analyzing Financial Statements
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CHAPTER THIRTEEN ht




Reporting and Interpreting Investments in Other Corporations
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1-2

,CHAPTER ONE ht




Financial Statements and Business Decisions ht ht ht ht




ANSWERS TO QUESTIONS ht ht




1. Accounting is a system that collects and processes (analyzes, measures, and records) f ht ht ht ht ht ht ht ht ht ht ht ht




inancial information about an organization and reports that information todecision mak
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ers.

2. Financial accounting involves preparation of the four basic financial statements andrelat
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ed disclosures for external decision makers. Managerial accounting involves the prepar
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ation of detailed plans, budgets, forecasts, and performance reportsfor internal decision
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makers.
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3. Financial reports are used by both internal and external groups and individuals. Theinter
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nal groups are comprised of the various managers of the entity. The external groups inclu
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de the owners, investors, creditors, governmental agencies, other interested parties, an
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d the public at large.
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4. Investors purchase all or part of a business and hope to gain by receiving part of what the c
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ompany earns and/or selling the company in the future at a higher price than they paid. Cr
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editors lend money to a company for a specific length of time andhope to gain by charging i
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nterest on the loan. ht ht ht




5. In a society each organization can be defined as a separate accounting entity. An account
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ing entity is the organization for which financial data are to be collected. Typical accountin
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g entities are a business, a church, a governmental unit, a university and other nonprofit o
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rganizations such as a hospital and a welfare organization. A business typically is define ht ht ht ht ht ht ht ht ht ht ht ht ht




d and treated as a separate entity because the owners, creditors, investors, and other int
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erested parties need to evaluate its performance and its potential separately from other e
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ntities and from itsowners. ht ht ht th




6. Name of Statement ht ht Alternative Title ht




1-3

, (a) Income Statement
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Income; Statement of Operations
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(b) Balance Sheet ht (b) Statement of Financial Position
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(c) Audit Report
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1-4