Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Kanaan, Sterling Chapters 1 - 13, Complete

Solution Manual For Financial Accounting,
8th Canadian Edition by Libby, Hodge,
Kanaan, Sterling Chapters 1 - 13, Complete




1-1

,TABLE OFCONTENTS BV BV BV




CHAPTER ONE BV




Financial Statements and Business Decisions
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CHAPTER TWO BV




Investing and Financing Decisions and the Accounting System
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CHAPTER THREE BV




Operating Decisions and the Accounting System
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CHAPTER FOUR BV




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




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




Reporting and Interpreting Cost of Sales and Inventory
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CHAPTER SEVEN BV




Reporting and Interpreting Long-Lived Assets
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CHAPTER EIGHT BV




Reporting and Interpreting Current Liabilities
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CHAPTER NINE BV




Reporting and Interpreting Non-current Liabilities
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CHAPTER TEN BV




Reporting and Interpreting Shareholders' Equity
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CHAPTER ELEVEN BV




Statement of Cash Flows
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CHAPTER TWELVE BV




Communicating Accounting Information and Analyzing Financial Statements
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CHAPTER THIRTEEN BV




Reporting and Interpreting Investments in Other Corporations
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1-2

,CHAPTER ONE BV




Financial Statements and Business Decisions BV BV BV BV




ANSWERS TO QUESTIONS BV BV




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




financial 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 reports for internal decisio
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n 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. BV BV BV




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 BV BV BV BV BV BV BV BV BV BV BV BV BV




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. BV BV BV VB




6. Name of Statement BV BV Alternative Title BV




1-3

, (a) Income Statement
BV (a) Statement of Earnings; Statement of
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Income; Statement of Operations
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(b) Balance Sheet BV (b) Statement of Financial Position
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(c) Audit Report
BV (c) Report of Independent Accountants
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