Solution Manual For Fundamentals of Financial Accounting 7th Edition Phillips.

Solution Manual For Financial Accounting, 7th
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Canadian Edition by Libby, Hodge, Kanaan, Ste
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rling Chapters 1 - 13, Complete
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,TABLE OF CONTENTS a a a




CHAPTER ONE a




Financial Statements and Business Decisions
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CHAPTER TWO a




Investing and Financing Decisions and the Accounting System
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CHAPTER THREE a




Operating Decisions and the Accounting System
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CHAPTER FOUR a




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




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




Reporting and Interpreting Cost of Sales and Inventory
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CHAPTER SEVEN a




Reporting and Interpreting Long-Lived Assets
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CHAPTER EIGHT a




Reporting and Interpreting Current Liabilities
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CHAPTER NINE a




Reporting and Interpreting Non-current Liabilities
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CHAPTER TEN a




Reporting and Interpreting Shareholders' Equity
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CHAPTER ELEVEN a




Statement of Cash Flows
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CHAPTER TWELVE a




Communicating Accounting Information and Analyzing Financial Statements
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CHAPTER THIRTEEN a




Reporting and Interpreting Investments in Other Corporations
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,CHAPTER ONE a




Financial Statements and Business Decisions a a a a




ANSWERS TO QUESTIONS a a




1. Accounting is a system that collects and processes (analyzes, measures, and records)
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financial information about an organization and reports that information todecision ma
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kers.

2. Financial accounting involves preparation of the four basic financial statements andrela
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ted disclosures for external decision makers. Managerial accounting involves the prepa
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ration of detailed plans, budgets, forecasts, and performance reports for internal decisi
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on makers. a




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 incl
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ude the owners, investors, creditors, governmental agencies, other interested parties, a
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nd 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
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company earns and/or selling the company in the future at a higher price than they paid. C
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reditors lend money to a company for a specific length of time andhope to gain by chargin
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g interest on the loan.
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5. In a society each organization can be defined as a separate accounting entity. An accoun
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ting entity is the organization for which financial data are to be collected. Typical accounti
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ng entities are a business, a church, a governmental unit, a university and other nonprofit
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organizations such as a hospital and a welfare organization. A business typically is defin
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ed and treated as a separate entity because the owners, creditors, investors, and other i
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nterested parties need to evaluate its performance and its potential separately from othe
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r entities and from itsowners.
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6. Name of Statement a a Alternative Title a




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