TESTBANK
Accounting , Principles , 14th , Edition
by , Jerry , J. , Weygandt, , Paul , D. , Kimmel ,Chapters ,
1 , - , 27, , Complete
,TABLE , OF , CONTENTS
1 , Accounting , in , Action ,
2 , The , Recording , Process ,
3 , Adjusting , the , Accounts
4 , Completing , the , Accounting , Cycle
5 , Accounting , for , Merchandising , Operations
6 , Inventories ,
7 , Accounting , Information , Systems ,
8 , Fraud, , Internal , Control, , and , Cash ,
9 , Accounting , for , Receivables ,
10 , Plant , Assets, , Natural , Resources, , and , Intangible , Assets
11 , Current , Liabilities , and , Payroll , Accounting
12 , Accounting , for , Partnerships
13 , Corporations: , Organization , and , Capital , Stock , Transactions
14 , Corporations: , Dividends, , Retained , Earnings, , and , Income , R
eporting
,15 , Long-Term , Liabilities
16 , Investments
17 , Statement , of , Cash , Flows
18 , Financial , Analysis: , The , Big , Picture ,
19 , Managerial , Accounting ,
20 , Job , Order , Costing ,
21 , Process , Costing ,
22 , Cost-Volume-Profit ,
23 , Incremental , Analysis ,
24 , Budgetary , Planning
25 , Budgetary , Control , and , Responsibility , Accounting ,
26 , Standard , Costs , and , Balanced , Scorecard ,
27 , Planning , for , Capital , Investments ,
, CHAPTER , 1
ACCOUNTING,IN,ACTION
CHAPTER,LEARNING,OBJECTIVES
1. Identify,the,activities,and,users,associated,with,accounting.,Accounting,is,an,information,system,th
at,identifies,,records,,and,communicates,the,economic,events,of,an,organization,to,interested,users.
,The,major,users,and,uses,of,accounting,are,as,follows:,(a),Management,uses,accounting,informatio
n,to,plan,,organize,,and,run,the,business.,(b),Investors,(owners),decide,whether,to,buy,,hold,,or,sell,
their,financial,interests,on,the,basis,of,accounting,data.,(c),Creditors,(suppliers,and,bankers),evaluate
,the,risks,of,granting,credit,or,lending, money, on,the,basis,of,accounting,information.,Other,groups,
that,use,accounting,information,are,taxing,authorities,,regulatory,agencies,,customers,,and,labor,uni
ons.
2. Explain,the,building,blocks,of,accounting:,ethics,,principles,,and,assumptions.,Ethics,are,the,standa
rds,of,conduct,by,which,actions,are,judged,as,right,or,wrong.,Effective,financial,reporting,depends,o
n,sound,ethical,behavior.
Generally,accepted,accounting,principles,are,a,common,set,of,standards,used,by,accountants.,The,p
rimary,accounting,standard-
setting,body,in,the,United,States,is,the,Financial,Accounting,Standards,Board.
3. State,the,accounting,equation,,and,define,its,components.,The,basic, accounting,equation,is:
Assets,=,Liabilities,+,Owner's,Equity
Assets, are, resources, a, business, owns., Liabilities, are, creditorship, claims, on, total, assets.,Owner's,eq
uity,is,the,ownership,claim,on,total,assets.
The,expanded,accounting,equation,is:
Assets, ,Liabilities,+,Owner's,Capital, ,Owner's,Drawings,+,Revenues,
Expenses
Investments,by,owners,(assets,the,owner,puts,into,the,business),are,recorded,in,a,category,called,o
wner‘s,capital.,Owner‘s,drawings,are,the,withdrawal,of,assets,by,the,owner,for,personal,use.,Reven
ues,are,the,gross,increase,in,owner‘s,equity,from,business,activities,for,the,purpose,of,earning,inco
me.,Expenses,are,the,costs,of,assets,consumed,or,services,used,in, the, process, of, earning, revenue.
, Owner‘s, equity, is, increased, by, an, owner‘s, investments,and,by,revenues,from,business,operations
.,Owner‘s,equity,is,decreased,by,an,owner‘s,withdrawals,of,assets,and,by,expenses.
4. Analyze,the,effects,of,business,transactions,on,the,accounting,equation.,Each,business,transaction,
must,have,a,dual,effect,on,the,accounting,equation.,For,example,,if,an,individual,asset,increases,,th
ere,must,be,a,corresponding,(1),decrease,in,another,asset,,or,(2),increase,in,a,specific,liability,,or,(3
),increase,in,owner's,equity.
5. Describe,the,four,financial,statements,and,how,they,are,prepared.,An,income,statement,presents,t
he,revenues,and,expenses,,and,resulting,net,income,or,net, loss,for,a, specific,period,of,time.,An,ow
ner's,equity,statement,summarizes,the,changes,in,owner's,equity,for,a,specific,period,of,time.,A,bal
Accounting , Principles , 14th , Edition
by , Jerry , J. , Weygandt, , Paul , D. , Kimmel ,Chapters ,
1 , - , 27, , Complete
,TABLE , OF , CONTENTS
1 , Accounting , in , Action ,
2 , The , Recording , Process ,
3 , Adjusting , the , Accounts
4 , Completing , the , Accounting , Cycle
5 , Accounting , for , Merchandising , Operations
6 , Inventories ,
7 , Accounting , Information , Systems ,
8 , Fraud, , Internal , Control, , and , Cash ,
9 , Accounting , for , Receivables ,
10 , Plant , Assets, , Natural , Resources, , and , Intangible , Assets
11 , Current , Liabilities , and , Payroll , Accounting
12 , Accounting , for , Partnerships
13 , Corporations: , Organization , and , Capital , Stock , Transactions
14 , Corporations: , Dividends, , Retained , Earnings, , and , Income , R
eporting
,15 , Long-Term , Liabilities
16 , Investments
17 , Statement , of , Cash , Flows
18 , Financial , Analysis: , The , Big , Picture ,
19 , Managerial , Accounting ,
20 , Job , Order , Costing ,
21 , Process , Costing ,
22 , Cost-Volume-Profit ,
23 , Incremental , Analysis ,
24 , Budgetary , Planning
25 , Budgetary , Control , and , Responsibility , Accounting ,
26 , Standard , Costs , and , Balanced , Scorecard ,
27 , Planning , for , Capital , Investments ,
, CHAPTER , 1
ACCOUNTING,IN,ACTION
CHAPTER,LEARNING,OBJECTIVES
1. Identify,the,activities,and,users,associated,with,accounting.,Accounting,is,an,information,system,th
at,identifies,,records,,and,communicates,the,economic,events,of,an,organization,to,interested,users.
,The,major,users,and,uses,of,accounting,are,as,follows:,(a),Management,uses,accounting,informatio
n,to,plan,,organize,,and,run,the,business.,(b),Investors,(owners),decide,whether,to,buy,,hold,,or,sell,
their,financial,interests,on,the,basis,of,accounting,data.,(c),Creditors,(suppliers,and,bankers),evaluate
,the,risks,of,granting,credit,or,lending, money, on,the,basis,of,accounting,information.,Other,groups,
that,use,accounting,information,are,taxing,authorities,,regulatory,agencies,,customers,,and,labor,uni
ons.
2. Explain,the,building,blocks,of,accounting:,ethics,,principles,,and,assumptions.,Ethics,are,the,standa
rds,of,conduct,by,which,actions,are,judged,as,right,or,wrong.,Effective,financial,reporting,depends,o
n,sound,ethical,behavior.
Generally,accepted,accounting,principles,are,a,common,set,of,standards,used,by,accountants.,The,p
rimary,accounting,standard-
setting,body,in,the,United,States,is,the,Financial,Accounting,Standards,Board.
3. State,the,accounting,equation,,and,define,its,components.,The,basic, accounting,equation,is:
Assets,=,Liabilities,+,Owner's,Equity
Assets, are, resources, a, business, owns., Liabilities, are, creditorship, claims, on, total, assets.,Owner's,eq
uity,is,the,ownership,claim,on,total,assets.
The,expanded,accounting,equation,is:
Assets, ,Liabilities,+,Owner's,Capital, ,Owner's,Drawings,+,Revenues,
Expenses
Investments,by,owners,(assets,the,owner,puts,into,the,business),are,recorded,in,a,category,called,o
wner‘s,capital.,Owner‘s,drawings,are,the,withdrawal,of,assets,by,the,owner,for,personal,use.,Reven
ues,are,the,gross,increase,in,owner‘s,equity,from,business,activities,for,the,purpose,of,earning,inco
me.,Expenses,are,the,costs,of,assets,consumed,or,services,used,in, the, process, of, earning, revenue.
, Owner‘s, equity, is, increased, by, an, owner‘s, investments,and,by,revenues,from,business,operations
.,Owner‘s,equity,is,decreased,by,an,owner‘s,withdrawals,of,assets,and,by,expenses.
4. Analyze,the,effects,of,business,transactions,on,the,accounting,equation.,Each,business,transaction,
must,have,a,dual,effect,on,the,accounting,equation.,For,example,,if,an,individual,asset,increases,,th
ere,must,be,a,corresponding,(1),decrease,in,another,asset,,or,(2),increase,in,a,specific,liability,,or,(3
),increase,in,owner's,equity.
5. Describe,the,four,financial,statements,and,how,they,are,prepared.,An,income,statement,presents,t
he,revenues,and,expenses,,and,resulting,net,income,or,net, loss,for,a, specific,period,of,time.,An,ow
ner's,equity,statement,summarizes,the,changes,in,owner's,equity,for,a,specific,period,of,time.,A,bal
