Weygandt,DFKieso,DFKimmel,DFTrenholm,DFWarren,DFN AccountingDFPrinciples,DFTenthDFCanadianDFEdi
ovak tion
SOLUTION MANUAL FOR DF DF
AccountingDFprinciples,DFvolumeDF1,DF10thDFcanadianDFeditionDFjerryDFj.DFWeyga
ndt,DFpaulDFd.DFKimmel,DFjillDFe.DFMitchell,DFvalerieDFwarren,DFloriDFnovak
ChapterDF1-10
SolutionsDFManu 1.1 ChapterDF
al©DF2022DFJohnDFWileyDF&DFSonsDFCanada,DFLtd.DFUnauthorizedDFcopying,DFdistribution,DForDFtransmissionDFofDF
1 thisDFp
ageDFisDFprohibited.
,Weygandt,DFKieso,DFKimmel,DFTrenholm,DFWarren,DFN AccountingDFPrinciples,DFTenthDFCanadianDFEdi
ovak tion
CHAPTER 1 DF
ANSWERS TO QUESTIONS
DF DF
1. Yes.DFAccountingDFisDFtheDFfinancialDFinformationDFsystemDFthatDFprovidesDFuse
fulDFfinancialDFinformationDFtoDFeveryDFpersonDFwhoDFownsDFandDFusesDFecono
micDFresourcesDForDFotherwiseDFengagesDFinDFeconomicDFactivity.
LODF1D F BT:DFCD F Difficulty:DFSD F Time:DF5DFmin.D F AACSB:DFNoneD F CPA:DFcpa-t001D F CM:DFReporting
2. InternalDFusersDFareDFthoseDFwhoDFplan,DForganize,DFandDFrunDFbusinessesDFan
dDFincludeDFmanagers,DFsupervisors,DFdirectors,DFandDFcompanyDFofficers.DFEx
ternalDFusersDFworkDFforDFotherDForganizationsDFbutDFhaveDFreasonsDFtoDFbeDFint
erestedDFinDFtheDFcompany’sDFfinancialDFpositionDFandDFperformance,DFandDFinc
ludeDFcurrentDForDFpotentialDFinvestorsDF(owners),DFandDFcreditors.
InternalDFusersDFmayDFwantDFanswersDFtoDFseveralDFtypesDFofDFquestions.DFForDF
example,DFtheDFfinanceDFdepartmentDFwantsDFtoDFknowDFifDFthereDFisDFenoughDFc
ashDFtoDFpayDFtheDFbills.DFTheDFmarketingDFdepartmentDFwantsDFtoDFknowDFwhatD
FpriceDFtheDFbusinessDFshouldDFuseDFinDFsellingDFitsDFproductsDFtoDFmaximizeDFpr
ofits.DFTheDFhumanDFresourcesDFdepartmentDFwantsDFtoDFknowDFhowDFmanyDFp
eopleDFtheDFbusinessDFcanDFaffordDFtoDFhire.DFTheDFproductionDFdepartmentDFwa
ntsDFtoDFknowDFwhichDFproductDFlinesDFmakeDFtheDFbusinessDFtheDFmostDFprofit.
ExternalDFusersDFmayDFwantDFanswersDFtoDFseveralDFtypesDFofDFquestions.DFForD
Fexample,DFinvestorsDFwantDFtoDFknowDFifDFtheDFcompanyDFisDFearningDFenoughD
FtoDFgiveDFthemDFaDFreturnDFonDFtheirDFinvestment.DFCreditorsDFwantDFtoDFknowDFif
DFtheDFcompanyD F isDFableDFtoDFpayDFitsDFdebtsDFasDFtheyDFcomeDFdue.DFLabourDF
unionsDFwantDFtoDFknowDFwhetherDFtheDFownersDFcanDFaffordDFtoDFpayDFincrease
dDFwagesDFandDFbenefits.DFCustomersDFareDFinterestedDFinDFwhetherDFaDFcompa
nyDFwillDFcontinueDFtoDFhonourDFitsDFproductDFwarrantiesDFandDFsupportDFitsDFpro
ductDFlines.DFTaxingDFauthoritiesDFwantDFtoDFknowDFwhetherDFtheDFcompanyDFres
pectsDFtheDFtaxDFlaws.DFRegulatoryDFagenciesDFwantDFtoDFknowDFwhetherDFtheDF
companyDFisDFrespectingDFestablishedDFrules.
LODF1D F BT:DFCD F Difficulty:DFMD F Time:DF15DFmin.D F AACSB:DFNoneD F CPA:DFcpa-t001D F CM:DFReporting
3. TheDFmainDFobjectiveDFofDFfinancialDFreportingDFisDFtoDFprovideD F usefulDFinformationDF to
SolutionsDFManu 1.2 ChapterDF
al©DF2022DFJohnDFWileyDF&DFSonsDFCanada,DFLtd.DFUnauthorizedDFcopying,DFdistribution,DForDFtransmissionDFofDF
1 thisDFp
ageDFisDFprohibited.
,Weygandt,DFKieso,DFKimmel,DFTrenholm,DFWarren,DFN AccountingDFPrinciples,DFTenthDFCanadianDFEdi
ovak tion
investorsDFandDFcreditorsDF(externalDFusers)DFtoDFmakeDFdecisionsDFaboutDFaDFb
usiness.DFUsersDFmayDFbeDFpotentialDFinvestorsDFwhoDFneedDFtoDFdecideDFifDFthe
yD F wishDFtoDFinvestDFinDFtheDFbusinessDForDFtheyDFmayDFbeDFcreditorsDFdecidingDF
ifDFtheyD F wishDFtoDFlendDFmoneyDFtoDFtheDFbusiness.DFTheseDFusersDFwantDFtoDFk
nowDFifDFtheDFbusinessDFisDFrunningDFsuccessfullyDFandDFcanDFgenerateDFcashDF
andDFearnDFaDFprofit.
LODF1D F BT:DFCD F Difficulty:DFSD F Time:DF5DFmin.D F AACSB:DFNoneD F CPA:DFcpa-t001D F CM:DFReporting
4. Proprietorships,DFpartnerships,DFandDFcorporationsDFareDFtheDFthreeDFmainDFfor
msDFofDFbusinessDForganizations.DFTheDFmainDFdifferenceDFamongDFtheseDFthre
eDFformsDFisDFtheDFsizeDFofDFtheDFbusiness.DFSinceDFaDFproprietorshipDFisDFaDFbusi
nessDFownedDFbyD F oneDFperson,DFitDFhasDFlimitedDFresources.DFTheDFsizeDFofDFth
eDFbusinessDFisDFtypicallyDFsmallDFandDFtheDFlifeDFofDFtheDFbusinessDFisDFlimitedDFto
DFtheDFlifeDFofDFtheDFowner.DFTheDFsizeDFofDFbusinessesDFcanDFexpandDFinDFtheDFca
seDFofDFaDFpartnershipDFasDFmoreDFownersDFareDFinvolvedDFinDFtheDFday-to-
dayDFoperationsDFofDFtheDFbusiness.DFInDForderDFtoDFachieveDFaDFlargeDFsize,DFwit
hDFaDFdiverseDFgroupDFofDFowners,DFtheDFcorporateDFformDFisDFusedDFtoDFhaveDFea
syDFtransferabilityDFofDFtheDFownershipDFthroughDFtheDFissuanceDFofDFshares.DFA
notherDFimportantDFdifferenceDFisDFthatDFtheDFcorporationDFisDFaDFseparateDFlegal
DFentityDFandDFpaysDFincomeDFtaxes.DFInDFaddition,DFtheDFcorporationDFisDFtheDFonl
yDFformDFwhereDFownersDFhaveDFlimitedDFliabilityDFwithDFrespectDFtoDFtheDFbusine
ss.DFTheDFfollowingDFareDFtheDFmainDFcharacteristicsDFofDFeachDFform:
a. ADFproprietorshipDFisDFaDFprivateDFbusinessDFwithDFoneDFownerDFwhoDFhasDF
unlimitedDFliabilityDFforDFtheDFbusiness.DFTheDFproprietorshipDFhasDFaDFlimit
edDFlifeDFtiedDFtoDFtheDFlifeDFofDFtheDFowner.DFThereDFisDFtransparencyDFbetw
eenDFtheDFownerDFandDFtheDFbusiness.DFUltimately,DFtheDFownerDFisDFperso
nallyDFresponsibleDFtoDFpayDFtaxDFonDFtheDFprofitDFofDFtheDFbusiness.
b. ADFpartnershipDFhasDFessentiallyDFtheDFsameDFcharacteristicsDFasDFaDFprop
rietorshipDFexceptDFthatDFinDFaDFpartnership,DFthereDFisDFmoreDFthanDFoneDF
owner.DFPartnershipsDFareDFoftenDFusedDFtoDForganizeDFservice-
typeDFbusinesses,DFincludingDFprofessionalDFpractices.
c. ForDFcorporations,DFtheDFownersDFareDFoneDForDFmoreDFshareholdersDFwh
oDFenjoyDFlimitedDFliability.DFTheDFcorporationDFpaysDFincomeDFtaxesDFandD
FcanDFhaveDFanDFindefiniteDFliveDFsinceDFitsDFownershipDFunits,DFinDFtheDFfor
mDFofDFshares,DFareDFeasilyDFtransferredDFtoDFotherDFowners.
LODF2D F BT:DFKD F Difficulty:DFMD F Time:DF15DFmin.D F AACSB:DFNoneD F CPA:DFcpa-t001D F CM:DFReporting
5. EthicsDFisDFaDFfundamentalDFbusinessDFconcept.DFIfDFaccountantsDFdoDFnotDFhav
eDFaDFhighDFethicalDFstandard,DFtheDFinformationDFtheyDFproduceDFwillDFnotDFhaveD
FanyDFcredibility.
EthicsDFareDFimportantDFtoDFstatementDFusersDFbecauseDFitDFprovidesDFthemDFco
mfortDFthatDFtheDFfinancialDFinformationDFtheyDFareDFusingDFisDFcredibleDFandDFreli
SolutionsDFManu 1.3 ChapterDF
al©DF2022DFJohnDFWileyDF&DFSonsDFCanada,DFLtd.DFUnauthorizedDFcopying,DFdistribution,DForDFtransmissionDFofDF
1 thisDFp
ageDFisDFprohibited.
, Weygandt,DFKieso,DFKimmel,DFTrenholm,DFWarren,DFN AccountingDFPrinciples,DFTenthDFCanadianDFEdi
ovak tion
able.
SolutionsDFManu 1.4 ChapterDF
al©DF2022DFJohnDFWileyDF&DFSonsDFCanada,DFLtd.DFUnauthorizedDFcopying,DFdistribution,DForDFtransmissionDFofDF
1 thisDFp
ageDFisDFprohibited.
ovak tion
SOLUTION MANUAL FOR DF DF
AccountingDFprinciples,DFvolumeDF1,DF10thDFcanadianDFeditionDFjerryDFj.DFWeyga
ndt,DFpaulDFd.DFKimmel,DFjillDFe.DFMitchell,DFvalerieDFwarren,DFloriDFnovak
ChapterDF1-10
SolutionsDFManu 1.1 ChapterDF
al©DF2022DFJohnDFWileyDF&DFSonsDFCanada,DFLtd.DFUnauthorizedDFcopying,DFdistribution,DForDFtransmissionDFofDF
1 thisDFp
ageDFisDFprohibited.
,Weygandt,DFKieso,DFKimmel,DFTrenholm,DFWarren,DFN AccountingDFPrinciples,DFTenthDFCanadianDFEdi
ovak tion
CHAPTER 1 DF
ANSWERS TO QUESTIONS
DF DF
1. Yes.DFAccountingDFisDFtheDFfinancialDFinformationDFsystemDFthatDFprovidesDFuse
fulDFfinancialDFinformationDFtoDFeveryDFpersonDFwhoDFownsDFandDFusesDFecono
micDFresourcesDForDFotherwiseDFengagesDFinDFeconomicDFactivity.
LODF1D F BT:DFCD F Difficulty:DFSD F Time:DF5DFmin.D F AACSB:DFNoneD F CPA:DFcpa-t001D F CM:DFReporting
2. InternalDFusersDFareDFthoseDFwhoDFplan,DForganize,DFandDFrunDFbusinessesDFan
dDFincludeDFmanagers,DFsupervisors,DFdirectors,DFandDFcompanyDFofficers.DFEx
ternalDFusersDFworkDFforDFotherDForganizationsDFbutDFhaveDFreasonsDFtoDFbeDFint
erestedDFinDFtheDFcompany’sDFfinancialDFpositionDFandDFperformance,DFandDFinc
ludeDFcurrentDForDFpotentialDFinvestorsDF(owners),DFandDFcreditors.
InternalDFusersDFmayDFwantDFanswersDFtoDFseveralDFtypesDFofDFquestions.DFForDF
example,DFtheDFfinanceDFdepartmentDFwantsDFtoDFknowDFifDFthereDFisDFenoughDFc
ashDFtoDFpayDFtheDFbills.DFTheDFmarketingDFdepartmentDFwantsDFtoDFknowDFwhatD
FpriceDFtheDFbusinessDFshouldDFuseDFinDFsellingDFitsDFproductsDFtoDFmaximizeDFpr
ofits.DFTheDFhumanDFresourcesDFdepartmentDFwantsDFtoDFknowDFhowDFmanyDFp
eopleDFtheDFbusinessDFcanDFaffordDFtoDFhire.DFTheDFproductionDFdepartmentDFwa
ntsDFtoDFknowDFwhichDFproductDFlinesDFmakeDFtheDFbusinessDFtheDFmostDFprofit.
ExternalDFusersDFmayDFwantDFanswersDFtoDFseveralDFtypesDFofDFquestions.DFForD
Fexample,DFinvestorsDFwantDFtoDFknowDFifDFtheDFcompanyDFisDFearningDFenoughD
FtoDFgiveDFthemDFaDFreturnDFonDFtheirDFinvestment.DFCreditorsDFwantDFtoDFknowDFif
DFtheDFcompanyD F isDFableDFtoDFpayDFitsDFdebtsDFasDFtheyDFcomeDFdue.DFLabourDF
unionsDFwantDFtoDFknowDFwhetherDFtheDFownersDFcanDFaffordDFtoDFpayDFincrease
dDFwagesDFandDFbenefits.DFCustomersDFareDFinterestedDFinDFwhetherDFaDFcompa
nyDFwillDFcontinueDFtoDFhonourDFitsDFproductDFwarrantiesDFandDFsupportDFitsDFpro
ductDFlines.DFTaxingDFauthoritiesDFwantDFtoDFknowDFwhetherDFtheDFcompanyDFres
pectsDFtheDFtaxDFlaws.DFRegulatoryDFagenciesDFwantDFtoDFknowDFwhetherDFtheDF
companyDFisDFrespectingDFestablishedDFrules.
LODF1D F BT:DFCD F Difficulty:DFMD F Time:DF15DFmin.D F AACSB:DFNoneD F CPA:DFcpa-t001D F CM:DFReporting
3. TheDFmainDFobjectiveDFofDFfinancialDFreportingDFisDFtoDFprovideD F usefulDFinformationDF to
SolutionsDFManu 1.2 ChapterDF
al©DF2022DFJohnDFWileyDF&DFSonsDFCanada,DFLtd.DFUnauthorizedDFcopying,DFdistribution,DForDFtransmissionDFofDF
1 thisDFp
ageDFisDFprohibited.
,Weygandt,DFKieso,DFKimmel,DFTrenholm,DFWarren,DFN AccountingDFPrinciples,DFTenthDFCanadianDFEdi
ovak tion
investorsDFandDFcreditorsDF(externalDFusers)DFtoDFmakeDFdecisionsDFaboutDFaDFb
usiness.DFUsersDFmayDFbeDFpotentialDFinvestorsDFwhoDFneedDFtoDFdecideDFifDFthe
yD F wishDFtoDFinvestDFinDFtheDFbusinessDForDFtheyDFmayDFbeDFcreditorsDFdecidingDF
ifDFtheyD F wishDFtoDFlendDFmoneyDFtoDFtheDFbusiness.DFTheseDFusersDFwantDFtoDFk
nowDFifDFtheDFbusinessDFisDFrunningDFsuccessfullyDFandDFcanDFgenerateDFcashDF
andDFearnDFaDFprofit.
LODF1D F BT:DFCD F Difficulty:DFSD F Time:DF5DFmin.D F AACSB:DFNoneD F CPA:DFcpa-t001D F CM:DFReporting
4. Proprietorships,DFpartnerships,DFandDFcorporationsDFareDFtheDFthreeDFmainDFfor
msDFofDFbusinessDForganizations.DFTheDFmainDFdifferenceDFamongDFtheseDFthre
eDFformsDFisDFtheDFsizeDFofDFtheDFbusiness.DFSinceDFaDFproprietorshipDFisDFaDFbusi
nessDFownedDFbyD F oneDFperson,DFitDFhasDFlimitedDFresources.DFTheDFsizeDFofDFth
eDFbusinessDFisDFtypicallyDFsmallDFandDFtheDFlifeDFofDFtheDFbusinessDFisDFlimitedDFto
DFtheDFlifeDFofDFtheDFowner.DFTheDFsizeDFofDFbusinessesDFcanDFexpandDFinDFtheDFca
seDFofDFaDFpartnershipDFasDFmoreDFownersDFareDFinvolvedDFinDFtheDFday-to-
dayDFoperationsDFofDFtheDFbusiness.DFInDForderDFtoDFachieveDFaDFlargeDFsize,DFwit
hDFaDFdiverseDFgroupDFofDFowners,DFtheDFcorporateDFformDFisDFusedDFtoDFhaveDFea
syDFtransferabilityDFofDFtheDFownershipDFthroughDFtheDFissuanceDFofDFshares.DFA
notherDFimportantDFdifferenceDFisDFthatDFtheDFcorporationDFisDFaDFseparateDFlegal
DFentityDFandDFpaysDFincomeDFtaxes.DFInDFaddition,DFtheDFcorporationDFisDFtheDFonl
yDFformDFwhereDFownersDFhaveDFlimitedDFliabilityDFwithDFrespectDFtoDFtheDFbusine
ss.DFTheDFfollowingDFareDFtheDFmainDFcharacteristicsDFofDFeachDFform:
a. ADFproprietorshipDFisDFaDFprivateDFbusinessDFwithDFoneDFownerDFwhoDFhasDF
unlimitedDFliabilityDFforDFtheDFbusiness.DFTheDFproprietorshipDFhasDFaDFlimit
edDFlifeDFtiedDFtoDFtheDFlifeDFofDFtheDFowner.DFThereDFisDFtransparencyDFbetw
eenDFtheDFownerDFandDFtheDFbusiness.DFUltimately,DFtheDFownerDFisDFperso
nallyDFresponsibleDFtoDFpayDFtaxDFonDFtheDFprofitDFofDFtheDFbusiness.
b. ADFpartnershipDFhasDFessentiallyDFtheDFsameDFcharacteristicsDFasDFaDFprop
rietorshipDFexceptDFthatDFinDFaDFpartnership,DFthereDFisDFmoreDFthanDFoneDF
owner.DFPartnershipsDFareDFoftenDFusedDFtoDForganizeDFservice-
typeDFbusinesses,DFincludingDFprofessionalDFpractices.
c. ForDFcorporations,DFtheDFownersDFareDFoneDForDFmoreDFshareholdersDFwh
oDFenjoyDFlimitedDFliability.DFTheDFcorporationDFpaysDFincomeDFtaxesDFandD
FcanDFhaveDFanDFindefiniteDFliveDFsinceDFitsDFownershipDFunits,DFinDFtheDFfor
mDFofDFshares,DFareDFeasilyDFtransferredDFtoDFotherDFowners.
LODF2D F BT:DFKD F Difficulty:DFMD F Time:DF15DFmin.D F AACSB:DFNoneD F CPA:DFcpa-t001D F CM:DFReporting
5. EthicsDFisDFaDFfundamentalDFbusinessDFconcept.DFIfDFaccountantsDFdoDFnotDFhav
eDFaDFhighDFethicalDFstandard,DFtheDFinformationDFtheyDFproduceDFwillDFnotDFhaveD
FanyDFcredibility.
EthicsDFareDFimportantDFtoDFstatementDFusersDFbecauseDFitDFprovidesDFthemDFco
mfortDFthatDFtheDFfinancialDFinformationDFtheyDFareDFusingDFisDFcredibleDFandDFreli
SolutionsDFManu 1.3 ChapterDF
al©DF2022DFJohnDFWileyDF&DFSonsDFCanada,DFLtd.DFUnauthorizedDFcopying,DFdistribution,DForDFtransmissionDFofDF
1 thisDFp
ageDFisDFprohibited.
, Weygandt,DFKieso,DFKimmel,DFTrenholm,DFWarren,DFN AccountingDFPrinciples,DFTenthDFCanadianDFEdi
ovak tion
able.
SolutionsDFManu 1.4 ChapterDF
al©DF2022DFJohnDFWileyDF&DFSonsDFCanada,DFLtd.DFUnauthorizedDFcopying,DFdistribution,DForDFtransmissionDFofDF
1 thisDFp
ageDFisDFprohibited.
