Financial Accounting, 8th Canadian Edition – Libby, Hodge, Kanaan & Sterling – Complete Solution Manual (Chapters 1-13)

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




TABLE zr




OF CO zr




NTEN
TS zr




CHAPTER ONE zr




Financial Statem zr




ents and Busines
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s Decisions
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CHAPTER TWO zr




Investing and Fin zr zr




ancing Decisionszr zr




and the Accounti
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ng System
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CHAPTER THREE
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,Operating Decisions and the Accounting System
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CHAPTER FOUR zr




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




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




Reporting and Interpreting Cost of Sales and Inventory
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CHAPTER SEVEN zr




Reporting and Interpreting Long-Lived Assets
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CHAPTER EIGHT zr




Reporting and Interpreting Current Liabilities
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CHAPTER NINE zr




Reporting and Interpreting Non-current Liabilities
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CHAPTER TEN zr




Reporting and Interpreting Shareholders' Equity
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CHAPTER ELEVEN zr




Statement of Cash Flows
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CHAPTER TWELVE zr




Communicating Accounting Information and Analyzing Financial Statements
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CHAPTER THIRTEEN zr




Reporting and Interpreting Investments in Other Corporations
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, CHAPTER ONE zr




Financial Statements and Business Decisions zr zr zr zr




ANSWERS TO QUESTIONS zr zr




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




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 reports for 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. zr zr zr




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 zr zr zr zr zr zr zr zr zr zr zr zr zr




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. zr zr zr zr




6. Name of Statement zr zr Alternative Title zr




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