Solution Manual For Financial Accounting, 8th
| | | | |
| Canadian Edition by Libby, Hodge, Kanaan,
| | | | |
| Sterling Chapters 1 - 13, Complete
| | | | |
1-1
,TABLE OF CONTENTS | | |
CHAPTER |ONE
Financial |Statements |and |Business |Decisions
CHAPTER |TWO
Investing |and |Financing |Decisions |and |the |Accounting |System
CHAPTER |THREE
Operating |Decisions |and |the |Accounting |System
CHAPTER |FOUR
Adjustments, |Financial |Statements, |and |the |Closing |Process
CHAPTER |FIVE
Reporting |and |Interpreting |Sales |Revenue, |Receivables, |and |Cash
CHAPTER |SIX
Reporting |and |Interpreting |Cost |of |Sales |and |Inventory
CHAPTER |SEVEN
Reporting |and |Interpreting |Long-Lived |Assets
CHAPTER |EIGHT
Reporting |and |Interpreting |Current |Liabilities
CHAPTER |NINE
Reporting |and |Interpreting |Non-current |Liabilities
CHAPTER |TEN
Reporting |and |Interpreting |Shareholders' |Equity
CHAPTER |ELEVEN
Statement |of |Cash |Flows
CHAPTER |TWELVE
Communicating |Accounting |Information |and |Analyzing |Financial |Statements
CHAPTER |THIRTEEN
Reporting |and |Interpreting |Investments |in |Other |Corporations
1-2
,CHAPTER ONE |
Financial Statements and Business Decisions
| | | |
ANSWERS TO QUESTIONS
| |
1. Accounting |is |a |system |that |collects |and |processes |(analyzes, |measures, |and
|records) |financial |information |about |an |organization |and |reports |that |information |to
|decision |makers.
2. Financial |accounting |involves |preparation |of |the |four |basic |financial |statements |and
|related |disclosures |for |external |decision |makers. |Managerial |accounting |involves
|the |preparation |of |detailed |plans, |budgets, |forecasts, |and |performance |reports |for
|internal |decision |makers.
3. Financial |reports |are |used |by |both |internal |and |external |groups |and |individuals. |The
|internal |groups |are |comprised |of |the |various |managers |of |the |entity. |The |external
|groups |include |the | owners, |investors, |creditors, |governmental |agencies, |other
|interested |parties, |and |the |public |at |large.
4. Investors |purchase |all |or |part |of |a |business |and |hope |to |gain |by |receiving |part |of
|what |the |company |earns |and/or |selling |the |company |in |the |future |at |a |higher |price
|than |they |paid. | Creditors |lend |money |to |a |company |for |a |specific |length |of |time |and
|hope |to |gain |by |charging |interest |on |the |loan.
5. In |a |society |each |organization |can |be |defined |as |a |separate |accounting |entity. |An
|accounting |entity |is |the |organization |for |which |financial |data |are |to |be |collected.
|Typical |accounting |entities |are |a |business, |a |church, |a |governmental |unit, |a
|university |and |other |nonprofit |organizations |such |as |a |hospital |and |a | welfare
|organization. |A |business |typically |is |defined |and |treated |as |a |separate | entity
|because |the |owners, |creditors, |investors, |and |other |interested |parties |need |to
|evaluate |its |performance |and |its |potential |separately |from |other |entities |and |from |its
|owners.
1-3
, 6. Name |of |Statement Alternative |Title
(a) Income |Statement (a) | Statement |of |Earnings; |Statement |of
Income; |Statement |of |Operations
(b) Balance |Sheet (b) | Statement |of |Financial |Position
(c) Audit |Report (c) | Report |of |Independent |Accountants
1-4
| | | | |
| Canadian Edition by Libby, Hodge, Kanaan,
| | | | |
| Sterling Chapters 1 - 13, Complete
| | | | |
1-1
,TABLE OF CONTENTS | | |
CHAPTER |ONE
Financial |Statements |and |Business |Decisions
CHAPTER |TWO
Investing |and |Financing |Decisions |and |the |Accounting |System
CHAPTER |THREE
Operating |Decisions |and |the |Accounting |System
CHAPTER |FOUR
Adjustments, |Financial |Statements, |and |the |Closing |Process
CHAPTER |FIVE
Reporting |and |Interpreting |Sales |Revenue, |Receivables, |and |Cash
CHAPTER |SIX
Reporting |and |Interpreting |Cost |of |Sales |and |Inventory
CHAPTER |SEVEN
Reporting |and |Interpreting |Long-Lived |Assets
CHAPTER |EIGHT
Reporting |and |Interpreting |Current |Liabilities
CHAPTER |NINE
Reporting |and |Interpreting |Non-current |Liabilities
CHAPTER |TEN
Reporting |and |Interpreting |Shareholders' |Equity
CHAPTER |ELEVEN
Statement |of |Cash |Flows
CHAPTER |TWELVE
Communicating |Accounting |Information |and |Analyzing |Financial |Statements
CHAPTER |THIRTEEN
Reporting |and |Interpreting |Investments |in |Other |Corporations
1-2
,CHAPTER ONE |
Financial Statements and Business Decisions
| | | |
ANSWERS TO QUESTIONS
| |
1. Accounting |is |a |system |that |collects |and |processes |(analyzes, |measures, |and
|records) |financial |information |about |an |organization |and |reports |that |information |to
|decision |makers.
2. Financial |accounting |involves |preparation |of |the |four |basic |financial |statements |and
|related |disclosures |for |external |decision |makers. |Managerial |accounting |involves
|the |preparation |of |detailed |plans, |budgets, |forecasts, |and |performance |reports |for
|internal |decision |makers.
3. Financial |reports |are |used |by |both |internal |and |external |groups |and |individuals. |The
|internal |groups |are |comprised |of |the |various |managers |of |the |entity. |The |external
|groups |include |the | owners, |investors, |creditors, |governmental |agencies, |other
|interested |parties, |and |the |public |at |large.
4. Investors |purchase |all |or |part |of |a |business |and |hope |to |gain |by |receiving |part |of
|what |the |company |earns |and/or |selling |the |company |in |the |future |at |a |higher |price
|than |they |paid. | Creditors |lend |money |to |a |company |for |a |specific |length |of |time |and
|hope |to |gain |by |charging |interest |on |the |loan.
5. In |a |society |each |organization |can |be |defined |as |a |separate |accounting |entity. |An
|accounting |entity |is |the |organization |for |which |financial |data |are |to |be |collected.
|Typical |accounting |entities |are |a |business, |a |church, |a |governmental |unit, |a
|university |and |other |nonprofit |organizations |such |as |a |hospital |and |a | welfare
|organization. |A |business |typically |is |defined |and |treated |as |a |separate | entity
|because |the |owners, |creditors, |investors, |and |other |interested |parties |need |to
|evaluate |its |performance |and |its |potential |separately |from |other |entities |and |from |its
|owners.
1-3
, 6. Name |of |Statement Alternative |Title
(a) Income |Statement (a) | Statement |of |Earnings; |Statement |of
Income; |Statement |of |Operations
(b) Balance |Sheet (b) | Statement |of |Financial |Position
(c) Audit |Report (c) | Report |of |Independent |Accountants
1-4
