Solution Manual for Financial Accounting 11th Edition Robert Libby, Patricia Libby, Complete Chapters 1 - 13, Verified Newest Version

SOLUTION MANUAL FOR
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Financial Accounting 11th Edition
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by Robert Libby, All Chapters 1 - 13
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,TABLE OF CONTENTS
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CHAPTER |1: |Financial |Statements |and |Business |Decisions
Focus |Company: |Le-Nature’s |Inc.
CHAPTER |2: |Investing |and |Financing |Decisions |and |the |Accounting |System
Focus |Company: |Chipotle |Mexican |Grill
CHAPTER |3: |Operating |Decisions |and |the |Accounting |System
Focus |Company: |Chipotle |Mexican |Grill
CHAPTER |4: |Adjustments, |Financial |Statements, |and |the |Closing |Process
Focus |Company: |Chipotle |Mexican |Grill
CHAPTER |5: |Communicating |and |Analyzing |Accounting |Information
Focus |Company: |Apple |Inc.
CHAPTER |6: |Reporting |and |Interpreting |Sales |Revenue, |Receivables, |and |Cash
Focus |Company: |Skechers |U.S.A.
CHAPTER |7: |Reporting |and |Interpreting |Cost |of |Goods |Sold |and |Inventory
Focus |Company: |Harley-Davidson, |Inc.
CHAPTER |8: |Reporting |and |Interpreting |Property, |Plant, |and |Equipment; |Intangibles; |and |Natural
Resources
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Focus |Company: |FedEx |Corporation
CHAPTER |9: |Reporting |and |Interpreting |Liabilities
Focus |Company: |Starbucks
CHAPTER |10: |Reporting |and |Interpreting |Bond |Securities
Focus |Company: |Amazon
CHAPTER |11: |Reporting |and |Interpreting |Stockholders’ |Equity
Focus |Company: |Microsoft
CHAPTER |12: |Statement |of |Cash |Flows
Focus |Company: |National |Beverage |Corporation
CHAPTER |13: |Analyzing |Financial |Statements
Focus |Company: |The |Home |Depot

,Chapter 1 |




Financial Statements and Business Decisions
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ANSWERS TO QUESTIONS
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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 | their |ownership |interest |in |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.




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) Cash |Flow |Statement (c) | Statement |of |Cash |Flows

7. The |heading |of |each |of |the |four |required |financial |statements |should |include |the
|following:

(a) Name |of |the |entity
(b) Name |of |the |statement
(c) Date |of |the |statement, |or |the |period |of |time
(d) Unit |of |measure

8. (a) The |purpose |of |the |income |statement |is |to |present |information |about |the
|revenues, |expenses, |and |the | net |income |of |an |entity |for |a |specified |period | of

|time.

(b) The |purpose |of |the |balance |sheet |is |to |report |the |financial |position |of |an |entity
|at |a |given |date, |that |is, |to |report |information |about |the |assets, | liabilities |and

|stockholders’ |equity |of |the |entity |as |of |a |specific |date.

(c) The |purpose |of |the |statement |of |cash |flows |is |to |present |information |about |the
|flow |of |cash |into |the |entity |(sources), |the |flow |of |cash |out |of |the |entity |(uses),

|and |the |net |increase |or |decrease |in |cash |during |the |period.

(d) The |statement |of |stockholders’ |equity |reports |the |changes |in |each |of |the
|company’s |stockholders’ |equity |accounts |during | the |accounting |period,

|including |issue |and |repurchase |of |stock |and | the |way |that |net |income |and

|distribution |of |dividends |affected |the |retained |earnings |of |the |company |during

|that |period.




9. The |income |statement |and |the |statement |of |cash |flows |are |dated |―For |the |Year
|Ended |December |31‖ |because |they |report |the |inflows |and |outflows |of |resources

|during |a |period |of |time. |In |contrast, |the |balance |sheet |is |dated |―At |December |31‖

|because |it |represents |the |resources, |obligations, |and |stockholders’ |equity |at |a

|specific |date.