Solution Manual for Financial Accounting, 8th Canadian Edition (Libby, Hodge, Kanaan, Sterling)

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




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,TABLE OF CONTENTS J




CHAPTERJONE
FinancialJStatementsJandJBusinessJDecisions

CHAPTERJTWO
InvestingJandJFinancingJDecisionsJandJtheJAccountingJSystem

CHAPTERJTHREE
OperatingJDecisionsJandJtheJAccountingJSystem

CHAPTERJFOUR
Adjustments,JFinancialJStatements,JandJtheJClosingJProcess

CHAPTERJFIVE
ReportingJandJInterpretingJSalesJRevenue,JReceivables,JandJCash

CHAPTERJSIX
ReportingJandJInterpretingJCostJofJSalesJandJInventory

CHAPTERJSEVEN
ReportingJandJInterpretingJLong-LivedJAssets

CHAPTERJEIGHT
ReportingJandJInterpretingJCurrentJLiabilities

CHAPTERJNINE
ReportingJandJInterpretingJNon-currentJLiabilities

CHAPTERJTEN
ReportingJandJInterpretingJShareholders'JEquity

CHAPTERJELEVEN
StatementJofJCashJFlows

CHAPTERJTWELVE
CommunicatingJAccountingJInformationJandJAnalyzingJFinancialJStatements

CHAPTERJTHIRTEEN
ReportingJandJInterpretingJInvestmentsJinJOtherJCorporations




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,CHAPTER ONE
Financial Statements and Business Decisions b




ANSWERS TO QUESTIONS
J J




1. AccountingJisJaJsystemJthatJcollectsJandJprocessesJ(analyzes,Jmeasures,JandJrecor
ds)JfinancialJinformationJaboutJanJorganizationJandJreportsJthatJinformationJtoJdecisi
onJmakers.

2. FinancialJaccountingJinvolvesJpreparationJofJtheJfourJbasicJfinancialJstatementsJandJr
elatedJdisclosuresJforJexternalJdecisionJmakers.JManagerialJaccountingJinvolvesJtheJ
preparationJofJdetailedJplans,Jbudgets,Jforecasts,JandJperformanceJreportsJforJintern
alJdecisionJmakers.

3. FinancialJreportsJareJusedJbyJbothJinternalJandJexternalJgroupsJandJindividuals.JTheJi
nternalJgroupsJareJcomprisedJofJtheJvariousJmanagersJofJtheJentity.JTheJexternalJgro
upsJincludeJtheJowners,Jinvestors,Jcreditors,JgovernmentalJagencies,JotherJintereste
dJparties,JandJtheJpublicJatJlarge.

4. InvestorsJpurchaseJallJorJpartJofJaJbusinessJandJhopeJtoJgainJbyJreceivingJpartJofJwhat
JtheJcompanyJearnsJand/orJsellingJtheJcompanyJinJtheJfutureJatJaJhigherJpriceJthanJthe

yJpaid.JCreditorsJlendJmoneyJtoJaJcompanyJforJaJspecificJlengthJofJtimeJandJhopeJtoJga
inJbyJchargingJinterestJonJtheJloan.

5. InJaJsocietyJeachJorganizationJcanJbeJdefinedJasJaJseparateJaccountingJentity.JAnJacc
ountingJentityJisJtheJorganizationJforJwhichJfinancialJdataJareJtoJbeJcollected.JTypicalJ
accountingJentitiesJareJaJbusiness,JaJchurch,JaJgovernmentalJunit,JaJuniversityJandJot
herJnonprofitJorganizationsJsuchJasJaJhospitalJandJaJwelfareJorganization.JAJbusiness
JtypicallyJisJdefinedJandJtreatedJasJaJseparateJ entityJbecauseJtheJowners,Jcreditors,Jin

vestors,JandJotherJinterestedJpartiesJneedJtoJevaluateJitsJperformanceJandJitsJpotenti
alJseparatelyJfromJotherJentitiesJandJfromJitsJowners.

6. NameJofJStatement AlternativeJTitle

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, (a) IncomeJStatement (a)J StatementJofJEarnings;JStatementJof
Income;JStatementJofJOperations
(b) BalanceJSheet (b)J StatementJofJFinancialJPosition
(c) AuditJReport (c)J ReportJofJIndependentJAccountants




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