SOLUTION MANUAL
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLE OF CONTENTS
Chapter 1. Accounting in Action
Chapter 2. The Recording Process
Chapter 3. Adjusting the Accounts
Chapter 4. Completing the Accounting Cycle
Chapter 5. Accounting for Merchandising Operations
Chapter 6. Inventories
Chapter 7. Fraud, Internal Control and Cash
Chapter 8. Accounting for Receivables
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
Chapter 10. Liabilities
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’
Equity
Chapter 12. Statement of Cash Flows
Chapter 13. Financial Analysis: The Big Picture
,CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify the activities and 1, 2, 3, 4, 5 1 1, 2
users associated with
accounting.
2. Explain the building blocks of 6, 7, 8, 9, 10 2 3, 4
accounting: ethics, principles,
and assumptions.
3. State the accounting 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
equation, and define its 22
components.
4. Analyze the effects of business 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
transactions on theaccounting 5A
equation.
5. Describe the four financial 17, 19, 20, 21, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
statements and how they are 12, 13, 14, 15, 5A
prepared. 16, 17, 18
, ANSWERS fTO fQUESTIONS
1. True. fVirtually fevery forganization fand fperson fin four fsociety fuses faccounting finformation. fBusinesses,
finvestors, fcreditors, fgovernment fagencies, fand fnot-for-profit forganizations fmust fuse faccounting
finformation fto foperate feffectively.
LO f 1, f BT: f K, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Reporting, f IMA: f Reporting
2. Accounting fis fthe fprocess fof fidentifying, frecording, fand f communicating f the feconomic fevents fof fan
forganization fto finterested fusers fof fthe finformation. fThe ffirst factivity fof fthe faccounting fprocess fis fto
fidentify feconomic fevents fthat fare frelevant fto fa fparticular fbusiness. fOnce fidentified fand fmeasured,
fthe fevents fare frecorded fto fprovide fa fhistory fof fthe ffinancial factivities fof fthe forganization.
fRecording fconsists fof fkeeping fa fchronological fdiary fof fthese fmeasured fevents fin fan forderly fand
fsystematic fmanner. fThe finformation fis fcommunicated fthrough fthe fpreparation fand fdistribution fof
faccounting f reports, f the f most f common f of f which fare f called ffinancial fstatements. fA fvital
felement fin fthe fcommunication fprocess fis fthe faccountant’s fability fand fresponsibility fto fanalyze fand
finterpret fthe freported finformation.
LO f 1, f BT: f K, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Reporting, f IMA: f Reporting
3. (a) fInternal fusers fare fthose fwho fplan, forganize, fand frun fthe fbusiness fand ftherefore fare fofficers fand
fother fdecision fmakers.
(b) To fassist fmanagement, faccounting fprovides finternal freports. fExamples finclude ffinancial
fcomparisons fof foperating falternatives, fprojections fof f income ffrom fnew fsales f campaigns, fand
fforecasts fof f cash fneeds ffor fthe fnext fyear.
LO f 1, f BT: f K, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Reporting, f IMA: f Reporting
4. (a) Investors f(owners) fuse faccounting finformation fto fmake fdecisions fto fbuy, fhold, for fsell fstock.
(b) Creditors fuse faccounting finformation fto fevaluate fthe frisks fof fgranting fcredit for flending fmoney.
LO f 1, f BT: f K, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Reporting, f IMA: f Reporting
5. False. fBookkeeping fusually finvolves fonly fthe frecording fof feconomic fevents fand ftherefore fis fjust fone
fpart fof fthe fentire faccounting fprocess. fAccounting, fon fthe fother fhand, finvolves fthe fentire fprocess fof
fidentifying, frecording, fand fcommunicating feconomic fevents.
LO f 1, f BT: f C, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Reporting, f IMA: f Reporting
6. Harper fTravel fAgency fshould freport fthe fland fat f$85,000 fon fits fDecember f31, f 2022 f balance fsheet.
fThis fis ftrue fnot fonly fat fthe ftime fthe fland fis fpurchased, fbut falso fover fthe ftime fthe fland fis fheld. fIn
fdetermining fwhich fmeasurement fprinciple fto fuse f(historical fcost for ffair fvalue) fcompanies fweigh fthe
ffactual fnature fof fcost ffigures fversus fthe frelevance fof ffair fvalue. fIn fgeneral, fcompanies fuse fhistorical
fcost. fOnly fin fsituations fwhere fassets fare factively ftraded fdo f companies fapply fthe ffair fvalue
fprinciple.
LO f 2, f BT: f C, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Measurement, f Analysis f and f Interpretation
f IMA: fReporting
7. The fmonetary funit fassumption frequires fthat fonly ftransaction fdata fcapable fof fbeing fexpressed fin
fterms fof fmoney fbe fincluded fin fthe faccounting frecords. fThis fassumption fenables faccounting fto
fquantify f(measure) feconomic fevents.
LO f2, fBT: fK, fDifficulty: fEasy, fTOT: f2 fmin., fAACSB: fNone, fAICPA fFC: fMeasurement, fAnalysis fand fInterpretation f IMA:fReporting
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLE OF CONTENTS
Chapter 1. Accounting in Action
Chapter 2. The Recording Process
Chapter 3. Adjusting the Accounts
Chapter 4. Completing the Accounting Cycle
Chapter 5. Accounting for Merchandising Operations
Chapter 6. Inventories
Chapter 7. Fraud, Internal Control and Cash
Chapter 8. Accounting for Receivables
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
Chapter 10. Liabilities
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’
Equity
Chapter 12. Statement of Cash Flows
Chapter 13. Financial Analysis: The Big Picture
,CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify the activities and 1, 2, 3, 4, 5 1 1, 2
users associated with
accounting.
2. Explain the building blocks of 6, 7, 8, 9, 10 2 3, 4
accounting: ethics, principles,
and assumptions.
3. State the accounting 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
equation, and define its 22
components.
4. Analyze the effects of business 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
transactions on theaccounting 5A
equation.
5. Describe the four financial 17, 19, 20, 21, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
statements and how they are 12, 13, 14, 15, 5A
prepared. 16, 17, 18
, ANSWERS fTO fQUESTIONS
1. True. fVirtually fevery forganization fand fperson fin four fsociety fuses faccounting finformation. fBusinesses,
finvestors, fcreditors, fgovernment fagencies, fand fnot-for-profit forganizations fmust fuse faccounting
finformation fto foperate feffectively.
LO f 1, f BT: f K, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Reporting, f IMA: f Reporting
2. Accounting fis fthe fprocess fof fidentifying, frecording, fand f communicating f the feconomic fevents fof fan
forganization fto finterested fusers fof fthe finformation. fThe ffirst factivity fof fthe faccounting fprocess fis fto
fidentify feconomic fevents fthat fare frelevant fto fa fparticular fbusiness. fOnce fidentified fand fmeasured,
fthe fevents fare frecorded fto fprovide fa fhistory fof fthe ffinancial factivities fof fthe forganization.
fRecording fconsists fof fkeeping fa fchronological fdiary fof fthese fmeasured fevents fin fan forderly fand
fsystematic fmanner. fThe finformation fis fcommunicated fthrough fthe fpreparation fand fdistribution fof
faccounting f reports, f the f most f common f of f which fare f called ffinancial fstatements. fA fvital
felement fin fthe fcommunication fprocess fis fthe faccountant’s fability fand fresponsibility fto fanalyze fand
finterpret fthe freported finformation.
LO f 1, f BT: f K, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Reporting, f IMA: f Reporting
3. (a) fInternal fusers fare fthose fwho fplan, forganize, fand frun fthe fbusiness fand ftherefore fare fofficers fand
fother fdecision fmakers.
(b) To fassist fmanagement, faccounting fprovides finternal freports. fExamples finclude ffinancial
fcomparisons fof foperating falternatives, fprojections fof f income ffrom fnew fsales f campaigns, fand
fforecasts fof f cash fneeds ffor fthe fnext fyear.
LO f 1, f BT: f K, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Reporting, f IMA: f Reporting
4. (a) Investors f(owners) fuse faccounting finformation fto fmake fdecisions fto fbuy, fhold, for fsell fstock.
(b) Creditors fuse faccounting finformation fto fevaluate fthe frisks fof fgranting fcredit for flending fmoney.
LO f 1, f BT: f K, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Reporting, f IMA: f Reporting
5. False. fBookkeeping fusually finvolves fonly fthe frecording fof feconomic fevents fand ftherefore fis fjust fone
fpart fof fthe fentire faccounting fprocess. fAccounting, fon fthe fother fhand, finvolves fthe fentire fprocess fof
fidentifying, frecording, fand fcommunicating feconomic fevents.
LO f 1, f BT: f C, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Reporting, f IMA: f Reporting
6. Harper fTravel fAgency fshould freport fthe fland fat f$85,000 fon fits fDecember f31, f 2022 f balance fsheet.
fThis fis ftrue fnot fonly fat fthe ftime fthe fland fis fpurchased, fbut falso fover fthe ftime fthe fland fis fheld. fIn
fdetermining fwhich fmeasurement fprinciple fto fuse f(historical fcost for ffair fvalue) fcompanies fweigh fthe
ffactual fnature fof fcost ffigures fversus fthe frelevance fof ffair fvalue. fIn fgeneral, fcompanies fuse fhistorical
fcost. fOnly fin fsituations fwhere fassets fare factively ftraded fdo f companies fapply fthe ffair fvalue
fprinciple.
LO f 2, f BT: f C, f Difficulty: f Easy, f TOT: f 2 f min., f AACSB: f None, f AICPA f FC: f Measurement, f Analysis f and f Interpretation
f IMA: fReporting
7. The fmonetary funit fassumption frequires fthat fonly ftransaction fdata fcapable fof fbeing fexpressed fin
fterms fof fmoney fbe fincluded fin fthe faccounting frecords. fThis fassumption fenables faccounting fto
fquantify f(measure) feconomic fevents.
LO f2, fBT: fK, fDifficulty: fEasy, fTOT: f2 fmin., fAACSB: fNone, fAICPA fFC: fMeasurement, fAnalysis fand fInterpretation f IMA:fReporting
