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

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,TABLE OF CONTENTS k k




CHAPTER ONE k




Financial Statements and Business Decisions
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CHAPTER TWO k




Investing and Financing Decisions and the Accounting System
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CHAPTER THREE k




Operating Decisions and the Accounting System
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CHAPTER FOUR k




Adjustments, FinancialStatements, and the Closing Process
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CHAPTER FIVE k




Reportingand Interpreting Sales Revenue, Receivables, and Cash
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CHAPTER SIX k




Reportingand Interpreting Cost of Sales and Inventory
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CHAPTER SEVEN k




Reporting and Interpreting Long-Lived Assets
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CHAPTER EIGHT k




ReportingandInterpreting CurrentLiabilities
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CHAPTER NINE k




Reporting and Interpreting Non-current Liabilities
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CHAPTER TEN k




Reporting and Interpreting Shareholders' Equity
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CHAPTER ELEVEN k




Statement of Cash Flows
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CHAPTER TWELVE k




Communicating Accounting Information and Analyzing Financial Statements
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CHAPTER THIRTEEN k




Reportingand Interpreting Investments in OtherCorporations
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,CHAPTER ONE
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FINANCIAL STATEMENTS AND BUSINESS DECISIONS
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ANSWERSTOQUESTIONS k k




1. Accounting is a system that collects and processes (analyzes, measures, and record s)
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financial information about an organization and reports that information to decision
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makers.
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2. Financialaccountinginvolvespreparationofthefourbasicfinancialstatementsa
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ndrelateddisclosures forexternal decisionmakers. Managerial accounting involv es
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thepreparationofdetailedplans,budgets,forecasts,andperformancereports for
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internal decision makers.
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3. Financial reports are used by both internal and external groups and individuals. The int ernal
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groups are comprised of the various managers of the entity. The external groups include
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the owners, investors, creditors, governmental agencies, other interested part ies, and
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the public at large.
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4. Investorspurchaseallorpart ofabusinessandhopetogainbyreceivingpart ofwhatt he
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companyearnsand/orsellingthecompanyinthefutureat ahigherpricethanthey paid.
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Creditorslendmoneytoacompanyforaspecific lengthoftimeandhopetogain by
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charging interest on the loan.
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5. In a society each organization can be defined as a separate accounting entity. An acco
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unting entity is the organization for which financial data are to be collected. Typical acc
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ounting entities are a business, a church, a governmental unit, a university and other n
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onprofit organizations such as a hospital and a welfare organization. A business typica llyis
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definedandtreatedasaseparate entitybecausethe owners,creditors,investors
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, and other interested parties need to evaluate its performance and its potential separa tely
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from other entities and from its owners.
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, 6. NameofStatement
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(a) IncomeStatement
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Income;Statement ofOperations
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(b) BalanceSheet k (b) Statement of FinancialPosition
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(c) AuditReport
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