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Solution manual financial accounting tools for business decision making 10th edition kimmel, weygandt j...

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Solution manual for financial accounting tools for business decision making 10th edition paul d kimmel CHAPTER1 IntroductiontoFinancialStatements LearningObjectives 1. 2. 3. *4. Identifytheformsofbusinessorganizationandtheusesofaccountinginformation. Explainthethreeprincipaltypesofbusinessactivity. Describethe fourfinancialstatementsandhowtheyareprepared. Explainthecareer opportunitiesinaccounting. ANSWERSTOQUESTIONS 1. Thethreebasicformsofbusinessorganizationsare(1)soleproprietorship,(2)partnership,and (3)corporation. LO1 BT:K Difficulty:E TOT:1min.AACSB:KnowledgeAICPABC:GovernancePerspective 2. Advantagesofacorporationarelimitedliability(stockholdersnotbeingpersonallyliableforcor poratedebts),easytransferabilityofownership,andeaseofraisingfunds.Disadvantagesofacorporationareincrease d taxationandgovernmentregulations. LO1 BT:K Difficulty:E TOT:1min.AACSB:KnowledgeAICPABC:GovernancePerspective 3. Proprietorshipsandpartnershipsreceivefavorabletaxtreatmentcompared tocorporationsandareeasiertoformthancorporations.Theyarealsoownercontrolled.Disadvantagesofproprietorship sandpartnershipsareunlimitedliability(proprietors/partnersarepersonallyliablefor anddifficultyinobtainingfinancingcomparedtocorporations. LO1 BT:K Difficulty:E TOT:1min.AACSB:KnowledgeAICPABC:GovernancePerspective alldebts) 4.Yes.Companiescanchooseoneofthehybridbusinessforms,limitedliabilitycorporations(LLCs)orsubchapterScorporations ,whichcombinethetaxadvantagesofpartnershipswiththelimitedliabilityofcorporations. LO1 BT:K Difficulty:E TOT:1 min.AACSB:KnowledgeAICPABC:GovernancePerspective 5. Yes.Apersoncannotearnaliving,spendmoney,buyoncredit,makeaninvestment,orpaytaxeswithoutreceiving,using,o rdispensingfinancialinformation.Accountingprovidesfinancialinformationtointerestedusersthroughthe preparationanddistribution offinancialstatements. LO1 BT:C Difficulty:E TOT:1min.AACSB:KnowledgeAICPAAC:Reporting 6. Internalusersaremanagerswhoplan,organize,andrunabusiness.Toassistmanagement,accountingprovidestimelyint ernalreports.Examplesincludefinancialcomparisonsofoperating

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