TEST BANK for Financial Accounting Tools For Business Decision Making, 10th Edition, Paul D. Kimmel, Chapters 1–13, Complete

TEST BANK
Financial Accounting Tools For Business Decision
Making, 10th Edition, Paul D. Kimmel,
Chapters 1 – 13, Complete




Copyrighta©a2022aJohnaWileya&aSons,aInc.a(ForaInstructoraUseaOnl
y)

,TABLE OF CONTENTS A A




1 Introduction to Financial Statements
a a a a a




2 A Further Look at Financial Statements
a a a a a a a




3 The Accounting Information System
a a a a a




4 Accrual Accounting Concepts
a a a a




5 Merchandising Operations and the Multiple-Step Income Statement
a a a a a a a a




6 Reporting and Analyzing Inventory
a a a a a




7 Fraud, Internal Control, and Cash
a a a a a a




8 Reporting and Analyzing Receivables
a a a a a




9 Reporting and Analyzing Long-Lived Assets
a a a a a a




10 Reporting and Analyzing Liabilities
a a a a a




11 Reporting and Analyzing Stockholders’ Equity
a a a a a a




12 Statement of Cash Flows
a a a a a




13 Financial Analysis: The Big Picture
a a a a a a




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y)

,CHAPTER 1 a




INTRODUCTION TO FINANCIAL STATEMENTS
a a a



CHAPTERaLEARNINGaOBJECTIVES
1. Identifyatheaformsaofabusinessaorganizationaandatheausesaofaaccountingainformation.aAasoleapropriet
orshipaisaaabusinessaownedabyaoneaperson.aAapartnershipaisaaabusinessaownedabyatwoaoramoreapeoplea
associatedaasapartners.aAacorporationaisaaaseparatealegalaentityaforawhichaevidenceaofaownershipaisapr
ovidedabyasharesaofastock.aInternalausersaareamanagersawhoaneedaaccountingainformationatoaplan,aorg
anize,aandarunabusinessaoperations.aTheaprimaryaexternalausersaareainvestorsaandacreditors.aInvestorsa
(stockholders)auseaaccountingainformationatoadecideawhetheratoabuy,ahold,aorasellasharesaofaaacompan
y‘sastock.aCreditorsa(suppliersaandabankers)a usea accountinga informationa toa assessathea riska ofa granting
a credita ora loaninga moneya toaaabusiness.aOtheragroupsawhoahaveaanaindirectainterestainaaabusinessaareat

axingaauthorities,acustomers,alaboraunions,aanda regulatoryaagencies.

2. Explainatheathreeaprincipalatypesaofabusinessaactivity.aFinancingaactivitiesa involveacollectingatheanec
essaryafundsatoasupportatheabusiness.aInvestingaactivitiesainvolveaacquiringathearesourcesanecessaryato
arunatheabusiness.aOperatingaactivitiesainvolveaputtinga thearesourcesaofa theabusinessaintoaactionatoage

nerateaaaprofit.
3. Describeatheafourafinancialastatementsaandahowatheyaareaprepared.aAnaincomeastatementapresentsa
thearevenuesaandaexpensesaofaaacompanyaforaaaspecificaperiodaofatime.aAaretainedaearningsastatement
asummarizesatheachangesainaretainedaearningsathatahaveaoccurredaforaaaspecificaperiodaofatime.aAabala

nceasheetareportsatheaassets,aliabilities,aandastockholders‘aequityaofaaabusinessaataaaspecificadate.aAasta
tementaofacashaflowsa summarizesa informationaconcerningatheacashainflowsa(receipts)aandaoutflowsa(
payments)aforaaaspecificaperiodaofatime.aAssetsaarearesourcesaownedabyaaabusiness.aLiabilitiesaareathea
debtsaandaobligationsaofatheabusiness.aLiabilitiesarepresentaclaimsaofacreditorsaonatheaassetsaofatheabu
siness.aStockholders‘aequityarepresentsatheaclaimsaofaownersaonatheaassetsaofatheabusiness.aStockhold
ers‘aequityaisasubdividedaintoatwoaparts:acommonastockaandaretainedaearnings.aTheabasicaaccountingae
quationaisaAssetsa=aLiabilitiesa+aStockholders‘aEquity.aWithinatheaannualareport,atheamanagementadisc
ussionaandaanalysisaprovidesamanagement‘sainterpretationaofatheacompany‘saresultsaandafinancialaposi
tionaasawellaasaaadiscussionaofaplansaforatheafuture.aNotesatoatheafinancialastatementsaprovideaaddition
alaexplanationaoradetailatoamakeatheafinancialastatementsamoreainformative.aTheaauditor‘sareportaexpr
essesaanaopinionaasatoawhetheratheafinancialastatementsapresentafairlyatheacompany‘saresultsaofaopera
tionsaandafinancialaposition.
*4.aExplainatheacareeraopportunitiesainaaccounting.aAccountingaoffersamanyadifferentajobsainafieldsasucha
asapublicaandaprivateaaccounting,agovernmental,aandaforensicaaccounting.aAccountingaisaaapopularama
jorabecauseathereaareamanyadifferentatypesaofajobs,awithaunlimitedapotentialaforacareeraadvancement




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y)

, 2-2 TestaBankaforaKimmel,aFinancialaAccounting:aToolsaforaBusinessaDecisionaMaking,a10
e
Difficulties:
Easy:a143
Medium:a101
Hard:a12

QuestionaListabyaSection
BusinessaOrganizationaandaAccountingaInformationaUses:aForm
saofaBusinessaOrganization;a47,a48,a202,a246
SoleaProprietorship:a5,a44,a49,a58,a59
Partnership:a1,a4,a46,a56
Corporation:a2,a3,a45,a50,a51,a52,a53,a55,a57,a233,a245
HybridaFormsaofaOrganization:a60,a61
UsersaandaUsesaofa FinancialaInformation:a6,a7,a11,a74,a87
InternalaUsers:a62,a63,a64,a75,a77,a82,a234
ExternalaUsers:a8,a9,a10,a12,a65,a76,a78,a79,a80,a81,a83,a84,a85,a86,a88,a89
DataaAnalytics:a66,a67,a68,a69,a70,a235,a236
EthicsainaFinancialaReporting:a71,a72,a73,a237,a255aThea
ThreeaTypesaofaBusinessaActivity:a97
FinancingaActivities:a13,a15,a18,a90,a91,a93,a94,a95,a96,a97,a102,a109,a117,a118,a119,a238
InvestingaActivities:a14,a16,a98,a99,a115,a116
OperatingaActivities:a17,a19,a20,a100,a101,a103,a104,a105,a106,a107,a108,a110,a111,a112,a113,
114
TheaFouraFinancialaStatements:
IncomeaStatement:a21,a22,a23,a24,127,a128,a132,a133,a134,a138,a142,a143
RetainedaEarningsaStatement:a120,a122,a123,a 124,a125,a126,a129,a130,a131,a135,a137,a139,a140,
141,a144,a145,a146,a147,a148,a149,a150,a154,a164,a169,a178,a181,a252
BalanceaSheet:a25,a27,a28,a29,a30,a31,a32,a33,a34,a35,a136,a151,a152,a153,a163,a165,a166,a168,
170,a173,a177,a179,a180,a182,a185,a186,a187,a188,a199,a200,a201,a207,a208,a213,a214,a215,a216,
217,a218,a219,a220,a221,a222,a225,a229,a239,a240,a241,a253
Statementaofa CashaFlows:a26,a121,a171,a174,a183,a242,a249
InterrelationshipsaofaStatements:a155,a156,a157,a158,a159,a160,a161,a162,a167,a175,a176,a184,
250,a251,a256
ElementsaofaanaAnnualaReport:a36,a41,a192,a196,a197
ManagementaDiscussionaandaAnalysis:a40,a191
NotesatoatheaFinancialaStatements:a37,a42,a190,a193,a194,a198,a254
Auditor‘saReport:a38,a39,a195




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