Solution Manual for Intermediate Accounting, 18th Edition, by Donald E. Kieso, Jerry J. Weygandt and Terry D. Warfield. Chapter 1-23

TEST BANK aa




Intermediate Accounting, 18th Edition
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by Kieso, Warfield Chapter 1 - 23 Complete
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,Table of Contents
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1 aaThe aaEnvironment aaand aaConceptual aaFramework aaof aaFinancial aaReporting

2 aaThe aaAccounting aaInformation aaSystem

3 aaIncome aaStatement, aaRelated aaInformation, aaand aaRevenue aaRecognition

4 aaBalance aaSheet aaand aaStatement aaof aaCash aaFlows

5 aaAccounting aaand aathe aaTime aaValue aaof aaMoney

6 aaCash aaand aaReceivables

7 aaValuation aaof aaInventories: aaA aaCost-Basis aaApproach

8 aaInventories: aaAdditional aaValuation aaIssues

9 aaAcquisition aaand aaDisposition aaof aaProperty, aaPlant, aaand aaEquipment

10 aaDepreciation, aaImpairments, aaand aaDepletion

11 aaIntangible aaAssets

12 aaCurrent aaLiabilities aaand aaContingencies

13 aaLong-Term aaLiabilities

14 aaStockholders’ aaEquity

15 aaDilutive aaSecurities aaand aaEarnings aaper aaShare

16 aaInvestments

17 aaRevenue aaRecognition

18 aaAccounting aafor aaIncome aaTaxes

19 aaAccounting aafor aaPensions aaand aaPostretirement aaBenefits

20 aaAccounting aafor aaLeases

21 aaAccounting aaChanges aaand aaError aaAnalysis

22 aaStatement aaof aaCash aaFlows

23 aaFull aaDisclosure aain aaFinancial aaReporting aa

, CHAPTER 1 aa




THE ENVIRONMENT AND CONCEPTUAL
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aaFRAMEWORK OF FINANCIAL REPORTING aa aa aa




IFRS aaquestions aaare aaavailable aaat aathe aaend aaof aathis aachapter.


TRUE-FALSE—Conceptual
1. Financial aastatements aaare aathe aaprincipal aameans aathrough aa which aa a aa company
aacommunicates aaits aafinancial aainformation aato aathose aaoutside aait.


Ans: a a T, a a LO: a a 1, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaPreparation, aaIFRS: aaNone



2. Users a a of a a financial aa reports a a of a a a a a company a a use a a the a a information aa provided
a a by a a these a a reports aa to aamake aacapital aaallocation aadecisions.
Ans: a a T, a a LO: a a 1, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaPreparation, aaIFRS: aaNone



3. An aaeffective aaprocess aaof aacapital aaallocation aaprovides aaan aaefficient aamarket aafor aabuying
aaand aaselling aasecurities aaand aaobtaining aaand aagranting aacredit.


Ans: a a T, a a LO: a a 1, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaPreparation, aaIFRS: aaNone



4. Investors aaare aainterested aain aafinancial aareporting aabecause aait aaprovides aainformation aathat
aais aauseful aafor aamaking aadecisions.


Ans: a a T, a a LO: a a 1, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaPreparation, aaIFRS: aaNone



5. Users a a of a a financial a a accounting a a statements a a have a a both a a coinciding a a and
a a conflicting a a needs a a for aainformation aaof aavarious aatypes.


Ans: a a T, a a LO: a a 1, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaPreparation, aaIFRS: aaNone



6. Although aathe aaFASB aahas aadeveloped aaa aaconceptual aaframework, aano aaStatements aaof
aaFinancial aaAccounting aaConcepts aahave aabeen aaissued aato aadate.


Ans: aaF, aaLO: aa1, aaBloom: aaK, aaDifficulty: aaModerate, aaMin: aa1, aaAACSB: aaKnowledge, aaAICPA aaBC: aaNone, aaAICPA aaAC: aaReporting,
aaAICPA aaPC: aaNone, aaIMA: aaReporting aa& a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone



7. The aapassage aaof aaa aanew aaFASB aaAccounting aaStandards aaUpdate aarequires aathe aasupport
aaof aafive aaof a a the aaseven aaboard aamembers.


Ans: a a F, a a LO: a a 1, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaPreparation, aaIFRS: aaNone



8. Statements aaof aaFinancial aaAccounting aaConcepts aaset aaforth aafundamental aaobjectives aaand
a a concepts aathat aaare aaused aaby aathe aaFASB aain aadeveloping aafuture aastandards aaof aafinancial

aaaccounting aaand aareporting.


Ans: a a T, a a LO: a a 1, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone



9. The aaFASB’s aaCodification aacreates aaa aanew aaset aaof aaGAAP.
Ans: a a F, a a LO: a a 1, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone

, 1 aa- aa2 Test aaBank aafor aaIntermediate aaAccounting, aaEighteenth
aaEdition

10. The aaobjective aaof aafinancial aareporting aais aato aareport aathe aaplans aamade aaby aaa aacompany
aato aaimprove aathe aaproductivity aaof aaits aaemployees.


Ans: a a F, a a LO: a a 1, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaPreparation, aaIFRS: aaNone



11. A a a soundly a a developed a a conceptual a a framework a a enables a a the aa FASB aa to aa issue
a a more a a useful a a and aaconsistent aapronouncements aaover aatime.


Ans: a a T, a a LO: a a 2, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone



12. A aaconceptual aaframework aais aaa aacoherent aasystem aaof aaconcepts aathat aaflow aafrom aaan aaobjective.
Ans: a a T, a a LO: a a 2, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone



13. The a a first a a level a a of a a the a a conceptual a a framework a a identifies a a the a a recognition,
a a measurement, a a and aadisclosure aaconcepts aaused aain aaestablishing aaaccounting

aastandards.


Ans: a a F, a a LO: a a 2, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone




14. The aaobjective aaof aafinancial aareporting aaserves aaas aathe aafoundation aaof aathe aaconceptual aaframework.
Ans: a a T, a a LO: a a 2, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone



15. Users aaof aafinancial aastatements aaare aaassumed aato aaneed aano aaknowledge aaof aabusiness
aaand aafinancial aaaccounting aamatters aato aaunderstand aathe aainformation aacontained aain

aafinancial aastatements.


Ans: a a F, a a LO: a a 2, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone



16. Relevance a a and a a faithful a a representation a a are a a the a a two
a a fundamental a a qualities a a that a a make aaaccounting aainformation aauseful aafor

aadecision-making.


Ans: a a T, a a LO: a a 2, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone


17. The aaidea aaof aaconsistency aadoes aanot aamean aathat aacompanies aacannot aaswitch aafrom aaone
aaaccounting aamethod aato aaanother.


Ans: aaT, aaLO: aa2, aaBloom: aaC, aaDifficulty: aaModerate, aaMin: aa1, aaAACSB: aaKnowledge, aaAICPA aaBC: aaNone, aaAICPA aaAC: aaReporting,
aaAICPA aaPC: aaNone, aaIMA: aaReporting aa& a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone



18. Timeliness aaand aaneutrality aaare aatwo aaingredients aaof aarelevance.
Ans: a a F, a a LO: a a 2, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone



19. Verifiability aaand aapredictive aavalue aaare aatwo aaingredients aaof aafaithful aarepresentation.
Ans: a a F, a a LO: a a 2, a a Bloom: a a K, a a Difficulty: a a Easy, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Reporting, a a AICPA a a PC: a a None, a a IMA: a a Reporting a a & a a Control: aaFinancial aaStatement aaAnalysis, aaIFRS: aaNone



20. Revenues, aagains, aaand aadistributions aato aaowners aaall aaincrease aaequity.
Ans: a a F, a a LO: a a 2, a a Bloom: a a C, a a Difficulty: a a Moderate, a a Min: a a 1, a a AACSB: a a Knowledge, a a AICPA a a BC: a a None, a a AICPA a a AC:
a a Measurement a a Analysis a a and a a Interpretation, a a AICPA aaPC: aaNone, aaIMA: aaReporting aa& aaControl: aaFinancial aaStatement
aaAnalysis, aaIFRS: aaNone


21. Comprehensive a a income a a includes a a all a a changes a a in a a equity a a during
a a a a a period a a except a a those aaresulting aafrom aainvestments aaby aaowners aaand

aadistributions aato aaowners.