Test Bank | College Physics | Giambattista | 5E

TESTBANK
Accounting Principles 14th Edition
B B B




by Jerry J. Weygandt, Paul D. Kimmel Chapters
B B B B B B B B




1 - 27, Complete
B B B

,TABLE OF CONTENTSB B




1 Accounting in Action
B B B B




2 The Recording Process
B B B B




3 Adjusting the Accounts
B B B




4 Completing the Accounting Cycle
B B B B




5 Accounting for Merchandising Operations
B B B B




6 Inventories
B B




7 Accounting Information Systems
B B B B




8 Fraud, Internal Control, and Cash
B B B B B B




9 Accounting for Receivables
B B B B




10 Plant Assets, Natural Resources, and Intangible Assets
B B B B B B B




11 Current Liabilities and Payroll Accounting
B B B B B




12 Accounting for Partnerships
B B B




13 Corporations: Organization and Capital Stock Transactions
B B B B B B




14 Corporations: Dividends, Retained Earnings, and Income R
B B B B B B B



eporting

,15 Long-Term Liabilities
B B




16 Investments
B




17 Statement of Cash Flows
B B B B




18 Financial Analysis: The Big Picture
B B B B B B




19 Managerial Accounting
B B B




20 Job Order Costing
B B B B




21 Process Costing
B B B




22 Cost-Volume-Profit
B B




23 Incremental Analysis
B B B




24 Budgetary Planning
B B




25 Budgetary Control and Responsibility Accounting
B B B B B B




26 Standard Costs and Balanced Scorecard
B B B B B B




27 Planning for Capital Investments
B B B B B

, CHAPTER 1 B




ACCOUNTING IN ACTION B B




CHAPTER LEARNING OBJECTIVES
B B




1. IdentifyBtheBactivitiesBandBusersBassociatedBwithBaccounting.BAccountingBisBanBinformationBsystemBth
atBidentifies,Brecords,BandBcommunicatesBtheBeconomicBeventsBofBanBorganizationBtoBinterestedBusers.B
TheBmajorBusersBandBusesBofBaccountingBareBasBfollows:B(a)BManagementBusesBaccountingBinformationB
toBplan,Borganize,BandBrunBtheBbusiness.B(b)BInvestorsB(owners)BdecideBwhetherBtoBbuy,Bhold,BorBsellBth
eirBfinancialBinterestsBonBtheBbasisBofBaccountingBdata.B(c)BCreditorsB(suppliersBandBbankers)BevaluateBth
eBrisksBofBgrantingBcreditBorBlendingB moneyB onBtheBbasisBofBaccountingBinformation.BOtherBgroupsBtha
tBuseBaccountingBinformationBareBtaxingBauthorities,BregulatoryBagencies,Bcustomers,BandBlaborBunions.
2. ExplainBtheBbuildingBblocksBofBaccounting:Bethics,Bprinciples,BandBassumptions.BEthicsBareBtheBstandar
dsBofBconductBbyBwhichBactionsBareBjudgedBasBrightBorBwrong.BEffectiveBfinancialBreportingBdependsBonB
soundBethicalBbehavior.
GenerallyBacceptedBaccountingBprinciplesBareBaBcommonBsetBofBstandardsBusedBbyBaccountants.BTheBpr
imaryBaccountingBstandard-
settingBbodyBinBtheBUnitedBStatesBisBtheBFinancialBAccountingBStandardsBBoard.


3. StateBtheBaccountingBequation,BandBdefineBitsBcomponents.BTheBbasicB accountingBequationBis:
AssetsB=BLiabilitiesB+BOwner'sBEquity
AssetsB areB resourcesB aB businessB owns.B LiabilitiesB areB creditorshipB claimsB onB totalB assets.BOwner'sBequi
tyBisBtheBownershipBclaimBonBtotalBassets.
TheBexpandedBaccountingBequationBis:
AssetsBBLiabilitiesB+BOwner'sBCapitalBBOwner'sBDrawingsB+BRevenuesB
Expenses
InvestmentsBbyBownersB(assetsBtheBownerBputsBintoBtheBbusiness)BareBrecordedBinBaBcategoryBcalledBo
wner‘sBcapital.BOwner‘sBdrawingsBareBtheBwithdrawalBofBassetsBbyBtheBownerBforBpersonalBuse.BRevenu
esBareBtheBgrossBincreaseBinBowner‘sBequityBfromBbusinessBactivitiesBforBtheBpurposeBofBearningBincome
.BExpensesBareBtheBcostsBofBassetsBconsumedBorBservicesBusedBinB theB processB ofB earningB revenue.B Ow
ner‘sB equityB isB increasedB byB anB owner‘sB investmentsBandBbyBrevenuesBfromBbusinessBoperations.BOw
ner‘sBequityBisBdecreasedBbyBanBowner‘sBwithdrawalsBofBassetsBandBbyBexpenses.
4. AnalyzeBtheBeffectsBofBbusinessBtransactionsBonBtheBaccountingBequation.BEachBbusinessBtransactionB
mustBhaveBaBdualBeffectBonBtheBaccountingBequation.BForBexample,BifBanBindividualBassetBincreases,Bthe
reBmustBbeBaBcorrespondingB(1)BdecreaseBinBanotherBasset,BorB(2)BincreaseBinBaBspecificBliability,BorB(3)Bi
ncreaseBinBowner'sBequity.
5. DescribeBtheBfourBfinancialBstatementsBandBhowBtheyBareBprepared.BAnBincomeBstatementBpresentsBt
heBrevenuesBandBexpenses,BandBresultingBnetBincomeBorBnetB lossBforBaB specificBperiodBofBtime.BAnBow
ner'sBequityBstatementBsummarizesBtheBchangesBinBowner'sBequityBforBaBspecificBperiodBofBtime.BABbala
nceBsheetBreportsBtheBassets,Bliabilities,BandBowner'sBequityBatBaBspecificBdate.BABstatementBofBcashBflo
wsBsummarizesBinformationBaboutBtheBcashBinflowsB(receipts)BandBoutflowsB(payments)BforBaBspecificBp
eriodBofBtime.