100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Solution Manual For Horngren's Financial & Managerial Accounting, The Financial Chapters, 7th Global Edition by Tracie Miller-Nobles, Brenda Mattison ||Complete A+ Guide $17.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Horngren\\\'s Financial & Managerial Accounting
  4.  
  5. Horngren\\\'s Financial & Managerial Accounting

Exam (elaborations)

Solution Manual For Horngren's Financial & Managerial Accounting, The Financial Chapters, 7th Global Edition by Tracie Miller-Nobles, Brenda Mattison ||Complete A+ Guide
 0 purchase
  • Course
  • Horngren\\\'s Financial & Managerial Accounting
  • Institution
  • Horngren\\\'s Financial & Managerial Accounting

Solution Manual For Horngren's Financial & Managerial Accounting, The Financial Chapters, 7th Global Edition by Tracie Miller-Nobles, Brenda Mattison ||Complete A+ Guide

Preview 4 out of 2470  pages

Document information

  • November 7, 2024
  • 2470
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • 978 1292412320
  • brenda mattiso
  • horngrens financial and managerial accounting
  • solution manual for horngrens financial
  • the financial chapters 7th global edition
  • 7th global edition by tracie miller nobles

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (18)

Written for

  • Horngren's Financial & Managerial Accounting
  • Horngren's Financial & Managerial Accounting

Seller

avatar-seller
Ascorers

Reviews received

Content preview

FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Solutions Manual

1. What is accounting?

Accounting is the information system that measures business activities, processes f f f f f f f f f


the information into reports, and communicates the results to decision makers.
f f f f f f f f f f


Accounting is the language of business. f f f f f




2. Briefly describe the two major fields of accounting.
f f f f f f f




Financial accounting provides information for external decision makers, such as
f f f f f f f f f


outside investors, lenders, customers, and the federal government. Managerial
f f f f f f f f


accounting focuses on information for internal decision makers, such as the f f f f f f f f f f


company’s managers and employees. f f f




3. Describe the various types of individuals who use accounting information and how
f f f f f f f f f f f


they use that information to make important decisions.
f f f f f f f f




Individuals use accounting information to help them manage their money, evaluate a
f f f f f f f f f f f


a new job, and better decide whether they can afford to make a new purchase.
f f f f f f f f f f f f f f


Business owners use accounting information to set goals, measure progress toward
f f f f f f f f f f


those goals, and make adjustments when needed. Investors use accounting
f f f f f f f f f


information to help them decide whether or not a company is a good investment and f f f f f f f f f f f f f f


once they have invested, they use a company’s financial statements to analyze how
f f f f f f f f f f f f


their investment is performing. Creditors use accounting information to decide
f f f f f f f f f


whether to lend money to a business and to evaluate a company’s ability to make
f f f f f f f f f f f f f f


the loan payments. Taxing authorities use accounting information to calculate the
f f f f f f f f f f


amount of income tax that a company has to pay.
f f f f f f f f f




4. What are two certifications available for accountants? Briefly explain each
f f f f f f f f f


certification.
f




Certified Public Accountants (CPAs) are licensed professional accountants who
f f f f f f f f


serve the general public. They work for public accounting firms, businesses,
f f f f f f f f f f


government, or educational institutions. To be certified they must meet educational f f f f f f f f f f


and/or experience requirements and pass an exam. Certified Management
f f f f f f f f


Accountants (CMAs) specialize in accounting and financial management f f f f f f f


knowledge. They work for a single company. f f f f f f




Chapter 1: Accouting and the Business Environment Page 1 of 84

,FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Solutions Manual

5. What is the role of the Financial Accounting Standards Board (FASB)?

The FASB oversees the creation and governance of accounting standards. They
f f f f f f f f f f


work with governmental regulatory agencies, congressionally created groups, and
f f f f f f f f


private groups. f




6. Explain the purpose of Generally Accepted Accounting Principles (GAAP),
f f f f f f f f


including the organization currently responsible for the creation and governance
f f f f f f f f f f


of these standards.
f f f




The guidelines for accounting information are called GAAP. It is the main U.S.
f f f f f f f f f f f f


accounting rule book and is currently created and governed by the FASB. Investors
f f f f f f f f f f f f


and lenders must have information that is relevant and has faithful representation in
f f f f f f f f f f f f


order to make decisions and the GAAP provides the framework for this financial
f f f f f f f f f f f f


reporting.



7. Describe the similarities and differences among the four different types of business
f f f f f f f f f f f


entities discussed in the chapter.
f f f f f




A sole proprietorship has a single owner, terminates upon the owner’s death or
f f f f f f f f f f f f


choice, the owner has personal liability for the business’s debts, and it is not a
f f f f f f f f f f f f f f


separate tax entity. A partnership has two or more owners, terminates at partner’s
f f f f f f f f f f f f


choice or death, the partners have personal liability, and it is not a separate tax
f f f f f f f f f f f f f f


entity. A corporation is a separate legal entity, has one or more owners, has
f f f f f f f f f f f f f


indefinite life, the stockholders are not personally liable for the business’s debts,
f f f f f f f f f f f


and it is a separate tax entity. A limited-liability company has one or more members
f f f f f f f f f f f f f f


and each is only liable for his or her own actions, has an indefinite life, and is not a
f f f f f f f f f f f f f f f f f f


separate tax entity. f f




8. A business purchases an acre of land for $5,000. The current market value is $5,550
f f f f f f f f f f f f f f


and the land was assessed for property tax purposes at $5,250. What value should the
f f f f f f f f f f f f f f f


land be recorded at, and which accounting principle supports your answer?
f f f f f f f f f f f




The land should be recorded at $5,000. The cost principle states that assets should
f f f f f f f f f f f f f


be recorded at their historical cost.
f f f f f




Chapter 1: Accouting and the Business Environment Page 2 of 84

,FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Solutions Manual

9. What does the going concern assumption mean for a business?
f f f f f f f f f




The going concern assumption assumes that the entity will remain in business for
f f f f f f f f f f f f


the foreseeable future and long enough to use existing resources for their intended
f f f f f f f f f f f f


purpose.

10. Which concept states that accounting information should be complete, neutral, and
f f f f f f f f f f


free from material error?
f f f f




The faithful representation concept states that accounting information should be
f f f f f f f f f


complete, neutral, and free from material error. f f f f f f




11. Financial statements in the United States are reported in U.S. dollars. What
f f f f f f f f f f f


assumption supports this statement?
f f f f




The monetary unit assumption states that items on the financial statements should
f f f f f f f f f f f


be measured in terms of a monetary unit.
f f f f f f f




12. Explain the role of the International Accounting Standards Board (IASB) in relationto
f f f f f f f f f f f f


International Financial Reporting Standards (IFRS).
f f f f f




The IASB is the organization that develops and creates IFRS which are a set of
f f f f f f f f f f f f f f


global accounting standards that would be used around the world.
f f f f f f f f f




13. What is the accounting equation? Briefly explain each of the three parts.
f f f f f f f f f f f




Assets = Liabilities + Equity. Assets are economic resources that are expected to
f f f f f f f f f f f f


benefit the business in the future. They are things of value that a business owns or
f f f f f f f f f f f f f f f


has control of. Liabilities are debts that are owed to creditors. They are one source
f f f f f f f f f f ff f f f


of claims against assets. Equity is the other source of claims against assets.
f f f f f f f f f f f f


Equity is the stockholders’ claims against assets and is the amount of assets that is
f f f f f f f f f f f f f f


left over after the company has paid its liabilities. It represents the net worth of the
f f f f f f f f f f f f f f f


corporation.




Chapter 1: Accouting and the Business Environment Page 3 of 84

, FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Solutions Manual

14. How do retained earnings increase? What are the two ways that retained earnings
f f f f f f f f f f f f


decreases?
f




Retained earnings increases with revenues. Retained earnings decreases with
f f f f f f f f


expenses and dividends. f f




15. How is net income calculated? Define revenues and expenses.
f f f f f f f f




Revenues – Expenses = Net Income. Revenues are earnings resulting from
f f f f f f f f f f


delivering goods or services to customers. Expenses are the cost of selling goods
f f f f f f f f f f f f


or service.
f




16. What are the steps used when analyzing a business transaction?
f f f f f f f f f




Step 1: Identify the accounts and the account type. Step 2: Decide if each account
f f f f f f f f f f f f f f


increases or decreases. Step 3: Determine if the accounting equation is in balance.
f f f f f f f f f f f f




17. List the four financial statements. Briefly describe each statement.
f f f f f f f f




Income Statement – Shows the difference between an entity’s revenues and
f f f f f f f f f f


expenses and reports the net income or net loss for a specific period.
f f f f f f f f f f f f


Statement of Retained Earnings – Shows the changes in retained earnings for a
f f f f f f f f f f f f


specific period including net income (loss) and dividends.
f f f f f f f


Balance Sheet – Shows the assets, liabilities, and stockholders’ equity of the
f f f f f f f f f f f


business as of a specific date. f f f f f


Statement of Cash Flows – Shows a business’s cash receipts and cash payments
f f f f f f f f f f f f


for a specific period.
f f f




18. What is the calculation for return on assets (ROA)? Explain what ROA measures.
f f f f f f f f f f f f




Return on Assets = Net income / Average total assets. ROA measures how
f f f f f f f f f f f f


profitably a company uses its assets. f f f f f




Chapter 1: Accouting and the Business Environment Page 4 of 84

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Ascorers. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $17.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

INC4802 ASSIGNMENT 1 DUE 24 APRIL 2024 ALL QUESTIONS WELL ANSWERED
$17.99
  • (0)
Add to cart
Added