TEST BANK
Financial Accounting Tools For Business Decision
Making, 10th Edition, Paul D. Kimmel,
Chapters 1 – 13, Complete
Copyrightx©x2022xJohnxWileyx&xSons,xInc.x(ForxInstructorxUsexOnly
)
,TABLE OF CONTENTS X X
1 Introduction to Financial Statements
x x x x x
2 A Further Look at Financial Statements
x x x x x x x
3 The Accounting Information System
x x x x x
4 Accrual Accounting Concepts
x x x x
5 Merchandising Operations and the Multiple-Step Income Statement
x x x x x x x x
6 Reporting and Analyzing Inventory
x x x x x
7 Fraud, Internal Control, and Cash
x x x x x x
8 Reporting and Analyzing Receivables
x x x x x
9 Reporting and Analyzing Long-Lived Assets
x x x x x x
10 Reporting and Analyzing Liabilities
x x x x x
11 Reporting and Analyzing Stockholders’ Equity
x x x x x x
12 Statement of Cash Flows
x x x x x
13 Financial Analysis: The Big Picture
x x x x x x
Copyrightx©x2022xJohnxWileyx&xSons,xInc.x(ForxInstructorxUsexOnly
)
,CHAPTER 1 x
INTRODUCTION TO FINANCIAL STATEMENTS
x x x
CHAPTERxLEARNINGxOBJECTIVES
1. Identifyxthexformsxofxbusinessxorganizationxandxthexusesxofxaccountingxinformation.xAxsolexproprieto
rshipxisxaxbusinessxownedxbyxonexperson.xAxpartnershipxisxaxbusinessxownedxbyxtwoxorxmorexpeoplexas
sociatedxasxpartners.xAxcorporationxisxaxseparatexlegalxentityxforxwhichxevidencexofxownershipxisxprovi
dedxbyxsharesxofxstock.xInternalxusersxarexmanagersxwhoxneedxaccountingxinformationxtoxplan,xorganiz
e,xandxrunxbusinessxoperations.xThexprimaryxexternalxusersxarexinvestorsxandxcreditors.xInvestorsx(stoc
kholders)xusexaccountingxinformationxtoxdecidexwhetherxtoxbuy,xhold,xorxsellxsharesxofxaxcompany‘sxst
ock.xCreditorsx(suppliersxandxbankers)x usexaccountingxinformationx tox assessxthex riskx ofx grantingx credi
txorx loaningx moneyxtoxaxbusiness.xOtherxgroupsxwhoxhavexanxindirectxinterestxinxaxbusinessxarextaxingxa
uthorities,xcustomers,xlaborxunions,xandx regulatoryxagencies.
2. Explainxthexthreexprincipalxtypesxofxbusinessxactivity.xFinancingxactivitiesx involvexcollectingxthexneces
saryxfundsxtoxsupportxthexbusiness.xInvestingxactivitiesxinvolvexacquiringxthexresourcesxnecessaryxtoxru
nxthexbusiness.xOperatingxactivitiesxinvolvexputtingx thexresourcesxofx thexbusinessxintoxactionxtoxgener
atexaxprofit.
3. Describexthexfourxfinancialxstatementsxandxhowxtheyxarexprepared.xAnxincomexstatementxpresentsxt
hexrevenuesxandxexpensesxofxaxcompanyxforxaxspecificxperiodxofxtime.xAxretainedxearningsxstatementxs
ummarizesxthexchangesxinxretainedxearningsxthatxhavexoccurredxforxaxspecificxperiodxofxtime.xAxbalanc
exsheetxreportsxthexassets,xliabilities,xandxstockholders‘xequityxofxaxbusinessxatxaxspecificxdate.xAxstate
mentxofxcashxflowsx summarizesx informationxconcerningxthexcashxinflowsx(receipts)xandxoutflowsx(pay
ments)xforxaxspecificxperiodxofxtime.xAssetsxarexresourcesxownedxbyxaxbusiness.xLiabilitiesxarexthexdebt
sxandxobligationsxofxthexbusiness.xLiabilitiesxrepresentxclaimsxofxcreditorsxonxthexassetsxofxthexbusiness
.xStockholders‘xequityxrepresentsxthexclaimsxofxownersxonxthexassetsxofxthexbusiness.xStockholders‘xeq
uityxisxsubdividedxintoxtwoxparts:xcommonxstockxandxretainedxearnings.xThexbasicxaccountingxequation
xisxAssetsx=xLiabilitiesx+xStockholders‘xEquity.xWithinxthexannualxreport,xthexmanagementxdiscussionxan
dxanalysisxprovidesxmanagement‘sxinterpretationxofxthexcompany‘sxresultsxandxfinancialxpositionxasxwe
llxasxaxdiscussionxofxplansxforxthexfuture.xNotesxtoxthexfinancialxstatementsxprovidexadditionalxexplanat
ionxorxdetailxtoxmakexthexfinancialxstatementsxmorexinformative.xThexauditor‘sxreportxexpressesxanxop
inionxasxtoxwhetherxthexfinancialxstatementsxpresentxfairlyxthexcompany‘sxresultsxofxoperationsxandxfin
ancialxposition.
*4.xExplainxthexcareerxopportunitiesxinxaccounting.xAccountingxoffersxmanyxdifferentxjobsxinxfieldsxsuchxa
sxpublicxandxprivatexaccounting,xgovernmental,xandxforensicxaccounting.xAccountingxisxaxpopularxmajo
rxbecausextherexarexmanyxdifferentxtypesxofxjobs,xwithxunlimitedxpotentialxforxcareerxadvancement
Copyrightx©x2022xJohnxWileyx&xSons,xInc.x(ForxInstructorxUsexOnly
)
, 2-2 TestxBankxforxKimmel,xFinancialxAccounting:xToolsxforxBusinessxDecisionxMaking,x10
e
Difficulties:
Easy:x143
Medium:x101
Hard:x12
QuestionxListxbyxSection
BusinessxOrganizationxandxAccountingxInformationxUses:xForm
sxofxBusinessxOrganization;x47,x48,x202,x246
SolexProprietorship:x5,x44,x49,x58,x59
Partnership:x1,x4,x46,x56
Corporation:x2,x3,x45,x50,x51,x52,x53,x55,x57,x233,x245
HybridxFormsxofxOrganization:x60,x61
UsersxandxUsesxofx FinancialxInformation:x6,x7,x11,x74,x87
InternalxUsers:x62,x63,x64,x75,x77,x82,x234
ExternalxUsers:x8,x9,x10,x12,x65,x76,x78,x79,x80,x81,x83,x84,x85,x86,x88,x89
DataxAnalytics:x66,x67,x68,x69,x70,x235,x236
EthicsxinxFinancialxReporting:x71,x72,x73,x237,x255xThex
ThreexTypesxofxBusinessxActivity:x97
FinancingxActivities:x13,x15,x18,x90,x91,x93,x94,x95,x96,x97,x102,x109,x117,x118,x119,x238
InvestingxActivities:x14,x16,x98,x99,x115,x116
OperatingxActivities:x17,x19,x20,x100,x101,x103,x104,x105,x106,x107,x108,x110,x111,x112,x113,
114
ThexFourxFinancialxStatements:
IncomexStatement:x21,x22,x23,x24,127,x128,x132,x133,x134,x138,x142,x143
RetainedxEarningsxStatement:x120,x122,x123,x 124,x125,x126,x129,x130,x131,x135,x137,x139,x140,
141,x144,x145,x146,x147,x148,x149,x150,x154,x164,x169,x178,x181,x252
BalancexSheet:x25,x27,x28,x29,x30,x31,x32,x33,x34,x35,x136,x151,x152,x153,x163,x165,x166,x168,
170,x173,x177,x179,x180,x182,x185,x186,x187,x188,x199,x200,x201,x207,x208,x213,x214,x215,x216,
217,x218,x219,x220,x221,x222,x225,x229,x239,x240,x241,x253
Statementxofx CashxFlows:x26,x121,x171,x174,x183,x242,x249
InterrelationshipsxofxStatements:x155,x156,x157,x158,x159,x160,x161,x162,x167,x175,x176,x184,
250,x251,x256
ElementsxofxanxAnnualxReport:x36,x41,x192,x196,x197
ManagementxDiscussionxandxAnalysis:x40,x191
NotesxtoxthexFinancialxStatements:x37,x42,x190,x193,x194,x198,x254
Auditor‘sxReport:x38,x39,x195
Copyrightx©x2022xJohnxWileyx&xSons,xInc.x(ForxInstructorxUsexOnly
)
