SOLUTION MANUAL
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
All Chapters 1 - 13 | Complete
,TABLE OF CONTENTS I I
Chapter 1. Accounting in Action
I I I I
Chapter 2. The Recording Process
I I I I
Chapter 3. Adjusting the Accounts
I I I I
Chapter 4. Completing the Accounting Cycle
I I I I I
Chapter 5. Accounting for Merchandising Operations
I I I I I
Chapter 6. Inventories
I I
Chapter 7. Fraud, Internal Control and Cash
I I I I I I
Chapter 8. Accounting for Receivables
I I I I
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
I I I I I I I I
Chapter 10. Liabilities
I I
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’
I I I I I I I
Equity
Chapter 12. Statement of Cash Flows
I I I I I
Chapter 13. Financial Analysis: The Big Picture
I I I I I I I
,CHAPTER 1 I
Accounting in Action I I
ASSIGNMENTICLASSIFICATIONITABLE
BriefIExerc A
LearningIObjectives Questions ises DoIIt! Exercises Problems
1. 1,I2,I3,I4,I5 1 1,I2
IdentifyItheIactivitiesIandIu
sersIassociatedIwithIaccou
nting.
2.IExplainItheIbuildingIblocksIofIaccou 6,I7,I8,I9,I10 2 3,I4
nting:Iethics,Iprinciples,IandIassu
mptions.
3. 11,I12,I13,I14. 1,I2,I3,I4,I5 3 5
StateItheIaccountingIequ 22
ation,IandIdefineIitsIcomp
onents.
4. 15,I16,I18 6,I7,I8,I9 4 6,I7,I8 1A,I2A,I4A,
AnalyzeItheIeffectsIofIbusinessI 5A
transactionsIonItheIaccountingI
equation.
5. 17,I19,I20,I21, 10,I11 5 8,I9,I10,I11, 2A,I3A,I4A,
DescribeItheIfourIfinancialIstate 12,I13,I14,I15, 5A
mentsIandIhowItheyIareIprepare 16,I17,I18
d.
, ANSWERS TO QUESTIONS I I
1. True.IVirtuallyIeveryIorganizationIandIpersonIinIourIsocietyIusesIaccountingIinformation.IBusinesses,Iinvestor
s,Icreditors,IgovernmentIagencies,IandInot-for-
profitIorganizationsImustIuseIaccountingIinformationItoIoperateIeffectively.
LOI 1,I BT:I K,I Difficulty:I Easy,I TOT:I 2I min.,I AACSB:I None,I AICPAI FC:I Reporting,I IMA:I Reporting
2. AccountingIisItheIprocessIofIidentifying,Irecording,IandI communicatingI theIeconomicIeventsIofIanIorganizati
onItoIinterestedIusersIofItheIinformation.ITheIfirstIactivityIofItheIaccountingIprocessIisItoIidentifyIeconomicIeve
ntsIthatIareIrelevantItoIaIparticularIbusiness.IOnceIidentifiedIandImeasured,ItheIeventsIareIrecordedItoIprovid
eIaIhistoryIofItheIfinancialIactivitiesIofItheIorganization.IRecordingIconsistsIofIkeepingIaIchronologicalIdiaryIofIt
heseImeasuredIeventsIinIanIorderlyIandIsystematicImanner.ITheIinformationIisIcommunicatedIthroughItheIpre
parationIandIdistributionIofIaccountingI reports,I theI mostI commonI ofI whichIareI calledIfinancialIstatement
s.IAIvitalIelementIinItheIcommunicationIprocessIisItheIaccountant’sIabilityIandIresponsibilityItoIanalyzeIandIint
erpretItheIreportedIinformation.
LOI 1,I BT:I K,I Difficulty:I Easy,I TOT:I 2I min.,I AACSB:I None,I AICPAI FC:I Reporting,I IMA:I Reporting
3. (a)IInternalIusersIareIthoseIwhoIplan,Iorganize,IandIrunItheIbusinessIandIthereforeIareIofficersIandIotherIdecisi
onImakers.
(b) ToIassistImanagement,IaccountingIprovidesIinternalIreports.IExamplesIincludeIfinancialIcomparisonsIof
IoperatingIalternatives,IprojectionsIofI incomeIfromInewIsalesI campaigns,IandIforecastsIofI cashIneedsIf
orItheInextIyear.
LOI 1,I BT:I K,I Difficulty:I Easy,I TOT:I 2I min.,I AACSB:I None,I AICPAI FC:I Reporting,I IMA:I Reporting
4. (a) InvestorsI(owners)IuseIaccountingIinformationItoImakeIdecisionsItoIbuy,Ihold,IorIsellIstock.
(b) CreditorsIuseIaccountingIinformationItoIevaluateItheIrisksIofIgrantingIcreditIorIlendingImoney.
LOI 1,I BT:I K,I Difficulty:I Easy,I TOT:I 2I min.,I AACSB:I None,I AICPAI FC:I Reporting,I IMA:I Reporting
5. False.IBookkeepingIusuallyIinvolvesIonlyItheIrecordingIofIeconomicIeventsIandIthereforeIisIjustIoneIpartIofItheI
entireIaccountingIprocess.IAccounting,IonItheIotherIhand,IinvolvesItheIentireIprocessIofIidentifying,Irecording,
IandI communicatingIeconomicIevents.
LOI 1,I BT:I C,I Difficulty:I Easy,I TOT:I 2I min.,I AACSB:I None,I AICPAI FC:I Reporting,I IMA:I Reporting
6. HarperITravelIAgencyIshouldIreportItheIlandIatI$85,000IonIitsIDecemberI31,I 2022I balanceIsheet.IThisIisItrueI
notIonlyIatItheItimeItheIlandIisIpurchased,IbutIalsoIoverItheItimeItheIlandIisIheld.IInIdeterminingIwhichImeasure
mentIprincipleItoIuseI(historicalIcostIorIfairIvalue)IcompaniesIweighItheIfactualInatureIofIcostIfiguresIversusIth
eIrelevanceIofIfairIvalue.IInIgeneral,IcompaniesIuseIhistoricalIcost.IOnlyIinIsituationsIwhereIassetsIareIactivelyI
tradedIdoI companiesIapplyItheIfairIvalueIprinciple.
LOI 2,I BT:I C,I Difficulty:I Easy,I TOT:I 2I min.,I AACSB:I None,I AICPAI FC:I Measurement,I AnalysisI andI InterpretationI IMA:IReporting
7. TheImonetaryIunitIassumptionIrequiresIthatIonlyItransactionIdataIcapableIofIbeingIexpressedIinItermsIofImon
eyIbeIincludedIinItheIaccountingIrecords.IThisIassumptionIenablesIaccountingItoIquantifyI(measure)Ieconomi
cIevents.
LOI2,IBT:IK,IDifficulty:IEasy,ITOT:I2Imin.,IAACSB:INone,IAICPAIFC:IMeasurement,IAnalysisIandIInterpretationI IMA:IReporting
