SOLUTION MANUAL c
Financial Accounting 11th Edition
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by Jerry J. Weygandt, Paul D. Kimmel
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c Chapters 1 - 13 | Complete
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,TABLE OF CONTENTS c c
Chapter 1. Accounting in Action
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Chapter 2. The Recording Process
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Chapter 3. Adjusting the Accounts
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Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations
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Chapter 6. Inventories
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Chapter 7. Fraud, Internal Control and Cash
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Chapter 8. Accounting for Receivables
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Chapter 9. Plant Assets, Natural Resources and Intangible Assets
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Chapter 10. Liabilities
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Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’
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c Equity
Chapter 12. Statement of Cash Flows
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Chapter 13. Financial Analysis: The Big Picture
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,CHAPTER 1
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Accounting in Action c c
ASSIGNMENT CLASSIFICATION TABLE
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Brief A
Learning cObjectives Questions c Exercises Do cIt! Exercises Problems
1. Identify cthe cactivities cand 1, c2, c3, c4, c5 1 1, c2
cusers cassociated cwith
caccounting.
2. cExplain cthe cbuilding cblocks cof 6, c7, c8, c9, c10 2 3, c4
caccounting: cethics, cprinciples,
cand cassumptions.
3. State cthe caccounting 11, c12, c13, c14. 1, c2, c3, c4, c5 3 5
cequation, c and cdefine 22
citsccomponents.
4. Analyze cthe ceffects cof 15, c16, c18 6, c7, c8, c9 4 6, c7, c8 1A, c2A, c4A,
cbusiness ctransactions con cthe 5A
caccounting cequation.
5. Describe cthe cfour cfinancial 17, c19, c20, c21, 10, c11 5 8, c9, c10, c11, 2A, c3A, c4A,
cstatements cand chow cthey
12, c13, c14, c15, 5A
c arecprepared. 16, c17, c18
, ANSWERS TO QUESTIONS c c
1. True. cVirtually cevery corganization cand cperson cin cour csociety cuses caccounting cinformation. cBusinesses,
cinvestors, ccreditors, cgovernment cagencies, cand cnot-for-profit corganizations cmust cuse caccounting
cinformation c to coperate ceffectively.
LO c 1, c BT: c K, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Reporting, c IMA: c Reporting
2. Accounting cis cthe cprocess cof cidentifying, crecording, cand c communicating c the ceconomic cevents cof
can corganization cto cinterested cusers cof cthe cinformation. cThe cfirst cactivity cof cthe caccounting cprocess
cis cto cidentify ceconomic cevents cthat care crelevant cto ca cparticular cbusiness. cOnce cidentified cand
cmeasured, cthe cevents care crecorded cto cprovide ca chistory cof c the cfinancial cactivities cof cthe
corganization. cRecording cconsists cof ckeeping ca cchronological cdiary cof cthese cmeasured cevents cin can
corderly cand csystematic cmanner. cThe cinformation cis ccommunicated cthrough cthe cpreparation cand
cdistribution cof caccounting c reports, c the c most c common c of c which care c called cfinancial
cstatements. cA cvital celement cin cthe ccommunication cprocess cis cthe caccountant’s cability cand
cresponsibility cto canalyze cand cinterpret cthe c reported c information.
LO c 1, c BT: c K, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Reporting, c IMA: c Reporting
3. (a) cInternal cusers care cthose cwho cplan, corganize, cand crun cthe cbusiness cand ctherefore care cofficers cand
c other cdecision cmakers.
(b) To cassist cmanagement, caccounting cprovides cinternal creports. cExamples cinclude cfinancial
ccomparisons cof coperating calternatives, cprojections cof c income cfrom cnew csales c campaigns,
cand cforecasts cof c cash cneeds cfor cthe cnext c year.
LO c 1, c BT: c K, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Reporting, c IMA: c Reporting
4. (a) Investors c(owners) cuse caccounting cinformation cto cmake cdecisions cto cbuy, chold, cor csell cstock.
(b) Creditors cuse caccounting cinformation cto cevaluate cthe crisks cof cgranting ccredit cor clending cmoney.
LO c 1, c BT: c K, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Reporting, c IMA: c Reporting
5. False. cBookkeeping cusually cinvolves conly cthe crecording cof ceconomic cevents cand ctherefore cis cjust cone
cpart cof cthe centire caccounting cprocess. cAccounting, con cthe cother chand, cinvolves cthe centire cprocess
cof c identifying, c recording, cand c communicating ceconomic cevents.
LO c 1, c BT: c C, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Reporting, c IMA: c Reporting
6. Harper cTravel cAgency cshould creport cthe cland cat c$85,000 con cits cDecember c31, c 2022 c balance
csheet. cThis cis ctrue cnot conly cat cthe ctime cthe cland cis cpurchased, cbut calso cover cthe ctime cthe cland cis
cheld. cIn cdetermining cwhich cmeasurement cprinciple cto cuse c(historical ccost cor cfair cvalue) ccompanies
cweigh cthe cfactual cnature cof ccost cfigures cversus cthe crelevance cof cfair cvalue. cIn cgeneral, ccompanies
cuse chistorical ccost. cOnly cin csituations cwhere cassets care cactively ctraded cdo c companies capply cthe
cfair cvalue cprinciple.
LO c 2, c BT: c C, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Measurement, c Analysis c and
c Interpretation c IMA: cReporting
7. The cmonetary cunit cassumption crequires cthat conly ctransaction cdata ccapable cof cbeing cexpressed cin
cterms cof cmoney cbe cincluded cin cthe caccounting crecords. cThis cassumption cenables caccounting cto
cquantify c(measure) ceconomic cevents.
LO c2, cBT: cK, cDifficulty: cEasy, cTOT: c2 cmin., cAACSB: cNone, cAICPA cFC: cMeasurement, cAnalysis cand cInterpretation c IMA:cReporting
