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
TEST BANK for Accounting Principles, Volume 1, 9th Canadian Edition by Jerry J. Weygandt, Donald E. Kieso and Paul D. Kimmel ISBN-. All Chapter 1-10 Solutions Updated A+ CA$25.10   Add to cart
Quickly navigate to
Preview
  2.  
  3. Accounting Principles, Volume 1, 9th Canadian
  4.  
  5. Accounting Principles, Volume 1, 9th Canadian

Exam (elaborations)

TEST BANK for Accounting Principles, Volume 1, 9th Canadian Edition by Jerry J. Weygandt, Donald E. Kieso and Paul D. Kimmel ISBN-. All Chapter 1-10 Solutions Updated A+
 53 views  0 purchase
  • Course
  • Accounting Principles, Volume 1, 9th Canadian
  • Institution
  • Accounting Principles, Volume 1, 9th Canadian
  • Book
  • Accounting Principles, Volume 1

TEST BANK for Accounting Principles, Volume 1, 9th Canadian Edition by Jerry J. Weygandt, Donald E. Kieso and Paul D. Kimmel ISBN-. All Chapter 1-10 Solutions Updated A+ Tabl e of contents Volume 1 1 Accounting in Action 2 The Recording Process 3 Adjusting the Accounts 4 Completion of the Accountin...

[Show more]

Preview 4 out of 168  pages

Document information

  • November 5, 2023
  • 168
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • 9781119502425
  • volume 1
  • test bank accounting principles volume 1 9th can
  • test bank for accounting principles volume 1 9th
  • 9th canadian edition by jerry j weygandt
  • donald e kieso and paul d kimmel

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • Test Bank for Accounting Principles Volume 1 8th Canadian Edition Weygandt
  • Accounting Principles Volume 1 9th Canadian Edition Weygandt (Test Bank)
  • TEST BANK for Accounting Principles, Volume 1, 9th Canadian Edition by Jerry J. Weygandt, Donald E. Kieso and Paul D. Kimmel ISBN-13 978-1119786641. All Chapter 1-10 Solutions. 1269 Pages.
All for this textbook (5)

Written for

  • Accounting Principles, Volume 1, 9th Canadian
All documents for this subject (2)

Seller

avatar-seller
ASolution

Reviews received

Content preview

TEST BANK for Accounting Principles, Volume 1, 9th Canadian Edition by Jerry J. Weygandt,
Donald E. Kieso and Paul D. Kimmel
L




TEST BANK for
Accounting Principles,
Volume 1, 9th Canadian
Edition by Jerry J.
Weygandt, Donald E.
Kieso and Paul D.
Kimmel




Test Bank Page 1

, TEST BANK for Accounting Principles, Volume 1, 9th Canadian Edition by Jerry J. Weygandt,
Donald E. Kieso and Paul D. Kimmel
CHAPTER 1

ACCOUNTING IN ACTION


CHAPTER LEARNING OBJECTIVES




1. Identify the use and users of accounting and the objective of financial

reporting. Accounting is the information system that identifies, records, and

communicates the economicevents of an organization to a wide variety of

interestedusers. Good accounting is important to people both insideand outside the

organization. Internal users, such as management,use accounting information to

plan, control,and evaluate business operations. External users includeinvestors and

creditors, among others. Accounting dataare used by investors (owners or potential

owners) todecide whether to buy, hold, or sell their financial interests.Creditors

(suppliers and bankers) evaluate the risksof granting credit or lending money based

on the accountinginformation. The objective of financial reporting is toprovide useful

information to investors and creditors tomake these decisions. Users need

information about thebusiness’s ability to earn a profit and generate cash. For

oureconomic system to function smoothly, reliable and ethical accounting and

financial reporting are critical.




2. Compare the different forms of business organization.The most common

examples of business organization areproprietorships, partnerships, and

corporations. Proprietorshipsand partnerships are not separate legal entitiesbut are

separate entities for accounting purposes; incometaxes are paid by the owners and


Test Bank Page 2

, TEST BANK for Accounting Principles, Volume 1, 9th Canadian Edition by Jerry J. Weygandt,
Donald E. Kieso and Paul D. Kimmel
owners have unlimitedliability. Corporations are separate legal entities as well

asseparate entities for accounting purposes; income taxesare paid by the

corporation and owners of the corporationhave limited liability.




3. Explain the building blocks of accounting: ethics and theconcepts

included in the conceptual framework. Generallyaccepted accounting

principles are a common set of guidelinesthat are used to prepare and report

accounting information. The conceptual framework outlines some of thebody of

theory used by accountants to fulfill their goal ofproviding useful accounting

information to users. Ethicalbehaviour is fundamental to fulfilling the objective of

financial accounting. The reporting entity concept requiresthe business activities of

each reporting entity to be keptseparate from the activities of its owner and other

economic entities. The going concern assumption presumes that abusiness will

continue operations for enough time to useits assets for their intended purpose and

to fulfill its commitments. The periodicity concept requires businesses todivide up

economic activities into distinct periods of time.Qualitative characteristics include

fundamental andenhancing characteristics that help to ensure

accountinginformation is useful.

Only events that cause changes in the business’s economic resources or changes to

the claims on those resources are recorded. Recognition is the process ofrecording

items and measurement is the process of determiningthe amount that should be




Test Bank Page 3

, lOMoAR cPSD| 32793396




Test Bank for Accounting Principles, Eighth Canadian Edition




recognized. The historical cost concept states that assets should be recorded at

theirhistorical (original) cost. Fair value may be a more appropriatemeasure for

certain types of resources. Generally, fairvalue is the amount the resource could be

sold for in the market. The monetary unit concept requires that only

transactionsthat can be expressed as an amount of money beincluded in the

accounting records, and it assumes thatthe monetary unit is stable.

The revenue recognition principle requires companiesto recognize revenue when a

performance obligation(s) is satisfied. The matching concept requires that costs

berecognized as expenses in the same period as revenue isrecognized when there

is a direct association between thecost incurred and revenue recognized.

In Canada, there are two sets of standards for profit-orientedbusinesses. Publicly

accountable enterprisesmust follow International Financial Reporting

Standards(IFRS) and private enterprises have the choice of followingIFRS or

Accounting Standards for Private Enterprises(ASPE).




4. Describe the components of the financial statements andexplain the

accounting equation. Assets, liabilities, andowner’s equity are reported in the

balance sheet. Assets arepresent economic resources controlled by the business as

aresult of past events and have the potential to produce economic benefits.

Liabilities are present obligations of abusiness to transfer an economic resource as a

result ofpast events. Owner’s equity is the owner’s claim on thecompany’s assets

and is equal to total assets minus total liabilities. The balance sheet is based on the

accountingequation: Assets = Liabilities + Owner’s equity.

The Income statement reports the profit or loss for a specified period of time. Profit

is equal to revenues minusexpenses. Revenues are the increases in assets, or

decreasesin liabilities, that result from business activities that areundertaken to

Gedownload door Rai Irfan (bawarrai@gmail.com)

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 ASolution. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$25.10. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

81531 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$25.10
  • (0)
  Add to cart