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 Accounting, The Financial Chapters, 14th edition Nobles 2024 | All Chapter ( 1-17 )A+ CA$18.65   Add to cart
Quickly navigate to
Preview
  2.  
  3. Horngren\'s Accounting, The Financial Chapters 14th
  4.  
  5. Horngren\'s Accounting, The Financial Chapters 14th

Exam (elaborations)

Solution Manual For Horngren's Accounting, The Financial Chapters, 14th edition Nobles 2024 | All Chapter ( 1-17 )A+

1 review
 17 views  1 purchase
  • Course
  • Horngren\'s Accounting, The Financial Chapters 14th
  • Institution
  • Horngren\'s Accounting, The Financial Chapters 14th

Solution Manual For Horngren's Accounting, The Financial Chapters, 14th edition Nobles 2024 | All Chapter ( 1-17 )A+ Chapter F:1 Accounting and the Business Environment Review Questions 1. Accounting is the information system that measures business activities, processes the information into r...

[Show more]

Preview 4 out of 1113  pages

Document information

  • March 19, 2024
  • 1113
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • solution manual
  • 14th edition
  • 2024
  • all c
  • horngrens accounting the financial chapters
  • solution manual for horngrens accounting
  • the financial chapters 14th edition
  • by tracie miller nobles brenda mattison

Written for

  • Horngren's Accounting, The Financial Chapters 14th
All documents for this subject (4)

1  review

review-writer-avatar

By: ericrumardo • 7 hours ago

reply-writer-avatar

By: TestsBanks • 5 hours ago

Thank you for the positive review. If you're Looking for Any Study Materials (exams, test bank, ATI, Hesi etc.) Contact me , we’re looking forward to hear from you soon! & HAVE A GREAT DAY!!!!!!!

Seller

avatar-seller
TestsBanks

Reviews received

Content preview

Solution Manual For
Horngren's Accounting, The Financial Chapters,
14th edition Nobles
Chapter 1-17

Chapter F:1
Accounting and the Business Environment

Review Questions
1. Accounting is the information system that measures business activities, processes the information
into reports, and communicates the results to decision makers. Accounting is the language of
business.

2. Financial accounting provides information for external decision makers, such as outside investors,
lenders, customers, and the federal government. Managerial accounting focuses on information for
internal decision makers, such as the company’s managers and employees.

3. Individuals use accounting information to help them manage their money, evaluate a new job, and
better decide whether they can afford to make a new purchase. Business owners use accounting
information to set goals, measure progress toward those goals, and make adjustments when needed.
Investors use accounting information to help them decide whether or not a company is a good
investment and once they have invested, they use a company’s financial statements to analyze how
their investment is performing. Creditors use accounting information to decide whether to lend
money to a business and to evaluate a company’s ability to make the loan payments. Taxing
authorities use accounting information to calculate the amount of income tax that a company has to
pay.

4. Certified Public Accountants (CPAs) are licensed professional accountants who serve the general
public. They work for public accounting firms, businesses, government, or educational institutions.
A Chartered Global Management Accountant (CGMA) is an accountant who has advanced
knowledge in finance, operations, strategy, and management. Certified Management Accountants
(CMAs) specialize in accounting and financial management knowledge. They work for a single
company. Certified Financial Planners (CFPs) work with individuals to help them budget, plan for
retirement, save for education, and manage their finances.

5. The FASB oversees the creation and governance of accounting standards. They work with
governmental regulatory agencies, congressionally created groups, and private groups.

6. The guidelines for accounting information are called GAAP. It is the main U.S. accounting rule
book and is currently created and governed by the FASB. Investors and lenders must have
information that is relevant and has faithful representation in order to make decisions and GAAP
provides the framework for this financial reporting.


©2024, 2018, 2015 by Pearson Education, Inc. 1-1

,7. A sole proprietorship has a single owner, terminates upon the owner’s death or choice, the owner has
personal liability for the business’s debts, and it is not a separate tax entity. A partnership has two or
more owners, terminates at partner’s choice or death, the partners have personal liability, and it is
not a separate tax entity. A corporation is a separate legal entity, has one or more owners, has
indefinite life, the stockholders are not personally liable for the business’s debts, and it is a separate
tax entity. A limited-liability company has one or more members and each is only liable for his or
her own actions, has an indefinite life, and is not a separate tax entity.

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

9. The going concern assumption assumes that the entity will remain in business for the foreseeable
future and long enough to use existing resources for their intended purpose.

10. The faithful representation concept states that accounting information should be complete, neutral,
and free from material error.

11. The monetary unit assumption states that items on the financial statements should be measured in
terms of a monetary unit.

12. The IASB is the organization that develops and creates IFRS which are a set of global accounting
standards that would be used around the world.

13. Assets = Liabilities + Equity. Assets are economic resources that are expected to benefit the
business in the future. They are things of value that a business owns or has control of. Liabilities
are debts that are owed to creditors. They are one source of claims against assets. Equity is the
other source of claims against assets. Equity is the owner’s claim against assets and is the amount of
assets that is left over after the company has paid its liabilities. It represents the net worth of the
business.

14. Equity increases with owner’s contributions and revenues. Equity decreases with expenses and
owner’s withdrawals.

15. Revenues – Expenses = Net Income. Revenues are earnings resulting from delivering goods or
services to customers. Expenses are the cost of selling goods or service.

16. Step 1: Identify the accounts and the account type. Step 2: Decide if each account increases or
decreases. Step 3: Determine if the accounting equation is in balance.

17. Income Statement – Shows the difference between an entity’s revenues and expenses and reports the
net income or net loss for a specific period.
Statement of Owner’s Equity – Shows the changes in owner’s capital for a specific period including
owner contributions, net income (loss) and owner withdrawals.
Balance Sheet – Shows the assets, liabilities, and owner’s equity of the business as of a specific date.
Statement of Cash Flows – Shows a business’s cash receipts and cash payments for a specific period.

18. Return on Assets = Net income / Average total assets. ROA measures how profitably a company
uses its assets.


© 2024, 2018, 2015 by Pearson Education, Inc. 1-2

,Short Exercises
S-F:1-1

a. FA e. MA
b. FA f. FA
c. FA g. MA
d. MA h. FA

S-F:1-2

The Financial Accounting Standards Board governs the majority of guidelines, called Generally
Accepted Accounting Principles (GAAP), that the CPA will use to prepare financial statements for
Wholly Shirts.

S-F:1-3

Rahat’s needs will best be met by organizing a corporation since a corporation has an unlimited life and
is a separate tax entity. In addition, the owners (stockholders) have limited liability. Rahat could also
consider a limited liability company (LLC) as an option. An LLC meets two of the three criteria. It has
an unlimited life and limited liability for the owner. However, an LLC is not a separate tax entity.

S-F:1-4

Advantages:
1. Easy to organize.
2. Unification of ownership and management.
3. Less government regulation.
4. Owner has more control over business.

Disadvantages:
1. The owner pays taxes on the entity’s earnings since it is not a separate tax entity.
2. No continuous life or transferability of ownership.
3. Unlimited liability of owner for business’s debts.

S-F:1-5

a. The economic entity assumption
b. The cost principle.
c. The monetary unit assumption.
d. The going concern assumption.




© 2024, 2018, 2015 by Pearson Education, Inc. 1-3

, S-F:1-6
Requirement 1

Bennett Handyman Services has equity of $4,260.

Assets = Liabilities + Equity
$12,500 = $8,240 + ?
$12,500 = $8,240 + $4,260

Requirement 2

Bennett Handyman Services has liabilities of $13,330.

Assets = Liabilities + Equity
$12,500 + $3,200 = ? + $4,260 – $1,890
$15,700 = $13,330 + $2,370


S-F:1-7
Requirement 1

ASSETS = LIABILITIES + EQUITY
Hilda, Hilda,
+ – + Revenues – Expenses
Capital Withdrawals
$45,800 = $15,230 + $28,700 – $7,000 + $10,890 – ?
$45,800 = $15,230 + $28,700 – $7,000 + $10,890 – $2,020

Requirement 2

Hilda’s Overhead Doors reported net income of $8,870.
Net Income = Revenues − Expenses
Net Income = $10,890 − $2,202
Net Income = $8,870

S-F:1-8

a. L f. E
b. A g. A
c. E h. E
d. A i. A
e. E j. E




© 2024, 2018, 2015 by Pearson Education, Inc. 1-4

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 TestsBanks. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$18.65. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

83637 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$18.65  1x  sold
  • (1)
  Add to cart