SOLUTION MANUAL
Financial And Managerial Accounting 4th Edition
by Weygandt, Kimmel and Mitchel
all chapters covered
obtainepermissionetoereuseethisematerialeiseavailableeatehttp://www.wiley.com/go/permission
s.
, CHAPTER 1 e
Accounting in Action e e
ASSIGNMENT CLASSIFICATION TABLE
e e
BriefeExer A
LearningeObjectives Questions cises DoeIt! Exercises Problems
1. 1,e 2,e 3,e 4,e5 1 1,e 2
Identifyetheeactivitiesean
deuserseassociatedewithe
accounting.
2.eExplainetheebuildingeblockseofea 6,e 7,e 8,e 9,e10 2 3,e 4
ccounting:eethics,eprinciples,e
andeassumptions.
3. 11,e 12,e 13,e14. 1,e 2,e 3,e 4,e5 3 5
Stateethee accountingee 22
quation,e andedefineeitsec
omponents.
4. 15,e 16,e 18 6,e 7,e 8,e 9 4 6,e 7,e 8 1A,e 2A,e4A,
Analyzeetheeeffectseofebusin 5A
essetransactionseonetheeacco
untingeequation.
5. 17,e 19,e 20,e21, 10,e 11 5 8,e 9,e 10,e11, 2A,e 3A,e4A,
Describeetheefourefinancialest 12,e 13,e 14,e15, 5A
atementseandehowetheye areep 16,e 17,e 18
repared.
©e2021eJohneWileye&eSons,eInc.eAllerightsereserved.eNoe parteofethisepublicationemayebeereproduced,estoredeineaeretrievalesystem,eoretransmitt
ed,eineanyeformeore byeanyemeans,eelectronic,emechanical,ephotocopying,erecordinge oreotherwise,eexcepte ase permittedebyelaw.eAdvicee onehowe
to
1-2 ©e2021e JohneWileye&eSons,e Inc.eAllerightsereserved.e Weygandt,eFinanciale&eManagerialeAccountinge4e,eSolutionseManualeee (Fore InstructoreUsee
Only)
, SOLUTION MANUAL
Financial And Managerial Accounting 4th Edition
by Weygandt, Kimmel and Mitchel
all chapters covered
ANSWERS TO QUESTIONS e e
1. True.eVirtuallyeeveryeorganizationeandepersoneineouresocietyeuseseaccountingeinformation.eBusines
ses,einvestors,ecreditors,egovernmenteagencies,eandenot-for-
profiteorganizationsemusteuseeaccountingeinformationetoeoperateeeffectively.
LOe 1,e BT:e K,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Reporting,e IMA:e Reporting
2. Accountingeisetheeprocesseofeidentifying,erecording,eande communicatinge theeeconomiceeventseofea
neorganizationetoeinterestedeuserseofetheeinformation.eTheefirsteactivityeofetheeaccountingeprocesseise
toeidentifyeeconomiceeventsethateareerelevantetoeaeparticularebusiness.eOnceeidentifiedeandemeasur
ed,etheeeventseareerecordedetoeprovideeaehistoryeofetheefinancialeactivitieseofetheeorganization.eReco
rdingeconsistseofekeepingeaechronologicalediaryeofetheseemeasuredeeventseineaneorderlyeandesystem
aticemanner.eTheeinformationeisecommunicatedethroughetheepreparationeandedistributioneofeaccount
inge reports,e thee moste commone ofe whichearee calledefinancialestatements.eAevitaleelementeinetheec
ommunicationeprocesseisetheeaccountant’seabilityeanderesponsibilityetoeanalyzeeandeinterpretetheere
portedeinformation.
LOe 1,e BT:e K,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Reporting,e IMA:e Reporting
3. (a)eInternaleuserseareethoseewhoeplan,eorganize,eanderunetheebusinesseandethereforeeareeofficersean
deotheredecisionemakers.
(b) Toeassistemanagement,eaccountingeprovideseinternalereports.eExampleseincludeefinancialecom
parisonseofeoperatingealternatives,eprojectionseofe incomeefromenewesalesecampaigns,eandefor
ecastseofe casheneedseforetheenexteyear.
LOe 1,e BT:e K,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Reporting,e IMA:e Reporting
4. (a) Investorse(owners)euseeaccountingeinformationetoemakeedecisionsetoebuy,ehold,eoresellestock.
(b) Creditorseuseeaccountingeinformationetoeevaluateetheeriskseofegrantingecrediteorelendingemoney.
LOe 1,e BT:e K,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Reporting,e IMA:e Reporting
5. False.eBookkeepingeusuallyeinvolveseonlyetheerecordingeofeeconomiceeventseandethereforeeisejusteo
neeparteofetheeentireeaccountingeprocess.eAccounting,eonetheeotherehand,einvolvesetheeentireeproces
seofeidentifying,erecording,eandecommunicatingeeconomiceevents.
LOe 1,e BT:e C,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Reporting,e IMA:e Reporting
6. HarpereTraveleAgencyeshouldereportetheelandeate$85,000eoneitseDecembere31,e 2022e balanceesheet
.eThiseisetrueenoteonlyeatetheetimeetheelandeisepurchased,ebutealsoeoveretheetimeetheelandeiseheld.eIned
eterminingewhichemeasurementeprincipleetoeusee(historicalecosteorefairevalue)ecompanieseweighethee
factualenatureeofecostefigureseversusetheerelevanceeofefairevalue.eInegeneral,ecompanieseuseehistoric
alecost.eOnlyeinesituationsewhereeassetseareeactivelyetradededoe companieseapplyetheefairevalueeprin
ciple.
LOe 2,e BT:e C,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Measurement,e Analysise ande Interpretatione IMA:eReport
ing
obtainepermissionetoereuseethisematerialeiseavailableeatehttp://www.wiley.com/go/permission
s.
, 7. Theemonetaryeuniteassumptionerequiresethateonlyetransactionedataecapableeofebeingeexpressedeinet
ermseofemoneyebeeincludedeinetheeaccountingerecords.eThiseassumptioneenableseaccountingetoequa
ntifye(measure)eeconomiceevents.
LOe2,eBT:eK,eDifficulty:eEasy,eTOT:e2emin.,eAACSB:eNone,eAICPAeFC:eMeasurement,eAnalysiseandeInterpretatione IMA:eRepo
rting
1-4 ©e2021e JohneWileye&eSons,e Inc.eAllerightsereserved.e Weygandt,eFinanciale&eManagerialeAccountinge4e,eSolutionseManualeee (Fore InstructoreUsee
Only)
