FULL SOLUTION MANUAL FOR
x x x
Financial And Managerial Accounting 4th Edition by Jerry
x x x x x x x
x JWeygandt, Paul D Kimmel, Jill E Mitchel
x x x x x x x
CHAPTER 1 x
Accounting in Action x x
ASSIGNMENT CLASSIFICATION TABLE
x x
Brief A
Learning xObjectives Questions x Exercises Do xIt! Exercises Problems
1. Identify xthe xactivities 1, x 2, x 3, x 4, x5 1 1, x 2
xandxusers xassociated
xwith xaccounting.
2. xExplain xthe xbuilding xblocks 6, x 7, x 8, x 9, x10 2 3, x 4
xof xaccounting: xethics,
xprinciples,x
and xassumptions.
3. State xthe x accounting 11, x 12, x 13, 1, x 2, x 3, x 4, x5 3 5
xequation, x and xdefine x14.
xitsxcomponents. 22
4. Analyze xthe xeffects xof 15, x 16, x 18 6, x 7, x 8, x 9 4 6, x 7, x 8 1A, x 2A, x4A,
xbusiness xtransactions xon 5A
xthex
accounting xequation.
5. Describe xthe xfour xfinancial 17, x 19, x 20, 10, x 11 5 8, x 9, x 10, x11, 2A, x 3A, x4A,
xstatements xand xhow xthey x21, 12, x 13, x 14, 5A
x arexprepared. x15,
16, x 17, x 18
© x2021 xJohn xWiley x& xSons, xInc. xAll xrights xreserved. xNo xpart xof xthis xpublication xmay xbe xreproduced, xstored xin xa xretrieval
obtain xpermission xto xreuse xthis xmaterial xis xavailable xat
xhttp://www.wiley.com/go/permissions.
, xsystem, xor xtransmitted,xin xany xform xor xby xany xmeans, xelectronic, xmechanical, xphotocopying, xrecording xor xotherwise, xexcept x as
x permitted xby xlaw. xAdvice x on xhow xto
1-2 © x2021 xJohn xWiley x& xSons, x Inc. xAll xrights xreserved. x Weygandt, xFinancial x& xManagerial xAccounting x4e, x Solutions xManual x x
x (For x Instructor xUse xOnly)
, ANSWERS TO QUESTIONS x x
1. True. xVirtually xevery xorganization xand xperson xin xour xsociety xuses xaccounting xinformation.
xBusinesses, xinvestors, xcreditors, xgovernment xagencies, xand xnot-for-profit xorganizations xmust
xuse xaccounting xinformation x to xoperate xeffectively.
LO x 1, x BT: x K, x Difficulty: x Easy, x TOT: x 2 x min., x AACSB: x None, x AICPA x FC: x Reporting, x IMA: x Reporting
2. Accounting xis xthe xprocess xof xidentifying, xrecording, xand x communicating x the xeconomic
xevents xof xan xorganization xto xinterested xusers xof xthe xinformation. xThe xfirst xactivity xof xthe
xaccounting xprocess xis xto xidentify xeconomic xevents xthat xare xrelevant xto xa xparticular xbusiness.
xOnce xidentified xand xmeasured, xthe xevents xare xrecorded xto xprovide xa xhistory xof xthe xfinancial
xactivities xof xthe xorganization. xRecording xconsists xof xkeeping xa xchronological xdiary xof xthese
xmeasured xevents xin xan x orderly xand xsystematic xmanner. xThe xinformation xis xcommunicated
xthrough xthe xpreparation xand xdistribution xof xaccounting x reports, x the x most x common x of
x which xare x called xfinancial xstatements.x
A xvital xelement xin xthe xcommunication xprocess xis xthe
xaccountant’s xability xand xresponsibility xto xanalyze xand x interpret xthe x reported x information.
LO x 1, x BT: x K, x Difficulty: x Easy, x TOT: x 2 x min., x AACSB: x None, x AICPA x FC: x Reporting, x IMA: x Reporting
3. (a) xInternal xusers xare xthose xwho xplan, xorganize, xand xrun xthe xbusiness xand xtherefore xare
xofficers xand xother xdecision xmakers.
(b) To xassist xmanagement, xaccounting xprovides xinternal xreports. xExamples xinclude xfinancial
xcomparisons xof xoperating xalternatives, xprojections xof x income xfrom xnew xsales
xcampaigns, xand xforecasts xof x cash xneeds xfor xthe xnext x year.
LO x 1, x BT: x K, x Difficulty: x Easy, x TOT: x 2 x min., x AACSB: x None, x AICPA x FC: x Reporting, x IMA: x Reporting
4. (a) Investors x(owners) xuse xaccounting xinformation xto xmake xdecisions xto xbuy, xhold, xor xsell
xstock.
(b) Creditors xuse xaccounting xinformation xto xevaluate xthe xrisks xof xgranting xcredit xor xlending xmoney.
LO x 1, x BT: x K, x Difficulty: x Easy, x TOT: x 2 x min., x AACSB: x None, x AICPA x FC: x Reporting, x IMA: x Reporting
5. False. xBookkeeping xusually xinvolves xonly xthe xrecording xof xeconomic xevents xand xtherefore xis
xjust xone xpart xof xthe xentire xaccounting xprocess. xAccounting, xon xthe xother xhand, xinvolves xthe
xentire xprocess xof x identifying, x recording, xand x communicating xeconomic xevents.
LO x 1, x BT: x C, x Difficulty: x Easy, x TOT: x 2 x min., x AACSB: x None, x AICPA x FC: x Reporting, x IMA: x Reporting
6. Harper xTravel xAgency xshould xreport xthe xland xat x$85,000 xon xits xDecember x31, x 2022
x balance xsheet. xThis xis xtrue xnot xonly xat xthe xtime xthe xland xis xpurchased, xbut xalso xover xthe
xtime xthe xland xis xheld. xIn xdetermining xwhich xmeasurement xprinciple xto xuse x(historical xcost xor
xfair xvalue) xcompanies xweigh xthe xfactual xnature xof xcost xfigures xversus xthe xrelevance xof xfair
xvalue. xIn xgeneral, xcompanies xuse xhistorical xcost. xOnly xin xsituations xwhere xassets xare
xactively xtraded xdo x companies xapply xthe xfair xvalue xprinciple.
LO x 2, x BT: x C, x Difficulty: x Easy, x TOT: x 2 x min., x AACSB: x None, x AICPA x FC: x Measurement, x Analysis x and
x Interpretation x IMA: xReporting
7. The xmonetary xunit xassumption xrequires xthat xonly xtransaction xdata xcapable xof xbeing
xexpressed xin xterms xof xmoney xbe xincluded xin xthe xaccounting xrecords. xThis xassumption
xenables xaccounting xto xquantify x(measure) xeconomic xevents.
LO x2, xBT: xK, xDifficulty: xEasy, xTOT: x2 xmin., xAACSB: xNone, xAICPA xFC: xMeasurement, xAnalysis xand xInterpretation
x IMA:xReporting
obtain xpermission xto xreuse xthis xmaterial xis xavailable xat
xhttp://www.wiley.com/go/permissions.
,
