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Solution Manual For Accounting Principles 14th Edition by Jerry J. Weygandt, Paul D. Kimmel||ISBN NO:10,||ISBN NO:13,978-||All Chapters||Complete Guide A+ $18.49
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Solution Manual For Accounting Principles 14th Edition by Jerry J. Weygandt, Paul D. Kimmel||ISBN NO:10,||ISBN NO:13,978-||All Chapters||Complete Guide A+
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Solution Manual For Accounting Principles 14th Edition by Jerry J. Weygandt, Paul D. Kimmel||ISBN NO:10,||ISBN NO:13,978-||All Chapters||Complete Guide A+

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  • January 31, 2025
  • 2018
  • 2024/2025
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Test Bank for Accounting Principles, 14th Edition by Jerry J. Weygandt, Paul D.
oo oo oo oo oo oo oo oo oo oo oo oo




Kimmel oo




CHAPTER 1 o o




ACCOUNTING IN ACTION oo oo




CHAPTER LEARNING OBJECTIVES oo oo




1. Identify the activities and users associated with accounting. Accounting is an
oo oo oo oo oo oo oo oo oo oo



information system that identifies, records, and communicates the economic events of an
oo oo oo oo oo oo oo oo oo oo oo oo



organization to interested users. The major users and uses of accounting are as follows:
oo oo oo oo oo oo oo oo oo oo oo oo oo oo



(a) Management uses accounting information to plan, organize, and run the business. (b)
oo oo oo oo oo oo oo oo oo oo oo oo oo



Investors (owners) decide whether to buy, hold, or sell their financial interests on the basis
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo



of accounting data. (c) Creditors (suppliers and bankers) evaluate the risks of granting
oo oo oo oo oo oo oo oo oo oo oo oo oo



credit or lending money on
oo oo the basis of accounting information. Other groups that use
oo oo oo o o oo oo oo oo oo oo oo oo



accounting information are taxing authorities, regulatory agencies, customers, and labor
oo oo oo oo oo oo oo oo oo oo



unions.
oo




2. Explain the building blocks of accounting: ethics, principles, and assumptions.
oo oo oo oo oo oo oo oo oo



Ethics are the standards of conduct by which actions are judged as right or wrong.
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo



Effective financial reporting depends on sound ethical behavior.
oo oo oo oo oo oo oo oo




Generally accepted accounting principles are a common set of standards used by
oo oo oo oo oo oo oo oo oo oo oo



accountants. The primary accounting standard-setting body in the United States is the
oo oo oo oo oo oo oo oo oo oo oo oo



Financial Accounting Standards Board.
oo oo oo oo




3. State the accounting equation, and define its components. The basic accounting
oo oo oo oo oo oo oo oo oo oo



equation is:
o o oo




Assets = Liabilities + Owner's Equity oo oo oo oo oo




Assets are resources a business owns. Liabilities are creditorship claims on
o o o o o o o o o o o o o o o o o o o o



total assets. Owner's equity is the ownership claim on total assets.
o o o o oo oo oo oo oo oo oo oo oo




The expanded accounting equation is:
oo oo oo oo




Assets  Liabilities + Owner's Capital  Owner's Drawings + Revenues 
oo oo oo oo oo oo oo oo oo oo oo



Expenses
Investments by owners (assets the owner puts into the business) are recorded in a
oo oo oo oo oo oo oo oo oo oo oo oo oo



category called owner‘s capital. Owner‘s drawings are the withdrawal of assets by the
oo oo oo oo oo oo oo oo oo oo oo oo oo



owner for personal use. Revenues are the gross increase in owner‘s equity from business
oo oo oo oo oo oo oo oo oo oo oo oo oo oo



activities for the purpose of earning income. Expenses are the costs of assets consumed
oo oo oo oo oo oo oo oo oo oo oo oo oo oo



or services used in the process of earning revenue. Owner‘s equity is increased by an
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo



owner‘s investments and by revenues from business operations. Owner‘s equity is
oo oo o o oo oo oo oo oo oo oo oo



decreased by an owner‘s withdrawals of assets and by expenses.
oo oo oo oo oo oo oo oo oo oo




4. Analyze the effects of business transactions on the accounting equation. Each
oo oo oo oo oo oo oo oo oo oo



business transaction must have a dual effect on the accounting equation. For example, if
oo oo oo oo oo oo oo oo oo oo oo oo oo oo



an individual asset increases, there must be a corresponding (1) decrease in another
oo oo oo oo oo oo oo oo oo oo oo oo oo



asset, or (2) increase in a specific liability, or (3) increase in owner's equity.
oo oo oo oo oo oo oo oo oo oo oo oo oo oo




5. Describe the four financial statements and how they are prepared. An income
oo oo oo oo oo oo oo oo oo oo oo



statement presents the revenues and expenses, and resulting net income or net loss for a
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo



specific period of time. An owner's equity statement summarizes the changes in owner's
oo o o oo oo oo oo oo oo oo oo oo oo oo



equity for a specific period of time. A balance sheet reports the assets, liabilities, and
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo



owner's equity at a specific date. A statement of cash flows summarizes information about
oo oo oo oo oo oo oo oo oo oo oo oo oo oo



the cash inflows (receipts) and outflows (payments) for a specific period of time.
oo oo oo oo oo oo oo oo oo oo oo oo oo

,1 -2oo oo Test Bank for Accounting Principles, Fourteenth
oo oo oo oo oo



Edition
a
6. Explain the career opportunities in accounting. Accounting offers many different jobs in
oo oo oo oo oo oo oo oo oo oo oo oo



fields such as public and private accounting, governmental, and forensic accounting.
oo oo oo oo oo oo oo oo oo oo oo



Accounting is a popular major because there are many different types of jobs, with
oo oo oo oo oo oo oo oo oo oo oo oo oo oo



unlimited potential for career advancement.
oo oo oo oo oo

, Accounting in Action oo oo 1 -3 oo oo




TRUE-FALSE STATEMENTS oo




1. Owners of business firms are the only people who need accounting information.
oo oo oo oo oo oo oo oo oo oo oo




Ans: o o F, o o LO: o o 1, o o Bloom: o o K, o o Difficulty: o o Easy, o o Min: o o 1, o o AACSB: o o None, o o AICPA o o BB: o o Governance o o Perspective, o o AICPA o o FC: o o Reporting,
o o AICPA o o PC: o o None, o o IMA: o o Reporting




2. Transactions that can be measured in dollars and cents are recorded in
o o o o o o o o o o o o o o o o o o o o o o



the financial information system.
o o o o oo oo




Ans: ooT, ooLO: oo1, ooBloom: ooK, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




3. The hiring of a new company president is an economic event recorded by
o o o o o o o o o o o o o o o o o o o o o o o o



the financial information system.
o o o o oo oo




Ans: ooF, ooLO: oo1, ooBloom: ooC, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




4. Management of a business enterprise is the major external user of information.
oo oo oo oo oo oo oo oo oo oo oo




Ans: ooF, ooLO: oo1, ooBloom: ooK, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




5. Accounting communicates financial information about a business enterprise to
o o o o o o o o o o o o o o o o



both internal and external users.
o o o o oo oo oo




Ans: ooT, ooLO: oo1, ooBloom: ooK, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




6. Accounting information o o o o is used only by external
o o o o o o o o o o users o o with o o a
ofinancial interest in
o o o o o o o a business enterprise.
oo oo




Ans: ooF, ooLO: oo1, ooBloom: ooC, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




7. Financial statements are the major means of communicating accounting
o o o o o o o o o o o o o o o o



information to interested parties.
o o o o oo oo




Ans: ooT, ooLO: oo1, ooBloom: ooK, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




8. Bookkeeping and accounting are one and the same because the bookkeeping
o o o o o o o o o o o o o o o o o o o o



function includes the accounting process.
o o oo oo oo oo




Ans: ooF, ooLO: oo1, ooBloom: ooC, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




9. The origins of accounting are attributed to Luca Pacioli, a famous mathematician.
oo oo oo oo oo oo oo oo oo oo oo




Ans: ooT, ooLO: oo1, ooBloom: ooK, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting

, 1 -4
oo oo Test Bank for Accounting Principles, Fourteenth
oo oo oo oo oo



Edition

10. The study of accounting is not useful for a business career unless your career
oo oo oo oo oo oo oo oo oo oo oo oo oo



objective is to become an accountant.
oo oo oo oo oo oo




Ans: ooF, ooLO: oo1, ooBloom: ooK, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




11. A working knowledge of accounting is not relevant to a lawyer or an architect.
oo oo oo oo oo oo oo oo oo oo oo oo oo




Ans: ooF, ooLO: oo1, ooBloom: ooK, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




12. Identifying is the process of keeping a chronological diary of events measured in
oo oo oo oo oo oo oo oo oo oo oo oo



dollars and cents.
oo oo oo




Ans: ooF, ooLO: oo1, ooBloom: ooK, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




13. Management consulting includes examining the financial statements of companies
oo oo oo oo oo oo oo oo



and expressing an opinion as to the fairness of their presentation.
oo oo oo oo oo oo oo oo oo oo oo




Ans: ooF, ooLO: oo1, ooBloom: ooK, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting




14. A partnership must have more than one owner.
oo oo oo oo oo oo oo




Ans: ooT, ooLO: oo2, ooBloom: ooK, ooDifficulty: ooEasy, ooMin: oo1, ooAACSB: ooNone, ooAICPA ooBB: ooGovernance ooPerspective, ooAICPA ooFC: ooMeasurement
ooAnalysis ooand o o Interpretation, ooAICPA ooPC: ooNone, oo IMA: ooReporting

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