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SOLUTIONS MANUAL for Financial and Managerial Accounting for Decision Makers 4th Edition by Hanlon, Magee, Pfeiffer & Dyckman. ISBN 9781618533616. (All 24 Chapters) A+ €17,74
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SOLUTIONS MANUAL for Financial and Managerial Accounting for Decision Makers 4th Edition by Hanlon, Magee, Pfeiffer & Dyckman. ISBN 9781618533616. (All 24 Chapters) A+

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SOLUTIONS MANUAL for Financial and Managerial Accounting for Decision Makers 4th Edition by Hanlon, Magee, Pfeiffer & Dyckman. ISBN 9781618533616. (All 24 Chapters) A+

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  • 28 octobre 2023
  • 793
  • 2023/2024
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  • solutions manual for financial and managerial
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SOLUTIONS MANUAL for Financial and Managerial Accounting for Decision Makers 4th Edition by Hanlon




SOLUTIONS MANUAL for
Financial and Managerial
Accounting for Decision Makers
4th Edition by Hanlon




Solution Pag

, SOLUTIONS MANUAL for Financial and Managerial Accounting for Decision Makers 4th Edition by Hanlon




QUESTIONS


Q1-1. Organizations undertake four major activities: planning, financing, investing, and
operating. Financing is the means a company uses to pay for resources. Investing
refers to the buying and selling of resources necessary to carry out the organization’s
plans. Operating activities are the actual carrying out of these plans. Planning is the
glue that connects these activities, including the organization’s ideas, goals and
strategies. Financial accounting information provides valuable input into the planning
process, and, subsequently, reports on the results of plans so that corrective action
can be taken, if necessary.


Q1-2. An organization’s financing activities (liabilities and equity = sources of funds) pay for
investing activities (assets = uses of funds). An organization’s assets cannot be more
or less than its liabilities and equity combined. This means: assets = liabilities +
equity. This relation is called the accounting equation (sometimes called the balance
sheet equation), and it applies to all organizations at all times.


Q1-3. The four main financial statements are: income statement, balance sheet, statement
of stockholders’ equity, and statement of cash flows. The income statement provides
information about the company’s revenues, expenses and profitability over a period
of time. The balance sheet lists the company’s assets (what it owns), liabilities (what
it owes), and stockholders’ equity (the residual claims of its owners) as of a point in
time. The statement of stockholders’ equity reports on the changes to each
stockholders’ equity account during the period. The statement of cash flows identifies
the sources (inflows) and uses (outflows) of cash, that is, where the company got its
cash from and what it did with it. Together, the four statements provide a complete
picture of the financial condition of the company.


Q1-4. The balance sheet provides information that helps users understand a company’s
resources (assets) and claims to those resources (liabilities and stockholders’ equity)


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, SOLUTIONS MANUAL for Financial and Managerial Accounting for Decision Makers 4th Edition by Hanlon




as of a given point in time.




Solution Pag

, SOLUTIONS MANUAL for Financial and Managerial Accounting for Decision Makers 4th Edition by Hanlon




Q1-5. The income statement covers a period of time. An income statement reports whether
the business has earned a net income (also called profit or earnings) or incurred a
net loss. Importantly, the income statement lists the types and amounts of revenues
and expenses making up net income or net loss.


Q1-6. The statement of cash flows reports on the cash inflows and outflows relating to a
company’s operating, investing, and financing activities over a period of time. The
sum of these three activities yields the net change in cash for the period. This
statement is a useful complement to the income statement, which reports on
revenues and expenses, but which conveys relatively little information about cash
flows.


Q1-7. Retained earnings (reported on the balance sheet) is increased each period by any
net income earned during the period (as reported in the income statement) and
decreased each period by the payment of dividends (as reported in the statement of
cash flows and the statement of stockholders’ equity). Transactions reflected on the
statement of cash flows link the previous period’s balance sheet to the current
period’s balance sheet. The ending cash balance appears on both the balance sheet
and the statement of cash flows.


Q1-8. External users and their uses of accounting information include: (a) lenders for
measuring the risk and return of loans; (b) shareholders for assessing the return and
risk in acquiring shares; and (c) analysts for assessing investment potential. Other
users are auditors, consultants, officers, directors for overseeing management,
employees for judging employment opportunities, regulators, unions, suppliers, and
appraisers.


Q1-9. Managers deal with a variety of information about their employers and customers
that is not generally available to the public. Ethical issues arise concerning the
possibility that managers might personally benefit by using confidential information.
There is also the possibility that their employers and/or customers might be harmed if
certain information is not kept confidential.


Q1-10. The five forces (according to Professor Michael Porter) are (A) industry competition,
A+ Pag

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