ANSWER:kA
Solution Manual For Financial Accounting, 8t
n n n n n
h Canadian Edition by Libby, Hodge, Kanaan,
n n n n n n
n Sterling Chapters 1 - 13, Complete
n n n n n
1-
1
,TABLE OF CONTENTS
n n n
CHAPTERnONE
FinancialnStatementsnandnBusinessnDecisions
CHAPTERnTWO
InvestingnandnFinancingnDecisionsnandnthenAccountingnSystem
CHAPTERnTHREE
OperatingnDecisionsnandnthenAccountingnSystem
CHAPTERnFOUR
Adjustments,nFinancialnStatements,nandnthenClosingnProcess
CHAPTERnFIVE
ReportingnandnInterpretingnSalesnRevenue,nReceivables,nandnCash
CHAPTERnSIX
ReportingnandnInterpretingnCostnofnSalesnandnInventory
CHAPTERnSEVEN
ReportingnandnInterpretingnLong-LivednAssets
CHAPTERnEIGHT
ReportingnandnInterpretingnCurrentnLiabilities
CHAPTERnNINE
ReportingnandnInterpretingnNon-currentnLiabilities
CHAPTERnTEN
ReportingnandnInterpretingnShareholders'nEquity
CHAPTERnELEVEN
StatementnofnCashnFlows
CHAPTERnTWELVE
CommunicatingnAccountingnInformationnandnAnalyzingnFinancialnStatements
CHAPTERnTHIRTEEN
ReportingnandnInterpretingnInvestmentsninnOthernCorporations
1-
2
,CHAPTER ONE n
Financial Statements and Business Decisions
n n n n
ANSWERSnTOnQUESTIONS
1. Accountingnisnansystemnthatncollectsnandnprocessesn(analyzes,nmeasures,nandnr
ecords)nfinancialninformationnaboutnannorganizationnandnreportsnthatninformationn
tondecisionnmakers.
2. Financialnaccountingninvolvesnpreparationnofnthenfournbasicnfinancialnstatementsna
ndnrelatedndisclosuresnfornexternalndecisionnmakers.nManagerialnaccountingninvolv
esnthenpreparationnofndetailednplans,nbudgets,nforecasts,nandnperformancenreport
snforninternalndecisionnmakers.
3. Financialnreportsnarenusednbynbothninternalnandnexternalngroupsnandnindividuals.n
Theninternalngroupsnarencomprisednofnthenvariousnmanagersnofnthenentity.nThenext
ernalngroupsnincludenthenowners,ninvestors,ncreditors,ngovernmentalnagencies,noth
erninterestednparties,nandnthenpublicnatnlarge.
4. Investorsnpurchasenallnornpartnofnanbusinessnandnhopentongainnbynreceivingnpartnof
nwhatnthencompanynearnsnand/ornsellingnthencompanyninnthenfuturenatnanhighernpri
centhanntheynpaid.nCreditorsnlendnmoneyntonancompanynfornanspecificnlengthnofnti
menandnhopentongainnbynchargingninterestnonnthenloan.
5. Innansocietyneachnorganizationncannbendefinednasnanseparatenaccountingnentity.nA
nnaccountingnentitynisnthenorganizationnfornwhichnfinancialndatanarentonbencollecte
d.nTypicalnaccountingnentitiesnarenanbusiness,nanchurch,nangovernmentalnunit,nanu
niversitynandnothernnonprofitnorganizationsnsuchnasnanhospitalnandnanwelfarenorga
nization.nAnbusinessntypicallynisndefinednandntreatednasnanseparaten entitynbecaus
enthenowners,ncreditors,ninvestors,nandnotherninterestednpartiesnneedntonevaluateni
tsnperformancenandnitsnpotentialnseparatelynfromnothernentitiesnandnfromnitsnowner
s.
1-
3
, 6. NamenofnStatement AlternativenTitle
(a) IncomenStatement (a)n StatementnofnEarnings;nStatementnof
Income;nStatementnofnOperations
(b) BalancenSheet (b)nStatementnofnFinancialnPosition
(c) AuditnReport (c)n ReportnofnIndependentnAccountants
1-
4
Solution Manual For Financial Accounting, 8t
n n n n n
h Canadian Edition by Libby, Hodge, Kanaan,
n n n n n n
n Sterling Chapters 1 - 13, Complete
n n n n n
1-
1
,TABLE OF CONTENTS
n n n
CHAPTERnONE
FinancialnStatementsnandnBusinessnDecisions
CHAPTERnTWO
InvestingnandnFinancingnDecisionsnandnthenAccountingnSystem
CHAPTERnTHREE
OperatingnDecisionsnandnthenAccountingnSystem
CHAPTERnFOUR
Adjustments,nFinancialnStatements,nandnthenClosingnProcess
CHAPTERnFIVE
ReportingnandnInterpretingnSalesnRevenue,nReceivables,nandnCash
CHAPTERnSIX
ReportingnandnInterpretingnCostnofnSalesnandnInventory
CHAPTERnSEVEN
ReportingnandnInterpretingnLong-LivednAssets
CHAPTERnEIGHT
ReportingnandnInterpretingnCurrentnLiabilities
CHAPTERnNINE
ReportingnandnInterpretingnNon-currentnLiabilities
CHAPTERnTEN
ReportingnandnInterpretingnShareholders'nEquity
CHAPTERnELEVEN
StatementnofnCashnFlows
CHAPTERnTWELVE
CommunicatingnAccountingnInformationnandnAnalyzingnFinancialnStatements
CHAPTERnTHIRTEEN
ReportingnandnInterpretingnInvestmentsninnOthernCorporations
1-
2
,CHAPTER ONE n
Financial Statements and Business Decisions
n n n n
ANSWERSnTOnQUESTIONS
1. Accountingnisnansystemnthatncollectsnandnprocessesn(analyzes,nmeasures,nandnr
ecords)nfinancialninformationnaboutnannorganizationnandnreportsnthatninformationn
tondecisionnmakers.
2. Financialnaccountingninvolvesnpreparationnofnthenfournbasicnfinancialnstatementsna
ndnrelatedndisclosuresnfornexternalndecisionnmakers.nManagerialnaccountingninvolv
esnthenpreparationnofndetailednplans,nbudgets,nforecasts,nandnperformancenreport
snforninternalndecisionnmakers.
3. Financialnreportsnarenusednbynbothninternalnandnexternalngroupsnandnindividuals.n
Theninternalngroupsnarencomprisednofnthenvariousnmanagersnofnthenentity.nThenext
ernalngroupsnincludenthenowners,ninvestors,ncreditors,ngovernmentalnagencies,noth
erninterestednparties,nandnthenpublicnatnlarge.
4. Investorsnpurchasenallnornpartnofnanbusinessnandnhopentongainnbynreceivingnpartnof
nwhatnthencompanynearnsnand/ornsellingnthencompanyninnthenfuturenatnanhighernpri
centhanntheynpaid.nCreditorsnlendnmoneyntonancompanynfornanspecificnlengthnofnti
menandnhopentongainnbynchargingninterestnonnthenloan.
5. Innansocietyneachnorganizationncannbendefinednasnanseparatenaccountingnentity.nA
nnaccountingnentitynisnthenorganizationnfornwhichnfinancialndatanarentonbencollecte
d.nTypicalnaccountingnentitiesnarenanbusiness,nanchurch,nangovernmentalnunit,nanu
niversitynandnothernnonprofitnorganizationsnsuchnasnanhospitalnandnanwelfarenorga
nization.nAnbusinessntypicallynisndefinednandntreatednasnanseparaten entitynbecaus
enthenowners,ncreditors,ninvestors,nandnotherninterestednpartiesnneedntonevaluateni
tsnperformancenandnitsnpotentialnseparatelynfromnothernentitiesnandnfromnitsnowner
s.
1-
3
, 6. NamenofnStatement AlternativenTitle
(a) IncomenStatement (a)n StatementnofnEarnings;nStatementnof
Income;nStatementnofnOperations
(b) BalancenSheet (b)nStatementnofnFinancialnPosition
(c) AuditnReport (c)n ReportnofnIndependentnAccountants
1-
4
