Accounting 9th Edition Horngren, Harrison, Oliver
(Solutions Manual All Chapters, 100% Original Verified A+ Grade)
Chapter 1
Accounting and the Business
Environment
Short Exercises
(5 min.) S 1-1
Req. 1
Revenues are increases in equity from delivering goods or
services to customers.
Expenses are decreases in equity from using assets or
increasing liabilities in the course of delivering goods or
services to customers.
Req. 2
If revenues increase, equity would increase.
(5 min.) S 1-2
Req. 1
The banker is an external user of financial information.
Req. 2
The financial statement that would provide the best
information to answer the banker’s questions is the balance
sheet.
Chapter 1 Accounting and the Business Environment 1
, (5 – 10 min.) S 1-3
Req. 1
This organization is the Financial Accounting Standards
Board.
(5 – 10 min.) S 1-4
Req. 1
Chloe’s needs will best be met by organizing a corporation.
(5 – 10 min.) S 1-5
Req. 1
Advantages:
1. Easy to organize.
2. Neither stockholders to notify nor are there articles of
incorporation to file.
3. Unification of ownership and management.
Disadvantages:
1. No continuous life or transferability of ownership.
2. Unlimited liability of owner.
2 Accounting 9/e Solutions Manual
, (5 - 10 min.) S 1-6
Req. 1
a. the entity concept
b. the cost principle
c. the stable monetary unit concept
d. the faithful representation principle
Req. 2
Michael McNamee has $11,000 equity in the business.
Assets = Liabilities + Owner’s equity
Accounts
Cash + Furniture = Payable + Owner’s equity
$8,000 + $9,000 = $6,000 + $11,000
Chapter 1 Accounting and the Business Environment 3
, (5 min.) S 1-7
Req. 1
Type of
Assets = Liabilities + Owner’s equity
Transaction
Cash (not affected) Capital
(a) = +
$320 $ 0 $320 Revenues
Cash (not affected) Capital
(b) = +
$(125) 0 $(125) Expenses
Accts receivable (not affected) Capital
(c) = +
$440 0 $440 Revenues
(not affected) Accts payable Capital
(d) = +
0 $65 $(65) Expenses
(5 min.) S 1-8
Req. 1
Account Amount
Cash $ (26,000)
Land $ 26,000
(5 min.) S 1-9
Req. 1
After this transaction (the first and only for the business),
cash equals $ 0 and the total assets equal $2,800.
Req. 2
The business’s asset which was increased as a result of the
transaction is accounts receivable.
4 Accounting 9/e Solutions Manual
(Solutions Manual All Chapters, 100% Original Verified A+ Grade)
Chapter 1
Accounting and the Business
Environment
Short Exercises
(5 min.) S 1-1
Req. 1
Revenues are increases in equity from delivering goods or
services to customers.
Expenses are decreases in equity from using assets or
increasing liabilities in the course of delivering goods or
services to customers.
Req. 2
If revenues increase, equity would increase.
(5 min.) S 1-2
Req. 1
The banker is an external user of financial information.
Req. 2
The financial statement that would provide the best
information to answer the banker’s questions is the balance
sheet.
Chapter 1 Accounting and the Business Environment 1
, (5 – 10 min.) S 1-3
Req. 1
This organization is the Financial Accounting Standards
Board.
(5 – 10 min.) S 1-4
Req. 1
Chloe’s needs will best be met by organizing a corporation.
(5 – 10 min.) S 1-5
Req. 1
Advantages:
1. Easy to organize.
2. Neither stockholders to notify nor are there articles of
incorporation to file.
3. Unification of ownership and management.
Disadvantages:
1. No continuous life or transferability of ownership.
2. Unlimited liability of owner.
2 Accounting 9/e Solutions Manual
, (5 - 10 min.) S 1-6
Req. 1
a. the entity concept
b. the cost principle
c. the stable monetary unit concept
d. the faithful representation principle
Req. 2
Michael McNamee has $11,000 equity in the business.
Assets = Liabilities + Owner’s equity
Accounts
Cash + Furniture = Payable + Owner’s equity
$8,000 + $9,000 = $6,000 + $11,000
Chapter 1 Accounting and the Business Environment 3
, (5 min.) S 1-7
Req. 1
Type of
Assets = Liabilities + Owner’s equity
Transaction
Cash (not affected) Capital
(a) = +
$320 $ 0 $320 Revenues
Cash (not affected) Capital
(b) = +
$(125) 0 $(125) Expenses
Accts receivable (not affected) Capital
(c) = +
$440 0 $440 Revenues
(not affected) Accts payable Capital
(d) = +
0 $65 $(65) Expenses
(5 min.) S 1-8
Req. 1
Account Amount
Cash $ (26,000)
Land $ 26,000
(5 min.) S 1-9
Req. 1
After this transaction (the first and only for the business),
cash equals $ 0 and the total assets equal $2,800.
Req. 2
The business’s asset which was increased as a result of the
transaction is accounts receivable.
4 Accounting 9/e Solutions Manual
