Solution Manual for Accounting Principles ( Volume 1 And Volume 2 )9th Canadian Edition ,by Donald E. Kieso

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alnAccountingnPartn1
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ZEUSnVERNONnB.nMILLAN

, ALLnRIGHTSnRESERVEDn201
5


Nonpartnofnthisnworkncoverednbynthencopyright
nhereonnmaynbenreproducednornusedninnanynfor

mnornbynanynmeansn-
nelectronicnornmechanical,nincludingnphotocop

yingn–
nwithoutnthenwrittennpermissionnofnthenauthor.




ISBNn 978-621-95096-0-2


Publishednby:
BANDOLINnENTERPRISE
No.n100nMontebellonVillage,nBakakengnSur,nBaguionCityn2600,nPhilippines

TABLEnOFnCONTENTS

CHAPTERn1
OVERVIEWnOFnACCOUNTING ............................................................3
CHAPTER 1: THEORY OF ACCOUNTS REVIEWER ............................................. 3
N N N N N


CHAPTER 1 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS
N N N N N N N N N 22
CHAPTERn2
THEnACCOUNTINGnPROCESS .......................................................... 24
CHAPTER 2: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
N N N N N N N N N N N N 24
CHAPTER 2: THEORY OF ACCOUNTS REVIEWER .......................................... 26
N N N N N


CHAPTER 2 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 36
N N N N N N N N N



CHAPTERn3
THEnCONCEPTUALnFRAMEWORKnFORnFINANCIALnREPORTINGn36
CHAPTER 3: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
N N N N N N N N N N N N 36
CHAPTER 3: THEORY OF ACCOUNTS REVIEWER .......................................... 37
N N N N N


CHAPTER 3 - SUGGESTED ANSWERS TO REVIEW THEORY QUESTIONS ... 54
N N N N N N N N



CHAPTERn4
CASHn&nCASHnEQUIVALENTS ....................................................... 54
CHAPTER 4: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
N N N N N N N N N N N N 54
CHAPTER 4: THEORY OF ACCOUNTS REVIEWER .......................................... 57
N N N N N


CHAPTER 4 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 65
N N N N N N N N N



CHAPTERn5
RECEIVABLESn(PARTn1).................................................................. 66
CHAPTER 5: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
N N N N N N N N N N N N 66
CHAPTER 5: THEORY OF ACCOUNTS REVIEWER .......................................... 69
N N N N N


CHAPTER 5 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 75
N N N N N N N N N



CHAPTERn6
RECEIVABLESn(PARTn2).................................................................. 75
CHAPTER 6: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
N N N N N N N N N N N N 75
CHAPTER 6: THEORY OF ACCOUNTS REVIEWER .......................................... 78
N N N N N


CHAPTER 6 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 82
N N N N N N N N N



CHAPTERn7

, CHAPTER 7 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS
N N N N N N N N N 92
CHAPTERn n n n n n n n n n n n n n n n n n n n n n n n n 8n n INVENTO
RIES................................................................................................... 92
CHAPTER 8: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
N N N N N N N N N N N N 92
CHAPTER 8: THEORY OF ACCOUNTS REVIEWER .......................................... 97
N N N N N


CHAPTER 8 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 109
N N N N N N N N N



CHAPTERn9
INVESTMENTSn(PARTn1) .............................................................. 109
CHAPTER 9: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
N N N N N N N N N N N N 109
CHAPTER 9: THEORY OF ACCOUNTS REVIEWER ........................................112
N N N N N


CHAPTER 9 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 122
N N N N N N N N N



CHAPTERn10
INVESTMENTSn(PARTn2) .............................................................. 122
CHAPTER 10: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
N N N N N N N N N N N N 122
CHAPTER 10: THEORY OF ACCOUNTS REVIEWER .....................................127
N N N N N


CHAPTER 10 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 134
N N N N N N N N N



CHAPTERn11
INVESTMENTSn(PARTn3) .............................................................. 135
CHAPTER 11: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
N N N N N N N N N N N N 135
CHAPTER 11: THEORY OF ACCOUNTS REVIEWER .....................................135
N N N N N


CHAPTER 11 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 137
N N N N N N N N N




Chaptern1nOverv
iewnofnAccounting
Chaptern1:nTheorynofnAccountsnReviewe
rnDefinitionnofnAccounting
1. Accountingnhasnbeenngivennvariousndefinitions,nwhichnofnthenfollowingnisnnotnonenofnthosendefinitions
a. Accountingnisnanservicenactivity.nItsnfunctionnisntonprovidenquantitativeninformation,nprimarilynfinancialninnn
ature,naboutneconomicnentitiesnthatnisnintendedntonbenusefulninnmakingneconomicndecisions.
b. Accountingnisnthenartnofnrecording,nclassifying,nandnsummarizingninnansignificantnmannernandninntermsnofnm
oney,ntransactionsnandneventsnwhichnare,ninnpartnofnatnleast,nofnanfinancialncharacternandninterpretingnthenre
sultsnthereof.
c. Accountingnisnansystematicnprocessnofnobjectivelynobtainingnandnevaluatingnevidencenregardingnassertionsna
boutneconomicnactionsnandneventsntonascertainnthendegreenofncorrespondencenbetweennthesenassertionsn an
dnestablishedncriterianandncommunicatingnthenresultsntoninterestednusers.
d. Accountingnisnthenprocessnofnidentifying,nmeasuring,nandncommunicatingneconomicninformationntonpermitni
nformednjudgmentnandndecisionsnbynusersnofninformation.

2. Itn isn then firstn processn usedn inn accounting.n Itn refersn ton then identificationn ofn eventsn asn ton whethern theyn are
nrecognizednornnotninnthenfinancialnstatements.

a.nIdentifying b.nMeasuringn c.nCommunicating d.nAuditing

3. Thenfollowingnstatementsncorrectlynreferntonthenaccountingnprocess.
I. Measuringnisnthenaccountingnprocessnofnanalyzingnbusinessnactivitiesnasntonwhethernornnotntheynwillnbenreco
gnizedninnthenbooks.
II. Recognitionnrefersntonthenprocessnofnincludingntheneffectsnofnanneventninnthentotalsnofnthenstatementnofnfinan
cialnpositionnornthenstatementnofnprofitnornlossnandnotherncomprehensivenincomenthroughnmemon entries.
III. Disclosurenofneventsninnthennotesntonfinancialnstatementnwithoutnincludingninnthentotalsnofnthenstatementnofnf
inancialnpositionnornstatementnofnprofitnornlossnandnotherncomprehensivenincomenisnnotnannapplicationnofnth
enrecognitionnprinciple.
IV. Annaccountableneventnisnanneventnthatnhasnanneffectnonnthenassets,nliabilitiesnornequitynofnannentitynandnitsnef
fectncannbenmeasurednreliably.
V. Sociologicalnandnpsychologicalnmattersnarenwithinnthenscopenofnaccounting.
a.nI,nII,nIII,nIV,nV b.nI,nII,nIII,nIV c.nIV d.nIII,nIV

TypesnofnEvents