@PROFDOCDIGITALLIBRARIES
TEST BANK
Accounting Principles
Jerry J. Weygandt
15th Edition
PR
O
FD
O
C
,@PROFDOCDIGITALLIBRARIES
Table of Contents
1. Accounting in Action
• Forms of Business Organization
• Users and Uses of Accounting Information
• Generally Accepted Accounting Principles
• The Accounting Equation
2. The Recording Process
• Analyzing Transactions
• The Journal
• The Ledger
• Summary of Journalizing and Posting
3. Adjusting the Accounts
• Accruals and Deferrals
• Adjusting Entries
• Adjusted Trial Balance
PR
4. Completing the Accounting Cycle
• Financial Statements
• Closing Entries
• Post-Closing Trial Balance
O
5. Accounting for Merchandising Operations
• Merchandising Transactions
• Inventory Systems
• Sales Returns and Allowances
FD
6. Inventories
• Inventory Costing Methods
• Lower-of-Cost-or-Net-Realizable-Value
• Inventory Errors
O
7. Fraud, Internal Control, and Cash
• Fraud Prevention
• Internal Control Principles
• Cash Controls and Bank Reconciliation
C
8. Accounting for Receivables
• Accounts Receivable
• Notes Receivable
• Uncollectible Accounts
9. Plant Assets, Natural Resources, and Intangibles
• Acquisition and Disposal
• Depreciation
• Depletion and Amortization
10. Liabilities
• Current Liabilities
• Long-Term Liabilities
• Payroll Liabilities
11. Corporations: Organization, Stock Transactions, and Dividends
• Corporate Organization
• Issuance of Stock
• Dividends
,@PROFDOCDIGITALLIBRARIES
12. Financial Statements Analysis
• Ratio Analysis
• Profitability, Liquidity, and Solvency
13. Statement of Cash Flows
• Operating, Investing, and Financing Activities
• Direct and Indirect Methods
14. Cost Accounting
• Job Order Costing
• Process Costing
• Overhead Allocation
15. Budgetary Planning
• Operating Budgets
• Cash Budgets
16. Budgetary Control and Responsibility Accounting
• Standard Costs
• Variance Analysis
PR
17. Incremental Analysis
• Decision-Making Tools
• Special Orders
• Make-or-Buy Decisions
O
18. Capital Investment Analysis
• Payback Period
• Net Present Value
• Internal Rate of Return
FD
19. Managerial Accounting Concepts
• Cost Behavior
• Contribution Margin
• Break-Even Analysis
O
C
, @PROFDOCDIGITALLIBRARIES
CHAPTER 1
ACCOUNTING IN ACTION
CHAPTER LEARNING OBJECTIVES
1. Identify the activities and users associated with accounting. Accounting is an information
system that identifies, records, and communicates the economic events of an organization to
interested users. The major users and uses of accounting are as follows: (a) Management
uses accounting information to plan, organize, and run the business. (b) Investors (owners)
decide whether to buy, hold, or sell their financial interests on the basis of accounting data. (c)
Creditors (suppliers and bankers) evaluate the risks of granting credit or lending money on
the basis of accounting information. Other groups that use accounting information are taxing
authorities, regulatory agencies, customers, and labor unions.
2. Explain the building blocks of accounting: ethics, principles, and assumptions. Ethics
PR
are the standards of conduct by which actions are judged as right or wrong. Effective financial
reporting depends on sound ethical behavior.
Generally accepted accounting principles are a common set of standards used by
accountants. The primary accounting standard-setting body in the United States is the
Financial Accounting Standards Board.
O
3. State the accounting equation, and define its components. The basic accounting
equation is:
FD
Assets = Liabilities + Owner's Equity
Assets are resources a business owns. Liabilities are creditorship claims on total assets.
O
C
TEST BANK
Accounting Principles
Jerry J. Weygandt
15th Edition
PR
O
FD
O
C
,@PROFDOCDIGITALLIBRARIES
Table of Contents
1. Accounting in Action
• Forms of Business Organization
• Users and Uses of Accounting Information
• Generally Accepted Accounting Principles
• The Accounting Equation
2. The Recording Process
• Analyzing Transactions
• The Journal
• The Ledger
• Summary of Journalizing and Posting
3. Adjusting the Accounts
• Accruals and Deferrals
• Adjusting Entries
• Adjusted Trial Balance
PR
4. Completing the Accounting Cycle
• Financial Statements
• Closing Entries
• Post-Closing Trial Balance
O
5. Accounting for Merchandising Operations
• Merchandising Transactions
• Inventory Systems
• Sales Returns and Allowances
FD
6. Inventories
• Inventory Costing Methods
• Lower-of-Cost-or-Net-Realizable-Value
• Inventory Errors
O
7. Fraud, Internal Control, and Cash
• Fraud Prevention
• Internal Control Principles
• Cash Controls and Bank Reconciliation
C
8. Accounting for Receivables
• Accounts Receivable
• Notes Receivable
• Uncollectible Accounts
9. Plant Assets, Natural Resources, and Intangibles
• Acquisition and Disposal
• Depreciation
• Depletion and Amortization
10. Liabilities
• Current Liabilities
• Long-Term Liabilities
• Payroll Liabilities
11. Corporations: Organization, Stock Transactions, and Dividends
• Corporate Organization
• Issuance of Stock
• Dividends
,@PROFDOCDIGITALLIBRARIES
12. Financial Statements Analysis
• Ratio Analysis
• Profitability, Liquidity, and Solvency
13. Statement of Cash Flows
• Operating, Investing, and Financing Activities
• Direct and Indirect Methods
14. Cost Accounting
• Job Order Costing
• Process Costing
• Overhead Allocation
15. Budgetary Planning
• Operating Budgets
• Cash Budgets
16. Budgetary Control and Responsibility Accounting
• Standard Costs
• Variance Analysis
PR
17. Incremental Analysis
• Decision-Making Tools
• Special Orders
• Make-or-Buy Decisions
O
18. Capital Investment Analysis
• Payback Period
• Net Present Value
• Internal Rate of Return
FD
19. Managerial Accounting Concepts
• Cost Behavior
• Contribution Margin
• Break-Even Analysis
O
C
, @PROFDOCDIGITALLIBRARIES
CHAPTER 1
ACCOUNTING IN ACTION
CHAPTER LEARNING OBJECTIVES
1. Identify the activities and users associated with accounting. Accounting is an information
system that identifies, records, and communicates the economic events of an organization to
interested users. The major users and uses of accounting are as follows: (a) Management
uses accounting information to plan, organize, and run the business. (b) Investors (owners)
decide whether to buy, hold, or sell their financial interests on the basis of accounting data. (c)
Creditors (suppliers and bankers) evaluate the risks of granting credit or lending money on
the basis of accounting information. Other groups that use accounting information are taxing
authorities, regulatory agencies, customers, and labor unions.
2. Explain the building blocks of accounting: ethics, principles, and assumptions. Ethics
PR
are the standards of conduct by which actions are judged as right or wrong. Effective financial
reporting depends on sound ethical behavior.
Generally accepted accounting principles are a common set of standards used by
accountants. The primary accounting standard-setting body in the United States is the
Financial Accounting Standards Board.
O
3. State the accounting equation, and define its components. The basic accounting
equation is:
FD
Assets = Liabilities + Owner's Equity
Assets are resources a business owns. Liabilities are creditorship claims on total assets.
O
C
