Solution Manual For Financial Accounting, 8t
m m m m m
h Canadian Edition by Libby, Hodge, Kanaan,
m m m m m m m
Sterling Chapters 1 - 13, Complete
m m m m m
1-
1
,TABLE OF CONTENTSm m m
CHAPTERmONE
FinancialmStatementsmandmBusinessmDecisions
CHAPTERmTWO
InvestingmandmFinancingmDecisionsmandmthemAccountingmSystem
CHAPTERmTHREE
OperatingmDecisionsmandmthemAccountingmSystem
CHAPTERmFOUR
Adjustments,mFinancialmStatements,mandmthemClosingmProcess
CHAPTERmFIVE
ReportingmandmInterpretingmSalesmRevenue,mReceivables,mandmCash
CHAPTERmSIX
ReportingmandmInterpretingmCostmofmSalesmandmInventory
CHAPTERmSEVEN
ReportingmandmInterpretingmLong-LivedmAssets
CHAPTERmEIGHT
ReportingmandmInterpretingmCurrentmLiabilities
CHAPTERmNINE
ReportingmandmInterpretingmNon-currentmLiabilities
CHAPTERmTEN
ReportingmandmInterpretingmShareholders'mEquity
CHAPTERmELEVEN
StatementmofmCashmFlows
CHAPTERmTWELVE
CommunicatingmAccountingmInformationmandmAnalyzingmFinancialmStatements
CHAPTERmTHIRTEEN
ReportingmandmInterpretingmInvestmentsminmOthermCorporations
1-
2
,CHAPTER ONE m
Financial Statements and Business Decisions
m m m m
ANSWERS TO QUESTIONS
m m
1. Accountingmismamsystemmthatmcollectsmandmprocessesm(analyzes,mmeasures,mandmre
cords)mfinancialminformationmaboutmanmorganizationmandmreportsmthatminformationmtom
decisionmmakers.
2. Financialmaccountingminvolvesmpreparationmofmthemfourmbasicmfinancialmstatementsma
ndmrelatedmdisclosuresmformexternalmdecisionmmakers.mManagerialmaccountingminvolv
esmthempreparationmofmdetailedmplans,mbudgets,mforecasts,mandmperformancemreports
mforminternalmdecisionmmakers.
3. Financialmreportsmaremusedmbymbothminternalmandmexternalmgroupsmandmindividuals.mT
heminternalmgroupsmaremcomprisedmofmthemvariousmmanagersmofmthementity.mThemexter
nalmgroupsmincludemthemowners,minvestors,mcreditors,mgovernmentalmagencies,mother
minterestedmparties,mandmthempublicmatmlarge.
4. Investorsmpurchasemallmormpartmofmambusinessmandmhopemtomgainmbymreceivingmpartmofm
whatmthemcompanymearnsmand/ormsellingmthemcompanyminmthemfuturematmamhighermpric
emthanmtheympaid.mCreditorsmlendmmoneymtomamcompanymformamspecificmlengthmofmtime
mandmhopemtomgainmbymchargingminterestmonmthemloan.
5. Inmamsocietymeachmorganizationmcanmbemdefinedmasmamseparatemaccountingmentity.mAn
maccountingmentitymismthemorganizationmformwhichmfinancialmdatamaremtombemcollected.m
Typicalmaccountingmentitiesmaremambusiness,mamchurch,mamgovernmentalmunit,mamuniv
ersitymandmothermnonprofitmorganizationsmsuchmasmamhospitalmandmamwelfaremorganiza
tion.mAmbusinessmtypicallymismdefinedmandmtreatedmasmamseparatem entitymbecausemthe
mowners,mcreditors,minvestors,mandmotherminterestedmpartiesmneedmtomevaluatemitsmper
formancemandmitsmpotentialmseparatelymfrommothermentitiesmandmfrommitsmowners.
6. NamemofmStatement AlternativemTitle
1-
3
, (a) IncomemStatement (a)m StatementmofmEarnings;mStatementmof
Income;mStatementmofmOperations
(b) BalancemSheet (b)m StatementmofmFinancialmPosition
(c) AuditmReport (c)m ReportmofmIndependentmAccountants
1-
4
m m m m m
h Canadian Edition by Libby, Hodge, Kanaan,
m m m m m m m
Sterling Chapters 1 - 13, Complete
m m m m m
1-
1
,TABLE OF CONTENTSm m m
CHAPTERmONE
FinancialmStatementsmandmBusinessmDecisions
CHAPTERmTWO
InvestingmandmFinancingmDecisionsmandmthemAccountingmSystem
CHAPTERmTHREE
OperatingmDecisionsmandmthemAccountingmSystem
CHAPTERmFOUR
Adjustments,mFinancialmStatements,mandmthemClosingmProcess
CHAPTERmFIVE
ReportingmandmInterpretingmSalesmRevenue,mReceivables,mandmCash
CHAPTERmSIX
ReportingmandmInterpretingmCostmofmSalesmandmInventory
CHAPTERmSEVEN
ReportingmandmInterpretingmLong-LivedmAssets
CHAPTERmEIGHT
ReportingmandmInterpretingmCurrentmLiabilities
CHAPTERmNINE
ReportingmandmInterpretingmNon-currentmLiabilities
CHAPTERmTEN
ReportingmandmInterpretingmShareholders'mEquity
CHAPTERmELEVEN
StatementmofmCashmFlows
CHAPTERmTWELVE
CommunicatingmAccountingmInformationmandmAnalyzingmFinancialmStatements
CHAPTERmTHIRTEEN
ReportingmandmInterpretingmInvestmentsminmOthermCorporations
1-
2
,CHAPTER ONE m
Financial Statements and Business Decisions
m m m m
ANSWERS TO QUESTIONS
m m
1. Accountingmismamsystemmthatmcollectsmandmprocessesm(analyzes,mmeasures,mandmre
cords)mfinancialminformationmaboutmanmorganizationmandmreportsmthatminformationmtom
decisionmmakers.
2. Financialmaccountingminvolvesmpreparationmofmthemfourmbasicmfinancialmstatementsma
ndmrelatedmdisclosuresmformexternalmdecisionmmakers.mManagerialmaccountingminvolv
esmthempreparationmofmdetailedmplans,mbudgets,mforecasts,mandmperformancemreports
mforminternalmdecisionmmakers.
3. Financialmreportsmaremusedmbymbothminternalmandmexternalmgroupsmandmindividuals.mT
heminternalmgroupsmaremcomprisedmofmthemvariousmmanagersmofmthementity.mThemexter
nalmgroupsmincludemthemowners,minvestors,mcreditors,mgovernmentalmagencies,mother
minterestedmparties,mandmthempublicmatmlarge.
4. Investorsmpurchasemallmormpartmofmambusinessmandmhopemtomgainmbymreceivingmpartmofm
whatmthemcompanymearnsmand/ormsellingmthemcompanyminmthemfuturematmamhighermpric
emthanmtheympaid.mCreditorsmlendmmoneymtomamcompanymformamspecificmlengthmofmtime
mandmhopemtomgainmbymchargingminterestmonmthemloan.
5. Inmamsocietymeachmorganizationmcanmbemdefinedmasmamseparatemaccountingmentity.mAn
maccountingmentitymismthemorganizationmformwhichmfinancialmdatamaremtombemcollected.m
Typicalmaccountingmentitiesmaremambusiness,mamchurch,mamgovernmentalmunit,mamuniv
ersitymandmothermnonprofitmorganizationsmsuchmasmamhospitalmandmamwelfaremorganiza
tion.mAmbusinessmtypicallymismdefinedmandmtreatedmasmamseparatem entitymbecausemthe
mowners,mcreditors,minvestors,mandmotherminterestedmpartiesmneedmtomevaluatemitsmper
formancemandmitsmpotentialmseparatelymfrommothermentitiesmandmfrommitsmowners.
6. NamemofmStatement AlternativemTitle
1-
3
, (a) IncomemStatement (a)m StatementmofmEarnings;mStatementmof
Income;mStatementmofmOperations
(b) BalancemSheet (b)m StatementmofmFinancialmPosition
(c) AuditmReport (c)m ReportmofmIndependentmAccountants
1-
4
