SOLUTIONS MANUAL
** All Chapters included
** Solutions to discussion questions
** Solutions to application problems
** Case solutions
,Table of Contents are given below
1. Overview of Corporate Financial Reporting
2. Analyzing Transactions and Their Effects on Financial Statements
3. Double-Entry Accounting and the Accounting Cycle
4. Revenue Recognition and the Statement of Income
5. The Statement of Cash Flows
6. Cash and Accounts Receivable
7. Inventory
8. Long-Term Assets
9. Current Liabilities
10. Long-Term Liabilities
11. Shareholders’ Equity
12. Financial Statement Analysis
, Burnley, Understanding Financial Accounting, Fourth Canadian Edition
CHAPTER 1
OVERVIEW OF CORPORATE FINANCIAL REPORTING
Learning Objectives
1. Define financial accounting and understand its relationship to
economic decision-making.
2. Identify the main users of financial accounting information and
explain how they use this information.
3. Describe the major forms of business organization and explain
the key distinctions among them.
4. Explain the three categories of business activities and identify
examples of transactions related to each category.
5. Identify and explain the content and reporting objectives of the
four basic financial statements and the notes to the financial
statements.
____________________________________________________________________________________________________________
Solutions Manual 1-1 Chapter 1
, Burnley, Understanding Financial Accounting, Fourth Canadian Edition
Summary of Questions by Learning Objectives and Bloom’s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
Discussion Questions
1. 1 K 7. 2 C 13. 5 C 19. 4 C 25. 5 C
2. 2 K 8. 2 C 14. 4 C 20. 5 C 26. 5 C
3. 3 K 9. 2 C 15. 4 C 21. 5 C 27. 5 C
4. 3 C 10. 2 C 16. 4 C 22. 5 C
5. 3 C 11. 2 C 17. 4 C 23. 5 C
6.. 3 C 12. 4 C 18. 4 C 24. 5 C
Application Problems
1. 4 C 4. 5 C 7. 5 AP 10. 5 AP 13. 5 AP
2. 4 C 5. 5 AP 8. 5 AP 11. 5 AP 14. 5 AP
3. 4 AP 6. 5 AP 9. 5 AP 12. 5 AP 15. 5 AP
User Perspective Problems
1. 2 C 2. 2 C 3. 3 C 4. 2 C 5. 2 C
Work in Process
1. 5 C 3. 5 C 5. 5 C
2. 5 C 4. 5 C 6. 5 C
Interpreting MD&A
1. 5 C 2. 5 C 3. 5 C 4. 5 C
Reading and Interpreting Published Financial Statements
1. 5 AN 3. 5 AN 5. 5 AN
2. 5 AN 4. 2,5 C 6. 5 AN
Cases
1. 2 C
____________________________________________________________________________________________________________
Solutions Manual 1-2 Chapter 1
** All Chapters included
** Solutions to discussion questions
** Solutions to application problems
** Case solutions
,Table of Contents are given below
1. Overview of Corporate Financial Reporting
2. Analyzing Transactions and Their Effects on Financial Statements
3. Double-Entry Accounting and the Accounting Cycle
4. Revenue Recognition and the Statement of Income
5. The Statement of Cash Flows
6. Cash and Accounts Receivable
7. Inventory
8. Long-Term Assets
9. Current Liabilities
10. Long-Term Liabilities
11. Shareholders’ Equity
12. Financial Statement Analysis
, Burnley, Understanding Financial Accounting, Fourth Canadian Edition
CHAPTER 1
OVERVIEW OF CORPORATE FINANCIAL REPORTING
Learning Objectives
1. Define financial accounting and understand its relationship to
economic decision-making.
2. Identify the main users of financial accounting information and
explain how they use this information.
3. Describe the major forms of business organization and explain
the key distinctions among them.
4. Explain the three categories of business activities and identify
examples of transactions related to each category.
5. Identify and explain the content and reporting objectives of the
four basic financial statements and the notes to the financial
statements.
____________________________________________________________________________________________________________
Solutions Manual 1-1 Chapter 1
, Burnley, Understanding Financial Accounting, Fourth Canadian Edition
Summary of Questions by Learning Objectives and Bloom’s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
Discussion Questions
1. 1 K 7. 2 C 13. 5 C 19. 4 C 25. 5 C
2. 2 K 8. 2 C 14. 4 C 20. 5 C 26. 5 C
3. 3 K 9. 2 C 15. 4 C 21. 5 C 27. 5 C
4. 3 C 10. 2 C 16. 4 C 22. 5 C
5. 3 C 11. 2 C 17. 4 C 23. 5 C
6.. 3 C 12. 4 C 18. 4 C 24. 5 C
Application Problems
1. 4 C 4. 5 C 7. 5 AP 10. 5 AP 13. 5 AP
2. 4 C 5. 5 AP 8. 5 AP 11. 5 AP 14. 5 AP
3. 4 AP 6. 5 AP 9. 5 AP 12. 5 AP 15. 5 AP
User Perspective Problems
1. 2 C 2. 2 C 3. 3 C 4. 2 C 5. 2 C
Work in Process
1. 5 C 3. 5 C 5. 5 C
2. 5 C 4. 5 C 6. 5 C
Interpreting MD&A
1. 5 C 2. 5 C 3. 5 C 4. 5 C
Reading and Interpreting Published Financial Statements
1. 5 AN 3. 5 AN 5. 5 AN
2. 5 AN 4. 2,5 C 6. 5 AN
Cases
1. 2 C
____________________________________________________________________________________________________________
Solutions Manual 1-2 Chapter 1
