Financial Accounting 11th Edition
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by Jerry J. Weygandt, Paul D. Kimmel
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Chapters 1 - 13 | Complete
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,TABLE OF CONTENTS w w
Chapter 1. Accounting in Action
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Chapter 2. The Recording Process
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Chapter 3. Adjusting the Accounts
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Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations
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Chapter 6. Inventories
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Chapter 7. Fraud, Internal Control and Cash
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Chapter 8. Accounting for Receivables
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Chapter 9. Plant Assets, Natural Resources and Intangible Assets
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Chapter 10. Liabilities
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Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’
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Chapter 12. Statement of Cash Flows
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Chapter 13. Financial Analysis: The Big Picture
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,CHAPTER 1
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Accounting in Action w w
ASSIGNMENT CLASSIFICATION TABLE w w
Brief A
Learning Objectives
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1. Identify the activities and
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users associated with
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waccounting.
2. Explain the building blocks of 6, 7, 8, 9, 10
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accounting: ethics, principles,
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and assumptions.
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3. State the accounting
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equation, and define its
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components.
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4. Analyze the effects of business
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transactions on theaccounting
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equation.
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5. Describe the four financial
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17, 19, 20, 21,
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statements and how they are
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12, 13, 14, 15,
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prepared.
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16, 17, 18
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, ANSWERS TO QUESTIONS w w
1. True. Virtually every organization and person in our society uses accounting information. Businesses,
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investors, creditors, government agencies, and not-for-profit organizations must use accounting
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information to operate effectively.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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2. Accounting is the process of identifying, recording, and communicating the economic events of an
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organization to interested users of the information. The first activity of the accounting process is to identify
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economic events that are relevant to a particular business. Once identified and measured, the events are
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recorded to provide a history of the financial activities of the organization. Recording consists of keeping a
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chronological diary of these measured events in an orderly and systematic manner. The information is
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communicated through the preparation and distribution of accounting reports, the most common of
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wwhich are called financial statements. A vital element in the communication process is the accountant’s
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ability and responsibility to analyze and interpret the reported information.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and other
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decision makers. w w
(b) To assist management, accounting provides internal reports. Examples include financial comparisons
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of operating alternatives, projections of income from new sales campaigns, and forecasts of cash
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needs for the next year.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock. w w w w w w w w w w w w w
(b) Creditors use accounting information to evaluate the risks of granting credit or lending money. w w w w w w w w w w w w w
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one part of
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the entire accounting process. Accounting, on the other hand, involves the entire process of identifying,
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recording, and communicating economic events.
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LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. This is
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true not only at the time the land is purchased, but also over the time the land is held. In determining which
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measurement principle to use (historical cost or fair value) companies weigh the factual nature of cost
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figures versus the relevance of fair value. In general, companies use historical cost. Only in situations where
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assets are actively traded do companies apply the fair value principle.
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LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:
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Reporting
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7. The monetary unit assumption requires that only transaction data capable of being expressed in terms of
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money be included in the accounting records. This assumption enables accounting to quantify (measure)
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economic events.
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LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:Reporting
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