Microsoft Word - Solution manual for financial accounting 11th edition ... file:///C:/Users/Admin/Desktop/NATE/New%20folder/Financial%20
SOLUTION MANUAL Financial Accounting 11th Edition
by Jerry J. D. Kimmel
Chapters 1 - 13 | Complete
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,Microsoft Word - Solution manual for financial accounting 11th edition ... file:///C:/Users/Admin/Desktop/NATE/New%20folder/Financial%20
TABLE OF CONTENTS
Chapter 1. Accounting in Action
Chapter 2. The Recording Process
Chapter 3. Adjusting the Accounts
Chapter 4. Completing the Accounting Cycle
Chapter 5. Accounting for Merchandising Operations
Chapter 6. Inventories
Chapter 7. Fraud, Internal Control and Cash
Chapter 8. Accounting for Receivables
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
Chapter 10. Liabilities
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’
Equity
Chapter 12. Statement of Cash Flows
Chapter 13. Financial Analysis: The Big Picture
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CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify the activities and 1, 2, 3, 4, 5 1 1, 2
users associated with
accounting.
2. Explain the building blocks of 6, 7, 8, 9, 10 2 3, 4
accounting: ethics, principles,and
assumptions.
3. State the accounting 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
equation, and define its 22
components.
4. Analyze the effects of business 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
transactions on theaccounting 5A
equation.
5. Describe the four financial 17, 19, 20, 21, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
statements and how they are 12, 13, 14, 15, 5A
prepared. 16, 17, 18
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ANSWERS TO QUESTIONS
1. True. Virtually every organization and person in our society uses accounting information. Businesses,
investors, creditors, government agencies, and not-for-profit organizations must use accounting information
to operate effectively.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
2. Accounting is the process of identifying, recording, and communicating the economic events of an
organization to interested users of the information. The first activity of the accounting process is to identify
economic events that are relevant to a particular business. Once identified and measured, the events are
recorded to provide a history of the financial activities of the organization. Recording consists of keeping a
chronological diary of these measured events in an orderly and systematic manner. The information is
communicated through the preparation and distribution of accounting reports, the most common of which
are called financial statements.A vital element in the communication process is the accountant’s ability and
responsibility to analyze and interpret the reported information.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and other
decision makers.
(b) To assist management, accounting provides internal reports. Examples include financial comparisons of
operating alternatives, projections of income from new sales campaigns,and forecasts of cash needs
for the next year.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one part of
the entire accounting process. Accounting, on the other hand, involves the entire process of identifying,
recording, and communicating economic events.
LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. This is
true not only at the time the land is purchased, but also over the time the land is held. In determining which
measurement principle to use (historical cost or fair value) companies weigh the factual nature of cost figures
versus the relevance of fair value. In general, companies use historical cost. Only in situations where assets
are actively traded do companies apply the fair value principle.
LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA: Reporting
7. The monetary unit assumption requires that only transaction data capable of being expressed in terms of
money be included in the accounting records. This assumption enables accounting to quantify (measure)
economic events.
LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:Reporting
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