obtainCpermissionCtoCreuseCthisCmaterialCisCavailableCatChttp://www.wiley.com/go/permissi
ons.
, FULL SOLUTION MANUAL FOR
Financial And Managerial Accounting 4th Edition by Jerry J
Weygandt, Paul D Kimmel, Jill E Mitchel
CHAPTER 1 C
Accounting in Action C C
ASSIGNMENT CLASSIFICATION TABLE
C C
BriefCExe A
LearningCObjectives Questions rcises DoCIt! Exercises Problems
1. 1,C2,C3,C4,C5 1 1,C2
IdentifyCtheCactivitiesCan
dCusersCassociatedCwithC
accounting.
2.CExplainCtheCbuildingCblocksCofC 6,C7,C8,C9,C10 2 3,C4
accounting:Cethics,Cprinciples
,CandCassumptions.
3. 11,C12,C13,C14. 1,C2,C3,C4,C5 3 5
StateCtheCaccountingC 22
equation,CandCdefineCit
sCcomponents.
4. 15,C16,C18 6,C7,C8,C9 4 6,C7,C8 1A,C 2A,C4A,
AnalyzeCtheCeffectsCofCbusi 5A
nessCtransactionsConCtheCac
countingCequation.
5. 17,C19,C20,C21, 10,C11 5 8,C9,C10,C11, 2A,C 3A,C4A,
DescribeCtheCfourCfinancialC 12,C13,C14,C15, 5A
statementsCandChowCtheyC ar 16,C17,C18
eCprepared.
1-2 ©C2021CJohnCWileyC&CSons,CInc.CAllCrightsCreserved.C Weygandt,CFinancialC&CManagerialCAccountingC4e,CSolutionsCManualCCC (ForCInstructor
CUseCOnly)
,©C2021CJohnCWileyC&CSons,CInc.CAllCrightsCreserved.CNoCpartCofCthisCpublicationCmayCbeCreproduced,CstoredCinCaCretrievalCsystem,CorCtra
nsmitted,CinCanyCformCorCbyCanyCmeans,Celectronic,Cmechanical,Cphotocopying,CrecordingCorCotherwise,CexceptCasCpermittedCbyClaw.CAdvic
eC onChowCto
obtainCpermissionCtoCreuseCthisCmaterialCisCavailableCatChttp://www.wiley.com/go/permissi
ons.
, ANSWERS TO QUESTIONS C C
1. True.CVirtuallyCeveryCorganizationCandCpersonCinCourCsocietyCusesCaccountingCinformation.CBusin
esses,Cinvestors,Ccreditors,CgovernmentCagencies,CandCnot-for-
profitCorganizationsCmustCuseCaccountingCinformationCtoCoperateCeffectively.
LOC 1,C BT:C K,C Difficulty:C Easy,C TOT:C 2C min.,C AACSB:C None,C AICPAC FC:C Reporting,C IMA:C Reporting
2. AccountingCisCtheCprocessCofCidentifying,Crecording,CandC communicatingC theCeconomicCeventsCof
CanCorganizationCtoCinterestedCusersCofCtheCinformation.CTheCfirstCactivityCofCtheCaccountingCproce
ssCisCtoCidentifyCeconomicCeventsCthatCareCrelevantCtoCaCparticularCbusiness.COnceCidentifiedCandC
measured,CtheCeventsCareCrecordedCtoCprovideCaChistoryCofCtheCfinancialCactivitiesCofCtheCorganiza
tion.CRecordingCconsistsCofCkeepingCaCchronologicalCdiaryCofCtheseCmeasuredCeventsCinCanCorderly
CandCsystematicCmanner.CTheCinformationCisCcommunicatedCthroughCtheCpreparationCandCdistribut
ionCofCaccountingC reports,C theC mostC commonC ofC whichCareC calledCfinancialCstatements.CACvitalC
elementCinCtheCcommunicationCprocessCisCtheCaccountant’sCabilityCandCresponsibilityCtoCanalyzeCa
ndCinterpretCtheCreportedCinformation.
LOC 1,C BT:C K,C Difficulty:C Easy,C TOT:C 2C min.,C AACSB:C None,C AICPAC FC:C Reporting,C IMA:C Reporting
3. (a)CInternalCusersCareCthoseCwhoCplan,Corganize,CandCrunCtheCbusinessCandCthereforeCareCofficers
CandC otherCdecisionCmakers.
(b) ToCassistCmanagement,CaccountingCprovidesCinternalCreports.CExamplesCincludeCfinancialCco
mparisonsCofCoperatingCalternatives,CprojectionsCofC incomeCfromCnewCsalesCcampaigns,Cand
CforecastsCofC cashCneedsCforCtheCnextCyear.
LOC 1,C BT:C K,C Difficulty:C Easy,C TOT:C 2C min.,C AACSB:C None,C AICPAC FC:C Reporting,C IMA:C Reporting
4. (a) InvestorsC(owners)CuseCaccountingCinformationCtoCmakeCdecisionsCtoCbuy,Chold,CorCsellCstock.
(b) CreditorsCuseCaccountingCinformationCtoCevaluateCtheCrisksCofCgrantingCcreditCorClendingCmoney.
LOC 1,C BT:C K,C Difficulty:C Easy,C TOT:C 2C min.,C AACSB:C None,C AICPAC FC:C Reporting,C IMA:C Reporting
5. False.CBookkeepingCusuallyCinvolvesConlyCtheCrecordingCofCeconomicCeventsCandCthereforeCisCjust
ConeCpartCofCtheCentireCaccountingCprocess.CAccounting,ConCtheCotherChand,CinvolvesCtheCentireCpr
ocessCofCidentifying,Crecording,CandCcommunicatingCeconomicCevents.
LOC 1,C BT:C C,C Difficulty:C Easy,C TOT:C 2C min.,C AACSB:C None,C AICPAC FC:C Reporting,C IMA:C Reporting
6. HarperCTravelCAgencyCshouldCreportCtheClandCatC$85,000ConCitsCDecemberC31,C 2022C balanceCsh
eet.CThisCisCtrueCnotConlyCatCtheCtimeCtheClandCisCpurchased,CbutCalsoCoverCtheCtimeCtheClandCisChel
d.CInCdeterminingCwhichCmeasurementCprincipleCtoCuseC(historicalCcostCorCfairCvalue)CcompaniesCw
eighCtheCfactualCnatureCofCcostCfiguresCversusCtheCrelevanceCofCfairCvalue.CInCgeneral,CcompaniesC
useChistoricalCcost.COnlyCinCsituationsCwhereCassetsCareCactivelyCtradedCdoC companiesCapplyCtheC
fairCvalueCprinciple.
LOC 2,C BT:C C,C Difficulty:C Easy,C TOT:C 2C min.,C AACSB:C None,C AICPAC FC:C Measurement,C AnalysisC andC InterpretationC IMA:CRe
porting
7. TheCmonetaryCunitCassumptionCrequiresCthatConlyCtransactionCdataCcapableCofCbeingCexpressedCi
nCtermsCofCmoneyCbeCincludedCinCtheCaccountingCrecords.CThisCassumptionCenablesCaccountingCt
oCquantifyC(measure)CeconomicCevents.
LOC2,CBT:CK,CDifficulty:CEasy,CTOT:C2Cmin.,CAACSB:CNone,CAICPACFC:CMeasurement,CAnalysisCandCInterpretationC IMA:CR
eporting
1-4 ©C2021CJohnCWileyC&CSons,CInc.CAllCrightsCreserved.C Weygandt,CFinancialC&CManagerialCAccountingC4e,CSolutionsCManualCCC (ForCInstructor
CUseCOnly)
