FULL SOLUTION MANUAL FOR x x ! ! x x ! ! x x ! !
Financial And Managerial Accounting 4th Edition by xx!! xx!! xx!! xx!! xx!! xx!!
xx!! Jerry JWeygandt, Paul D Kimmel, Jill E Mitchel
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CHAPTER 1 xx!!
Accounting in Action xx!! xx!!
ASSIGNMENT CLASSIFICATION TABLE xx!! xx!!
Brief A
Learning Objectives xx!! Questions Exercises
xx!! Do It!
xx!! Exercises Problems
1. Identify the activities xx!! xx!! 1, 2, 3, 4, 5
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andusers associated
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with accounting.
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2. Explain the building blocks 6, 7, 8, 9, 10
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of accounting:
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principles,
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assumptions.
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3. State the accounting xx!! xx!! 11, 12, 13, xx!! xx!! 1, 2, 3, 4, 5 3
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equation, and define
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14.
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itscomponents.
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22
4. Analyze the effects of xx!! xx!! xx!! 15, 16, 18 xx!! xx!! 6, 7, 8, 9
xx!! xx!! xx!! 4 6, 7, 8xx!! xx!! 1A, 2A, 4A,
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business transactions on
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theaccounting equation.
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5. Describe the four financial xx!! xx!! xx!! 17, 19, 20, xx!! xx!! 10, 11 xx!! 5 8, 9, 10, 11, 2A, 3A, 4A,
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statements and how they
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12, 13, 14, 5A
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areprepared.
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16, 17, 18 xx!! xx!!
obtain permission to reuse this material is available at
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
http://www.wiley.com/go/permissions.
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, © 2021 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval
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system, or transmitted,in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as
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permitted by law. Advice on how to
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1-2 © xx!!2021 xx!!John xx!!Wiley xx!!& xx!!Sons, xx!!Inc. xx!!All xx!!rights xx!!reserved. x x ! ! Weygandt, xx!!Financial xx!!& xx!!Managerial xx!!Accounting xx!!4e, xx!!Solutions xx!!Manual xx!! xx!!
x x ! ! (For xx!! Instructor xx!!Use xx!!Only)
, ANSWERS TO QUESTIONS xx!! xx!!
1. True. Virtually every organization and person in our society uses accounting information.
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Businesses, investors, creditors, government agencies, and not-for-profit organizations must
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use accounting information to operate effectively.
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LO xx! ! 1, xx! ! BT: xx! ! K, xx! ! Difficulty: xx!! Easy, xx! ! TOT: xx! ! 2 xx!! min., xx!! AACSB: xx!! None, xx!! AICPA xx!! FC: xx!! Reporting, xx!! IMA: xx! ! Reporting
2. Accounting is the process of identifying, recording, and communicating
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events of an organization to interested users of the information. The first activity of the
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accounting process is to identify economic events that are relevant to a particular
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business. Once identified and measured, the events are recorded to provide a history of
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the financial activities of the organization. Recording consists of keeping a chronological
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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
xx!! reports, the xx!! xx!! xx!! xx!! xx!! xx!! xx!! x x ! ! x x ! !
most
x x ! !common of which are called financial statements.A vital element in the
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communication process is the accountant’s ability and responsibility to analyze and
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interpret the reported information.
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LO xx! ! 1, xx! ! BT: xx! ! K, xx! ! Difficulty: xx!! Easy, xx!! TOT: xx! ! 2 xx!! min., xx!! AACSB: xx!! None, xx!! AICPA xx!! FC: xx!! Reporting, xx!! IMA: xx! ! Reporting
3. (a) Internal users are those who plan, organize, and run the business and therefore are
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officers and other decision makers.
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(b) To assist management, accounting provides internal reports. Examples include financial
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comparisons of operating alternatives, projections of
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campaigns, and forecasts of cash needs for the next year.
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LO xx! ! 1, xx! ! BT: xx! ! K, xx! ! Difficulty: xx! ! Easy, xx! ! TOT: xx! ! 2 xx!! min., xx ! ! AACSB: xx! ! None, xx!! AICPA xx!! FC: xx! ! Reporting, xx! ! IMA: xx! ! Reporting
4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
stock. xx!!
(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
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LO xx! ! 1, xx! ! BT: xx! ! K, xx!! Difficulty: xx! ! Easy, xx!! TOT: xx! ! 2 xx!! min., xx!! AACSB: xx! ! None, xx!! AICPA xx!! FC: xx!! Reporting, xx! ! IMA: xx! ! Reporting
5. False. Bookkeeping usually involves only the recording of economic events and therefore is
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just one part of the entire accounting process. Accounting, on the other hand, involves
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the entire process of identifying, recording, and communicating economic events.
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LO xx!! 1, xx!! BT: x x! ! C, x x ! ! Difficulty: xx!! Easy, xx! ! TOT: xx!! 2 xx!! min., xx! ! AACSB: x x ! ! None, xx!! AICPA xx!! FC: xx!! Reporting, xx! ! IMA: xx!! Reporting
6. Harper Travel Agency should report the land at $85,000 on its December 31,
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balance sheet. This is true not only at the time the land is purchased, but also over
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the time the land is held. In determining which measurement principle to use (historical
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cost or fair value) companies weigh the factual nature of cost figures versus the
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relevance of fair value. In general, companies use historical cost. Only in situations where
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assets are actively traded do
xx!! companies apply the fair value principle.
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LO x x ! ! 2, BT:
x x ! ! x x ! ! C, Difficulty: Easy,
x x ! ! TOT: 2 min., x x ! ! x x ! ! x x ! ! x x ! ! x x ! ! AACSB: x x ! ! None, x x ! ! AICPA x x ! ! FC: x x ! ! Measurement,
xx!! Analysis x x ! ! and Interpretation IMA: Reporting
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7. The monetary unit assumption requires that only transaction data capable of being
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expressed in terms of money be included in the accounting records. This assumption
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enables accounting to quantify (measure) economic events.
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LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation
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IMA:Reporting
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obtain permission to reuse this material is available at
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
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