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TEST BANK For Accounting Principles, 14th Edition by Jerry J. Weygandt, Paul D. Kimmel, Verified Chapters 1 - 27, Complete Newest Version$19.99
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TEST BANK For Accounting Principles, 14th Edition by Jerry J. Weygandt, Paul D. Kimmel, Verified Chapters 1 - 27, Complete Newest Version TEST BANK For Accounting Principles, 14th Edition by Jerry J. Weygandt, Paul D. Kimmel, Verified Chapters 1 - 27, Complete Newest Version TEST BANK For Accountin...
TESTBANK
Accounting Principles 14th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 27, Complete
,TABLE OF CONTENTS yr yr
1 Accounting in Action
yr yr yr yr
2 The Recording Process
yr yr yr yr
3 Adjusting the Accounts
yr yr yr
4 Completing the Accounting Cycle
yr yr yr yr
5 Accounting for Merchandising Operations
yr yr yr yr
6 Inventories
yr yr
7 Accounting Information Systems
yr yr yr yr
8 Fraud, Internal Control, and Cash
yr yr yr yr yr yr
9 Accounting for Receivables
yr yr yr yr
10 Plant Assets, Natural Resources, and Intangible Assets
yr yr yr yr yr yr yr
11 Current Liabilities and Payroll Accounting
yr yr yr yr yr
12 Accounting for Partnerships
yr yr yr
13 Corporations: Organization and Capital Stock Transaction
yr yr yr yr yr yr
s
14 Corporations: Dividends, Retained Earnings, and Income
yr yr yr yr yr yr yr
,Reporting
15 Long-Term Liabilities
yr yr
16 Investments
yr
17 Statement of Cash Flows
yr yr yr yr
18 Financial Analysis: The Big Picture
yr yr yr yr yr yr
19 Managerial Accounting
yr yr yr
20 Job Order Costing
yr yr yr yr
21 Process Costing
yr yr yr
22 Cost-Volume-Profit
yr yr
23 Incremental Analysis
yr yr yr
24 Budgetary Planning
yr yr
25 Budgetary Control and Responsibility Accounting
yr yr yr yr yr yr
26 Standard Costs and Balanced Scorecard
yr yr yr yr yr yr
27 Planning for Capital Investments
yr yr yr yr yr
, CHAPTER 1 y r
ACCOUNTING IN ACTION yr yr
CHAPTER LEARNING OBJECTIVES yr yr
1. Identify the activities and users associated with accounting. Accounting is an information system t
yr yr yr yr yr yr yr yr yr yr yr yr yr
hat identifies, records, and communicates the economic events of an organization to interested use
yr yr yr yr yr yr yr yr yr yr yr yr yr
rs. The major users and uses of accounting are as follows: (a) Management uses accounting informa
yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr
tion to plan, organize, and run the business. (b) Investors (owners) decide whether to buy, hold, or
yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr
sell their financial interests on the basis of accounting data. (c)Creditors (suppliers and bankers) eval
yr yr yr yr yr yr yr yr yr yr ry yr yr yr yr
uate the risks of granting credit or lending money on the basis of accounting information. Other
yr yr yr yr yr yr yr y r y r yr yr yr yr yr yr yr
groups that use accounting information are taxing authorities, regulatory agencies, customers, and l
yr yr yr yr yr yr yr yr yr yr yr yr
abor unions. yr
2. Explain the building blocks of accounting: ethics, principles, and assumptions. Ethics are the stand
yr yr yr yr yr yr yr yr yr yr yr yr yr
ards of conduct by which actions are judged as right or wrong. Effective financial reporting depends
yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr y
on sound ethical behavior.
r yr yr yr
Generally accepted accounting principles are a common set of standards used by accountants. The
yr yr yr yr yr yr yr yr yr yr yr yr yr yr
primary accounting standard- yr yr
setting body in the United States is the Financial Accounting Standards Board.
yr yr yr yr yr yr yr yr yr yr yr
3. State the accounting equation, and define its components. The basic accounting equation is:
yr yr yr yr yr yr yr yr yr y r yr yr
Assets = Liabilities + Owner's Equity
yr yr yr yr yr
Assets are resources a business owns. Liabilities are creditorship claims on total assets.Owne
y r y r y r y r y r y r y r y r y r y r y r y r ry
r's equity is the ownership claim on total assets.
yr yr yr yr yr yr yr yr
The expanded accounting equation is:
yr yr yr yr
Assets yr Liabilities + Owner's Capital
yr yr yr yr yr yr Owner's Drawings + Revenues yr yr yr yr
Expenses
Investments by owners (assets the owner puts into the business) are recorded in a category called
yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr
owner‘s capital. Owner‘s drawings are the withdrawal of assets by the owner for personal use. Rev
yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr
enues are the gross increase in owner‘s equity from business activities for the purpose of earning in
yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr
come. Expenses are the costs of assets consumed or services used in the process of earning reve
yr yr yr yr yr yr yr yr yr yr yr yr y r yr y r yr
nue. Owner‘s equity is increased by an owner‘s investmentsand by revenues from business op
yr yr yr yr yr yr yr yr ry yr yr yr yr yr
erations. Owner‘s equity is decreased by an owner‘s withdrawals of assets and by expenses.
yr yr yr yr yr yr yr yr yr yr yr yr yr
4. Analyze the effects of business transactions on the accounting equation. Each businesstransaction
yr yr yr yr yr yr yr yr yr yr yr ry yr
must have a dual effect on the accounting equation. For example, if an individual asset increases, th
yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr
ere must be a corresponding (1) decrease in another asset, or (2) increase in a specific liability, or (
yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr
3) increase in owner's equity.
yr yr yr yr
5. Describe the four financial statements and how they are prepared. An income statement presents
yr yr yr yr yr yr yr yr yr yr yr yr yr yr
the revenues and expenses, and resulting net income or net loss for a specific period of time. An
yr yr yr yr yr yr yr yr yr y r yr yr y r yr yr yr yr yr
owner's equity statement summarizes the changes in owner's equity for a specific period of time. A
yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr
balance sheet reports the assets, liabilities, and owner's equity at a specific date. A statement of ca
yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr yr
sh flows summarizes information about the cash inflows (receipts) and outflows (payments) for a sp
yr yr yr yr yr yr yr yr yr yr yr yr yr yr
ecific period of time.
yr yr yr
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