100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Test Bank for Survey of Accounting, 7th Edition by Edmonds & Olds, ISBN: 9781264442973, All 16 Chapters Covered, Verified Latest Edition $16.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. Survey Of Accounting, 7th Edition By
  4.  
  5. Survey of Accounting, 7th Edition by

Exam (elaborations)

Test Bank for Survey of Accounting, 7th Edition by Edmonds & Olds, ISBN: 9781264442973, All 16 Chapters Covered, Verified Latest Edition
 5 views  0 purchase
  • Course
  • Survey of Accounting, 7th Edition by
  • Institution
  • Survey Of Accounting, 7th Edition By

Test Bank for Survey of Accounting, 7th Edition by Edmonds & Olds, ISBN: 9781264442973, All 16 Chapters Covered, Verified Latest Edition Test Bank for Survey of Accounting, 7th Edition by Edmonds & Olds, ISBN: 9781264442973, All 16 Chapters Covered, Verified Latest Edition Test bank and solution ma...

[Show more]

Preview 4 out of 111  pages

Document information

  • September 25, 2024
  • 111
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

Written for

  • Survey of Accounting, 7th Edition by
  • Survey of Accounting, 7th Edition by

Seller

avatar-seller
AGRADEPROMASTER

Reviews received

Content preview

,ACCESS Test Bank for Survey of Accounting 7th Edition Edmonds
1 1 1 1 1 1 1 1 1




Survey17e1–1Chapter111–1Solutions1Manual

SOLUTIONS TO QUESTIONS - CHAPTER 1
1 1 1 1 1




1. Stakeholders are the parties that use accounting information.1 1 1 1 1 1 1




Stakeholders with a direct interest include owners, managers, creditors
1 1 1 1 1 1 1 1


, suppliers, and employees. These individuals are directlyaffected by w
1 1 1 1 1 1 1 1 1 1


hat happens to the business.
1 1 1 1




Stakeholders with an indirect interest include financial analysts, brok
1 1 1 1 1 1 1 1


ers, attorneys, government regulators, and news reporters. These ind
1 1 1 1 1 1 1 1


ividuals use information in the financial reports to adviseand influenc
1 1 1 1 1 1 1 1 1 1


e their clients.
1 1




Students may give many different answers under the above categorie
1 1 1 1 1 1 1 1 1


s depending on their level of experience in business.
1 1 1 1 1 1 1 1




All students are direct users of accounting information related totuition
1 1 1 1 1 1 1 1 1 1 1


and fees, financial aid, and account balances.
1 1 1 1 1 1




2. Accounting provides information that is useful in making decisionsb
1 1 1 1 1 1 1 1 1


y all participants in the market for resource goods and services, bot
1 1 1 1 1 1 1 1 1 1 1


h profit-
1


oriented and nonprofit oriented. Because accounting’srole is so imp
1 1 1 1 1 1 1 1 1


ortant, it is often called the language of business.
1 1 1 1 1 1 1 1




3. The primary mechanism used to allocate resources in the U.S. isc
1 1 1 1 1 1 1 1 1 1 1


ompetition for resources in the open market. 1 1 1 1 1 1




4. A market is a group of people or organizations that come togetherf
1 1 1 1 1 1 1 1 1 1 1 1


or the purpose of exchanging items of value.
1 1 1 1 1 1 1




5. The market for business resources involves three distinct participa
1 1 1 1 1 1 1 1


nts: consumers, conversion agents, and resource owners.See Exhib
1 1 1 1 1 1 1 1


it 1-1


1 that illustrates how market trilogy is involved in resource allocat
1 1 1 1 1 1 1 1 1 1


ion.




1-1
mynursytest.store

,ACCESS Test Bank for Survey of Accounting 7th Edition Edmonds
1 1 1 1 1 1 1 1 1




Survey17e1–1Chapter111–1Solutions1Manual

6. Financial Resource: money 1 1




Physical Resource: natural resources (i.e. land, forests, mine ore, petrol
1 1 1 1 1 1 1 1 1


eum, etc.), buildings, machinery and equipment, furniture andfixtures
1 1 1 1 1 1 1 1


Labor Resource: includes both intellectual and physical labor; i.e.emplo
1 1 1 1 1 1 1 1 1


yees

7. Investors expect a distribution of the business’s profits as a returno
1 1 1 1 1 1 1 1 1 1 1


n their financial investment (capital allocation).
1 1 1 1 1




Creditors lend financial resources to businesses and receive interestas
1 1 1 1 1 1 1 1 1


a return or profit on the loan.
1 1 1 1 1 1 1




8. Financial accounting provides information that is useful to externalr
1 1 1 1 1 1 1 1 1


esource providers. 1




Managerial accounting provides information that is useful to1 1 1 1 1 1 1 1


managers in operating an organization (i.e., internal users).
1 1 1 1 1 1 1




9. Not-for-
profit or nonprofit entities provide goods or services to consumers fo
1 1 1 1 1 1 1 1 1 1


r humanitarian or special reasons rather than to earn aprofit for owne
1 1 1 1 1 1 1 1 1 1 1 1


rs. For example, certain not-for-
1 1 1 1


profit entities allocate resources to provide for research of disease
1 1 1 1 1 1 1 1 1


s or social/environmental welfare; others allocate resources to prom
1 1 1 1 1 1 1 1


otethe arts and provide education.
1 1 1 1 1




10. The U.S. rules of accounting information measurement are called
1 1 1 1 1 1 1 1 1


generally accepted accounting principles (GAAP). 1 1 1 1




1-2
mynursytest.store

, ACCESS Test Bank for Survey of Accounting 7th Edition Edmonds
1 1 1 1 1 1 1 1 1




Survey17e1–1Chapter111–1Solutions1Manual

11. Careers in public accounting consist of providing services to the gene
1 1 1 1 1 1 1 1 1 1


ral public from a public accounting firm. These services includeauditi
1 1 1 1 1 1 1 1 1 1


ng, tax, and consulting services. Careers in private accountingusually
1 1 1 1 1 1 1 1 1


1consist of working for a specific company (which would be aclient of
1 1 1 1 1 1 1 1 1 1 1 1 1


the public accounting firm) providing a wide variety of services to the
1 1 1 1 1 1 1 1 1 1 1


1company including recording transactions, preparingfinancial state
1 1 1 1 1 1


ments, internal auditing, and others.
1 1 1 1




12. The three elements of the accounting equation are:
1 1 1 1 1 1 1


1. Assets
2. Liabilities
3. Stockholders’ Equity 1




Accounts are specific items or subclassifications of the elements.
1 1 1 1 1 1 1 1 1


Examples of accounts include cash, land, and accounts payable.
1 1 1 1 1 1 1 1




13. Assets, the economic resources of a business, are used to producee
1 1 1 1 1 1 1 1 1 1 1


arnings.

14. The assets of a business belong to that business entity and there
1 1 1 1 1 1 1 1 1 1 1 1


may be claims on the assets. Claims on the assets belong to resou
1 1 1 1 1 1 1 1 1 1 1 1


rce providers.
1




15. Creditors are individuals and/or institutions that have provided goods
1 1 1 1 1 1 1 1


or services to the business which are not yet paid for, or loaned mone
1 1 1 1 1 1 1 1 1 1 1 1 1 1


y to the business. These parties have first claim to the assets of the bu
1 1 1 1 1 1 1 1 1 1 1 1 1 1


siness, and the owners have a residual interest in theassets.
1 1 1 1 1 1 1 1 1 1




16. The term “liabilities” is used to describe creditors' claims on the
1 1 1 1 1 1 1 1 1 1


assets of a business. 1 1 1




1-3
mynursytest.store

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller AGRADEPROMASTER. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $16.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

77254 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$16.99
  • (0)
  Add to cart