Fundamental Financial Accounting Concepts 2024 11e
Fundamental Financial Accounting Concepts 2024 11e
Exam (elaborations)
Solutions for Fundamental Financial Accounting Concepts, 2024 Release by Edmonds (All Chapters included)
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Course
Fundamental Financial Accounting Concepts 2024 11e
Institution
Fundamental Financial Accounting Concepts 2024 11e
Complete Solutions Manual for Fundamental Financial Accounting Concepts, 11e, 11th Edition, 2024 Evergreen Release by Thomas P Edmonds, Frances M McNair, Philip Olds; ISBN13: 9781266787492....(Full Chapters are included and organized in reverse order from Chapter 13 to 1)...1. An Introduction to Ac...
Fundamental Financial Accounting
Concepts, 2024 Release by
Thomas P Edmonds
Complete Chapter Solutions Manual
are included (Ch 1 to 13)
** Immediate Download
** Swift Response
** All Chapters included
,Table of Contents are given below
1. An Introduction to Accounting
2. Accounting for Accruals
3. Accounting for Deferrals
4. Accounting for Merchandising Businesses
5. Accounting for Inventories
6. Internal Control and Accounting for Cash
7. Accounting for Receivables
8. Accounting for Long-Term Operational Assets
9. Accounting for Current Liabilities and Payroll
10. Accounting for Long-Term Debt
11. Proprietorships, Partnerships, and Corporations
12. Statement of Cash Flows
13. The Double-Entry Accounting System
,Solutions Manual organized in reverse order, with the last chapter displayed first, to ensure
that all chapters are included in this document. (Complete Chapters included Ch13-1)
ANSWERS TO QUESTIONS - CHAPTER 13
1. Ratios and trends are useful tools for analyzing financial
statements because they give the analyst a basis for
comparing companies of different sizes and characteristics.
Absolute numbers themselves often have little meaning.
However, if they are used to generate percentages and
examine trends, the resulting information can improve
decision-making results.
2. “Liquidity” is the short-term ability to convert assets to cash
or some form useful for executing transactions (particularly
paying off debts). “Solvency” is the long-run ability to pay
debts and continue the operations of the business.
3. Horizontal analysis is a tool for comparing the behavior of
items over several periods by analyzing the percentage of
change. Vertical analysis is the study of items on the
statements in terms of their percentages of other items, usually
sales or total assets.
4. This ratio provides information about how rapidly a company
is selling its inventory.
Inventory turnover is generally calculated as:
Costs of Goods Sold
-----------------------------------
Average Inventory
5. The current ratio presents the number of dollars of current
assets to each dollar of current liabilities. The quick ratio, by
omitting the less liquid current assets of prepaid items and
inventories, measures immediate debt-paying ability. Both the
current and quick ratios are used to measure short-term debt-
paying ability.
13-1
, Financial 12e – Chapter 13 – Solutions Manual
6. Absolute amounts are often insufficient because companies
are of different sizes, thus have different levels of materiality.
One amount may be considered small to one company and
large to another, thus it is almost impossible to analyze the
meaning of that amount without further information.
7. ROI is a measure of income as a percentage of the total capital
employed by the company. ROE analyzes income as a
percentage of capital that is not provided by creditors.
8. a) Debt to equity ratio: Total Liabilities
---------------------------------------------
Total Stockholders’ Equity
b) Debt to assets ratio: Total Liabilities
-----------------------------
Total Assets
9. Because earnings per share is a combination of “net income”
and “average shares outstanding,” problems in either part
affect the outcome. Net income contains many estimates and
different methods of calculating expenses and revenues. The
number of average shares outstanding varies depending on
the number of treasury shares held, stock options outstanding,
and other factors. Assumptions regarding rights of bond
holders and preferred shareholders add to the problem of
analyzing the meaning of EPS figures.
13-2
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