Solution Manual for Fundamental Accounting Principles 24th Edition by Wild
Wild and Shaw, FAP 24e Solutions Manual: Chapter 1
9. Accounting is described as a service activity because it serves decision-makers by
providing information to help them make better business decisions.
10. Some accounting-related professions include consultant, financial analyst,
underwriter, financial planner, appraiser, FBI investigator, market researcher, and
11. Ethics rules require that auditors avoid auditing clients in which they have a direct
investment, or if the auditor’s fee is dependent on the figures in the client’s reports.
This will help prevent others from doubting the quality of the auditor’s report.
12. In addition to preparing tax returns, tax accountants help companies and individuals
plan future transactions to minimize the amount of tax to be paid. They are also
actively involved in estate planning and in helping set up organizations. Some tax
accountants work for regulatory agencies such as the IRS or the various state
departments of revenue. These tax accountants help to enforce tax laws.
13. The objectivity concept means that financial statement information is supported by
independent, unbiased evidence other than someone’s opinion or imagination.
14. This treatment is justified by both the cost principle and the going-concern
15. The revenue recognition principle provides guidance for managers and auditors so
they know when to recognize revenue. If revenue is recognized too early, the
business looks more profitable than it is. On the other hand, if revenue is
recognized too late the business looks less profitable than it is. This principle
demands that revenue be recognized when it is both earned (when service or
product is provided) and can be measured reliably. The amount of revenue should
equal the value of the assets received or expected to be received from the
business’s operating activities covering a specific time period.
16. Business organizations can be organized as a sole proprietorship, partnership,
corporation, or LLC. These forms have implications for legal entity and liability,
business life, taxation, and number of owners as follows.
Proprietorship Partnership Corporation LLC
Business entity yes yes yes yes
Legal entity no no yes yes
Limited liability no no yes yes
Unlimited life no no yes yes
Business Taxed no no yes no
One owner allowed yes no yes yes
17. (a) Assets are resources owned or controlled by a company that are expected to
yield future benefits. (b) Liabilities are creditors’ claims on assets that reflect
obligations to provide assets, products, or services to others. (c) Equity is the
owner’s claim on assets and is equal to assets minus liabilities. (d) Net assets refer
18. Equity is increased by investments from the owner and by net income (which is the
excess of revenues over expenses). It is decreased by withdrawals by the owner
and by a net loss (which is the excess of expenses over revenues
Solution Manual for Financial and Managerial Accounting 8th Edition By Wild
Accounting in Business
Quick Study 1-1 (10 minutes)
- The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans.
- Technology reduces the time, effort, and cost of recordkeeping. There is still a demand for people who can design accounting systems, supervise their operation, analyze complex transactions, and interpret reports. Demand also exists for people who can effectively use computers to prepare and analyze accounting reports. Technology will never substitute for qualified people with abilities to prepare, use, analyze, and interpret accounting information.
- External users and their uses of accounting information include: (a) lenders, to measure the risk and return of loans; (b) shareholders, to assess whether to buy, sell, or hold their shares; (c) directors, to oversee the organization; (d) employees and labor unions, to judge the fairness of wages and assess future employment opportunities; and (e) regulators, to determine whether the organization is complying with regulations. Other users are voters, legislators, governmentofficials, contributors to nonprofits, suppliers, and customers.
- Business owners and managers use accounting information to help answer questions such as: What resources does an organization own? What debts are owed? How much income is earned? Are expenses reasonable for the level of sales? Are customers’ accounts being promptly collected?
- Service businesses include: Standard and Poor’s, Dun & Bradstreet, Merrill Lynch, Southwest Airlines, CitiCorp, Humana, Charles Schwab, and Prudential. Businesses offering products include Nike, Reebok, Gap, Apple, Ford Motor Co., Philip Morris, Coca-Cola, Best Buy, and WalMart.
- The internal role of accounting is to serve the organization’s internal operating functions. It does this by providing useful information for internal users in completing their tasks more effectively and efficiently. By providing this information, accounting helps the organization reach its overall goals.
- Accounting professionals offer many services including auditing, management advice, tax planning, business valuation, and money management.
- Marketing managers are likely interested in information such as sales volume, advertising costs, promotion costs, salaries of sales personnel, and sales commissions.
- Accounting is described as a service activity because it serves decision makers by providing information to help them make better business decisions.
- Some accounting-related professions include consultant, financial analyst, underwriter, financial planner, appraiser, FBI investigator, market researcher, and system designer.
Quick Study 1-2 (10 minutes)
||h Recordkeeping (bookkeeping)
||E External user
||E External user
||E External user
||E External user
||E External user
||I Internal user
||E External user
||E External user
||I Internal user
||E External user
||E External user
||E External user
Solution Manual for College Accounting 15th Edition by Price
Chapter 16 • Notes Payable and Notes Receivable
- Determine whether an instrument meets all the requirements of negotiability.
- Calculate the interest on a note.
- Determine the maturity date of a note.
- Record routine notes payable transactions.
- Record discounted notes payable transactions.
- Record routine notes receivable transactions.
- Compute the proceeds from a discounted note receivable, and record transactions related to discounting of notes receivable.
- Understand how to use bank drafts and trade acceptances and how to record transactions related to those instruments.
- Define the accounting terms new to the chapter.
CHAPTER OVERVIEW/ LEARNING OBJECTIVES
Learning Link: Chapter 15 discussed accounts receivable and the accounting adjustments needed for bad debts. In Chapter 16, students will learn how to account for notes receivable and notes payable, emphasizing the treatment of interest.
- Accounting for Notes Payable
- Accounting for Notes Receivable
- This chapter describes how to determine whether an instrument meets all the requirements of negotiability. A negotiable instrument is a financial document that contains an order or promise to pay and meets all the requirements of the Uniform Commercial Code to be transferable to another party.
- The chapter explains how to calculate interest on a note using the formula: Interest = Principal x Interest Rate x Time.
- The chapter explains that the maturity date of a note is determined at the time the note is issued, excluding the issue date itself.
- The chapter explains the routing journal entries required regarding the issuance of a note payable to purchase an asset. The chapter also explains the journal entry required to record interest and pay off the note at maturity.
- The chapter describes the journal entries required when borrowing money from a bank using a note payable which has been discounted by the bank. The borrower discounting a note payable receives the difference between the discount (interest paid up front) and the principal.
- The second part of the chapter discusses journal entries required in notes receivable It explains how to record a note received for a sale of goods, how to record interest income on the note and how to deal with a defaulted note.
- The chapter explains the discounting of notes receivable. A firm with an immediate need for cash can discount a note receivable. Notes Receivable-Discounted represents a contingent liability. If the note’s maker defaults on the note, the business must pay the bank.
At the beginning of the chapter, there are a few short paragraphs about Bank of America . . . Let’s read these together. . .
Ask students -“If a small business needs to borrow money, what considerations does it need to think about before it borrows the money?”
Answer: One of the most important tasks in starting a business is pulling together enough money to launch and grow. A lack of adequate funding can lead to business failure as expenses outpace profits. Funds to start a business can come from several resources, including banks and investors who will lend money on a variety of terms. Before obtaining a business loan several things should be considered:
- The chapter explains how to use bank drafts and trade acceptances and how to record transactions related to those instruments. Bank drafts, commercial drafts, and trade acceptances are negotiable instruments used in business.
If so, then this will actually mean that the business is paying a higher interest rate. Keep in mind that businesses may deduct the interest paid on loans from their federal income tax return and this is advantageous for start-ups that need to reinvest all profits back into the business. And lastly, a solid business credit profile is advantageous to start-ups because it builds credibility and the business's ability to attract new creditors in the future. Borrowing money establishes business credit because the lender reports timely payments to credit bureaus that maintain a credit profile of the new business
- Can you afford the monthly payment?
- If an emergency occurred, and you had less money per month than you thought, would you still be able to pay your loan every month?
- How long will your loan last?
- Will the business be making payments for 3 months or 10 years, etc.?
- The interest being charged on the loan is an important factor as well. Business owners should try to keep the interest rate as low as possible. Will the loan be discounted by the issuer?
Test Bank for Introductory Financial Accounting for Business 1st Edition By Edmonds
Introductory Financial Accounting for Business, 1e (Edmonds)
Chapter 1 An Introduction to Accounting
1) Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States?
2) The Heritage Company is a manufacturer of office furniture. Which term best describes Heritage's role in society?
- A) Securities and Exchange Commission
- B) U.S. Congress
- C) International Accounting Standards Board
- D) Financial Accounting Standards Board
3) Which resource providers lend financial resources to a business with the expectation of repayment with interest?
- A) Conversion agent
- B) Regulatory agency
- C) Consumer
- D) Resource owner
4) Which type of accounting information is intended to satisfy the needs of external users of accounting information?
- A) Consumers
- B) Creditors
- C) Investors
- D) Owners
5) Which of the following statements is false regarding managerial accounting information?
- A) Cost accounting
- B) Managerial accounting
- C) Tax accounting
- D) Financial accounting
6) Financial accounting standards are known collectively as GAAP. What does that acronym stand for?
- A) It is often used by investors.
- B) It is more detailed than financial accounting information.
- C) It can include nonfinancial information.
- D) It focuses on divisional rather than overall profitability.
7) International accounting standards are formulated by the IASB. What does that acronym stand for?
- A) Generally Accepted Accounting Principles
- B) Generally Applied Accounting Procedures
- C) Governmentally Approved Accounting Practices
- D) Generally Authorized Auditing Principles
8) Which of the following is an example of revenue?
- A) Internationally Accepted Standards Board
- B) International Accounting Standards Board
- C) International Accountability Standards Bureau
- D) International Accounting and Sustainability Board
9) Which of the following is not an element of the financial statements?
- A) Cash received as a result of a bank loan
- B) Cash received from investors from the sale of common stock
- C) Cash received from customers at the time services were provided
- D) Cash received from the sale of land for its original selling price
10) Algonquin Company reported assets of $50,000, liabilities of $22,000 and common stock of $15,000. Based on this information only, what is the amount of the company's retained earnings?
- A) Net income
- B) Revenue
- C) Assets
- D) Cash
11) Stosch Company's balance sheet reported assets of $40,000, liabilities of $15,000 and common stock of $12,000 as of December 31, Year 1. Retained earnings on the December 31, Year 2 balance sheet is $18,000 and Stosch paid a $14,000 dividend during Year 2. What is the amount of net income for Year 2?
- A) $7,000.
- B) $57,000.
- C) $13,000.
- D) $87,000.
- A) $17,000
- B) $19,000
- C) $13,000
- D) $21,000
Solution Manual for Intermediate Accounting 3rd Edition by Wahlen
Solution Manual for Intermediate Accounting As a student, completing homework assignments can be challenging. Sometimes you forget the material that you previously learned in class. Other times, the subject matter is very complex and leaves you feeling confused. On the other hand, maybe you have a very busy schedule and frequently miss the deadline to hand in your homework.nnDo any (or all) of these scenarios sound familiar?nnYou are not alone. We understand life as a student is difficult. We believe homework should be a tool that helps you achieve excellent results in the classroom, so you can graduate with the highest GPA and go on to get the job of your dreams. It is for this very reason that we place at your disposal the Solution Manual for Intermediate Accounting 3rd Edition by Wahlen.nAre you ready to say goodbye to homework-induced frustration?
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Check your reasoning and understanding of each problem as you gonnThe solution manual contain solutions and answers to the exercises, review questions, problems and case studies directly from your textbook. Whenever you dont know how to solve a problem, it can be helpful to look up the answer in the solutions manual, and then work backwards to figure it out.n nIt gets even BETTER:nnThe solutions manual is in digital downloadable format and can be accessed instantly after purchase! All it takes is the click of a button and you will be on your way to understanding your homework and completing it faster than ever before. Buy the solutions manual and become a homework master today! You will soon wonder how you ever survived without it.
Solution Manual for Managerial Accounting 11th CANADIAN Edition by Garrison
and the Business Environment
This chapter serves four main purposes:
- Describe the functions performed by managers.
- Identify the major differences and similarities between financial and managerial accounting.
- Explain the basic concepts of lean production and enterprise risk management.
- Explain the nature and importance of ethics for accountants and the role of corporate social responsibility.
- Explain how intrinsic motivation, extrinsic incentives, and cognitive biases affect employee behaviour.
Company Type of Business Text Reference
Certified Professional Accountants Accounting Introduction
Canadian Pacific Railway In Business
CIBC Bank Ethics/Discussion Case
Assignment Topic Grid
- It explains the nature of managerial accounting in providing internal accounting information to support the work of management—planning, directing and motivating, and controlling.
- It describes the nature of organizations and the role of management accountants in an organization.
- It explains how companies are responding to a changing business environment by improving business process with the following four approaches:
- Lean Production
- Enterprise Risk Management
- It discusses the importance of upholding ethical standards.
||LO1: Functions of managers
||LO2: Financial vs. managerial accounting
|| LO3: Lean production and enterprise risk
|| LO4: Nature and importance of ethics for
||LO5: Intrinsic motivation, extrinsic incentives, and cognitive biases
||Functions Performed by Managers
||Financial and Managerial Accounting
||Enterprise Risk Management
||Planning and Control Activities
||Ethics in Business
||Corporate Social Responsibility
||Intrinsic Motivation and Extrinsic Incentives
||Value Chain Analysis