{"id":118195,"date":"2023-09-02T10:20:12","date_gmt":"2023-09-02T10:20:12","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=118195"},"modified":"2023-09-02T10:20:13","modified_gmt":"2023-09-02T10:20:13","slug":"solution-manual-for-horngrens-financial-managerial-accounting-the-financial-chapters-7th-edition-by-tracie-miller-nobles-brenda-mattison-chapter-1-15","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2023\/09\/02\/solution-manual-for-horngrens-financial-managerial-accounting-the-financial-chapters-7th-edition-by-tracie-miller-nobles-brenda-mattison-chapter-1-15\/","title":{"rendered":"Solution Manual for Horngren&#8217;s Financial &amp; Managerial Accounting, The Financial Chapters, 7th Edition by Tracie Miller-Nobles, Brenda Mattison Chapter 1-15"},"content":{"rendered":"\n<p>\u00a92021 Pearson Education, Inc. 1-1<br>Solution Manual for<br>Horngren&#8217;s Financial &amp; Managerial Accounting The Financial<br>Chapters, 7th edition Tracie Miller-Nobles, Brenda Mattison<br>Chapter 1-15<br>Chapter 1<br>Accounting and the Business Environment<br>Review Questions<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>What is accounting?<br>Accounting is the information system that measures business activities, processes the information<br>into reports, and communicates the results to decision makers. Accounting is the language of<br>business.<\/li>\n\n\n\n<li>Briefly describe the two major fields of accounting.<br>Financial accounting provides information for external decision makers, such as outside investors,<br>lenders, customers, and the federal government. Managerial accounting focuses on information for<br>internal decision makers, such as the company\u2019s managers and employees.<\/li>\n\n\n\n<li>Describe the various types of individuals who use accounting information and how they use that<br>information to make important decisions.<br>Individuals use accounting information to help them manage their money, evaluate a new job, and<br>better decide whether they can afford to make a new purchase. Business owners use accounting<br>information to set goals, measure progress toward those goals, and make adjustments when needed.<br>Investors use accounting information to help them decide whether or not a company is a good<br>investment and once they have invested, they use a company\u2019s financial statements to analyze how<br>their investment is performing. Creditors use accounting information to decide whether to lend<br>money to a business and to evaluate a company\u2019s ability to make the loan payments. Taxing<br>authorities use accounting information to calculate the amount of income tax that a company has to<br>pay.<\/li>\n\n\n\n<li>What are the various certifications available for accountants? Breifly explain each certification.<br>Certified Public Accountants (CPAs) are licensed professional accountants who serve the general<br>public. They work for public accounting firms, businesses, government, or educational institutions.<br>A Chartered Global Management Accountant (CGMA) is an accountant who has advanced<br>knowledge in finance, operations, strategy, and management. Certified Management Accountants<br>(CMAs) specialize in accounting and financial management knowledge. They work for a single<br>company. Certified Financial Planners (CFPs) work with individuals to help them budget, plan for<br>retirement, save for education, and manage their finances.<\/li>\n<\/ol>\n\n\n\n<p>\u00a9 2021 Pearson Education, Inc. 1-2<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"5\">\n<li>What is the role of the Financial Accounting Standards Board (FASB)?<br>The FASB oversees the creation and governance of accounting standards. They work with<br>governmental regulatory agencies, congressionally created groups, and private groups.<\/li>\n\n\n\n<li>Explain the purpose of Generally Accepted Accounting Principles (GAAP), including the<br>organization currently responsible for the creation and governance fo these standards.<br>The guidelines for accounting information are called GAAP. It is the main U.S. accounting rule<br>book and is currently created and governed by the FASB. Investors and lenders must have<br>information that is relevant and has faithful representation in order to make decisions and GAAP<br>provides the framework for this financial reporting.<\/li>\n\n\n\n<li>Describe the similarities and differences among the four different types of business entities discussed<br>in the chapter.<br>A sole proprietorship has a single owner, terminates upon the owner\u2019s death or choice, the owner has<br>personal liability for the business\u2019s debts, and it is not a separate tax entity. A partnership has two or<br>more owners, terminates at partner\u2019s choice or death, the partners have personal liability, and it is<br>not a separate tax entity. A corporation is a separate legal entity, has one or more owners, has<br>indefinite life, the stockholders are not personally liable for the business\u2019s debts, and it is a separate<br>tax entity. A limited-liability company has one or more members and each is only liable for his or<br>her own actions, has an indefinite life, and is not a separate tax entity.<\/li>\n\n\n\n<li>A business purchases an acre of land for $5,000. The current market value is $5,500, and the land<br>was assessed for property tax purposes at $5,250. What value should the land be recorded at, and<br>which accounting principle supports your answer?<br>The land should be recorded at $5,000. The cost principle states that assets should be recorded at<br>their historical cost.<\/li>\n\n\n\n<li>What does the going concern assumption mean for a business?<br>The going concern assumption assumes that the entity will remain in business for the foreseeable<br>future and long enough to use existing resources for their intended purpose.<\/li>\n\n\n\n<li>Which concept states that accounting information should be complete, neutral, and free from<br>material error?<br>The faithful representation concept states that accounting information should be complete, neutral,<br>and free from material error.<\/li>\n\n\n\n<li>Financial statements in the United States are reported in U.S. dollars. What assumption supports this<br>statement?<br>The monetary unit assumption states that items on the financial statements should be measured in<br>terms of a monetary unit.<\/li>\n\n\n\n<li>Explain the role of the International Accounting Standards Board (IASB) in relation to International<\/li>\n<\/ol>\n\n\n\n<p>\u00a9 2021 Pearson Education, Inc. 1-3<br>Financial Reporting Standards (IFRS).<br>The IASB is the organization that develops and creates IFRS which are a set of global accounting<br>standards that would be used around the world.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"13\">\n<li>What is the accounting equation? Briefly explain each of the three parts.<br>Assets = Liabilities + Equity. Assets are economic resources that are expected to benefit the<br>business in the future. They are things of value that a business owns or has control of. Liabilities<br>are debts that are owed to creditors. They are one source of claims against assets. Equity is the<br>other source of claims against assets. Equity is the stockholders\u2019 claims against assets and is the<br>amount of assets that is left over after the company has paid its liabilities. It represents the net worth<br>of the corporation.<\/li>\n\n\n\n<li>How does retained earnings increase? What are the two ways that retained earnings decreases?<br>Retained earnings increases with revenues. Retained earnings decreases with expenses and<br>dividends.<\/li>\n\n\n\n<li>How is net income calculated? Define revenues and expenses.<br>Revenues \u2013 Expenses = Net Income. Revenues are earnings resulting from delivering goods or<br>services to customers. Expenses are the cost of selling goods or service.<\/li>\n\n\n\n<li>What are the steps used when analyzing a business transaction?<br>What Step 1: Identify the accounts and the account type. Step 2: Decide if each account increases or<br>decreases. Step 3: Determine if the accounting equation is in balance.<\/li>\n\n\n\n<li>List the four financial statements. Briefly describe each statement.<br>Income Statement \u2013 Shows the difference between an entity\u2019s revenues and expenses and reports the<br>net income or net loss for a specific period.<br>Statement of Retained Earnings \u2013 Shows the changes in retained earnings for a specific period<br>including net income (loss) and dividends.<br>Balance Sheet \u2013 Shows the assets, liabilities, and stockholders\u2019 equity of the business as of a specific<br>date.<br>Statement of Cash Flows \u2013 Shows a business\u2019s cash receipts and cash payments for a specific period.<\/li>\n\n\n\n<li>What is the calculation for ROA? Explain what ROA measures.<br>Return on Assets = Net income \/ Average total assets. ROA measures how profitably a company<br>uses its assets.<\/li>\n<\/ol>\n\n\n\n<p>\u00a9 2021 Pearson Education, Inc. 1-4<br>Short Exercises<br>S-F:1-1 Identifying users of accounting information<br>Learning Objective 1<br>For each user of accounting information, identify if the user would use financial accounting or<br>managerial accounting<br>a. investor e. controller<br>b. banker f. stockholder<br>c. IRS g. human resources director<br>d. manager of the business h. creditor<br>SOLUTION<br>a. FA e. MA<br>b. FA f. FA<br>c. FA g. MA<br>d. MA h. FA<br>S-F:1-2 Determining organizations that govern accounting<br>Learning Objective 2<br>Suppose you are starting a business, Wholly Shirts, to imprint logos on T-shirts. In organizing the<br>business and setting up its accounting records, you take your information to a CPA to prepare financial<br>statements for the bank. Name the organization that governs the majority of the guidelines that the CPA<br>will use to prepare financial statements for Wholly Shirts. What are those guidelines called?<br>SOLUTION<br>The Financial Accounting Standards Board governs the majority of guidelines, called Generally<br>Accepted Accounting Principles (GAAP), that the CPA will use to prepare financial statements for<br>Wholly Shirts.<br>S-F:1-3 Identifying types of business organizations<br>Learning Objective 2<br>Chloe Michaels plans on opening Chloe Michaels Floral Designs. She is considering the various types of<br>business organizations and wishes to organize her business with unlimited life and wants owners of the<br>business to not be held personally liable for the business\u2019s debts. Additionally, Chloe wants the business<br>to be a separate taxable entity. Which type of business organization will meet Chloe\u2019s needs best?<br>SOLUTION<br>Chloe\u2019s needs will best be met by organizing a corporation since a corporation has an unlimited life and<br>is a separate tax entity. In addition, the owners (stockholders) have limited liability. Chloe could also<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a92021 Pearson Education, Inc. 1-1Solution Manual forHorngren&#8217;s Financial &amp; Managerial Accounting The FinancialChapters, 7th edition Tracie Miller-Nobles, Brenda MattisonChapter 1-15Chapter 1Accounting and the Business EnvironmentReview Questions \u00a9 2021 Pearson Education, Inc. 1-2 \u00a9 2021 Pearson Education, Inc. 1-3Financial Reporting Standards (IFRS).The IASB is the organization that develops and creates IFRS which are a set of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-118195","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/118195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=118195"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/118195\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=118195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=118195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=118195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}