OVERVIEW OF EXERCISES, PROBLEMS, AND CASES

1-1 © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

CHAPTER 1

Accounting as a Form of Communication

OVERVIEW OF EXERCISES, PROBLEMS, AND CASES

Estimated Time in Learning Outcomes Exercises Minutes Level Module 1 1.Explain what business is a bout.

2.Distinguish among the forms of organi zation.

3.Describe the various types of business activities. 1 5 Mod Module 2 4.Define accounting and identify the primary users of accountin g 2 5 Easy information and their need s.15* 10 Mod 5.Explain the purpose of each of the financial statemen ts3 15 Mod and the relationships among them and prepare a set of4 10 Mod simple statements.5 10 Mod

• 15 Easy
• 10 Easy
• 20 Diff
• 15 Mod

10 10 Mod 11 10 Mod 14 15 Mod 15* 10 Mod 16* 10 Mod Module 3 6.Identify and explain the primary assumptions made in 12 10 Mod preparing financial statemen ts.16* 10 Mod 7.Identify the various groups involved in setting accounting standards 13 10 Mod and the role of auditors in determining whether the standards ar e followed.

8.Explain the critical role that ethics plays in providing useful financial information.*Exercise, problem, or case covers two or more learning outcome s

Level = Difficulty levels: Easy; Moderate (Mod); Difficu

lt (Diff) Financial Accounting The Impact on Decision M akers 10e Gary Porter Curtis Norton (Solut ions Manual All Chapters, 100% Original Verified, A+ Grade) All Chapters S olutions Manual Supplement files download link at the end of this file. 1 / 4

1-2 FINANCIAL ACCOUNTING SOLUTIONS MANUAL

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Problems Estimated and Time in Learning Outcomes Alternates Minutes Level Module 1 1.Explain what business is a bout.

2.Distinguish among the forms of organi zation.

3.Describe the various types of business activities.Module 2 4.Define accounting and identify the primary users of accounting 1 30 Mod information and their need s.2 20 Mod

• 20 Mod

5.Explain the purpose of each of the financial statemen ts3 30 Easy and the relationships among them and prepare a set of4 30 Easy simple statements.5 60 Mod

• 45 Mod
• 60 Diff
• 25 Mod

10* 45 Diff Module 3 6.Identify and explain the primary assumptions made in 10* 45 Diff preparing financial statemen ts.

7.Identify the various groups involved in setting accounting standards and the role of auditors in determining whether the standards ar e followed.

8.Explain the critical role that ethics plays in providing useful financial information.*Exercise, problem, or case covers two or more learning outcome s

Level = Difficulty levels: Easy; Moderate (Mod); Difficu

lt (Diff) 2 / 4

CHAPTER 1 • ACCOUNTING AS A FORM OF COMMUNICATION 1-3

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Estimated Time in Learning Outcomes Cases Minutes Level

Module 1

• Explain what business is about.

• Distinguish among the forms of organization.

• Describe the various types of business activities.

Module 2

• Define accounting and identify the primary users of accounting 1* 25 Mod

information and their needs. 4 30 Mod 6* 75 Diff

• Explain the purpose of each of the financial statements 1* 25 Mod

and the relationships among them and prepare a set of 2 20 Mod simple statements. 3 30 Mod

• 60 Diff

6* 75 Diff

Module 3

• Identify and explain the primary assumptions made in

preparing financial statements.

• Identify the various groups involved in setting accounting standards

and the role of auditors in determining whether the standards are followed.

• Explain the critical role that ethics plays in providing useful 6* 75 Diff

financial information. 7 20 Mod

*Exercise, problem, or case covers two or more learning outcomes

Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff)

• / 4

1-4 FINANCIAL ACCOUNTING SOLUTIONS MANUAL

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

EXERCISES

LO 3

EXERCISE 1-1 TYPES OF BUSINESS ACTIVITIES

F

• Issued shares of stock to each of the four owners.

I 2. Purchased two limousines.O 3. Paid first month’s rent for use of garage.F 4. Obtained loan from local bank.O 5. Received cash from customer for trip to the airport.O 6. Paid driver first week’s wages.I 7. Purchased 500-gallon fuel tank.

LO 4

EXERCISE 1-2 USERS OF ACCOUNTING INFORMATION AND THEIR NEEDS

• Company management
• Stockholder
• Labor union
• Securities and Exchange Commission
• Banker
• Supplier
• Internal Revenue Service

LO 5

EXERCISE 1-3 THE ACCOUNTING EQUATION

A = L + SE

Case 1: $125,000 = $75,000 + SE

SE = $50,000

A = L + SE

Case 2: $400,000 = L + $100,000

L = $300,000

A = L + SE

Case 3: A = $320,000 + $95,000

A = $415,000

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