Solutions Manual - 3rd edition by Jerry Weygandt, Lorena Mitrione,...

1-1

Solutions Manual

to accompany

Principles of Financial Accounting 3rd edition by

Jerry Weygandt, Lorena Mitrione, Michaela Rankin, Keryn Chalmers, Donald Kieso, Paul Kimmel

Chapter 1 Accounting in Action

• / 4

Chapter 1 Accounting in action

CHAPTER 1

Accounting in Action

ASSIGNMENT CLASSIFICATION TABLE

Learning Objectives

Questions Brief Exercises

Exercises Problems Set A

• Explain what

accounting is.

1, 2, 9

• Recognise the

importance and value of accounting

• Identify the role of

corporate governance in enhancing the quality of financial reporting 3, 4

• Identify the users and

uses of accounting.7, 8

• Explain why ethics is a

fundamental business concept.

26, 27

• Recognise the

importance of sustainability, and sustainability reporting for business

• Explain the meaning of

generally accepted accounting principles and the cost principle.10

• Explain the meaning of

the monetary unit assumption and the economic entity assumption.

11, 12, 13,

14

• State the basic

accounting equation, and explain the meaning of assets, liabilities and owner’s

15, 16, 17 1, 2, 3, 9 1, 2, 3, 7,

13

1A, 2A 2 / 4

Solutions manual to accompany Principles in Financial Accounting 3e

1-3 equity.

• Analyse the effects of

business transactions on the basic accounting equation.

18, 19, 20,

22

4, 5, 6, 7 2, 3, 4, 6,

7, 13

1A, 2A, 4A,

5A, 7A

• Understand what the

four financial statements are and how they are prepared.

21, 23, 24,

25

8, 10 5, 8, 9, 10,

11, 12

2A, 3A, 4A,

5A, 6A, 7A

• Identify the three major

fields of the accounting profession and potential careers

• / 4

Chapter 1 Accounting in action

ASSIGNMENT CHARACTERISTICS TABLE

Problem Number

Description Difficulty Level Time Allotted (min.)

• Analyse transactions and calculate profit. Moderate 40–50

• Analyse transactions and prepare an income statement, a

statement of changes in equity and a statement of financial position.Moderate 50–60

• Prepare an income statement, a statement of changes in

equity and statement of financial position.Moderate 50–60

• Analyse transactions and prepare financial statements. Moderate 40–50

• Determine financial statement amounts and prepare a

statement of changes in equity.Moderate 40–50

• Calculate profit and prepare a statement of financial

position.Moderate 40–50

• Analyse transactions and prepare financial statements. Moderate 40–50

• / 4