...reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, web distribution or information storage and retrieval systems—without the written permission of the publisher. We wish to extend our gratitude to Ross Meacher for his immaculate attention to detail in the technical editing of this solutions manual. Table of Contents PART I PLANNING FOR THE TRIP Accounting Communication – An Introduction......................... 1 Financial Statements and the Annual Report .......................... 22 CHAPTER 1 CHAPTER 2 PART II GETTING BASIC TRAINING Processing Accounting Information ......................................... 40 Accrual Accounting, Adjusting Entries, and Accounting Cycle ...................................................................................... 74 CHAPTER 3 CHAPTER 4 PART III TOURING THE INCOME STATEMENT CHAPTER 5 CHAPTER 6 PART IV Income Measurement and the Income Statement................... 115 Inventories and Cost of Goods Sold........................................ 130 TOURING THE BALANCE SHEET Liquid Assets and Internal Control........................................... 154 Capital Assets: Property, Plant, and Equipment, Natural Resources, and Intangibles .................................................... 175 Current Liabilites, Contingencies, and the Time Value of...
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...Course Outline Programme: International Masters of Business Administration Cohort: 57 Academic Year/Trimester: 2015/2016 Trimester II Course Code and Course Name: INBA 6370 - FINANCIAL STATEMENT ANALYSIS FOR GLOBAL FIRMS Course Type: Core Level: Year 1 Lecturer: Mr. Andre Taitt Lecturer’s e-mail: andre.taitt@fac.gsb.tt Lecturer’s phone #: 1-868-685-5631 Learning Assurance Officer: Alana Ifill Prerequisite/co-requisite course (s): Introduction to Financial Accounting Workshop Involvement of other institutions for delivery: None 1 1.0 Vision and Mission of the Lok Jack GSB Our purpose is to contribute to the development of the human and institutional capacity required to transform the business landscape and shape our own destiny. Through our comprehensive and integrated programmes and consultancy services, we provide a framework for developing new pathways for achieving sustainable growth and competitiveness The mission of the School is to improve the international competitiveness of people and organisations in the Caribbean through business education, training, consulting and research. 2.0 Quality Statement In today’s organization the non financial manager can no longer avoid financial information. Profit statements, operating budgets, and project analyses are constant part of a manager’s day. The concept of the finance and non financial manager has now become very blurred. The modern manager must have the ability to utilize the appropriate...
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...CHAPTER 5 Balance Sheet and Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Disclosure principles, uses of the balance sheet, financial flexibility. Classification of items in the balance sheet and other financial statements. Questions 1, 2, 3, 4, 5, 6, 7, 10, 18, 22, 23, 25 11, 12, 13, 14, 15, 16, 18, 19 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 1, 2, 3, 8, 9, 10 Brief Exercises Exercises Problems Concepts for Analysis 4, 5 2. 1, 2, 3 3. Preparation of balance 4, 7, 8, 9, sheet; issues of 16, 17, 20, format, terminology, 21, 24 and valuation. Statement of cash flows. 25, 26, 27, 28, 29, 30, 31, 32 12, 13, 14, 15, 16 4, 5, 6, 7, 11, 12, 17 1, 2, 3, 4, 5, 6, 7 3, 4, 5 4. 13, 14, 15, 16, 17, 18 6, 7 6 Copyright © 2010 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 13/e, Solutions Manual (For Instructor Use Only) 5-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. 2. 3. Explain the uses and limitations of a balance sheet. Identify the major classifications of the balance sheet. Prepare a classified balance sheet using the report and account formats. Determine which balance sheet information requires supplemental disclosure. Describe the major disclosure techniques for the balance sheet. Indicate the purpose of the statement of cash flows. Identify the content of the statement of cash flows. Prepare a basic statement of cash flows. Understand the usefulness of the statement...
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...BRIEF EXERCISES Table of Contents Chapter 3 7 BRIEF EXERCISE 3-1 7 BRIEF EXERCISE 3-2 7 BRIEF EXERCISE 3-3 8 BRIEF EXERCISE 3-4 8 BRIEF EXERCISE 3-5 9 BRIEF EXERCISE 3-6 9 BRIEF EXERCISE 3-7 9 BRIEF EXERCISE 3-8 10 BRIEF EXERCISE 3-9 10 BRIEF EXERCISE 3-10 10 BRIEF EXERCISE 3-11 11 BRIEF EXERCISE 3-12 11 BRIEF EXERCISE 3-13 12 Chapter 4 13 BRIEF EXERCISE 4-1 13 BRIEF EXERCISE 4-2 14 BRIEF EXERCISE 4-3 15 BRIEF EXERCISE 4-4 16 BRIEF EXERCISE 4-5 16 BRIEF EXERCISE 4-6 17 BRIEF EXERCISE 4-7 17 BRIEF EXERCISE 4-8 17 BRIEF EXERCISE 4-9 17 BRIEF EXERCISE 4-10 18 BRIEF EXERCISE 4-11 18 Chapter 5 20 BRIEF EXERCISE 5-1 20 BRIEF EXERCISE 5-2 20 BRIEF EXERCISE 5-3 20 BRIEF EXERCISE 5-4 21 BRIEF EXERCISE 5-5 21 BRIEF EXERCISE 5-6 21 BRIEF EXERCISE 5-7 22 BRIEF EXERCISE 5-8 22 BRIEF EXERCISE 5-9 22 BRIEF EXERCISE 5-10 23 BRIEF EXERCISE 5-11 23 BRIEF EXERCISE 5-12 23 BRIEF EXERCISE 5-13 24 BRIEF EXERCISE 5-14 25 BRIEF EXERCISE 5-15 25 BRIEF EXERCISE 5-16 25 Chapter 6 26 BRIEF EXERCISE 6-1 26 BRIEF EXERCISE 6-2 27 BRIEF EXERCISE 6-3 28 BRIEF EXERCISE 6-4 28 BRIEF EXERCISE 6-5 29 BRIEF EXERCISE 6-6 30 BRIEF EXERCISE 6-7 30 BRIEF EXERCISE 6-8 31 BRIEF EXERCISE 6-9 31 BRIEF EXERCISE 6-10 32 BRIEF EXERCISE 6-12 33 BRIEF EXERCISE 6-13 34 BRIEF EXERCISE 6-14 34 BRIEF EXERCISE 6-15 35 BRIEF EXERCISE 6-16 35 BRIEF EXERCISE 6-17 36 Chapter 7 37 BRIEF EXERCISE 7-1 37 BRIEF EXERCISE 7-2 37 BRIEF EXERCISE 7-3 37 BRIEF EXERCISE 7-4 38 ...
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...BRIEF EXERCISES Table of Contents Chapter 3 7 BRIEF EXERCISE 3-1 7 BRIEF EXERCISE 3-2 7 BRIEF EXERCISE 3-3 8 BRIEF EXERCISE 3-4 8 BRIEF EXERCISE 3-5 9 BRIEF EXERCISE 3-6 9 BRIEF EXERCISE 3-7 9 BRIEF EXERCISE 3-8 10 BRIEF EXERCISE 3-9 10 BRIEF EXERCISE 3-10 10 BRIEF EXERCISE 3-11 11 BRIEF EXERCISE 3-12 11 BRIEF EXERCISE 3-13 12 Chapter 4 13 BRIEF EXERCISE 4-1 13 BRIEF EXERCISE 4-2 14 BRIEF EXERCISE 4-3 15 BRIEF EXERCISE 4-4 16 BRIEF EXERCISE 4-5 16 BRIEF EXERCISE 4-6 17 BRIEF EXERCISE 4-7 17 BRIEF EXERCISE 4-8 17 BRIEF EXERCISE 4-9 17 BRIEF EXERCISE 4-10 18 BRIEF EXERCISE 4-11 18 Chapter 5 20 BRIEF EXERCISE 5-1 20 BRIEF EXERCISE 5-2 20 BRIEF EXERCISE 5-3 20 BRIEF EXERCISE 5-4 21 BRIEF EXERCISE 5-5 21 BRIEF EXERCISE 5-6 21 BRIEF EXERCISE 5-7 22 BRIEF EXERCISE 5-8 22 BRIEF EXERCISE 5-9 22 BRIEF EXERCISE 5-10 23 BRIEF EXERCISE 5-11 23 BRIEF EXERCISE 5-12 23 BRIEF EXERCISE 5-13 24 BRIEF EXERCISE 5-14 25 BRIEF EXERCISE 5-15 25 BRIEF EXERCISE 5-16 25 Chapter 6 26 BRIEF EXERCISE 6-1 26 BRIEF EXERCISE 6-2 27 BRIEF EXERCISE 6-3 28 BRIEF EXERCISE 6-4 28 BRIEF EXERCISE 6-5 29 BRIEF EXERCISE 6-6 30 BRIEF EXERCISE 6-7 30 BRIEF EXERCISE 6-8 31 BRIEF EXERCISE 6-9 31 BRIEF EXERCISE 6-10 32 BRIEF EXERCISE 6-12 33 BRIEF EXERCISE 6-13 34 BRIEF EXERCISE 6-14 34 BRIEF EXERCISE 6-15 35 BRIEF EXERCISE 6-16 35 BRIEF EXERCISE 6-17 36 Chapter 7 37 BRIEF EXERCISE 7-1 37 BRIEF EXERCISE 7-2 37 BRIEF EXERCISE 7-3 37 BRIEF EXERCISE 7-4 38 ...
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...ROBERT LIBBY Cornell University PATRICIA A. LIBBY Ithaca college DANIEL G. SHORT Texas Christian University Boston Burr Ridge, IL Dubuque, IA Madison, WI New York San Francisco St. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto Copyright © 2009 McGraw Hill Australia Pty Limited Additional owners of copyright are acknowledged in page credits. Every effort has been made to trace and acknowledge copyrighted material. The authors and publishers tender their apologies should any infringement have occurred. Reproduction and communication for educational purposes The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of the pages of this work, whichever is the greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the institution (or the body that administers it) has sent a Statutory Educational notice to Copyright Agency Limited (CAL) and been granted a licence. For details of statutory educational and other copyright licences contact: Copyright Agency Limited, Level 15, 233 Castlereagh Street, Sydney NSW 2000. Telephone: (02) 9394 7600. Website: www.copyright.com.au Reproduction and communication for other purposes Apart from any fair dealing for the purposes of study, research, criticism or review, as permitted under the Act, no part of this publication may be reproduced, distributed...
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...Chapter 2 Matching a. Accumulated depreciation p. Earnings per share of common b. Balance sheet stock c. Accrued liabilities q. Paid-in capital d. Current assets r. Common stock e. Current liabilities s. Additional paid-in capital f. Merchandise inventory t. Retained earnings g. Revenues u. Dividends h. Expenses v. Par value i. Gains w. Going concern concept j. Losses x. Matching concept k. Net sales y. Accrual concept l. Cost of goods sold z. Opportunity cost m. Gross profit ...
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...financial reporting by applying the technical standards that define the recognition and measurement of assets, liabilities, and stockholders’ equity. While some emphasis will be placed on the use of accounting data for decision making, the importance of financial reporting to external users will be stressed. In addition to studying current financial reporting and disclosure requirements, we will also discuss current reporting controversies and practices. Course Objectives: Students will be expected to develop and demonstrate: • an understanding of complex financial events and their effect on financial statements, cash flows, and accounting-based contracts; • critical thinking skills (i.e., gathering and integrating data for complex situations); • an understanding of the interrelationships among the income statement, balance sheet, statement of cash flows, and footnotes; Course Materials: Textbook: Intermediate Accounting, 15th Edition by Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, March 2013 Additional course materials will be provided on SmartSite under Resources. Note that electronic copies of the class notes are not a substitute for the material covered in class. They are intended to assist you in note taking during class. 1 Attendance: Although I do not take attendance, I strongly suggest that you attend class, as it is...
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... BASIS FINANCIAL STATEMENTS Chapter Summary Financial statements are the primary means of communicating financial information to users. Chapter 2 covers the income statement, balance sheet, and statement of cash flows. Chapter 1 set forth the objectives of the financial reporting process, and offered the observation that these objectives are met in large part by a set of financial statements. In this chapter, we take up the task of introducing the balance sheet, income statement, and the statement of cash flows. The presentation is organized around the accounting equation. The equation serves as the basis for elementary transaction analysis. A continuing illustration examines the impact of a number of simple transactions upon the balance sheet of a simple service business. Revenue and expense transactions have been included so that we might introduce the income statement and statement of cash flows at an elementary level. This in turn has provided the opportunity to discuss and illustrate statement articulation. Before closing, the chapter emphasizes the importance of adequate disclosure regarding both financial and nonfinancial information, thereby reinforcing the Chapter 1 theme that the financial reporting process is broader than the financial statements. The chapter also covers accounting principles dealing with asset valuation, as...
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...Chapter 01 - Financial Statements and Business Decisions Chapter 01 Financial Statements and Business Decisions ANSWERS TO QUESTIONS 1. Accounting is a system that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers. 2. Financial accounting involves preparation of the four basic financial statements and related disclosures for external decision makers. Managerial accounting involves the preparation of detailed plans, budgets, forecasts, and performance reports for internal decision makers. 3. Financial reports are used by both internal and external groups and individuals. The internal groups are comprised of the various managers of the entity. The external groups include the owners, investors, creditors, governmental agencies, other interested parties, and the public at large. 4. Investors purchase all or part of a business and hope to gain by receiving part of what the company earns and/or selling the company in the future at a higher price than they paid. Creditors lend money to a company for a specific length of time and hope to gain by charging interest on the loan. 5. In a society each organization can be defined as a separate accounting entity. An accounting entity is the organization for which financial data are to be collected. Typical accounting entities are a business, a church, a governmental unit, a university and other nonprofit organizations such as a hospital and...
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... Review of Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers by Karen Berman and Joe Knight, with John Case. Abstract Berman, Karen and Knight, Joe, with John Case. Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers, (Boston MA: Harvard Business Press, 2008). 285 pp. ISBN 978-1-4221-1915-0. From “The art of finance (and why it matters)” (Part One) through “Creating a financially intelligent company” (Part Eight), Financial Intelligence for Entrepreneurs is an engaging explanation and appreciation of financial statements and financial ratios. Short, easily digested chapters; just-in-time boxes to introduce terminology; easy, direct, in-text calculations from bare-bones, hypothetical financial statements to illustrate concepts; a 44-page appendix of crafted exercises on the income statement, balance sheet, cash-flow statement, and financial ratios from two public companies for deeper understanding; a detailed 19-page index for quick, after-you’ve-read-it navigation – all make for an efficient learning opportunity for readers who want a...
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...Problems and Exercises Table of Contents Chapter 1 5 CA 1-4 5 CA 1-6 5 CA 1-8 6 CA 1-10 7 CA 1-12 8 CA 1-17 9 Chapter 2 10 CE2-2 10 CE2-3 10 EXERCISE 2-2 11 EXERCISE 2-3 12 EXERCISE 2-4 13 CA 2-4 13 Chapter 3 15 EXERCISE 3-6 15 EXERCISE 3-10 16 EXERCISE 3-13 19 EXERCISE 3-15 19 EXERCISE 3-20 20 Chapter 4 22 PROBLEM 4-1 22 PROBLEM 4-3 25 PROBLEM 4-5 27 PROBLEM 4-7 29 Chapter 5 31 PROBLEM 5-2 31 PROBLEM 5-4 34 Chapter 6 37 EXERCISE 6-3 37 EXERCISE 6-6 38 Chapter 7 39 PROBLEM 7-2 39 PROBLEM 7-4 41 PROBLEM 7-9 43 PROBLEM 7-11 46 EXERCISE 7-25 48 EXERCISE 7-26 50 Chapter 8 52 EXERCISE 8-23 52 EXERCISE 8-25 53 PROBLEM 8-5 55 PROBLEM 8-11 59 Chapter 9 62 PROBLEM 9-1 62 EXERCISE 9-7 64 EXERCISE 9-9 66 PROBLEM 9-4 67 PROBLEM 9-6 68 Chapter 17 70 EXERCISE 17-6 70 Chapter 18 71 PROBLEM 18-1 71 PROBLEM 18-4 74 PROBLEM 18-6 76 PROBLEM 18-7 79 PROBLEM 18-8 81 EXERCISE 18-20 82 EXERCISE 18-21 82 Chapter 22 84 EXERCISE 22-2 84 EXERCISE 22-8 84 EXERCISE 22-11 84 Chapter 23 86 EXERCISE 23-11 86 EXERCISE 23-13 88 EXERCISE 23-15 90 Chapter 1 CA 1-4 It is not appropriate to abandon mandatory accounting rules and allow each company to voluntarily disclose the type of information it considered important. Without a coherent body of accounting theory and standards, each accountant or enterprise would have to develop its own theory structure and set of practices, and readers of financial statements would have...
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...Accounting in Business Text © The McGraw−Hill Companies, 2004 “I love chocolate, and so I’m having fun making money”—Elise Macmillan (Evan Macmillan on right) 1 Accounting in Business A Look at This Chapter Accounting plays a crucial role in the information age. In this chapter, we discuss the importance of accounting to different types of organizations and describe its many users and uses. We explain that ethics are crucial to accounting. We also describe business transactions and how they are reflected in financial statements. A Look Ahead Chapter 2 further describes and analyzes business transactions. We explain the analysis and recording of transactions, the ledger and trial balance, and the double-entry system. More generally, Chapters 2 through 4 focus on accounting and analysis, and they illustrate (via the accounting cycle) how financial statements reflect business activities. Larson−Wild−Chiappetta: Fundamental Accounting Principles, Seventeenth Edition 1. Accounting in Business Text © The McGraw−Hill Companies, 2004 Learning Objectives CAP Conceptual Analytical Learning Objectives are organized by conceptual, analytical, and procedural. Procedural prepare basic financial P1 Identify andand explain how they statements interrelate. (p. 17) C1 Explain the purpose and importance of accounting in the information age. (p. 4) A1 Define and interpret the accounting equation and each of its components. (p. 12) C2 Identify...
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...Community College of City University CM20269 Financial Management – Semester B 2012/13 |Name |Office (AC 2) |Office Phone No. |E-mail | |Mr. Toby Butt |Room: 6217 |3442 4969 |mkbutt@cityu.edu.hk | |Mr. Joe Pong |Room: 5429 |3442 6943 |hkpong@cityu.edu.hk | |Mr. Kennix Chiu |Room: 5416 |3442 7585 |swchiu@cityu.edu.hk | |Ms. Maria Wong |Room: 5423 |3442 9762 |laikwong@cityu.edu.hk | Course Aims: Provide students with some fundamental concepts of modern financial management theory relevant to making operating and investment decisions. The course also introduces some of the core financial management and decision making techniques used in the business world. Course Intended Learning Outcomes (CILOs) Upon successful completion of this course, students should be able to: 1. Describe the financial environment, agency costs, the goals of the participants, and the basic structure of Hong Kong financial and banking systems 2. Explain working capital policies and apply working capital management tools 3. Apply the concepts of risk-return trade-off and time value of money in financial management decisions, and in...
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...Community College of City University BUS20269 Financial Management – Semester A 2013/14 |Name |Office (AC 2) |Office Phone No. |E-mail | |Mr. Toby Butt |Room: 6217 |3442 4969 |mkbutt@cityu.edu.hk | |Mr. Joe Pong |Room: 5429 |3442 6943 |hkpong@cityu.edu.hk | |Mr. Kennix Chiu |Room: 5416 |3442 7585 |swchiu@cityu.edu.hk | |Mr. Peter Yip |Room: 5406 |3442 7903 |peteryip@cityu.edu.hk | Course Aims: Provide students with some fundamental concepts of modern financial management theory relevant to making operating and investment decisions. The course also introduces some of the core financial management and decision making techniques used in the business world. Course Intended Learning Outcomes (CILOs) Upon successful completion of this course, students should be able to: 1. Describe the financial environment, agency costs, the goals of the participants, and the basic structure of Hong Kong financial and banking systems 2. Explain working capital policies and apply working capital management tools 3. Apply the concepts of risk-return trade-off and time value of money in financial management decisions, and...
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