Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Chapter 1, Problem 1.7P
To determine
Financial Statements: financial accounting is the branch of accounting concerned with communicating financial information to outsiders through financial statements.
Financial statements: It consists of four major statements:
- Balance sheet summarizes assets, liabilities and owners’ equity of a company, used to assess financial position of a company.
- An income statement summarizes the revenue and expenses of a company for a period and used to calculate profit or loss.
- Statement of retained earning shows the portion of earnings retained in the business and
- Statement of cash flows shows how the cash company got cash and where it is used during a period.
To prepare: The correct income statement for December 31 2016.
b.
To determine
Financial Statements: financial accounting is the branch of accounting concerned with communicating financial information to outsiders through financial statements.
Financial statements: It consists of four major statements: balance sheet, income statement, statement of retained earnings, and statement of cash flows.
- Balance sheet summarizes assets, liabilities and owners’ equity of a company, used to assess financial position of a company.
- An income statement summarizes the revenue and expenses of a company for a period and used to calculate profit or loss.
- Statement of retained earning shows the portion of earnings retained in the business and
- Statement of cash flows shows how the cash company got cash and where it is used during a period.
To prepare: The correct retained earnings.
c
To determine
Financial Statements: financial accounting is the branch of accounting concerned with communicating financial information to outsiders through financial statements.
Financial statements: It consists of four major statements: balance sheet, income statement, statement of retained earnings, and statement of cash flows.
- Balance sheet summarizes assets, liabilities and owners’ equity of a company, used to assess financial position of a company.
- An income statement summarizes the revenue and expenses of a company for a period and used to calculate profit or loss.
- Statement of retained earning shows the portion of earnings retained in the business and
- Statement of cash flows shows how the cash company got cash and where it is used during a period.
To prepare: The balance sheet for the year ended December 31 2016
d.
To determine
Financial Statements: financial accounting is the branch of accounting concerned with communicating financial information to outsiders through financial statements.
Financial statements: It consists of four major statements: balance sheet, income statement, statement of retained earnings, and statement of cash flows.
- Balance sheet summarizes assets, liabilities and owners’ equity of a company, used to assess financial position of a company.
- An income statement summarizes the revenue and expenses of a company for a period and used to calculate profit or loss.
- Statement of retained earning shows the portion of earnings retained in the business and
- Statement of cash flows shows how the cash company got cash and where it is used during a period.
To draft: A memo to president explaining difference between the income statements provided and corrected statement.
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Ethics in Action
Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure from investors to increase earnings, and the president of the company expects the accounting department to “make this happen.” Margie's boss, who has been a mentor to her, is concerned that if earnings do not increase, he will be terminated.
Shortly after the end of the fiscal year, the company performs a physical count of the inventory. When Margie compares the physical count to the balance in the inventory account, she finds a significant amount of inventory shrinkage. The amount is so large that it will result in a significant drop in earnings this period. Margie's boss asks her not to make the adjusting entry for shrinkage this period. He assures her that they will get “caught up” on shrinkage in the next period, after the pressure is off to reach this period's earnings goal. Margie's boss asks her to do this as a personal favor to him.…
Chapter 1 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 1 - Prob. 1.1KTQCh. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - The Accounting Equation For each of the following...Ch. 1 - The Accounting Equation Ginger Enterprises began...Ch. 1 - The Accounting Equation Using the accounting...Ch. 1 - Changes in Owners Equity The following amounts are...Ch. 1 - The Accounting Equation For each of the following...Ch. 1 - Classification of Financial Statement Items...Ch. 1 - Classification of Financial Statement Items Regal...
Ch. 1 - Net Income (or Loss) and Retained Earnings The...Ch. 1 - Statement of Retained Earnings Ace Corporation has...Ch. 1 - Accounting Principles and Assumptions The...Ch. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15MCECh. 1 - Prob. 1.16MCECh. 1 - Prob. 1.1PCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Green Bay...Ch. 1 - Prob. 1.7PCh. 1 - Statement of Retained Earnings for The Coca-Cola...Ch. 1 - Prob. 1.9PCh. 1 - Prob. 1.10MCPCh. 1 - Prob. 1.1APCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.4APCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Fort Worth...Ch. 1 - Corrected Financial Statements Heidis Bakery Inc....Ch. 1 - Statement of Retained Earnings for Brunswick...Ch. 1 - Prob. 1.9APCh. 1 - Prob. 1.10AMCPCh. 1 - Prob. 1.1DCCh. 1 - Reading and Interpreting Chipotles Financial...Ch. 1 - Comparing Two Companies in the Same Industry:...Ch. 1 - Prob. 1.5DCCh. 1 - Prob. 1.6DCCh. 1 - Prob. 1.7DC
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