Accounting: It refers to a financial language for all the business organizations at global level. The process of accounting starts with identification of business transactions quantitative in nature then goes further with recording of the identified transactions, classification of similar recorded transactions then summarization of these classified transactions, after summarization, all data is analyzed to calculate the profit and financial position of the company. This process ends with the communication of analyzed information to its users. To Explain: “Accounting is ingrained in our society and it is vital to our economic system.”

Question

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Answer 1

Question

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Chapter 1, Problem 1Q

To determine

Accounting: It refers to a financial language for all the business organizations at global level. The process of accounting starts with identification of business transactions quantitative in nature then goes further with recording of the identified transactions, classification of similar recorded transactions then summarization of these classified transactions, after summarization, all data is analyzed to calculate the profit and financial position of the company. This process ends with the communication of analyzed information to its users.

To Explain: “Accounting is ingrained in our society and it is vital to our economic system.”

Expert Solution & Answer

Answer to Problem 1Q

The given statement is true.

Explanation of Solution

There are various users (owner, employees, government, creditors and investors) of accounting information and these users are the part of our society.
Accounting information shows the performance of business organizations in financial terms and its survival in the market.
The owner also needs accounting information for decision making to operate the business efficiently.
Therefore, accounting plays a very important role in our economic system.

Conclusion

The given statement “Accounting is ingrained in our society and it is vital to our economic system” is completely true.

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01:50

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Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's expenses, Gross margin, and Net income?

Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?

Answer 2

Question

100%

Chapter 1, Problem 1Q

To determine

Accounting: It refers to a financial language for all the business organizations at global level. The process of accounting starts with identification of business transactions quantitative in nature then goes further with recording of the identified transactions, classification of similar recorded transactions then summarization of these classified transactions, after summarization, all data is analyzed to calculate the profit and financial position of the company. This process ends with the communication of analyzed information to its users.

To Explain: “Accounting is ingrained in our society and it is vital to our economic system.”

Expert Solution & Answer

Answer to Problem 1Q

The given statement is true.

Explanation of Solution

There are various users (owner, employees, government, creditors and investors) of accounting information and these users are the part of our society.
Accounting information shows the performance of business organizations in financial terms and its survival in the market.
The owner also needs accounting information for decision making to operate the business efficiently.
Therefore, accounting plays a very important role in our economic system.

Conclusion

The given statement “Accounting is ingrained in our society and it is vital to our economic system” is completely true.

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01:50

Answer 3

Question

100%

Chapter 1, Problem 1Q

To determine

Accounting: It refers to a financial language for all the business organizations at global level. The process of accounting starts with identification of business transactions quantitative in nature then goes further with recording of the identified transactions, classification of similar recorded transactions then summarization of these classified transactions, after summarization, all data is analyzed to calculate the profit and financial position of the company. This process ends with the communication of analyzed information to its users.

To Explain: “Accounting is ingrained in our society and it is vital to our economic system.”

Expert Solution & Answer

Answer to Problem 1Q

The given statement is true.

Explanation of Solution

There are various users (owner, employees, government, creditors and investors) of accounting information and these users are the part of our society.
Accounting information shows the performance of business organizations in financial terms and its survival in the market.
The owner also needs accounting information for decision making to operate the business efficiently.
Therefore, accounting plays a very important role in our economic system.

Conclusion

The given statement “Accounting is ingrained in our society and it is vital to our economic system” is completely true.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

01:50

Answer 4

Question

100%

Chapter 1, Problem 1Q

To determine

Accounting: It refers to a financial language for all the business organizations at global level. The process of accounting starts with identification of business transactions quantitative in nature then goes further with recording of the identified transactions, classification of similar recorded transactions then summarization of these classified transactions, after summarization, all data is analyzed to calculate the profit and financial position of the company. This process ends with the communication of analyzed information to its users.

To Explain: “Accounting is ingrained in our society and it is vital to our economic system.”

Expert Solution & Answer

Answer to Problem 1Q

The given statement is true.

Explanation of Solution

There are various users (owner, employees, government, creditors and investors) of accounting information and these users are the part of our society.
Accounting information shows the performance of business organizations in financial terms and its survival in the market.
The owner also needs accounting information for decision making to operate the business efficiently.
Therefore, accounting plays a very important role in our economic system.

Conclusion

The given statement “Accounting is ingrained in our society and it is vital to our economic system” is completely true.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

01:50

Answer 5

Question

100%

Answer 6

Question

100%

Answer 7

Chapter 1, Problem 1Q

To determine

Accounting: It refers to a financial language for all the business organizations at global level. The process of accounting starts with identification of business transactions quantitative in nature then goes further with recording of the identified transactions, classification of similar recorded transactions then summarization of these classified transactions, after summarization, all data is analyzed to calculate the profit and financial position of the company. This process ends with the communication of analyzed information to its users.

To Explain: “Accounting is ingrained in our society and it is vital to our economic system.”

Expert Solution & Answer

Answer to Problem 1Q

The given statement is true.

Explanation of Solution

There are various users (owner, employees, government, creditors and investors) of accounting information and these users are the part of our society.
Accounting information shows the performance of business organizations in financial terms and its survival in the market.
The owner also needs accounting information for decision making to operate the business efficiently.
Therefore, accounting plays a very important role in our economic system.

Conclusion

The given statement “Accounting is ingrained in our society and it is vital to our economic system” is completely true.

Answer 8

Chapter 1, Problem 1Q

To determine

Accounting: It refers to a financial language for all the business organizations at global level. The process of accounting starts with identification of business transactions quantitative in nature then goes further with recording of the identified transactions, classification of similar recorded transactions then summarization of these classified transactions, after summarization, all data is analyzed to calculate the profit and financial position of the company. This process ends with the communication of analyzed information to its users.

To Explain: “Accounting is ingrained in our society and it is vital to our economic system.”

Expert Solution & Answer

Answer to Problem 1Q

The given statement is true.

Explanation of Solution

There are various users (owner, employees, government, creditors and investors) of accounting information and these users are the part of our society.
Accounting information shows the performance of business organizations in financial terms and its survival in the market.
The owner also needs accounting information for decision making to operate the business efficiently.
Therefore, accounting plays a very important role in our economic system.

Conclusion

The given statement “Accounting is ingrained in our society and it is vital to our economic system” is completely true.

Answer 9

Chapter 1, Problem 1Q

To determine

Accounting: It refers to a financial language for all the business organizations at global level. The process of accounting starts with identification of business transactions quantitative in nature then goes further with recording of the identified transactions, classification of similar recorded transactions then summarization of these classified transactions, after summarization, all data is analyzed to calculate the profit and financial position of the company. This process ends with the communication of analyzed information to its users.

To Explain: “Accounting is ingrained in our society and it is vital to our economic system.”

Answer 10

Expert Solution & Answer

Answer to Problem 1Q

The given statement is true.

Answer 11

Expert Solution & Answer

Answer 12

Expert Solution & Answer

Answer 13

Explanation of Solution

There are various users (owner, employees, government, creditors and investors) of accounting information and these users are the part of our society.
Accounting information shows the performance of business organizations in financial terms and its survival in the market.
The owner also needs accounting information for decision making to operate the business efficiently.
Therefore, accounting plays a very important role in our economic system.