Solutions for Fundamentals Of Financial Accounting
Problem 1Q:
What are three goals of inventory management?Problem 3Q:
The chapter discussed four inventory costing methods. List the four methods and briefly explain...Problem 4Q:
Which inventory cost flow method is most similar to the flow of products involving (a) a gumball...Problem 5Q:
Where possible, the inventory costing method should mimic actual product flows, Do you agree?...Problem 6Q:
Contrast the effects of LIFO versus FIFO on ending inventory when (a) costs are rising and (b) costs...Problem 7Q:
Contrast the income statement effect of LIFO versus FIFO (on Cost of Goods Sold and Gross Profit)...Problem 8Q:
Several managers in your company are experiencing personal financial problems and have asked that...Problem 9Q:
Explain briefly the application of the LCM rule to ending inventory. Describe its effect on the...Problem 11Q:
You work for a made-to-order clothing company, whose reputation is based on its fast turnaround from...Problem 13Q:
(Supplement 7B) Explain why an error in ending inventory in one period affects the following period.Problem 1MC:
Which of the following statements are true regarding Cost of Goods Sold? i. Cost of Goods Sold...Problem 2MC:
The inventory costing method selected by a company can affect a. The balance sheet. b. The income...Problem 3MC:
Which of the following is not a name for a specific type of inventory? a. Finished goods. b....Problem 4MC:
Which of the following correctly expresses the cost of goods sold equation, as used in a periodic...Problem 5MC:
A New York bridal dress designer that makes high-end custom wedding dresses and needs to know the...Problem 6MC:
If costs are rising, which of the following will be true? a. The cost of goods sold will be greater...Problem 7MC:
Which inventory method provides a better matching of current costs with sates revenue on the income...Problem 8MC:
Which of the following regarding the lower of cost or market/net realizable value rule for inventory...Problem 9MC:
An increasing inventory turnover ratio a. Indicates a longer time span between the ordering and...Problem 10MC:
In which of the following situations is an LCM/NRV write-down most likely required? a. Increasing...Problem 1ME:
Matching Inventory Items to Type of Business Match the type of inventory with the type of business...Problem 2ME:
Reporting Goods in Transit Abercrombie Fitch Co. reported the following in its financial statement...Problem 4ME:
Reporting Inventory-Related Accounts in the Financial Statements For each of the following, indicate...Problem 5ME:
Matching Financial Statement Effects to Inventory Costing Methods Complete the following table by...Problem 6ME:
Matching Inventory Costing Method Choices to Company Circumstances Indicate whether a company...Problem 7ME:
Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross...Problem 8ME:
Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross...Problem 9ME:
Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross...Problem 11ME:
Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under...Problem 12ME:
Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under...Problem 13ME:
Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under...Problem 14ME:
Reporting Inventory under Lower of Cost or Market/Net Realizable Value The Jewel Fool had the...Problem 15ME:
Preparing the Journal Entry to Record Lower of Cost or Market/Net Realizable Value (LCM/NRV)...Problem 16ME:
Determining the Effects of Inventory Management Changes on the Inventory Turnover Ratio Indicate the...Problem 17ME:
Interpreting LCM Financial Statement Note Disclosure Zumiez Inc. is a leading action sports...Problem 18ME:
Calculating the Inventory Turnover Ratio and Days to Sell Complete the following table. Round the...Problem 22ME:
(Supplement 7A) Calculating Cost of Goods Sold and Ending Inventory under Perpetual Weighted Average...Problem 23ME:
(Supplement 7B) Determining the Financial Statement Effects of Inventory Errors Assume the 2018...Problem 1E:
Reporting Goods in Transit and Consignment Inventory Second Chance Clothing (SCC) obtains goods on...Problem 2E:
Determining the Correct Inventory Balance Seemore Lens Company (SLC) sells contact lenses FOB...Problem 3E:
Determining the Correct Inventory Balance Seemore Lens Company (SLC) sells contact lenses FOB...Problem 4E:
Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted...Problem 5E:
Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted...Problem 7E:
Analyzing and Interpreting the Financial Statement Effects of FIFO, LIFO, and Weighted Average Cost...Problem 8E:
Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income...Problem 9E:
Choosing LIFO versus FIFO When Costs Are Rising and Falling Use the following information to...Problem 10E:
Using FIFO for Multiproduct Inventory Transactions (Chapters 6 and 7) TrackR, Inc., (TI) has...Problem 11E:
Reporting Inventory at Lower of Cost or Market/Net Realizable Value Peterson Furniture Designs is...Problem 12E:
Reporting Inventory at Lower of Cost or Market/Net Realizable Value Sandals Company is preparing the...Problem 13E:
Analyzing and Interpreting the Inventory Turnover Ratio Polaris Industries Inc. is the biggest...Problem 14E:
Analyzing and Interpreting the Effects of the LIFO/FIFO Choice on Inventory Turnover Ratio Simple...Problem 16E:
Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and Weighted...Problem 1CP:
Analyzing the Effects of Four Alternative Inventory Costing Methods Scrappers Supplies tracks the...Problem 2CP:
Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market/Net Realizable...Problem 3CP:
Calculating and Interpreting the Inventory Turnover Ratio and Days to Sell GameStop Corp. is the...Problem 5CP:
(Supplement 7B) Analyzing and Interpreting the Effects of Inventory Errors Partial income statements...Problem 1PA:
Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System Gladstone...Problem 2PA:
Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market/Net Realizable...Problem 5PA:
(Supplement 7B) Analyzing and Interpreting the Effects of Inventory Errors Partial income statements...Problem 5PB:
(Supplement 7B) Analyzing and Interpreting the Effects of Inventory Errors Spears Cantrell...Problem 2COP:
(Supplement 7A) Recording Inventory Transactions, Making Accrual and Deferral Adjustments, and...Problem 3COP:
(Supplement 7A) Recording Inventory Purchases, Allowances, Sales, and Shrinkage Using Perpetual FIFO...Problem 4COP:
(Supplement 7A) Recording Inventory Purchases, Allowances, Sales, and Shrinkage Using Perpetual...Browse All Chapters of This Textbook
Chapter 1 - Business Decisions And Financial AccountingChapter 2 - The Balance SheetChapter 3 - The Income StatementChapter 4 - Adjustments, Financial Statements, And Financial ResultsChapter 5 - Fraud, Internal Control, And CashChapter 6 - Merchandising Operations And The Multistep Income StatementChapter 7 - Inventory And Cost Of Goods SoldChapter 8 - Receivables, Bad Debt Expense, And Interest RevenueChapter 9 - Long-lived Tangible And Intangible AssetsChapter 10 - Liabilities
Book Details
Fundamentals of Financial Accounting, presents an engaging, balanced, and appropriately paced analysis of the fundamentals of financial accounting. Its writing style makes it easy to read and understand, while the selection of real focus companies reinforces the relevance of accounting by introducing students to accounting and business activities in the context of their favorite companies. Balance between preparer and user orientations is achieved throughout the book, by studying both the accounting activities that take place inside the company, as well as evaluating their impact on decisions, and users outside the company. Topic coverage is paced appropriately for students new to accounting, and is thoroughly reinforced every step of the way with an ample variety of innovative pedagogical tools. Clearly understandable, relevant, and accessible, FFA is simply the most student-friendly financial book on the market and provides the tools for students to grasp financial accounting from the ground up.
Sample Solutions for this Textbook
We offer sample solutions for Fundamentals Of Financial Accounting homework problems. See examples below:
Chapter 1, Problem 1QBalance Sheet: Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of...Chapter 2, Problem 1QChapter 2, Problem 2CPChapter 2, Problem 3CPChapter 2, Problem 2PAChapter 2, Problem 3PAExplanation: Accounting equation: Accounting equation is an accounting tool expressed in the form of...Chapter 2, Problem 3PB
Chapter 2, Problem 1CCIncome statement: An income statement is one of the financial statements which shows the revenues,...Chapter 3, Problem 13EExplanation: Journal: Journal is the book of original entry. Journal consists of the day today...Explanation: Journal: Journal is the book of original entry. Journal consists of the day today...Explanation: Accounting Equation: The accounting equation implies the relationship between the...Chapter 3, Problem 2PAChapter 3, Problem 3PAJournal entry: Journal entry is a set of economic events which can be measured in monetary terms....Chapter 3, Problem 3PBAccounting Equation: The accounting equation implies the relationship between the assets,...Explanation: Adjusting entries: Adjusting entries are the journal entries which are recorded at the...Chapter 4, Problem 15EChapter 4, Problem 19EChapter 4, Problem 20EChapter 4, Problem 1COPT-account: T-account refers to an individual account, where the increases or decreases in the value...Chapter 4, Problem 3COPChapter 4, Problem 4COPChapter 4, Problem 5COPExplanation: Journal: Journal is the method of recording monetary business transactions in...Explanation: Fraud: Fraud is a deliberate and deceptive action of an employee to obtain unlawful...Explanation: Bank reconciliation: Bank statement is prepared by bank. The company maintains its own...Deposits-in-transit: The checks that are deposited and recorded by the company, but not yet recorded...Explanation: Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts...Deposits-in-transit: The checks that are deposited and recorded by the company, but not yet recorded...Deposits-in-transit: The checks that are deposited and recorded by the company, but not yet recorded...Chapter 5, Problem 1COPChapter 5, Problem 1CCFollowing is the distinction between servicing and merchandising company: Servicing company renders...Chapter 6, Problem 6EChapter 6, Problem 29EChapter 6, Problem 3CPChapter 6, Problem 6CPChapter 6, Problem 3PAChapter 6, Problem 6PASales revenue: Sales revenue is the amount received by the company from the sale of goods and...Chapter 6, Problem 6PBChapter 6, Problem 2COPJournal entry: Journal entry is a set of economic events which can be measured in monetary terms....Chapter 7, Problem 1QDetermine cost of goods available for sale. Date Particulars Units ($) Unit cost ($) Total cost ($)...Chapter 7, Problem 7EChapter 7, Problem 10EChapter 7, Problem 14EChapter 7, Problem 1CPChapter 7, Problem 1PADetermine cost of goods available for sale. Date Particulars Units ($) Unit cost ($) Total cost ($)...Explanation: Calculate the amount of inventory: Amount of inventory = (Units on hand×Units...Chapter 7, Problem 2COPChapter 8, Problem 1QChapter 8, Problem 3CPChapter 8, Problem 4CPChapter 8, Problem 4PAChapter 8, Problem 5PANote Receivable: Note receivable refers to a written promise by the debtor for the amounts to be...Chapter 8, Problem 4PBChapter 8, Problem 3COPChapter 8, Problem 1CCChapter 9, Problem 1QChapter 9, Problem 9EChapter 9, Problem 3CPExplanation: Accounting equation: Accounting equation is an accounting tool expressed in the form of...Journal entry: Journal entry is a set of economic events which can be measured in monetary terms....Chapter 9, Problem 3PBJournal entry: Journal entry is a set of economic events which can be measured in monetary terms....Chapter 9, Problem 1COPChapter 9, Problem 1CCExplanation: Liabilities: Liabilities are referred to as the obligations of the business towards the...Chapter 10, Problem 1CPBonds: Bonds are long-term promissory notes that are represented by a company while borrowing money...Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money...Amortization Schedule: An amortization schedule is a table that shows the details of each loan...Amortization Schedule: An amortization schedule is a table that shows the details of each loan...Amortization Schedule: An amortization schedule is a table that shows the details of each loan...Explanation: Liabilities: Liabilities are debt and obligations of a business. These are the claims...Amortization Schedule: An amortization schedule is a table that shows the details of each loan...Amortization Schedule: An amortization schedule is a table that shows the details of each loan...Amortization Schedule: An amortization schedule is a table that shows the details of each loan...Corporation: A business concern where there is a separate legal entity and are owned by stockholders...Chapter 11, Problem 2EChapter 11, Problem 8EExplanation: Accounting equation: Accounting equation is an accounting tool expressed in the form of...Chapter 11, Problem 18EChapter 11, Problem 1CPChapter 11, Problem 1PAChapter 11, Problem 1COPJournal: Journal is the method of recording monetary business transactions in chronological order....Chapter 12, Problem 1QExplanation: Prepare journal entries. Journal: Journal is the method of recording monetary business...Explanation: Prepare journal entries. Journal: Journal is the method of recording monetary business...Explanation: The amount deducted by the each company on the income statement related to inventory is...Chapter 12, Problem 23EStatement of cash flows: This statement reports all the cash transactions which are responsible for...Chapter 12, Problem 5PAExplanation: Statement of cash flows: Statement of cash flow is a financial statement that shows the...Chapter 13, Problem 1QExplanation: Current ratio: Current ratio is used to determine the relationship between current...Gross Profit Percentage: Gross profit is the financial ratio that shows the relationship between the...Explanation: Net Profit margin Ratio: This ratio gauges the operating profitability by quantifying...Financial Ratios Financial ratios are the metrics used to evaluate the capabilities, profitability,...Chapter 13, Problem 6PAFinancial Ratios Financial ratios are the metrics used to evaluate the capabilities, profitability,...Chapter 13, Problem 6PBGross Profit Percentage: Gross profit is the financial ratio that shows the relationship between the...Explanation: Time value of money explains the idea of dollar that is received at present and which...Chapter C, Problem 6EExplanation: Present value is the amount of future value reduced or discounted at a rate of interest...Chapter C, Problem 2PAExplanation: Present value is the amount of future value reduced or discounted at a rate of interest...
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