会计学原理FinancialAccountingbyRobertLibby第八版第三章答.docx
《会计学原理FinancialAccountingbyRobertLibby第八版第三章答.docx》由会员分享,可在线阅读,更多相关《会计学原理FinancialAccountingbyRobertLibby第八版第三章答.docx(79页珍藏版)》请在冰豆网上搜索。
![会计学原理FinancialAccountingbyRobertLibby第八版第三章答.docx](https://file1.bdocx.com/fileroot1/2022-10/20/7854a58d-208f-489e-a929-06fda106801f/7854a58d-208f-489e-a929-06fda106801f1.gif)
会计学原理FinancialAccountingbyRobertLibby第八版第三章答
Chapter3
OperatingDecisionsandtheAccountingSystem
ANSWERSTOQUESTIONS
1.Atypicalbusinessoperatingcycleforamanufacturerwouldbeasfollows:
inventoryispurchased,cashispaidtosuppliers,theproductismanufacturedandsoldoncredit,andthecashiscollectedfromthecustomer.
2.Thetimeperiodassumptionmeansthatthefinancialconditionandperformanceofabusinesscanbereportedperiodically,usuallyeverymonth,quarter,oryear,eventhoughthelifeofthebusinessismuchlonger.
3.NetIncome=Revenues+Gains-Expenses-Losses.
Eachelementisdefinedasfollows:
Revenues--increasesinassetsorsettlementsofliabilitiesfromongoingoperations.
Gains--increasesinassetsorsettlementsofliabilitiesfromperipheraltransactions.
Expenses--decreasesinassetsorincreasesinliabilitiesfromongoingoperations.
Losses--decreasesinassetsorincreasesinliabilitiesfromperipheraltransactions.
4.Bothrevenuesandgainsareinflowsofnetassets.However,revenuesoccurinthenormalcourseofoperations,whereasgainsoccurfromtransactionsperipheraltothecentralactivitiesofthecompany.Anexampleissellinglandatapriceabovecost(atagain)forcompaniesnotinthebusinessofsellingland.
Bothexpensesandlossesareoutflowsofnetassets.However,expensesoccurinthenormalcourseofoperations,whereaslossesoccurfromtransactionsperipheraltothecentralactivitiesofthecompany.Anexampleisalosssufferedfromfiredamage.
5.Accrualaccountingrequiresrecordingrevenueswhenearnedandrecordingexpenseswhenincurred,regardlessofthetimingofcashreceiptsorpayments.Cashbasisaccountingisrecordingrevenueswhencashisreceivedandexpenseswhencashispaid.
6.Thefourcriteriathatmustbemetforrevenuetoberecognizedundertheaccrualbasisofaccountingare
(1)deliveryhasoccurredorserviceshavebeenrendered,
(2)thereispersuasiveevidenceofanarrangementforcustomerpayment,(3)thepriceisfixedordeterminable,and(4)collectionisreasonablyassured.
7.Theexpensematchingprinciplerequiresthatexpensesberecordedwhenincurredinearningrevenue.Forexample,thecostofinventorysoldduringaperiodisrecordedinthesameperiodasthesale,notwhenthegoodsareproducedandheldforsale.
8.Netincomeequalsrevenuesminusexpenses.Thusrevenuesincreasenetincomeandexpensesdecreasenetincome.Becausenetincomeincreasesstockholders’equity,revenuesincreasestockholders’equityandexpensesdecreaseit.
9.Revenuesincreasestockholders’equityandexpensesdecreasestockholders’equity.Toincreasestockholders’equity,anaccountmustbecredited;todecreasestockholders’equity,anaccountmustbedebited.Thusrevenuesarerecordedascreditsandexpensesasdebits.
10.
Item
Increase
Decrease
Revenues
Credit
Debit
Losses
Debit
Credit
Gains
Credit
Debit
Expenses
Debit
Credit
11.
Item
Debit
Credit
Revenues
Decrease
Increase
Losses
Increase
Decrease
Gains
Decrease
Increase
Expenses
Increase
Decrease
12.
Transaction
Operating,Investing,orFinancing
Direction
oftheEffect
onCash
Cashpaidtosuppliers
Operating
–
Saleofgoodsonaccount
None
None
Cashreceivedfromcustomers
Operating
+
Purchaseofinvestments
Investing
–
Cashpaidforinterest
Operating
–
Issuanceofstockforcash
Financing
+
13.TotalnetprofitmarginratioiscalculatedasNetIncome÷NetSales(orOperatingRevenues).Thenetprofitmarginratiomeasureshowmuchofeverysalesdollarisprofit.Anincreasingratiosuggeststhatthecompanyismanagingitssalesandexpenseseffectively.
ANSWERSTOMULTIPLECHOICE
1.c
2.a
3.b
4.b
5.c
6.c
7.d
8.b
9.a
10.b
Authors'RecommendedSolutionTime
(Timeinminutes)
Mini-exercises
Exercises
Problems
AlternateProblems
CasesandProjects
No.
Time
No.
Time
No.
Time
No.
Time
No.
Time
1
5
1
10
1
20
1
30
1
20
2
6
2
15
2
20
2
30
2
30
3
6
3
20
3
25
3
35
3
30
4
5
4
20
4
40
4
40
4
20
5
5
5
20
5
20
5
20
5
30
6
5
6
20
6
40
6
40
6
60
7
5
7
18
7
30
7
30
8
6
8
20
8
*
9
6
9
20
10
6
10
20
11
6
11
20
ContinuingCase
12
15
13
20
14
20
1
30
15
20
16
20
17
20
18
10
*Duetothenatureofthisproject,itisverydifficulttoestimatetheamountoftimestudentswillneedtocompletetheassignment.Aswithanyopen-endedproject,itispossibleforstudentstodevotealargeamountoftimetotheseassignments.Whilestudents