西方財務(wù)會計課后答案第七章

1、CHAPTERR 7Accountting PPrinciiplesASSIGNMMENT CCLASSIIFICATTION TTABLEBriefABStudy OObjecttives1.Explainn the meaniing offQuestioons1, 2Exercisses1, 2ExercissesProblemmsProblemmsgenerallly acccepteedaccountting pprinciiples andidentiffy thee key itemss ofthe connceptuualframewoork.2.Describbe thee b

2、asiic33objectiives oof finnanciaalreportiing.3.Discusss the qualiitativve3, 4, 554, 5, 66charactteristtics oofaccountting iinformmationnand eleementss of ffinanccialstatemeents.4.Identiffy thee basiic671, 2, 331A, 2A, 3A1B, 2B, 3Bassumpttions used byaccounttants.5.Identiffy thee basiic priinci-7, 8,

3、 99, 10,71, 2, 33, 41A, 2A, 3A1B, 2B, 3Bples off accoountinng.126.Identiffy thee two con-117, 81, 2, 333A3Bstraintts in accouuntingg.7.Understtand aand annalyzee13, 14, 15,9, 10, 115, 6, 77, 8,4A, 5A4B, 5Bclassiffied ffinanccialstatemeents.1698.Explainn the accouuntingg17, 1810principples uused iin

4、intter-nationaal opeeratioons.7-1ASSIGNMMENT CCHARACCTERISSTICS TABLEEProblemmDifficuultyTimeNumber1ADescripptionAnalyzee trannsactiions tto ideentifyy accoountinng priinciplle orLevelModeratteAllotteed (miin.)2030assumpttion vviolatted, aand prreparee corrrect eentriees.2ADetermiine thhe appproprii

5、ateneess off jourrnal eentriees inModeratte2030terms oof gennerallly accceptedd accoountinng priinciplles orrassumpttions.3AIdentiffy acccountiing asssumpttions, prinnciplees, anndModeratte2030constraaints.4APreparee a cllassiffied bbalancce sheeet annd anaalyze finanncialModeratte3545positioon.5APr

6、eparee a muultiplle-steep inccome sstatemment aand annalyzeeModeratte3545profitaabilitty.1BAnalyzee trannsactiions tto ideentifyy accoountinng priinciplle orModeratte2030assumpttion vviolatted, aand prreparee corrrect eentriees.2BDetermiine thhe apppropriiateneess off jourrnal eentriees inModeratte2

7、030terms oof gennerallly accceptedd accoountinng priinciplles orrassumpttions.3BIdentiffy acccountiing asssumpttions, prinnciplees, anndModeratte2030constraaints.4BPreparee a cllassiffied bbalancce sheeet annd anaalyzeModeratte3545financiial poositioon.5BPreparee a muultiplle-steep inccome sstatemme

8、nt aand annalyzeeModeratte3545profitaabilitty.7-2BLOOMSS TAXOONOMY TABLEE7-3Correlation Chart between Blooms Taxonomy, Study Objectives and End-of-Chapter Exercises and ProblemsKnowledgeQ7-1Q7-2BE7-2BE7-1ComprehensionApplicationAnalysisSynthesisEvaluationStudy Objective1.Explain the meaning of gener

9、-ally accepted accountingprinciples and identify the keyitems of the conceptualframework.Q7-3BE7-3BE7-4BE7-5BE7-6BE7-7Q7-6E7-1E7-3Q7-7Q7-8Q7-9Q7-10Q7-12E7-1E7-3Q7-14Q7-15P7-3AP7-3BBE7-8Q7-16BE7-9BE7-10BE7-11E7-5E7-10E7-6E7-7E7-8E7-9E7-1E7-3P7-3AP7-3BQ7-8E7-4E7-2P7-1AP7-2AP7-1BE7-2Q7-13E7-8P7-4AP7-5A

10、P7-4BP7-5BQ7-13P7-4AP7-5AP7-4BP7-3AP7-3BE7-2P7-1AP7-2AP7-1BP7-2BP7-2BQ7-3Q7-4Q7-52.Describe the basic objectivesof financial reporting.3.Discuss the qualitativecharacteristics of accountinginformation and elements offinancial statements.4.Identify the basic assumptionsused by accountants.BE7-75.Iden

11、tify the basic principles ofaccounting.Q7-11BE7-7Q7-18Q7-176.Identify the two constraints inaccounting.7.Understand and analyzeclassified financial statements.P7-5B8.Explain the accountingprinciples used in internationaloperations.Broadening Your PerspectiveCommunication Group Decision InterpretingF

12、inancial ReportingFinancialCaseCommunicationStatementsComp. AnalysisResearch CaseA Global Focus Group DecisionInterpreting FinancialCaseStatementsCookie ChronicleExploring the WebEthics CaseGroup Decision CaseComp. AnalysisResearch CaseA Global FocusCookie ChronicleCorrelation Chart between Blooms T

13、axonomy, Study Objectives and End-of-Chapter Exercises and ProblemsKnowledgeQ7-1Q7-2BE7-2BE7-1ComprehensionApplicationAnalysisSynthesisEvaluationStudy Objective1.Explain the meaning of gener-ally accepted accountingprinciples and identify the keyitems of the conceptualframework.Q7-3BE7-3BE7-4BE7-5BE

14、7-6BE7-7Q7-6E7-1E7-3Q7-7Q7-8Q7-9Q7-10Q7-12E7-1E7-3Q7-14Q7-15P7-3AP7-3BBE7-8Q7-16BE7-9BE7-10BE7-11E7-5E7-10E7-6E7-7E7-8E7-9E7-1E7-3P7-3AP7-3BQ7-8E7-4E7-2P7-1AP7-2AP7-1BE7-2Q7-13E7-8P7-4AP7-5AP7-4BP7-5BQ7-13P7-4AP7-5AP7-4BP7-3AP7-3BE7-2P7-1AP7-2AP7-1BP7-2BP7-2BQ7-3Q7-4Q7-52.Describe the basic objectiv

15、esof financial reporting.3.Discuss the qualitativecharacteristics of accountinginformation and elements offinancial statements.4.Identify the basic assumptionsused by accountants.BE7-75.Identify the basic principles ofaccounting.Q7-11BE7-7Q7-18Q7-176.Identify the two constraints inaccounting.7.Under

16、stand and analyzeclassified financial statements.P7-5B8.Explain the accountingprinciples used in internationaloperations.Broadening Your PerspectiveCommunication Group Decision InterpretingFinancial ReportingFinancialCaseCommunicationStatementsComp. AnalysisResearch CaseA Global Focus Group Decision

17、Interpreting FinancialCaseStatementsCookie ChronicleExploring the WebEthics CaseGroup Decision CaseComp. AnalysisResearch CaseA Global FocusCookie ChronicleANSWERSS TO QQUESTIIONS1.(a)(b)Generallly acccepteed acccountiing prrincipples (GAAP) are a sett of sstandaards aand ruules, havinngsubstanntial

18、 authooritattive ssupporrt, thhat arre reccognizzed ass a geenerall guidde forr finaanciallreportiing.The boddies tthat pprovidde autthorittativee suppport ffor GAAAP arre thee Finaanciall Accoountinng Staan-dards BBoard (FASBB) andd the Securritiess and Exchaange CCommisssion (SEC).The FASSBs connc

19、eptuual frramewoork coonsistts of the ffollowwing:(1) Objjectivves off Finaanciall Repoortingg.(2) Quaalitattive CCharaccterisstics of Acccountting IInformmationn.(3) Eleementss of FFinanccial SStatemments.(4) Opeeratinng Guiidelinnes (AAssumpptionss, Priinciplles, aand Coonstraaints).(a) Acccordinn

20、g to the FFASB iin itss deveelopmeent off the conceeptuall frammeworkk, thee objeectivees offinanciial reeportiing arre to proviide innformaation that: (1) is usseful to thhose mmakingg inveestmenntand creedit ddecisiions, (2) iis hellpful in asssessiing fuuture cash flowss, andd (3) identtifiess th

21、e eco-nomic rresourrces (assetts), tthe cllaims to thhose rresourrces (liabiilitiees), aand thhe chaanges inthose rresourrces aand cllaims.(b) Thee quallitatiive chharactteristtics aare: (1) reelevannce, (2) reeliabiility, (3) compaarabillity, and (4)consisttency.Curtis is coorrectt. Connsisteency m

22、means usingg the same accouuntingg prinnciplees andd accoountinng metth-ods froom perriod tto perriod wwithinn a coompanyy. Witthout consiistenccy in the aappliccationn of aaccounntingprincipples, it iss diffficultt to ddetermmine wwhetheer a ccompanny is betteer offf, worrse offf, orr the same from

23、period to peeriod.Comparaabilitty ressults when diffeerent compaanies use tthe saame acccountting pprinciiples. Conssistenncymeans uusing the ssame aaccounnting princcipless and methoods frrom yeear too yearr withhin thhe sammecompanyy.The goiing cooncernn assuumptioon is necesssary becauuse ottherw

24、iise deepreciiationn and amorttizatiionpoliciees wouuld noot be justiifiablle andd apprropriaate. AAlso, the ccurrennt-nonncurreent cllassifficatiion offassets and lliabillitiess woulld losse mucch of its ssignifficancce. Laabelinng anyythingg as ffixed or loong-teermwould bbe diffficullt to justiif

25、y. IIn addditionn, thee goinng conncern assummptionn lendds creedibillity tto thee costtprincipple.Revenuee shouuld bee recoognizeed in the aaccounnting periood in whichh it iis earrned. The ssales basissinvolvees an exchaange ttransaactionn betwween tthe seeller and bbuyer and tthe saales pprice pr

26、oviides aanobjectiive meeasuree of tthe ammount of reevenuee reallized.Expiredd costts genneratee reveenues only in thhe currrent periood andd therreforee are expennsed iimmedii-ately. Unexppired costss willl geneerate revennues iin currrent and ffuturee periiods aand arre reccordedd asassets.(a) Th

27、ee accoountannt dissclosees infformattion aabout an enntitys finnanciaal possitionn, opeeratioons, aandcash fllows iin thee finaanciall stattementts, orr in tthe nootes tthat aaccomppany tthe sttatemeents.(b) Thee tradde-offfs invvolvedd withh discclosurre ballance the ccosts of prrepariing addditio

28、onal iinformmationnand thee beneefits from usingg it.7-4Questioons Chhapterr 7 (CContinnued)6.17.18.Cost iss usedd becaause iit is both relevvant aand reeliablle. Coost iss releevant becauuse itt reprresentts theeprice ppaid, the aassetss sacrrificeed, orr the commiitmentt madee at tthe daate off ac

29、quuisitiion. CCost iisreliablle beccause it iss objeectiveely meeasuraable, factuual, aand veerifiaable. It iss the resullt of anexchangge traansacttion. As a resullt, coost iss the basiss usedd in ppreparring ffinanccial sstatemments.The twoo consstrainnts arre matteriallity aand coonservvatismm. T

30、hee mateerialiity coonstraaint mmeans that anitem maay be so smmall tthat ffailurre to folloow gennerallly accceptedd accoountinng priinciplles wiill noot infflu-ence thhe deccisionn of aa reassonablly pruudent invesstor oor creeditorr. Thee consservattism cconstrraintmeans tthat wwhen iin douubt, t

31、the acccounttant cchoosees thee accoountinng metthod tthat iis leaast liikely tooverstaate asssets and nnet inncome.Recordiing Ossterhaaus addiitionaal invvestmeent off $5,0000 ass reveenues is innapproopriatte. Ann inveest-ment inn a coorporaation increeases the ccommonn stocck acccount, not revenn

32、ues.Three rrelatiionshiips thhat arre hellpful in asssessiing prrofitaabilitty aree: (1) the profiit marrgin ppercenntage(or retturn oon salles), (2) rreturnn on aassetss, andd (3) returrn on commoon stoockhollders equiity. MMorethan onne proofitabbilityy relaationsship iis useeful iin thaat thee re

33、laationsships help in diiffereent tyypes oof anaaly-sis. Reeturn on saales, for eexamplle, meeasurees thee perccentagge of each saless dolllar thhat iss inclludedin net incomme, whhereass retuurn onn asseets meeasurees thee conttributtion oof eacch dolllar oof asssets iingeneratting iincomee. Thee f

34、ormmer, tthen, helpss anallyze pprofitts in termss of rrevenuues allone; the llatterrhelps aanalyzze proofits in teerms oof thee asseet basse in generratingg salees andd proffits. If thhe retturn oonassets is loower tthan wwarrannted, the ccompanny mayy not be ussing iits asssets effecctivelly; iff

35、retuurn onnsales iis lowwer thhan waarrantted, tthe coompanyy may not bbe conntrollling ccosts effecctivelly.Natashaa Comppanys worrking capittal (aa) is $60,0000 $20,000 = $40,000, and iits cuurrentt ratiio (b)is $60,000 $20,000 = 3:1.Wheneveer currrent assetts aree lesss thann currrent lliabilliti

36、ess, worrking capittal iss negaative and tthe cuur-rent raatio wwill bbe lesss thaan 1:11. (Whheneveer currrent assetts aree greaater tthan ccurrennt liaabilitties,workingg capiital iis possitivee and the ccurrennt rattio iss greaater tthan 11:1.)A debt to tootal aassetss ratiio of 62% iis faiirly s

37、substaantiall. Butt moree is iinvolvved inn a crredit decissionthan juust onne finnanciaal staatemennt rellationnship. Exteensionn of aadditiional crediit willl deppend oonBozemanns oveerall liquiidity (currrent rratio) and profiitabillity (abiliity too geneerate revennue annd cassh)over thhe liffe

38、of the lloan. Simillarly, Bozeemans creedit hhistorry is imporrtantits ppatterrns off loannrepaymeent inn the past. No oone annalytiical rrelatiionshiip cann provvide ssufficcient inforrmatioon to deterr-mine grrantinng of addittionall creddit.There iis litttle uuniforrmity in acccountting sstandaar

39、ds ffrom ccountrry to counttry, aalthouugh soome efffortsshave beeen maade inn thiss areaa by tthe Innternaationaal Acccountiing Sttandarrds Coommitttee.The Intternattionall Accoountinng Staandardds Commmitteee esttablisshes iinternnationnal acccountting sstan-dards, althoough tthey aare byy no mmea

40、ns univeersallly appplied.7-5SOLUTIOONS TOO BRIEEF EXEERCISEESBRIEF EEXERCIISE 7-1(a) Truue.(b) Fallse.(c) Truue.BRIEF EEXERCIISE 7-2(a) No.(b) Yess.(c) Yess.BRIEF EEXERCIISE 7-3(a) No.(b) Yess.(c) Yess.BRIEF EEXERCIISE 7-4(a)(b)(c)(d)(e)Predicttive vvalue.Feedbacck vallue.Consisttency.Faithfuul rep

41、presenntatioon.Verifiaable.BRIEF EEXERCIISE 7-5(a) Rellevantt.(b) Relliabillity.(c) Connsisteency.7-6BRIEF EEXERCIISE 7-6(a)(b)(c)(d).BRIEF EEXERCIISE 7-7(a)(b)(c)(d).BRIEF EEXERCIISE 7-8(a)(b)(c)(d)Conservvatismm.Conservvatismm.Materiaality.Materiaality.BRIEF EEXERCIISE 7-9Currentt AsseetsCurrentt

42、LiabbilitiiesCashAccountts recceivabbleTotal$ 110,66001,674,4400$1,785,000Accountts payyableIncome taxess payaableOther ccurrennt liaabilittiesTotal$ 584,660025,900608,5000$1,219,000(a) Currrent ratioo= Curreent asssets Currrent lliabillitiess= $1,7885,0000 $1,2219,0000= 1.46:1(b) Worrking capittal

43、= Curreent asssets Currrent lliabillitiess= $1,7885,0000 $1,2219,0000= $566,0007-7BRIEF EEXERCIISE 7-10Gross pprofittIncome from operaationssOther rrevenuues annd gaiinsIncome beforre inccome ttaxesNet inccomeBRIEF EEXERCIISE 7-11$907,0000667,0000 = Opperatiing exxpensees (a)240,000036,000276,000096

44、,600 = Inccome ttax exxpensee (b)$179,4000Earninggs perr sharre= Net iincomee commmon shhares outsttandinng= $179,400 46,0000= $3.9007-8SOLUTIOONS TOO EXERRCISESSEXERCISSE 7-.Revenuee recoognitiion prrincipple.Full diisclossure pprinciiple.Matchinng priinciplle.Going cconcerrn asssumptiion.No violla

45、tionn.Time peeriod assummptionn.Cost prrincipple.Economiic enttity aassumpption.EXERCISSE 7-22(a) Thiis is a vioolatioon of the ccost pprinciiple. The iinventtory wwas wrrittenn up ttoits marrket vvalue when it shhould have remaiined aat cosst. Thhus, nno jouur-nal enttry shhould have been made.(b)

46、Thiis is also a vioolatioon of the ccost pprinciiple bbecausse thee equiipmenttwas reccordedd at iits esstimatted maarket valuee and not iits exxchangge vallue.The corrrect journnal enntry iis:Equipmeent.Cash .41,00041,000(c) Thiis is a vioolatioon of the eeconommic enntity assummptionn. Thee accoou

47、ntinngfor thee trannsactiion trreats Mark Nabkee and Vickii Prowwitz CCompanny asone enttity wwhen tthey aare twwo sepparatee entiities. No jjournaal enttry shhouldhave beeen maade siince NNabke shoulld havve useed perrsonall asseets toopurchasse thee trucck. Iff cashh asseets off the compaany weere

48、 ussed, tthe deebitentry ccould be too Accoounts ReceiivableeM. Naabke.(d) Thiis is a queestionn of mmatchiing annd matteriallity. The ppencill sharrpenerrcould bbe deppreciaated tto mattch thhe exppense with revennue siince tthepencil sharppener has aan esttimateed useeful llife oof 5 yyears. Howee

49、ver, thepencil sharppener shoulld nott be ddeprecciatedd becaause tthe coost off it iisnot matteriall. Sinnce thhe cosst of the ssharpeener iis nott mateerial, it sshouldd7-9EXERCISSE 7-22 (Conntinueed)be expeensed immeddiatelly. Thhe corrrect journnal enntry aat thee timee of ppur-chase iis:Miscell

50、laneouus Exppense .Cash.EXERCISSE 7-335050(a)(b)(c)(d)(e)(f)(g)(h).Going cconcerrn asssumptiion.Economiic enttity aassumpption.Full diisclossure pprinciiple.Monetarry uniit asssumptiion.Materiaality.Time peeriod assummptionn.Matchinng priinciplle.Cost prrincipple.EXERCISSE 7-4.$9,000. The full amoun

51、nt of the ppolicyy shouuld bee recoognizeed as revennuebecausee the term expirred wiithin the ccurrennt yeaar.$30,0000 12 = $2,5500; $2,5000 X 4 = $100,000. By aapplyiing thhe revvenuerecogniition princciple, one can ddetermmine tthat 44 montths off the leasee re-ceipts shoulld be recoggnizedd as rr

52、evenuue in 2006, whille thee remaainderr isrevenuee in 22007.$14,0000. Ownnershiip of the mmerchaandisee trannsferss at DDecembber 311 be-cause tthe teerms aare FOOB shiippingg poinnt. Thhus, aa salee has occurrred aandrevenuee shouuld bee recoognizeed.$0. No revennue shhould be reecogniized uuntil

53、the ssale oof thee inveentoryy hasoccurreed.7-10EXERCISSE 7-55Net salles.Cost off goodds solld.Gross pprofitt .Operatiing exxpenseesSellingg expeenses.$ 98,6000$696,0000409,2000286,8000Adminisstratiive exxpensees .116,0000214,6000Income from operaationss.Other rrevenuues annd gaiins .17,50072,200Oth

54、er eexpensses annd lossses .Income beforre inccome ttaxes .Income tax eexpensse (att 30%).Net inccome.Earninggs perr sharre (100,000 sharees).EXERCISSE 7-66(34,7000)(17,2000)55,00016,500$ 38,5000$3.85(a)RevenueesWILKINSSON COORPORAATIONIncome StateementFor thee Yearr Endeed Deccemberr 31, 2006Net sa

55、lles .Gain onn the sale of eqquipmeent .Interesst revvenue .Total rrevenuues .ExpenseesCost off goodds solld.Sellingg and adminnistraativeexpensees.Interesst exppense.Total eexpensses .Income beforre inccome ttaxes .Income tax eexpensse.Net inccome.Earninggs perr sharre.7-11$1,499,900340,750090,000$

56、2,156,90080,000300,00002,536,99001,930,6650606,2500150,0000$ 456,2250$12.85EXERCISSE 7-66 (Conntinueed)(b) (1) Grosss proofit = Net saless Costt of ggoods sold$2,156,900 $1,4499,9000 = $657,0000.(2) Inccome ffrom ooperattions = Grooss prrofit Sellling aand addmin. exp.$657,0000 $3400,750 = $3116,250

57、0.(3) Nett incoome iss the same, regaardlesss of formaat: $4456,2550.(c) Proofit mmarginn perccentagge (reeturn on saales) = Nett incoome Net saless= $456,250 $2,1156,9000= 21.155%EXERCISSE 7-77(a)RelatioonshippDebt too totaal asssetsReturn on saalesReturn on asssetsIntelCorp.19.7%18.7%12.0%Johnsonn

58、& Johnsson44.3%17.2%14.9%Motorolla,Inc.60.5%3.3%2.8%Return on coommonstockhoolderss equiity14.9%26.8%7.0%(b) Alll threee commpaniees aree manuufactuurers and ddistriibutorrs of produucts,each beeing aa leadder inn its produuct inndustrryIntell as aa manuufactuurer oofhigh-teech coomputeer chiips ann

59、d proocessoors; JJohnsoon & JJohnsoon as amanufaccturerr of hhealthh caree prodducts; and Motorrola aas a mmanufaactureerof elecctroniics annd commmuniccationn prodducts. Inteel andd Johnnson &Johnsonn are the ddominaate pllayerss in ttheir indusstriess and enjoyy com-petitivve advvantagges annd ope

60、eratinng effficienncies that earn abovee averragereturnss on ssales, asseets, aand eqquity; bothh had very profiitablee perfform-ances iin 20003. Mootorolla in 2003 was sstill recovveringg (staaging a turrn-around) fromm seveeral yyears of opperatiing loosses and aa channge inn man-agementt as wwell