会计学原理financialaccountingbyrobertlibby第八版第三章答案.docx

会计学原理financialaccountingbyrobertlibby第八版第三章答案.docx

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会计学原理financialaccountingbyrobertlibby第八版第三章答案

Chapter3

OperatingDecisionsandtheAccountingSystem

ANSWERSTOQUESTIONS

1.Atypicalbusinessoperatingcycleforamanufacturerwouldbeasfollows:

inventoryispurchased,cashispaidtosuppliers,theproductismanufacturedandsoldoncredit,andthecashiscollectedfromthecustomer.

2.Thetimeperiodassumptionmeansthatthefinancialconditionand

performanceofabusinesscanbereportedperiodically,usuallyevery

month,quarter,oryear,eventhoughthelifeofthebusinessismuchlonger.

3.NetIncome=Revenues+Gains-Expenses-Losses.

Eachelementisdefinedasfollows:

Revenues--increasesinassetsorsettlementsofliabilitiesfrom

ongoingoperations.

Gains--increasesinassetsorsettlementsofliabilitiesfrom

peripheraltransactions.

Expenses--decreasesinassetsorincreasesinliabilitiesfromongoingoperations.

Losses--decreasesinassetsorincreasesinliabilitiesfrom

peripheraltransactions.

4.Bothrevenuesandgainsareinflowsofnetassets.However,revenuesoccurinthenormalcourseofoperations,whereasgainsoccurfromtransactionsperipheraltothecentralactivitiesofthecompany.Anexampleissellinglandatapriceabovecost（atagain）forcompaniesnotinthebusinessofsellingland.

Bothexpensesandlossesareoutflowsofnetassets.However,expensesoccurinthenormalcourseofoperations,whereaslossesoccurfromtransactionsperipheraltothecentralactivitiesofthecompany.Anexampleisalosssufferedfromfiredamage.

5.

or

is

Accrualaccountingrequiresrecordingrevenueswhenearnedandrecordingexpenseswhenincurred,regardlessofthetimingofcashreceiptspayments.Cashbasisaccountingisrecordingrevenueswhencashreceivedandexpenseswhencashispaid.

6.Thefourcriteriathatmustbemetforrevenuetoberecognizedunder

theaccrualbasisofaccountingare

（1）deliveryhasoccurredor

serviceshavebeenrendered,

（2）thereispersuasiveevideneeofan

arrangementforcustomerpayment,（3）thepriceisfixedordeterminable,

and（4）collectionisreasonablyassured.

7.Theexpensematchingprinciplerequiresthatexpensesberecordedwhen

incurredinearningrevenue.Forexample,thecostofinventorysold

duringaperiodisrecordedinthesameperiodasthesale,notwhenthegoodsareproducedandheldforsale.

8.Netincomeequalsrevenuesminusexpenses.Thusrevenuesincreasenet

incomeandexpensesdecreasenetincome.Becausenetincomeincreasesstockholders'equity,revenuesincreasestockholders'equityand

expensesdecreaseit.

9.Revenuesincreasestockholders'equityandexpensesdecrease

stockholders'equity.Toincreasestockholders'equity,anaccountmustbecredited;todecreasestockholders'equity,anaccountmustbedebited.Thusrevenuesarerecordedascreditsandexpensesasdebits.

Item

Increase

Decrease

Revenues

Credit

Debit

Losses

Debit

Credit

Gains

Credit

Debit

Expenses

Debit

Credit

Item

Debit

Credit

Revenues

Decrease

Increase

Losses

Increase

Decrease

Gains

Decrease

Increase

Expenses

Increase

Decrease

Transaction

Operating,Investing,or

Financing

DirectionoftheEffectonCash

Cashpaidtosuppliers

Operating

一

Saleofgoodsonaccount

None

None

Cashreceivedfromcustomers

Operating

+

Purchaseofinvestments

Investing

一

Cashpaidforinterest

Operating

一

Issuaneeofstockforcash

Financing

+

NetSales

13.TotalnetprofitmarginratioiscalculatedasNetIncome

（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

Casesand

Projects

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

Continuing

12

15

Case

13

20

14

20

1

30

15

20

16

20

17

20

18

10

*Duetothenatureofthisproject,itisverydifficulttoestimatetheamountoftimestudentswillneedtocompletetheassignment.Aswithany

open-endedproject,itispossibleforstudentstodevotealargeamountoftimetotheseassignments.Whilestudentsoftenbenefitfromtheextraeffort,wefindthatsomebecomefrustratedbytheperceiveddifficultyofthetask.

Youcanreducestudentfrustrationandanxietybymakingyourexpectationsclear.Forexample,whenourgoalistosharpenresearchskills,wedevote

classtimediscussingresearchstrategies.Whenwewantthestudentstofocusonarealaccountingissue,weoffersuggestionsaboutpossiblecompaniesorindustries.

MINI-EXERCISES

M3-1.

TERM

G

（1）Losses

C

（2）Expensematching

principle

F（3）Revenues

E（4）Timeperiodassumption

B（5）Operatingcycle

M3-2.

CashBasis

AccrualBasis

IncomeStatement

IncomeStatement

Revenues:

Revenues:

Cashsales

$8,000

Salesto$18,000

Customerdeposits

5,000

customers

Expenses:

Expenses:

Inventorypurchases

1,000

Costofsales

9,000

Wagespaid

900

Wagesexpense

900

Utilities

300

expense

NetIncome

$11,100

NetIncome

$7,800

a.

GamesRevenue

$15,000

b.

SalesRevenue

$8,000

c.

None

NorevenueearnedinJuly;cashcollectionsinJulyrelatedtoearningsinJune.

d.

None

NorevenueearnedinJuly;earningsprocessisnotyetcomplete-Unearned

Revenueisrecordeduponreceiptofcash.

RevenueAccountAffected

AmountofRevenueEarnedinJuly

M3-4.

ExpenseAccountAffectedAmountofExpenseIncurredinJuly

e.

CostofGoodsSold

$6,800

f.

None

NoexpenseisincurredinJuly;paymentrelatedtoJuneelectricityusage.

g.

WagesExpense

$3,500

h.

InsuraneeExpense

$500incurredandexpensedinJulyand$1,000notincurreduntilfuturemonths（recordedasPrepaidExpense

（A））.

i.

RepairsExpense

$700

j.

UtilitiesExpense

$900

a.Cash（+A）15,000

GamesRevenue（+R,+SE）15,000

b.Cash（+A）3,000

AccountsReceivable（+A）5,000

SalesRevenue（+R,+SE）8,000

c.Cash（+A）4,000

AccountsReceivable（A）4,000

d.Cash（+A）2,500

UnearnedRevenue（+L）2,500

M3-6.

e.CostofGoodsSold（+E,SE）6,800

Inventory（A）6,800

f.AccountsPayable（-L）800

Cash（A）800

g.WagesExpense（+E,SE）3,500

Cash（A）3,500

h.InsuraneeExpense（+E,SE）500

PrepaidExpenses（+A）1,00

Cash（A）1,500

i.RepairsExpense（+E,SE）700

Cash（A）700

j.UtilitiesExpense（+E,SE）900

AccountsPayable（+L）900

BalaneeSheetIncomeStatement

Assets

Liabilities

Stockholders'Equity

Revenues

Expenses

Net

Income

a.

+15,000

NE

+15,000

+15,000

NE

+15,000

b.

+8,000

NE

+8,000

+8,000

NE

+8,000

c.

+4,000-4,000

NE

NE

NE

NE

NE

d.

+2,500

+2,500

NE

NE

NE

NE

Transaction（c）resultsinanincreaseinanasset（cash）andadecreaseinanasset（accountsreceivable）.Therefore,thereisnoneteffectonassets.

M3-8.

BalaneeSheetIncomeStatement

Assets

Liabilities

Stockholders'Equity

Revenues

Expenses

Net

Income

e.

-6,800

NE

-6,800

NE

+6,800

-6,800

f.

-800

-800

NE

NE

NE

NE

g.

-3,500

NE

-3,500

NE

+3,500

-3,500

h.

-1,500+1,000

NE

-500

NE

+500

-500

i.

-700

NE

-700

NE

+700

-700

j.

NE

+900

-900

NE

+900

-900

Transaction（h）resultsinanincreaseinanasset（prepaidexpenses）anda

decreaseinanasset（cash）.Therefore,theneteffectonassetsis500.

Craig'sBowling,Inc.

IncomeStatement

FortheMonthofJuly2014

$15,000

8,000

23,000

6,800

900

3,500

500

700

12,400

$10,600

Revenues:

GamesrevenueSalesrevenueTotalrevenues

Expenses:

Costofgoodssold

UtilitiesexpenseWagesexpense

InsuraneeexpenseRepairsexpense

Totalexpenses

Netincome

M3-10.

Transaction

O,I,orFActivity（orNoEffect）onStatementofCashFlows

DirectionandAmountofEffect

a.

O

+15,000

b.

O

+3,000

c.

O

+4,000

d.

O

+2,500

e.

NE

NE

f.

O

-800

g.

O

-3,500

h.

O

-1,500

i.

O

-700

j.

NE

NE

Net

Income

—H

NetSales

Revenue

NetProfitMarginRatio

2015

$51,000

$163,000

or%

2014

40,000

151,000

or%

2013

25,000

132,000

or%

TheseresultssuggestthatJen'sJewelryCompanyearnedapproximately$foreverydollarofrevenuein2015,andovertime,theratiohasimproved.

Jen'shasbecomemoreeffectiveatmanagingsalesandexpenses.

Asadditionalanalysis:

PercentageChangeinNetIncome

PercentageChangeinNetSalesRevenue

From2014to2015

（$51,000-$40,000）/

（$163,000-$151,000）/

$40,000

$151,000

+%

+%

From2013to2014

（$40,000-$25,000）/

（$151,000-$132,000）/

$25,000

$132,000

+%

+%

Between2013to2014and2014to2015,saleshaveincreasedatalowerpercentagethannetincome.Thissuggeststhatthecompanyhasbeenmoreeffectiveatcontrollingexpensesthangeneratingrevenues.

EXERCISES

E3-1.

TERM

K

（1）Expenses

E

（2）Gains

G（3）Revenuerealizationprinciple

I（4）Cashbasisaccounting

M（5）Unearnedreve