Acct 303 Answer

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Chapter 1

Introducing Financial Accounting

Learning Objectives – coverage by question

| |Mini-exercises |Exercises |Problems |Cases | | |25 |29, 33 | |45, 46 | |LO1 – Identify the users of accounting information | | | | | |and discuss the costs and benefits of disclosure. | | | | | | |19, 20, 21 |27, 28, 32 |34, 35, 36 |43 | |LO2 – Describe a company’s business activities and | | | | | |explain how these activities are represented by the | | | | | |accounting equation. | | | | | | |22, 23, 24 |28, 30, 31 |35, 36, 37, 38, 39, |43, 45 | |LO3 – Introduce the four key financial statements | | |40, 41, 42 | | |including the balance sheet, income statement, | | | | | |statement of stockholders’ equity and statement of | | | | | |cash flows. | | | | | | |26 |33, 38 | |46 | |LO4 – Describe the institutions that regulate | | | | | |financial accounting and their role in establishing | | | | | |generally accepted accounting principles. | | | | | | | |32 |34, 40, 41, 42 |43, 44, 45 | |LO5 – Compute two key ratios that are commonly used | | | | | |to assess profitability and risk – return on equity | | | | | |and the debt-to-equity ratio. | | | | | | | |33 | | | |LO6 – Appendix 1A – Explain the conceptual framework | | | | | |for financial accounting. | | | | |

QUESTIONS

Q1-1.Organizations undertake planning activities that subsequently shape three major activities: financing, investing, and operating. Financing is the means used to pay for resources. Investing refers to the buying and selling of resources necessary to carry out the organization’s plans. Operating activities are the actual carrying out of these plans. (Planning is the glue that connects these activities, including the organization’s ideas, goals and strategies.)...
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