(e) Balance sheet and owner’s equity statement. (d) Decrease assets and decrease liabilities. (c) Increase assets and increase owner’s equity. (a) Decrease assets and decrease owner’s equity. (d) A withdrawal of cash from the business is a business transaction as it affects the basic (c) An employee being fired is not a business transaction as it does not affect the basic (b) Supplies purchased on account is a business transaction as it affects the basic accounting (a) The death of the owner of the company is not a business transaction as it does not affect In the Cash account is a specific example.īusiness transactions are the economic events of the enterprise recorded by accountantsīecause they affect the basic accounting equation. An increase in the Equipment account which is offset by a decrease An example would be a transaction where an increase in one asset is offset byĪ decrease in another asset. Yes, a business can enter into a transaction in which only the left side of the accounting equation The liabilities are: (b) Accounts payable and (g) Salaries and wages payable. (b) Owner’s equity is affected by owner’s investments, drawings, revenues, and expenses. Simply, liabilities are existing debts and obligations. (a) Assets are resources owned by a business. The basic accounting equation is Assets = Liabilities + Owner’s Equity. Also, because ownership can be transferred without dissolving the corporation, the corporation (stockholders) enjoy limited liability they are not personally liable for the debts of the corporateĮntity. Another advantage is that because holders of the shares This would allow Rachel to raise money easily by sellingĪ part of her ownership in the company. One of the advantages Rachel Hipp would enjoy is that ownership of a corporation is representedīy transferable shares of stock. Real–World FocusConsidering People, Planet, and ProfitĬomparative AnalysisDecision–Making Across the Organization Communication ActivityEthics Case Objectives and End-of-Chapter Exercises and ProblemsĪssumption and the economic entity assumption.īE1-1 BE1-2 BE1-3 DI1-4 E1-10 E1-11 E1-16 P1-1A Weygandt, Accounting Principles, 11/e, Solutions Manual (For Instructor Use Only) 1-Ĭorrelation Chart between Bloom’s Taxonomy, Weygandt, Accounting Principles, 11/e, Solutions Manual (For Instructor Use Only)Ĭopyright © 2013 John Wiley & Sons, Inc. Moderate 40–ĥB Determine financial statement amounts and prepareġ-4 Copyright © 2013 John Wiley & Sons, Inc. Moderate 40–ĢB Analyze transactions and prepare income statement,ģB Prepare income statement, owner’s equity statement, andĤB Analyze transactions and prepare financial statements. Moderate 40–ĥA Determine financial statement amounts and prepareġB Analyze transactions and compute net income. Owner’s equity statement, and balance sheet.ģA Prepare income statement, owner’s equity statement, andĤA Analyze transactions and prepare financial statements. Moderate 40–ĢA Analyze transactions and prepare income statement, Weygandt, Accounting Principles, 11/e, Solutions Manual (For Instructor Use Only) ASSIGNMENT CHARACTERISTICS TABLEġA Analyze transactions and compute net income. Weygandt, Accounting Principles, 11/e, Solutions Manual (For Instructor Use Only) 1- CHAPTER 1 Accounting in Action ASSIGNMENT CLASSIFICATION TABLEġ-2 Copyright © 2013 John Wiley & Sons, Inc.
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