Homework 1: Exercises 1-1, 1-12, and 1-15; Problem 1-5; Decision Case 1-7
Include your name and hw1 at the top of your document or spreadsheet, and on the files you submit (e.g., wilson_hw1.docx or .xlsx).
If you are asked to redo any problems, rename your corrected homework file as hw1r (e.g., wilson_hw1r.docx or .xlsx).
I. Exercise 1-1 Types of Business Activities, p. 33
Hint: "Operating activities" are what you are in business to do, and anything dealing with a customer is operating. "Investing activities" are the purchase or sale of long-lived assets such as buildings, land, and equipment. "Financing activities" are the raising of funds from investors and lenders or repayments to investors or lenders.
II. Exercise 1-12 Accounting Principles and Assumptions, p. 36
Hint: After studying the appropriate pages, try these without going back to the book. The exam will be timed so knowing the information will work better than looking up every answer.
III. Exercise 1-15 Users of Accounting Information and the Financial Statements, p. 37
Hint: Most financial information is found on only one financial statement. The financial accounting information is related but not the same. Think about what accounting term is being described and where the information would be shown.
IV. Problem 1-5 Income Statement, Statement of Retained Earnings, and Balance Sheet, p. 39
Hint: First determine if an account is an asset, a liability, stockholders' equity, revenue, or expense, and then put a check mark by each item as you use it in preparing the financial statements to ensure you account for everything. Format is important, including a proper heading, so the user of the statement knows what they are reading.
V. Decision Case 1-7 Responsibility for Financial Statements and the Role of the Auditor, p. 50