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Fundamentals of Financial Accounting 5th Edition Phillips Solutions Manual

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Fundamentals of Financial Accounting 5th Edition Phillips Solutions Manual Full clear download( no error formatting) at: https://goo.gl/tFQWBw fundamentals of financial accounting 5th edition solution manual fundamentals of financial accounting 5th edition ebook fundamentals of financial accounting 5th edition pdf download fundamentals of financial accounting 5th edition mcgraw hill fundamentals of financial accounting 5th edition access code fundamentals of financial accounting 5th edition test bank fundamentals of financial accounting connect plus access code fundamentals of financial accounting 5th edition connect access code
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    Fundamentals of Financial Accounting 5th Edition Phillips Solutions Manual Full clear download( no error formatting) at: https://testbanklive.com/download/fundamentals-of-financial-accounting-5th-edition-phillips-solutions-manual/ Fundamentals of Financial Accounting 5th Edition Phillips Test Bank  Full clear download( no error formatting) at: https://testbanklive.com/download/fundamentals-of-financial-accounting-5th-edition-phillips-test-bank/  Chapter 2   The Balance Sheet   ANSWERS TO QUESTIONS  1. (a) An asset is a resource owned by a company that has measurable value and is expected to provide future benefits. (b) A current asset is an asset that will be used up or turned into cash within the next 12 months. (c) A liability is a debt or obligation arising from past transactions or events, which the company is likely to pay, settle, or fulfill by sacrificing resources in the future. (d) A current liability is a debt or obligation that will be paid, settled, or fulfilled within one year. (e) Common stock includes the amount of financing (cash and sometimes other assets) provided to the company by stockholders in exchange for shares of common stock. (f) Retained earnings are the cumulative earnings of a company that are not distributed to the owners and instead are reinvested in the business. 2. A transaction is an exchange or event that has a direct and measurable financial effect on the assets, liabilities, or stockholder  s’ equity of a business. Transactions include two different types of events: (1) external exchanges and (2) internal events. The first situation (1) is exemplified by the sale of goods or    services to customers. The second situation (2) is exemplified by employees using up the benefits of equipment owned by the company. 3. Accounts are used to accumulate and report the effects of different business activities. Accounts are necessary to keep track of all increases and decreases in the basic accounting equation. 4. The basic accounting equation is: Assets = Liabilities + Stockholde rs’  Equity. 5. Debit is the left side of a T-account and credit is the right side of a T-account. A debit is an increase in assets or a decrease in liabilities or stockholde rs’  equity.  A credit is the opposite  –  a decrease in assets or an increase in liabilities or stockholde rs’  equity.    6. Transaction analysis is the process of studying a transaction to determine its financial effect on the business in terms of the basic accounting equation:  Assets = Liabilities + Stockholde rs’  Equity The two principles underlying the process are: * Duality of effects: every transaction affects at least two accounts. * A=L+SE; the accounting equation must remain in balance after each transaction. 7. The accounting equalities in transaction analysis are: (a) Assets = Liabilities + Stockholde rs’  Equity (b) Debits = Credits 8. A journal entry is a method for expressing the effects of a transaction on accounts in a debits equal credits format. The title of the account(s) to be debited is (are) listed first. The title of the account(s) to be credited is (are) listed underneath the debited accounts and both account title(s) and amount(s) are indented to the right. (An optional explanation can be included on the lines following the journal entry; this explanation is omitted in most textbook examples and homework problems because the description of the transaction in the textbook already provides the explanation.) 9. T-accounts are a simplified version of the ledger, which summarizes transaction effects for each account. T-accounts show increases on the left (debit) side for assets, which are on the left side of the accounting equation. T-accounts show increases on the right (credit) side for liabilities and stockholde rs’  equity, which are on the right side of the accounting equation. The T-account is a tool for summarizing transaction effects for each account and determining balances. 10. The cost principle requires that assets and liabilities be recorded at their srcinal cost to the company. 11. Because the customer list was not purchased by her salon (it was developed internally), her salon does not report it on the balance sheet. Knowing this, she should be sure to advise her banker that the salon has established a loyal group of customers that holds considerable value for generating future revenues (but is excluded from the balance sheet for accounting reasons).    Authors' Recommended Solution Time   (Time in minutes)   Mini-exercises   Exercises   Problems   Skills   Development    Cases*    Continuing    Case   No.   Time   No.   Time   No.   Time   No.   Time   No. Time  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2 2 4 4 4 4 3 3 5 6 6 6 10 10 10 10 10 10 10 10 15 10 3 8 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 8 10 5 5 3 5 3 10 5 15 20 25 10 15 30 CP2-1 CP2-2 CP2-3 PA2-1 PA2-2 PA2-3 PB2-1 PB2-2 PB2-3 45 50 50 45 50 50 45 50 50 1 2 3 4 5 6 7 15 15 45 20 20 10 35 1 30 * Due to the nature of cases, it is very difficult to estimate the amount of time students will need to complete them. As with any open-ended project, it is possible for students to devote a large amount of time to these assignments. While students often benefit from the extra effort, we find that some become frustrated by the perceived difficulty of the task. You can reduce student frustration and anxiety by making your expectations clear, and by offering suggestions (about how to research topics or what companies to select). The skills developed by these cases are indicated in the table on the following page.  Fundamentals of  Financial  Accounting, 5/e 2-3
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