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1、FundamentalAccountingPrinciplesJohnJWildKenWShawBarbaraChiappettaWinstonKwokSundarVenkateshSolutionsManualProprietaryandConfidentialThisManualisthepropertyofTheMcGraw-HillCompanies,Inc.andprotectedbycopyrightlaws.ThisManualisprovidedonlytoauthorizedprofessorsandinstruct
2、orsforuseinpreparingfortheclassesusingtheaffiliatedtextbook.NootheruseordistributionofthisManualispermitted.ThisManualmaynotbesoldordistributedtoorusedbyanystudentorotherthirdparty.NopartofthisManualmaybereproduced,displayedordistributedinanyformorbyanymeans,electronico
3、rotherwise,withoutthepriorwrittenpermissionofTheMcGraw-HillCompanies.SingaporeóBostonóBurrRidge,ILóDubuque,IAóMadison,WIóNewYorkSanFranciscoóSt.LouisóBangkokóKualaLumpuróLisbonóLondonóMadridMexicoCityóMilanóMontrealóNewDelhióSeoulóSydneyóTaipeióTorontoChapter01-Accounti
4、nginBusinessChapter1AccountinginBusinessQUESTIONS1.Thepurposeofaccountingistoprovidedecisionmakerswithrelevantandreliableinformationtohelpthemmakebetterdecisions.Examplesincludeinformationforpeoplemakinginvestments,loans,andbusinessplans.2.Technologyreducesthetime,effor
5、t,andcostofrecordkeeping.Thereisstillademandforpeoplewhocandesignaccountingsystems,supervisetheiroperation,analyzecomplextransactions,andinterpretreports.Demandalsoexistsforpeoplewhocaneffectivelyusecomputerstoprepareandanalyzeaccountingreports.Technologywillneversubsti
6、tuteforqualifiedpeoplewithabilitiestoprepare,use,analyze,andinterpretaccountinginformation.3.Externalusersandtheirusesofaccountinginformationinclude:(a)lenders,tomeasuretheriskandreturnofloans;(b)shareholders,toassesswhethertobuy,sell,orholdtheirshares;(c)directors,toov
7、erseetheirinterestsintheorganization;(d)employeesandlaborunions,tojudgethefairnessofwagesandassessfutureemploymentopportunities;and(e)regulators,todeterminewhethertheorganizationiscomplyingwithregulations.Otherusersarevoters,legislators,governmentofficials,contributorst
8、ononprofits,suppliersandcustomers.4.Businessownersandmanagersuseaccountinginformationtohelpanswerquestionssuch
