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Kế Toán Tài Chính 1 - UEH PDF

This document contains questions, exercises, and cases from accounting textbooks. It addresses topics such as the definition of accounting, differences between financial and management accounting, users of accounting information, the accounting equation, and how to record basic accounting transactions and prepare basic financial statements. Ethics in accounting is also discussed through a case about an employee improperly recording personal expenses as business expenses.

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Minh Huyy
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22 views6 pages

Kế Toán Tài Chính 1 - UEH PDF

This document contains questions, exercises, and cases from accounting textbooks. It addresses topics such as the definition of accounting, differences between financial and management accounting, users of accounting information, the accounting equation, and how to record basic accounting transactions and prepare basic financial statements. Ethics in accounting is also discussed through a case about an employee improperly recording personal expenses as business expenses.

Uploaded by

Minh Huyy
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Chapter 1 - Porter, G.A., & Norton, C.L.

(2015)
Questions: 6 to 8, 11 to 16, 20 and 21;
Q6 : What is accounting?
Accouting is an information system that measures, processes, and communicates
financial information about a business entity.
Q7: How do financial accounting and management accounting differ?
Dựa vào đối tượng hay mục đích, các đặc điểm của kế toán để phân thấy được sự khác
nhau giữa FA&MA.
Q8: What are five different groups of users of accounting information? Briefly describe the types
of decisions each group must make.
External Users(FA): - Investors
- Creditors
- Regulatory Agencies, Tax Authorities, Customers, etc.
Để đánh giá trình trạng hoạt động của DN.
Internal Users(MA): - Management
- Employee
 Để dự tính giá chi phí, giá thành sản phẩm trong sản xuất

➖ Brief Exercises: 1-3 to 1-5;


BE1.3: Assume that you are starting a new business. In which type of business activity will you
engage first? Identify the order in which the remaining two activities will occur.
Financing ActivitiesInvesting ActivitiesOperating Activities

BE1.4: List three examples of external users of accounting information.


• Investors
• Creditors
• Regulatory Agencies, Tax Authorities, Customers, etc.

BE1.5: State the accounting equation. What two distinct parts make up stockholders’ equity?
Accounting equation: Assets =Liabilities + Owners’ Equity
Two distinct parts make up stockholders’ equity: capital stock and retained earnings.

Exercises: 1-1, 1-8, 1-10, and 1-12;


E1.1:
___F____ 1. Issued shares of stock to each of the four owners.
___I____ 2. Purchased two limousines.
___O____ 3. Paid first month’s rent for use of garage.
___F____ 4. Obtained loan from local bank.
___O____ 5. Received cash from customer for trip to the airport.
__ O____ 6. Paid driver first week’s wages.
___I____ 7. Purchased 500-gallon fuel tank.

KẾ TOÁN TÀI CHÍNH1 1


E1.8:

Item Appears on the Classified as


Example: Cash BS A
1. Salaries expense IS E
2. Equipment BS A
3. Accounts payable BS L
4. Membership fees earned IS R
5. Capital stock BS SE
6. Accounts receivable BS A
7. Buildings BS A
8. Advertising expense IS E
9. Retained earnings IS SE

E1.10:
1. What is Prestige’s net income for the year?

Revenues
Landscaping revenues $ 25,000
Total revenues 25,000

Expenses
Rent expense $ 6,500
Salary and wage expense 12,000
Total Expenses 18,500
Net Income 6,500

2. What is Prestige’s Retained Earnings balance at the end of the year?


Retained Earnings= Net Income+ Retained earnings, beginning of year- Dividends paid
during the year
=6,500+8,500-3,000
=12,000

3. What is the total amount of Prestige’s assets at the end of the year?
= Accounts receivable+ Cash+ Office equipment
= 4,500+ 13,000+ 7,500
=25,000

4. What is the total amount of Prestige’s liabilities at the end of the year?
= Accounts payable
= 5,000
5. How much owners’ equity does Prestige have at the end of the year?
Owners’ equity= capital stock + retained earnings=8000+12000=$20,000

KẾ TOÁN TÀI CHÍNH1 2


6. What is Prestige’s accounting equation at the end of the year?
Assets =Liabilities + Owners’ Equity
25,000=5,000+20,000

Problems: 1-2A.

Inormationf User of the Information


Manager Stockholders Franchisor
1. Expected revenue from the new service a b c
2. Cost of the franchise fee and recurring fees to be paid b c a
to the franchisor
3. Cash available to Billings, the franchisee, to operate b c a
the business after the franchise is purchased
4. Expected overhead costs of the service outlet a b c
5. Billings’ required return on its investment a b c

a. Need to know b. Helpful to know c. Not necessary to know

Chapter 1 - Warren, C.S., Reeve, J.M., & Duchac, J.E. (2018):


➖ Discussion Questions: 5, 8, 9;
Q5 : On July 12, Reliable Repair Service extended an offer of $150,000 for land that had been
priced for sale at $185,000. On September 3, Reliable Repair Service accepted the seller’s
counteroffer of $167,500. Describe how Reliable Repair Service should record the land.
$167,500 should be recorded because that was the price paid.

Q8: A business had revenues of $679,000 and operating expenses of $588,000. Did the business
(a) incur a net loss or (b) realize net income?
The business realized net income of $91,000 ($679,000 - $588,000).

Q9: A business had revenues of $640,000 and operating expenses of $715,000. Did the business
(a) incur a net loss or (b) realize net income?
(a) The business incurred a net loss of $75,000 ($640,000 - $715,000).

➖ Practice Exercises: PE1-1A, PE1-1B, PE1-2A, PE1-2B, PE1-4A, PE1-4B


PE1-1A:
It would be $380,000 because under the cost concept, the land should be recorded at the
cost to Clairemont Repair Service

PE1-1B:
$437,500

PE1-2A:
[Link]=675,000-215,000=460,000
KẾ TOÁN TÀI CHÍNH1 3
[Link]=(112,300+675,000)-(215,000+32,000)=540,000

PE1-2B:
[Link]=395,000-97,000=298,000
[Link]=(395,000-65,000)-(97,000+36,000)=197,000

PE1-4A:
Income statement for the year ended April 30, 2019.

Doanh thu: $2,180,000


Chi phí 400,000+25,000+1,300,000=1,725,000
Lợi nhuận: 455,000

PE1-4B
Income statement for the year ended August 31, 2019.
Doanh thu: $750,000
Chi phí 295,000+ 12,000+ 450,000=757,000
Lợi nhuận: -7,000

➖ Exercises: EX1-11, EX1-14, EX1-16, EX1-17


EX1-11 :
Indicate whether each of the following types of transactions will either (a) increase owner’s
equity or (b) decrease owner’s equity:
1. expenses b
2. owner’s investments a
3. owner’s withdrawals b
4. revenues a

EX1-14
It would be incorrect to say that the business had incurred a net loss of $8,000.
The excess of the withdrawals over the net income for the period is a decrease in the amount of
owner’s equity in the business.

EX1-16, EX1-17:

1. Accounts Payable BS 6. Land BS


2. Accounts Receivable BS 7. Rent Expense IS
3. Andrew King, Capital BS 8. Supplies BS
4. Cash BS 9. Wages Expense IS
5. Fees Earned IS 10. Wages Payable IS

➖ Cases & Projects: CP 1-1; CP 1-2

KẾ TOÁN TÀI CHÍNH1 4


CP 1-1: 1. Is Marco behaving ethically? Why or why not?
No, Marco is not behaving ethically. Paying for car expense which is for his own purpose of
commuting cannot be recorded as an expense of company.
2,Who is affected by Marco’s decision?
Marco

3. What other alternatives might Marco consider?


Ứng tiền của công ty để sửa chữa

CP 1-2
1. Colleen did not behave in a professional manner since Colleen omitted some of the financial
statements.

2.a be willing to provide bankers : IS, BS


not be willing to provide: Proprietary Operating Information, Personal Financial Information
b. What types of information about a business would bankers want before extending a loan?
Bankers typically want as much information as possible about the ability of the business and the
owner to repay the loan with interest
c. What common interests are shared by bankers and business owners?
If the business is successful, the bankers will receive their loan payments on time with interest,
and the owners will increase their personal wealth

KẾ TOÁN TÀI CHÍNH1 5


KẾ TOÁN TÀI CHÍNH1 6

Common questions

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Financial accounting focuses on providing information to external users such as investors, creditors, and regulatory agencies to evaluate the operational status of a business entity. In contrast, management accounting is intended for internal users like management and employees, facilitating the planning and control of operational processes, such as cost prediction and product pricing .

The accounting equation, Assets = Liabilities + Owners’ Equity, illustrates that a company's resources are sourced from either debts owed to creditors (liabilities) or capital contributions and retained earnings owed to owners (equity). This equation ensures financial stability and a balanced perspective of a company's financial position .

Unethical behavior, such as misreporting expenses for personal gain, can damage a business's reputation, lead to financial losses, and undermine stakeholder trust. It can result in legal consequences and regulatory penalties, causing long-term harm to relationships with investors, creditors, employees, and customers .

Various groups rely on accounting information for critical decision-making: investors use it to assess company performance; creditors evaluate creditworthiness; regulatory agencies ensure compliance; and management uses it for budgeting and strategic planning. Each group utilizes financial details to support informed, strategic actions aligning with their objectives, such as investment returns for investors and cost control for management .

In starting a new business, the typical sequence of activities is Financing Activities, Investing Activities, and then Operating Activities. This order is logical because financing activities involve acquiring the necessary capital to invest in business assets, which are then used in daily operations to generate revenues .

Recording land at the purchase cost is crucial due to the cost principle, which mandates that assets should be recorded at their original purchase price rather than market value at any subsequent period. This principle ensures consistency and reliability in the financial statements, making them more credible and comparable over time .

Bankers require detailed financial information to assess the business's capacity to repay the loan, ensuring loan security. Both bankers and business owners share the mutual interest of the business's success; profitable operations enable timely loan repayments with interest, benefiting the bank, while boosting owners' equity and personal wealth .

Net income or loss is determined by subtracting operating expenses from revenues. If revenues exceed expenses, a company realizes net income. Conversely, if expenses surpass revenues, the business incurs a net loss. These fluctuations directly impact a company's financial health and decision-making strategies regarding future operations .

When accounting for an expense that includes personal use, a business should accurately report only the portion related to business operations, excluding personal expenditures. Such ethical accounting practices maintain financial statement integrity and external stakeholder trust. Decision-making requires consideration of potential repercussions on stakeholder relationships and legal compliance .

Net gains increase owners' equity as profits enhance retained earnings, while net losses reduce owners' equity by decreasing retained earnings or requiring additional capital input. Over time, consistent profits build wealth for owners, whereas sustained losses necessitate corrective financial strategies .

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