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Full Download Fundamentals of Financial Accounting Canadian Canadian 4th Edition Phillips Solutions Manual
Full Download Fundamentals of Financial Accounting Canadian Canadian 4th Edition Phillips Solutions Manual
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adian-4th-edition-phillips-solutions-manual/
Chapter 2
The Balance Sheet
ANSWERS TO QUESTIONS
(b) A current asset is an asset that will be used up or turned into cash within
the next 12 months.
(d) A current liability is a debt or obligation that will be paid, settled, or fulfilled
within one year.
(e) Contributed Capital includes the amount of financing (cash and sometimes
other assets) provided to the company by shareholders in exchange for
shares.
(f) Retained earnings are the cumulative earnings of a company that are not
distributed to the owners and instead are reinvested in the business.
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.
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 shareholders’ equity.
A credit is the opposite – a decrease in assets or an increase in liabilities or
shareholders’ equity.
10. The cost principle requires that assets and liabilities be recorded at their original
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).
12. Transaction analysis is expected to be relatively more important under IFRS than
ASPE. IFRS have fewer detailed rules, which increases the importance of
analyzing transactions to determine their appropriate treatment. However ASPE
is also principle based and therefore transaction analysis should not be ignored
when using ASPE.
Skills Continuing
Mini-exercises Exercises Problems Development Case
Cases*
No. Time No. Time No. Time No. Time No. Time
1 3 1 6 CP2-1 45 1 15 1 30
2 3 2 10 CP2-2 50 2 15
3 3 3 5 CP2-3 50 3 45
4 3 4 5 PA2-1 45 4 20
5 4 5 3 PA2-2 50 5 20
6 4 6 5 PA2-3 45 6 10
7 3 7 3 PA2-4 50 7 35
8 3 8 10 PA2-5 50
9 5 9 20 PB2-1 45
10 6 10 15 PB2-2 50
11 6 11 25 PB2-3 45
12 6 12 15 PB2-4 50
13 6 13 25 PB2-5 50
14 6 14 10
15 6 15 15
16 6 16 25
17 6
18 6
19 6
20 6
21 15
22 10
23 3
24 8
* 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 below.
Attest, B. Thurston, C. S.
Washington’s Farewell Address to the People
of the United States, Sept. 17, 1796.
Accepted as a Platform for the People of the Nation, regardless of
party.
George Washington.
1801–1811.—No Platforms.
No Federal Platform.
Clintonian Platform.
Philadelphia, September.
Resolved, That it is recommended to the people of the United
States, opposed to secret societies, to meet in convention on Monday,
the 26th day of September, 1831, at the city of Baltimore, by
delegates equal in number to their representatives in both Houses of
Congress, to make nominations of suitable candidates for the offices
of President and Vice-President, to be supported at the next election,
and for the transaction of such other business as the cause of Anti-
Masonry may require.
1832.—National Democratic Platform,
adopted at a ratification Meeting,
1836.—“Locofoco” Platform,
1836.—Whig Resolutions,
Abolition Platforms.
1840.—Democratic Platform,
Baltimore, May 5.
Resolved, That the Federal government is one of limited powers,
derived solely from the constitution, and the grants of power shown
therein ought to be strictly construed by all the departments and
agents of the government, and that it is inexpedient and dangerous
to exercise doubtful constitutional powers.
2. Resolved, That the constitution does not confer upon the
general government the power to commence and carry on a general
system of internal improvements.
3. Resolved, That the constitution does not confer authority upon
the Federal government, directly or indirectly, to assume the debts of
the several states, contracted for local internal improvements or
other state purposes; nor would such assumption be just or
expedient.
4. Resolved, That justice and sound policy forbid the Federal
government to foster one branch of industry to the detriment of
another, or to cherish the interests of one portion to the injury of
another portion of our common country—that every citizen and every
section of the country has a right to demand and insist upon an
equality of rights and privileges, and to complete and ample
protection of persons and property from domestic violence or foreign
aggression.
5. Resolved, That it is the duty of every branch of the government
to enforce and practice the most rigid economy in conducting our
public affairs, and that no more revenue ought to be raised than is
required to defray the necessary expenses of the government.
6. Resolved, That Congress has no power to charter a United
States bank; that we believe such an institution one of deadly
hostility to the best interests of the country, dangerous to our
republican institutions and the liberties of the people, and calculated
to place the business of the country within the control of a
concentrated money power, and above the laws and the will of the
people.
7. Resolved, That Congress has no power under the constitution, to
interfere with or control the domestic institutions of the several
states; and that such states are the sole and proper judges of
everything pertaining to their own affairs, not prohibited by the
constitution; that all efforts, by Abolitionists or others, made to
induce Congress to interfere with questions of slavery, or to take
incipient steps in relation thereto, are calculated to lead to the most
alarming and dangerous consequences, and that all such efforts have
an inevitable tendency to diminish the happiness of the people, and
endanger the stability and permanence of the Union, and ought not
to be countenanced by any friend to our political institutions.