Chapter 3 Solutions

Chapter 3 Solutions - CHAPTER 3 The Accounting Information...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
3-1 CHAPTER 3 The Accounting Information System Study Objectives 1. Analyze the effect of business transactions on the basic accounting equation. 2. Explain what an account is and how it helps in the recording process. 3. Define debits and credits and explain how they are used to record business transactions. 4. Identify the basic steps in the recording process. 5. Explain what a journal is and how it helps in the recording process. 6. Explain what a ledger is and how it helps in the recording process. 7. Explain what posting is and how it helps in the recording process. 8. Explain the purpose of a trail balance. Summary of Questions by Study Objectives and Bloom’s Taxonomy Item Item Item Questions 1. 4 C 6. 3 C 10. 3 K 14. 4 K 18. 6 C 2. 1 C 7. 3 C 11. 3 K 15. 5 K 19. 8 C 3. 1 C 8. 3 C 12. 3 K 16. 5 K 20. 7 K 4. 1 K 9. 3 K 13. 3 K 17. 5 AP 21. 8 AN 5. 2 K Brief Exercises 1. 1 C 4. 3 K 7. 4 C 9. 5 AP 11. 8 AP 2. 1 AP 5. 3 C 8. 4 C 10. 7 AP 12. 8 AP 3. 1 AP 6. 5 AP Exercises 1. 1 C 5. 1 AP 8. 5 AP 11. 5, 8 AP 14. 8 AN 2. 1 AP 6. 3, 5 AP 9. 7, 8 AP 12. 7, 8 AP 15. 8 AP 3. 1 AP 7. 3 C 10. 13. 5, 8 AP 16. 3 K 4. 1 AP 1, 5, 7 AP Problems: Set A 1. 1 AP 5. 6. 7. 8 AN 9. 8 AN 2. 1 AP 8. 3. 1 AP 3, 5, 6, 7, 8 AP 3, 5, 6, 7, 8 AP 4. 3, 5 AP 3, 5, 6, 7, 8 AP Problems: Set B 1. 1 AP 5. 6. 7. 8 AN 9. 8 AN 2. 1 AP 8. 3. 1 AP 3, 5, 6, 7, 8 AP 3, 5, 6, 7, 8 AP 4. 3, 5 AP 3, 5, 6, 7, 8 AP
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
3-2 ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Difficulty Level Time Allotted (min.) 1A Analyze transactions and compute net income. Moderate 40–50 2A Analyze transactions and prepare financial statements. Moderate 40–50 3A Analyze transactions and prepare an income statement, retained earnings statement, and balance sheet. Moderate 50–60 4A Journalize a series of transactions. Simple 20–30 5A Journalize transactions, post, and prepare a trial balance. Simple 30–40 6A Journalize transactions, post, and prepare a trial balance. Moderate 40–50 7A Prepare a correct trial balance. Moderate 30–40 8A Journalize transactions, post, and prepare a trial balance. Moderate 40–50 9A Analyze errors and their effects on the trial balance Moderate 30–40 1B Analyze transactions and compute net income. Moderate 40–50 2B Analyze transactions and prepare financial statements. Moderate 40–50 3B Analyze transactions and prepare an income statement, retained earnings statement, and balance sheet. Moderate 50–60 4B Journalize a series of transactions. Simple 20–30 5B Journalize transactions, post, and prepare a trial balance. Simple 30–40 6B Journalize transactions, post, and prepare a trial balance. Moderate 40–50 7B Prepare a correct trial balance. Moderate 30–40 8B Journalize transactions, post, and prepare a trial balance. Moderate 40–50 9B Analyze errors and their effects on the trial balance. Moderate 30–40
Image of page 2
3-3 ANSWERS TO QUESTIONS 1. The system of collecting and processing transaction data and communicating financial informa- tion to decision makers is known as the accounting information system. The basic steps in the recording process are: (1) Analyze each transaction in terms of its effect on the accounts (2) Enter
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern