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BASIC ACCOUNTING 4TH EDITION Suggested Solution (by: Valencia and Roxas) Chapter 1: Introduction to Accounting
Not for sale! Exclusive for Teachers only! Problem 1-1 1. True 2. False – clay tablet. 3. False – T-account or ledger. 4. True 5. False – journal book. 6. True 7. False – Luca Pacioli who is known as the father of modern accounting because of his Summa de Arithmetica. 8. False – French Revolution 9. True 10. False, schmalenbach utilized price level accounting to make the accounting report more relevant and reliable. 11. True 12. True 13. True 14. False – price level accounting is synonymous with inflation accounting. 15. True Problem 1-2 1. False – Savary Code uses historical cost while Napoleonic Code uses market value. 2. True 3. True 4. False – Accountants. 5. True 6. True 7. True 8. False – accounting is also a product of socio-cultural conditions. 9. False – micro-user oriented accounting. 10. True 11. True 12. True 13. False – it is the ASC that was replaced by FRSC. 14. False – BIR 15. True Problem 1-3 1. False – the T-account is a simplified Ledger. 2. True 3. False – Italian monk and a mathematician, not a CPA. 4. True 5. False – Britain 6. True 7. False – Although they use the same global accounting standards, no accounting system is exactly alike among countries. 8. True 9. True 10. False, in offering his services to the public, he is in public practice. 11. True 12. False – single entry is also used 13. False – this refers to SEC. 14. True 15. False – Savary Code uses historical cost while Napoleonic Code uses market value.
1 Not for sale! Exclusive for Teachers only!
BASIC ACCOUNTING 4TH EDITION Suggested Solution (by: Valencia and Roxas) Chapter 1: Introduction to Accounting
Not for sale! Exclusive for Teachers only!
Problem 1-4 1. D 2. E 3. N 4. C 5. F 6. I 7. B 8. M 9. G 10. A 11. O 12. H Problem 1-5 1. C 2. B 3. A 4. B 5. A 6. B 7. C 8. D 9. C 10. A 11. B 12. D Problem 1-6 1. D 2. A 3. B 4. B 5. A 6. A 7. C 8. A 9. D 10. B 11. C 12. B Problem 1-7 1. C 2. C 3. B 4. A 5. D 6. A 7. C 8. B 9. D 10. C
2 Not for sale! Exclusive for Teachers only!
BASIC ACCOUNTING 4TH EDITION Suggested Solution (by: Valencia and Roxas) Chapter 1: Introduction to Accounting
