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Solution Manual For Fundamental Financial Accounting Concepts 8th Edition by Edmonds ISBN 0078025362 9780078025365
Solution Manual For Fundamental Financial Accounting Concepts 8th Edition by Edmonds ISBN 0078025362 9780078025365
Solution Manual For Fundamental Financial Accounting Concepts 8th Edition by Edmonds ISBN 0078025362 9780078025365
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concepts-8th-edition-by-edmonds-isbn-0078025362-9780078025365/
2-2
Chapter 02 - Accounting for Accruals and Deferrals
12. Unearned revenue is cash that has been collected for services that
have not yet been performed.
2-3
Chapter 02 - Accounting for Accruals and Deferrals
16. Expenses are recognized under accrual accounting at the time the
expense is incurred or resources are consumed, regardless of when
cash payment is made.
17. Net cash flows from operations on the cash flow statement may be
different from net income because of the application of accrual
accounting. Revenues and expenses reported on the income
statement may be recognized before or after the actual collection or
payment of cash that is reported on the cash flow statement.
18. The income statement reflects the change in net assets associated
with operating a business, as shown by revenues and expenses.
Expenses may result from a decrease in assets or an increase in
liabilities. Revenues may result from an increase in assets or a
decrease in liabilities.
20. A cost can be either an asset or an expense. If the item acquired has
already been used in the process of earning revenue, its cost
represents an expense. If the item will be used in the future to
generate revenue, its cost represents an asset.
21. A cost is held in the asset account until the item is used to produce
revenue. When the revenue is generated, the asset is converted into
an expense in order to match revenues with related expenses. Not all
costs become expenses. If the value of an asset will not expire in the
revenue-generating process, the asset will not become an expense.
For example, the cost of land will not become an expense.
2-4
Chapter 02 - Accounting for Accruals and Deferrals
28. Assets are listed on the balance sheet in accordance with their
respective levels of liquidity (how rapidly they can be converted to
cash).
29. The statement of cash flows explains the change in cash from one
accounting period to the next. It is prepared by analyzing the cash
account and summarizing where cash came from and how it was
used.
2-5
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According to the rival view of this subject, we must not assume, and
cannot establish, that the plan of all animals is the same, or their
composition similar. The existence of a single and universal system of
analogies in the construction of all animals is entirely unproved, and
therefore cannot be made our guide in the study of their properties. On
the other hand, the plan of the animal, the purpose of its organization in
the support of its life, the necessity of the functions to its existence, are
truths which are irresistibly apparent, and which may therefore be safely
taken as the bases of our reasonings. This view has been put forward as
the doctrine of the conditions of existence: it may also be described as
the principle of a purpose in organization; the structure being considered
as having the function for its end. We must say a few words on each of
these views.
It had been pointed out by Cuvier, as we have seen in the last chapter,
that the animal kingdom may be divided into four great branches; in each
of which the plan of the animal is different, namely, vertebrata,
articulata, mollusca, radiata. Now the question naturally occurs, is there
really no resemblance of construction in these different classes? It was
maintained by some, that there is such a resemblance. In 1820, 105 M.
Audouin, a young naturalist of Paris, 484 endeavored to fill up the chasm
which separates insects from other animals; and by examining carefully
the portions which compose the solid frame-work of insects, and
following them through their various transformations in different classes,
he conceived that he found relations of position and function, and often
of number and form, which might be compared with the relations of the
parts of the skeleton in vertebrate animals. He thought that the first
segment of an insect, the head, 106 represents one of the three vertebræ
which, according to Spix and others, compose the vertebrate head: the
second segment of the insects, (the prothorax of Audouin,) is, according
to M. Geoffroy, the second vertebra of the head of the vertebrata, and so
on. Upon this speculation Cuvier 107 does not give any decided opinion;
observing only, that even if false, it leads to active thought and useful
research.
105
Cuv. Hist. Sc. Nat. iii. 422.
106
Ib. 437.
107
Cuv. Hist. Sc. Nat. iii. 441.
But when an attempt was further made to identify the plan of another
branch of the animal world, the mollusca, with that of the vertebrata, the
radical opposition between such views and those of Cuvier, broke out
into an animated controversy.
109
Geoffroy Saint-Hilaire, Principes de Phil. Zoologique discutés en 1830,
p. 55.
But still, though this organization, in the abundance and diversity of its
parts, approaches that of vertebrate animals, it had not been considered
as composed in the same manner, or arranged in the same order, Cuvier
had always maintained that the plan of molluscs is not a continuation of
the plan of vertebrates. 485
MM. Laurencet and Meyranx, on the contrary, conceived that the sepia
might be reduced to the type of a vertebrate creature, by considering the
back-bone of the latter bent double backwards, so as to bring the root of
the tail to the nape of the neck; the parts thus brought into contact being
supposed to coalesce. By this mode of conception, these anatomists held
that the viscera were placed in the same connexion as in the vertebrate
type, and the functions exercised in an analogous manner.
111
p. 50.
The character and tendency of this philosophy will be, I think, 486
much more clear, if we consider what it excludes and denies. It rejects
altogether all conception of a plan and purpose in the organs of animals,
as a principle which has determined their forms, or can be of use in
directing our reasonings. “I take care,” says Geoffroy, “not to ascribe to
God any intention.” 113 And when Cuvier speaks of the combination of
organs in such order that they may be in consistence with the part which
the animal has to play in nature; his rival rejoins, 114 I “know nothing of
animals which have to play a part in nature.” Such a notion is, he holds,
unphilosophical and dangerous. It is an abuse of final causes which
makes the cause to be engendered by the effect. And to illustrate still
further his own view, he says, “I have read concerning fishes, that
because they live in a medium which resists more than air, their motive
forces are calculated so as to give them the power of progression under
those circumstances. By this mode of reasoning, you would say of a man
who makes use of crutches, that he was originally destined to the
misfortune of having a leg paralysed or amputated.”
113
“Je me garde de prêter à Dieu aucune intention.” Phil. Zool. 10.
114
“Je ne connais point d’animal qui jouer un rôle dans la nature.” p.
65.
116
It is hardly worth while answering such illustrations, but I may remark,
that the one quoted above, irrelevant and unbecoming as it is, tells altogether
against its author. The fact that the wooden leg is of the same length as the
other, proves, and would satisfy the most incredulous man, that it was
intended for walking.
I am not going to enter at any length into this subject, which, thus
considered, is metaphysical and theological, rather than physiological. If
any one maintain, as some have maintained, that no manifestation of
means apparently used for ends in nature, can prove the existence of
design in the Author of nature, this is not the place to refute such an
opinion in its general form. But I think it may be worth while to show,
that even those who incline to such an opinion, still cannot resist the
necessity which compels men to assume, in organized beings, the
existence of an end.
Even if the reader should not follow the reasoning of this celebrated
philosopher, he will still have no difficulty in seeing that he asserts, in
the most distinct manner, that which is denied by the author whom we
have before quoted, the propriety and necessity of assuming the
existence of an end as our guide in the study of animal organization.
Such have been some of the results of the principle of the Conditions
of Existence, as applied by its great assertor.
It is clear, indeed, that such a principle could acquire its practical value
only in the hands of a person intimately acquainted with anatomical
details, with the functions of the organs, and with their variety in
different animals. It is only by means of such nutriment that the embryo
truth could be developed into a vast tree of science. But it is not the less
clear, that Cuvier’s immense knowledge and great powers of thought led
to their results, only by being employed under the guidance of this
master-principle: and, therefore, we may justly consider it as the
distinctive feature of his speculations, and follow it with a gratified eye,
as the thread of gold which runs through, connects, and enriches his
zoological researches:—gives them a deeper interest and a higher value
than can belong to any view of the organical sciences, in which the very
essence of organization is kept out of sight. 495
The real philosopher, who knows that all the kinds of truth are
intimately connected, and that all the best hopes and encouragements
which are granted to our nature must be consistent with truth, will be
satisfied and confirmed, rather than surprised and disturbed, thus to find
the Natural Sciences leading him to the borders of a higher region. To
him it will appear natural and reasonable, that after journeying so long
among the beautiful and orderly laws by which the universe is governed,
we find ourselves at last approaching to a Source of order and law, and
intellectual beauty:—that, after venturing into the region of life and
feeling and will, we are led to believe the Fountain of life and will not to
be itself unintelligent and dead, but to be a living Mind, a Power which
aims as well as acts. To us this doctrine appears like the natural cadence
of the tones to which we have so long been listening; and without such a
final strain our ears would have been left craving and unsatisfied. We
have been lingering long amid the harmonies of law and symmetry,
constancy and development; and these notes, though their music was
sweet and deep, must too often have sounded to the ear of our moral
nature, as vague and unmeaning melodies, floating in the air around us,
but conveying no definite thought, moulded into no intelligible
announcement. But one passage which we have again and again caught
by snatches, though sometimes interrupted and lost, at last swells in our
ears full, clear, and decided; and the religious “Hymn in honor of the
Creator,” to which Galen so gladly lent his voice, and in which the best
physiologists of succeeding times have ever joined, is filled into a richer
and deeper harmony by the greatest philosophers of these later days, and
will roll on hereafter the “perpetual song” of the temple of science.
T H E PA L Æ T I O L O G I C A L S C I E N C E S .
HISTORY OF GEOLOGY.
Di quibus imperium est animarum, Umbræque silentes,
Et Chaos, et Phlegethon, loca nocte silentia late,
Sit mihi fas audita loqui; sit, numine vestro
Pandere res alta terrâ et caligine mersas.
W E now approach the last Class of Sciences which enter into the
design of the present work; and of these, Geology is the
representative, whose history we shall therefore briefly follow. By the
Class of Sciences to which I have referred it, I mean to point out those
researches in which the object is, to ascend from the present state of
things to a more ancient condition, from which the present is derived by
intelligible causes.
2
Πάλαι, αἰτία
But, wide as is the view which such considerations give us of the class
of sciences to which geology belongs, they extend still further. “The
science of the changes which have taken place in the organic kingdoms
of nature,” (such is the description which has been given of Geology, 3 )
may, by following another set of connexions, be extended beyond “the
modifications of the surface of our own planet.” For we cannot doubt
that some resemblance of a closer or looser kind, has obtained between
the changes and causes of change, on other bodies of the universe, and
on our own. The appearances of something of the kind of volcanic action
on the surface of the moon, are not to be mistaken. And the inquiries
concerning the origin of our planet and of our solar system, inquiries to
which Geology irresistibly impels her students, direct us to ask what
information the rest of the universe can supply, bearing upon this subject.
It has been thought by some, that we can trace systems, more or less like
our solar system, in the process of formation; the nebulous matter, which
is at first expansive and attenuated, condensing gradually into suns and
planets. Whether this Nebular Hypothesis be tenable or not, I shall not
here inquire; but the discussion of such a question would be closely
connected with 502 geology, both in its interests and in its methods. If
men are ever able to frame a science of the past changes by which the
universe has been brought into its present condition, this science will be
properly described as Cosmical Palætiology.
3
Lyell, Principles of Geology, p. 1.
P S D G
Agreeably to the order already pointed out, I shall notice, in the first
place, Phenomenal Geology, or the description of the facts, as distinct
from the inquiry into their causes. It is manifest that such a merely
descriptive kind of knowledge may exist; and it probably will not be
contested, that such knowledge ought to be collected, before we attempt
to frame theories concerning the causes of the phenomena. But it must be
observed, that we are here speaking of the formation of a science; and
that it is not a collection of miscellaneous, unconnected, unarranged
knowledge that can be considered as constituting science; but a
methodical, coherent, and, as far as possible, complete body of facts,
exhibiting fully the condition of the earth as regards those circumstances
which are the subject matter of geological speculation. Such a
Descriptive Geology is a pre-requisite to Physical Geology, just as
Phenomenal Astronomy necessarily preceded Physical Astronomy, or as
Classificatory Botany is a necessary accompaniment to Botanical
Physiology. We may observe also that Descriptive Geology, such as we
now speak of, is one of the classificatory sciences, like 506 Mineralogy or
Botany: and will be found to exhibit some of the features of that class of
sciences.
6
ii. 12.
7
Met. xv. 262.
We may remark here already how generally there are mingled with
descriptive notices of such geological facts, speculations concerning
their causes. Herodotus refers to the circumstance just quoted, for the
purpose of showing that Egypt was formerly a gulf of the sea; and the
passage of the Roman poet is part of a series of exemplifications which
he gives of the philosophical tenet, that nothing perishes but everything
changes. It will be only by constant attention that we shall be able to
keep our provinces of geology distinct.
The study of organic fossils was first pursued with connexion and
system in Italy. The hills which on each side skirt the mountain-range of
the Apennines are singularly rich in remains of marine animals. When
these remarkable objects drew the attention of thoughtful men,
controversies soon arose whether they really were the remains of living
creatures, or the productions of some capricious or mysterious power by
which the forms of such creatures were mimicked; and again, if the
shells were really the spoils of the sea, whether they had been carried to
the hills by the deluge of which the Scripture speaks, or whether they
indicated revolutions of the earth of a different kind. The earlier works
which contain the descriptions of the phenomena have, in almost all
instances, by far the greater part of their pages occupied with these
speculations; indeed, the facts could not be studied without leading to
such inferences, and would not have been collected but for the interest
which such reasonings possessed. As one of the first persons who
applied a sound and vigorous intellect to these subjects, we may notice
the celebrated painter Leonardo da Vinci, whom we have already had to
refer to as one of the founders of the modern mechanical sciences. He
strenuously asserts the contents of the rocks to be real shells, and
maintains the reality of the changes of the domain of land and sea which
these spoils of the ocean imply. “You will tell me,” he says, “that nature
and the influence of the stars have formed these shelly forms in the