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

Not for sale! Exclusive for Teachers only!

3
Not for sale! Exclusive for Teachers only!