TESTBANKFOR f f
Horngren'sAccounting,TheFinancialChapters,14theditionNobles
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Chapter 1-17 f
1
Copyright © 2024 PearsonEducation, Inc.
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,Horngren's Accounting:TheFinancial Chapters, 14e (Miller-Nobles)f f f f f f
Chapter F:1 AccountingandtheBusinessEnvironment
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Learning Objective F:1-1 f f
1) Accountingistheinformationsystemthatmeasuresbusinessactivities,processestheinformationinto
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reports, and communicates the results to decision makers.
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Answer: TRUE f
Diff: 1 f
LO: F:1-1
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AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
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H2 : Whyis AccountingImportant? (H1)
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2) Theknowledgeofaccountingisrarely usedtohelpmakebusinessandpersonalfinancialdecisions.
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Answer: FALSE
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Explanation: Theknowledgeofaccountingisuseddailytoassist inmakingdecisionsforbothbusinesses and
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personal items.
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Diff: 1 f
LO: F:1-1
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AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
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3) Accountingstartswitheconomicactivitiesthataccountantsreviewandevaluateusingcriticalthinking and
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judgment to create useful information that helps individuals make good decisions.
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Answer: TRUE f
Diff: 1 f
LO: F:1-1
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AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
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4) Accountingisreferredtoasthelanguageof business becauseitisthemethod ofcommunicating
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business information to decision makers.
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Answer: TRUE f
Diff: 1 f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
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2
Copyright © 2024 PearsonEducation, Inc. f f f f f
, 3
Copyright © 2024 PearsonEducation, Inc.
f f f f f
, 5) A model called the
f f f wascreatedtohelpstudentsandthepublicunderstandwhataccounting is.
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A) DecisionMaking Model f f
B) Business Model f
C) PathwaysVision Model f f
D) CostModel f
Answer: C
f f
Diff: 1
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LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
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6) The Pathways Vision Model emphasizesthat good decisions have an impact on
f f f f f f f f f f f .
A) accounting judgments and economic activity f f f f
B) accountingjudgments only f f
C) economic activity only f f
D) neither accounting judgments nor economic activity
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Answer: A
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Diff: 1 f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
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7) Managerial accounting focuses on providing information for external decision makers.
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Answer: FALSE
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Explanation: Managerial accountingfocuses onproviding information for internal decisionmakers.
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Diff: 1 f
LO: F:1-1
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AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2: Decision Makers: TheUsersofAccountingInformation
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8) Investorsprimarilyusemanagerialaccountinginformationfordecision-makingpurposes.
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Answer: FALSE
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Explanation: External users (investors) use financial accounting information.
f f f f f f f
Diff: 1 f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2: Decision Makers: TheUsersofAccountingInformation
f f f f f f f f
4
Copyright © 2024 PearsonEducation, Inc. f f f f f
Horngren'sAccounting,TheFinancialChapters,14theditionNobles
f f f f f f f
Chapter 1-17 f
1
Copyright © 2024 PearsonEducation, Inc.
f f f f f
,Horngren's Accounting:TheFinancial Chapters, 14e (Miller-Nobles)f f f f f f
Chapter F:1 AccountingandtheBusinessEnvironment
f f f f f
Learning Objective F:1-1 f f
1) Accountingistheinformationsystemthatmeasuresbusinessactivities,processestheinformationinto
f f f f f f f f f f f f
reports, and communicates the results to decision makers.
f f f f f f f f
Answer: TRUE f
Diff: 1 f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
f f f f f f f
2) Theknowledgeofaccountingisrarely usedtohelpmakebusinessandpersonalfinancialdecisions.
f f f f f f f f f f f f f f
Answer: FALSE
f f
Explanation: Theknowledgeofaccountingisuseddailytoassist inmakingdecisionsforbothbusinesses and
f f f f f f f f f f f f f f f f
personal items.
f f
Diff: 1 f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
f f f f f f f
3) Accountingstartswitheconomicactivitiesthataccountantsreviewandevaluateusingcriticalthinking and
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judgment to create useful information that helps individuals make good decisions.
f f f f f f f f f f f
Answer: TRUE f
Diff: 1 f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
f f f f f f f
4) Accountingisreferredtoasthelanguageof business becauseitisthemethod ofcommunicating
f f f f f f f f f f f f f f f
business information to decision makers.
f f f f f
Answer: TRUE f
Diff: 1 f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
f f f f f f f
2
Copyright © 2024 PearsonEducation, Inc. f f f f f
, 3
Copyright © 2024 PearsonEducation, Inc.
f f f f f
, 5) A model called the
f f f wascreatedtohelpstudentsandthepublicunderstandwhataccounting is.
f f f f f f f f f f f
A) DecisionMaking Model f f
B) Business Model f
C) PathwaysVision Model f f
D) CostModel f
Answer: C
f f
Diff: 1
f f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
f f f f f f f
6) The Pathways Vision Model emphasizesthat good decisions have an impact on
f f f f f f f f f f f .
A) accounting judgments and economic activity f f f f
B) accountingjudgments only f f
C) economic activity only f f
D) neither accounting judgments nor economic activity
f f f f f
Answer: A
f f
Diff: 1 f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2 : Whyis AccountingImportant? (H1)
f f f f f f f
7) Managerial accounting focuses on providing information for external decision makers.
f f f f f f f f f
Answer: FALSE
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Explanation: Managerial accountingfocuses onproviding information for internal decisionmakers.
f f f f f f f f f f f
Diff: 1 f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2: Decision Makers: TheUsersofAccountingInformation
f f f f f f f f
8) Investorsprimarilyusemanagerialaccountinginformationfordecision-makingpurposes.
f f f f f f f f
Answer: FALSE
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Explanation: External users (investors) use financial accounting information.
f f f f f f f
Diff: 1 f
LO: F:1-1
f f
AACSB: Applicationofknowledge f f f
AICPA Functional: Measurement
f f f
PE Question Type: Concept
f f f f
H2: Decision Makers: TheUsersofAccountingInformation
f f f f f f f f
4
Copyright © 2024 PearsonEducation, Inc. f f f f f
