TEST BANK
Accounting Principles
14th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1-27
SC
Course Resource
This complete test bank for Accounting Principles (14th Edition) by Jerry J. Weygandt, Paul
D. Kimmel, and Donald E. Kieso provides comprehensive exam-style questions covering all
27 chapters. It includes multiple-choice, true/false, and problem-based questions
O
designed to assess understanding of core financial and managerial accounting concepts.
Format: Test Bank
R
Edition: 14th edition
Coverage: Chapters 1-27
EM
© SCOREVAULT
AX
,TABLE OF CONTENT
1 Accounting in Action 1-1
2 The Recording Process 2-1
3 Adjusting the Accounts 3-1
4 Completing the Accounting Cycle 4-1
5 Accounting for Merchandising Operations 5-1
6 Inventories 6-1
7 Accounting Information Systems 7-1
8 Fraud, Internal Control, and Cash 8-1
SC
9 Accounting for Receivables 9-1
10 Plant Assets, Natural Resources, and Intangible Assets 10-
11 Current Liabilities and Payroll Accounting 11-1
12 Accounting for Partnerships 12-1
O
13 Corporations: Organization and Capital Stock Transactions 13-1
14 Corporations: Dividends, Retained Earnings, and Income Reporting 14-1
R
15 Long-Term Liabilities 15-1
16 Investments 16-1
EM
17 Statement of Cash Flows 17-1
18 Financial Analysis: The Big Picture 18-1
19 Managerial Accounting 19-1
AX
20 Job Order Costing 20-1
21 Process Costing 21-1
22 Cost-Volume-Profit 22-1
23 Incremental Analysis 23-1
24 Budgetary Planning 24-1
25 Budgetary Control and Responsibility Accounting 25-1
26 Standard Costs and Balanced Scorecard 26-1
27 Planning for Capital Investments 27-1
,Test Bank for Accounting Principles, 14th Edition by Jerry J. Weygandt, Paul D.
Kimmel
CHAPTER 1
ACCOUNTING IN ACTION
CHAPTER LEARNING OBJECTIVES
1. Identify the activities and users associated with accounting. Accounting is an information
system that identifies, records, and communicates the economic events of an organization to
interested users. The major users and uses of accounting are as follows: (a) Management
uses accounting information to plan, organize, and run the business. (b) Investors (owners)
decide whether to buy, hold, or sell their financial interests on the basis of accounting data. (c)
Creditors (suppliers and bankers) evaluate the risks of granting credit or lending money on
the basis of accounting information. Other groups that use accounting information are taxing
SC
authorities, regulatory agencies, customers, and labor unions.
2. Explain the building blocks of accounting: ethics, principles, and assumptions. Ethics
are the standards of conduct by which actions are judged as right or wrong. Effective financial
reporting depends on sound ethical behavior.
Generally accepted accounting principles are a common set of standards used by
accountants. The primary accounting standard-setting body in the United States is the
O
Financial Accounting Standards Board.
3. State the accounting equation, and define its components. The basic accounting
R
equation is:
Assets = Liabilities + Owner's Equity
EM
Assets are resources a business owns. Liabilities are creditorship claims on total assets.
Owner's equity is the ownership claim on total assets.
The expanded accounting equation is:
Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues -
Expenses
Investments by owners (assets the owner puts into the business) are recorded in a category
AX
called owner’s capital. Owner’s drawings are the withdrawal of assets by the owner for
personal use. Revenues are the gross increase in owner’s equity from business activities for
the purpose of earning income. Expenses are the costs of assets consumed or services used
in the process of earning revenue. Owner’s equity is increased by an owner’s investments
and by revenues from business operations. Owner’s equity is decreased by an owner’s
withdrawals of assets and by expenses.
4. Analyze the effects of business transactions on the accounting equation. Each business
transaction must have a dual effect on the accounting equation. For example, if an individual
asset increases, there must be a corresponding (1) decrease in another asset, or (2) increase
in a specific liability, or (3) increase in owner's equity.
5. Describe the four financial statements and how they are prepared. An income statement
presents the revenues and expenses, and resulting net income or net loss for a specific
period of time. An owner's equity statement summarizes the changes in owner's equity for a
specific period of time. A balance sheet reports the assets, liabilities, and owner's equity at a
specific date. A statement of cash flows summarizes information about the cash inflows
(receipts) and outflows (payments) for a specific period of time.
, 1-2 Test Bank for Accounting Principles, Fourteenth Edition
a
6. Explain the career opportunities in accounting. Accounting offers many different jobs in
fields such as public and private accounting, governmental, and forensic accounting.
Accounting is a popular major because there are many different types of jobs, with unlimited
potential for career advancement.
SC
O
R
EM
AX
Accounting Principles
14th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1-27
SC
Course Resource
This complete test bank for Accounting Principles (14th Edition) by Jerry J. Weygandt, Paul
D. Kimmel, and Donald E. Kieso provides comprehensive exam-style questions covering all
27 chapters. It includes multiple-choice, true/false, and problem-based questions
O
designed to assess understanding of core financial and managerial accounting concepts.
Format: Test Bank
R
Edition: 14th edition
Coverage: Chapters 1-27
EM
© SCOREVAULT
AX
,TABLE OF CONTENT
1 Accounting in Action 1-1
2 The Recording Process 2-1
3 Adjusting the Accounts 3-1
4 Completing the Accounting Cycle 4-1
5 Accounting for Merchandising Operations 5-1
6 Inventories 6-1
7 Accounting Information Systems 7-1
8 Fraud, Internal Control, and Cash 8-1
SC
9 Accounting for Receivables 9-1
10 Plant Assets, Natural Resources, and Intangible Assets 10-
11 Current Liabilities and Payroll Accounting 11-1
12 Accounting for Partnerships 12-1
O
13 Corporations: Organization and Capital Stock Transactions 13-1
14 Corporations: Dividends, Retained Earnings, and Income Reporting 14-1
R
15 Long-Term Liabilities 15-1
16 Investments 16-1
EM
17 Statement of Cash Flows 17-1
18 Financial Analysis: The Big Picture 18-1
19 Managerial Accounting 19-1
AX
20 Job Order Costing 20-1
21 Process Costing 21-1
22 Cost-Volume-Profit 22-1
23 Incremental Analysis 23-1
24 Budgetary Planning 24-1
25 Budgetary Control and Responsibility Accounting 25-1
26 Standard Costs and Balanced Scorecard 26-1
27 Planning for Capital Investments 27-1
,Test Bank for Accounting Principles, 14th Edition by Jerry J. Weygandt, Paul D.
Kimmel
CHAPTER 1
ACCOUNTING IN ACTION
CHAPTER LEARNING OBJECTIVES
1. Identify the activities and users associated with accounting. Accounting is an information
system that identifies, records, and communicates the economic events of an organization to
interested users. The major users and uses of accounting are as follows: (a) Management
uses accounting information to plan, organize, and run the business. (b) Investors (owners)
decide whether to buy, hold, or sell their financial interests on the basis of accounting data. (c)
Creditors (suppliers and bankers) evaluate the risks of granting credit or lending money on
the basis of accounting information. Other groups that use accounting information are taxing
SC
authorities, regulatory agencies, customers, and labor unions.
2. Explain the building blocks of accounting: ethics, principles, and assumptions. Ethics
are the standards of conduct by which actions are judged as right or wrong. Effective financial
reporting depends on sound ethical behavior.
Generally accepted accounting principles are a common set of standards used by
accountants. The primary accounting standard-setting body in the United States is the
O
Financial Accounting Standards Board.
3. State the accounting equation, and define its components. The basic accounting
R
equation is:
Assets = Liabilities + Owner's Equity
EM
Assets are resources a business owns. Liabilities are creditorship claims on total assets.
Owner's equity is the ownership claim on total assets.
The expanded accounting equation is:
Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues -
Expenses
Investments by owners (assets the owner puts into the business) are recorded in a category
AX
called owner’s capital. Owner’s drawings are the withdrawal of assets by the owner for
personal use. Revenues are the gross increase in owner’s equity from business activities for
the purpose of earning income. Expenses are the costs of assets consumed or services used
in the process of earning revenue. Owner’s equity is increased by an owner’s investments
and by revenues from business operations. Owner’s equity is decreased by an owner’s
withdrawals of assets and by expenses.
4. Analyze the effects of business transactions on the accounting equation. Each business
transaction must have a dual effect on the accounting equation. For example, if an individual
asset increases, there must be a corresponding (1) decrease in another asset, or (2) increase
in a specific liability, or (3) increase in owner's equity.
5. Describe the four financial statements and how they are prepared. An income statement
presents the revenues and expenses, and resulting net income or net loss for a specific
period of time. An owner's equity statement summarizes the changes in owner's equity for a
specific period of time. A balance sheet reports the assets, liabilities, and owner's equity at a
specific date. A statement of cash flows summarizes information about the cash inflows
(receipts) and outflows (payments) for a specific period of time.
, 1-2 Test Bank for Accounting Principles, Fourteenth Edition
a
6. Explain the career opportunities in accounting. Accounting offers many different jobs in
fields such as public and private accounting, governmental, and forensic accounting.
Accounting is a popular major because there are many different types of jobs, with unlimited
potential for career advancement.
SC
O
R
EM
AX
