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Financial Accounting Full Test Bank – Chapters 1 to 16 Instructor Resource

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This comprehensive Chapters 1–16 Test Bank for Financial Accounting provides a full set of questions, exercises, and problem-solving opportunities for students and instructors across all major topics of the course. Each chapter includes multiple-choice questions, true/false statements, short-answer problems, and scenario-based exercises designed to cover key concepts thoroughly. Topics include: Chapter 1: The Operations Function – Role of accounting in operations and decision-making. Chapter 2: Recording Financial Transactions – Journals, ledgers, and trial balances. Chapter 3: Adjusting Entries and Financial Statements – Accruals, deferrals, and reporting. Chapter 4: Merchandising Operations – Inventory systems, revenue recognition, and cost of goods sold. Chapter 5: Internal Control and Cash – Controls, cash management, and bank reconciliations. Chapter 6: Receivables – Accounts receivable management and allowances. Chapter 7: Inventory – Inventory valuation, lower of cost or market, and costing methods. Chapter 8: Property, Plant, and Equipment – Depreciation, acquisition, and disposal. Chapter 9: Liabilities – Current and long-term obligations. Chapter 10: Stockholders’ Equity – Issuance of shares, dividends, and retained earnings. Chapter 11: Investments – Accounting for bonds and equity securities. Chapter 12: Revenue Recognition – Revenue measurement and reporting issues. Chapter 13: Expenses and Profit Measurement – Matching principle and expense recognition. Chapter 14: Statement of Cash Flows – Operating, investing, and financing activities. Chapter 15: Financial Statement Analysis – Ratios, trends, and decision-making tools. Chapter 16: Accounting for Partnerships – Formation, operations, and dissolution. This test bank is ideal for reinforcing classroom learning, preparing for quizzes, exams, and real-world applications. Students can identify knowledge gaps, strengthen problem-solving skills, and gain confidence in applying financial accounting principles. Instructors can use it for assessment, homework, or review purposes.

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Chapter 01 - The Operations Function


Chapter 1
The Operations Function

Multiple Choice Questions



1. Why is operations management a more encompassing term than production
management?
A. Operations management is concerned with multiple products and services
B. Operations management refers to service as well as manufacturing organizations
C. Operations management is broader including the financing and marketing functions
D. Operations management makes use of the tools of quantitative analysis and computer
systems



2. Which of the following functions is responsible for the actual movement of goods
and/or services across organizations?
A. Logistics
B. Operations
C. Purchasing
D. None of these



3. Approximately, what percentage of the American workforce works in service
industries?
A. 20%
B. 40%
C. 80%
D. 90%



4. The four decision areas in operations management are:
A. Planning, technology, inventory, and control
B. Process, quality, capacity, and inventory
C. Process, quality, technology, and capacity
D. None of these

,Chapter 01 - The Operations Function




5. A productive systems approach:
A. Views operations as a separate organizational function
B. Must provide feedback information for control of process inputs and technology
C. Is of limited use in service organizations
D. Disregards human and social concerns



6. Capacity decisions:
A. Include staffing and scheduling
B. Include inventory control
C. Include defining product specifications
D. None of these



7. Inventory decisions involve:
A. Determining what to order, how much to order, and when to order
B. Tracking the flow of materials
C. Managing the finished goods inventories
D. All of these



8. The contemporary operations themes signify that:
A. More emphasis should be placed on manufacturing than on service industries
B. Every operation should be externally directed to meet the customers' requirements
C. Operations decisions should precede decisions in other functions in an organization
D. To be competitive, strategies for operations should exclude broader supply chain issues



9. The essence of operations management can be described by:
A. Process, capacity, and people
B. Decisions, function, and process
C. Planning, control, and organization
D. Integrated planning and control

,Chapter 01 - The Operations Function




10. Which of the following is not a contemporary theme in operations?
A. Globalization of Operations
B. Lean Operations
C. Quality Teams
D. Environmental Concerns and Sustainability



11. The three primary functions that exist in most business organizations are:
A. Operations, accounting, and finance
B. Operations, production, and finance
C. Production, marketing, and human resources
D. Operations, finance, and marketing



12. The three major functions of business organizations:
A. Are mutually exclusive
B. Function independently of each other
C. Interface with each other
D. Do not interface with each other



13. Which one of the following would not generally be classified as an input in a
university system?
A. Staff
B. Facilities
C. Knowledge
D. Research



14. The four major decision responsibilities of operations management are:
A. Process, quality, capacity, and human resources
B. Process, quality, human resources, and inventory
C. Quality, inventory, human resources, and capacity
D. Process, capacity, quality, and inventory

, Chapter 01 - The Operations Function



15. Which of the following is not in the process category of the operations decision
framework?
A. Layout of the facility
B. Job design
C. The type of equipment and technology
D. Product or service inspection



16. Supply chain management includes the integration of:
A. Suppliers
B. Manufacturers
C. Customers
D. All of the above



17. The supply chain extends from:
A. Supplier to manufacturing
B. Supplier to supplier
C. Dealer to customer
D. Supplier to customer



18. Supply chain management includes all of the following except:
A. Purchasing
B. Inventory control
C. Advertising
D. Customer service



19. A comprehensive decision-making framework for operations includes:
A. Consideration of other organizational functions
B. Consideration of operations in isolation of other functions
C. Suppliers but not customers
D. Customers but not suppliers
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