TEST BANK
Survey of Accounting, 17th edition
By Christopher Edmonds, Mark Edmonds
IM
PR
ES
SI
VE
G
R
AD
ES
, Table of Content
Chapter 1 An Introduction to Accounting
Chapter 2 Accounting for Accruals and Deferrals
Chapter 3 Accounting for Merchandising Businesses
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Chapter 4 Internal Controls, Accounting for Cash, and Ethics
Chapter 5 Accounting for Receivables and Inventory Cost Flow
PR
Chapter 6 Accounting for Long-Term Operational Assets
Chapter 7 Accounting for Liabilities
Chapter 8 Proprietorships, Partnerships, and Corporations
ES
Chapter 9 Financial Statement Analysis
Chapter 10 An Introduction to Management Accounting
Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis
SI
Chapter 12 Cost Accumulation, Tracing, and Allocation
Chapter 13 Relevant Information for Special Decisions
VE
Chapter 14 Planning for Profit and Cost Control
Chapter 15 Performance Evaluation
G
Chapter 16 Planning for Capital Investments
R
AD
ES
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Test Bank for
Survey of Accounting, 7th Edition by Edmonds, Olds
Chap 01 7e Edmonds
1) Which of the following groups has the primary responsibility for establishing generally
IM
accepted accounting principles for business entities in the United States?
A) Securities and Exchange Commission
B) U.S. Congress
C) International Accounting Standards Board
PR
D) Financial Accounting Standards Board
2) The Heritage Company is a manufacturer of office furniture. Which term best describes
Heritage's role in society?
ES
A) Business
B) Regulatory agency
C) Consumer
D) Resource owner
SI
3) Which resource providers lend financial resources to a business with the expectation of
repayment with interest?
VE
A) Consumers
B) Creditors
C) Investors
D) Owners
G
4) Which type of accounting information is intended to satisfy the needs of external users of
accounting information?
R
A) Cost accounting
B) Managerial accounting
AD
C) Tax accounting
D) Financial accounting
5) Which of the following is false regarding managerial accounting information?
ES
A) It is often used by investors.
B) It is more detailed than financial accounting information.
C) It can include nonfinancial information.
D) It focuses on divisional rather than overall profitability.
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6) Financial accounting standards are known collectively as GAAP. What does that acronym
stand for?
A) Generally Accepted Accounting Principles
B) Generally Applied Accounting Procedures
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C) Governmentally Approved Accounting Practices
D) Generally Authorized Auditing Principles
PR
7) International accounting standards are formulated by the IASB. What does that acronym
stand for?
A) Internationally Accepted Standards Board
B) International Accounting Standards Board
C) International Accountability Standards Bureau
ES
D) International Accounting and Sustainability Board
8) Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called Wooden
Wheels. Jack transferred $650,000 of the cash that he borrowed to the store on the first day
SI
of the year. How many reporting entities exist in this scenario?
A) One reporting entity
B) Two reporting entities
VE
C) Three reporting entities
D) Four reporting entities
G
R
AD
ES
wertyuiop
Survey of Accounting, 17th edition
By Christopher Edmonds, Mark Edmonds
IM
PR
ES
SI
VE
G
R
AD
ES
, Table of Content
Chapter 1 An Introduction to Accounting
Chapter 2 Accounting for Accruals and Deferrals
Chapter 3 Accounting for Merchandising Businesses
IM
Chapter 4 Internal Controls, Accounting for Cash, and Ethics
Chapter 5 Accounting for Receivables and Inventory Cost Flow
PR
Chapter 6 Accounting for Long-Term Operational Assets
Chapter 7 Accounting for Liabilities
Chapter 8 Proprietorships, Partnerships, and Corporations
ES
Chapter 9 Financial Statement Analysis
Chapter 10 An Introduction to Management Accounting
Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis
SI
Chapter 12 Cost Accumulation, Tracing, and Allocation
Chapter 13 Relevant Information for Special Decisions
VE
Chapter 14 Planning for Profit and Cost Control
Chapter 15 Performance Evaluation
G
Chapter 16 Planning for Capital Investments
R
AD
ES
, wertyuio
Test Bank for
Survey of Accounting, 7th Edition by Edmonds, Olds
Chap 01 7e Edmonds
1) Which of the following groups has the primary responsibility for establishing generally
IM
accepted accounting principles for business entities in the United States?
A) Securities and Exchange Commission
B) U.S. Congress
C) International Accounting Standards Board
PR
D) Financial Accounting Standards Board
2) The Heritage Company is a manufacturer of office furniture. Which term best describes
Heritage's role in society?
ES
A) Business
B) Regulatory agency
C) Consumer
D) Resource owner
SI
3) Which resource providers lend financial resources to a business with the expectation of
repayment with interest?
VE
A) Consumers
B) Creditors
C) Investors
D) Owners
G
4) Which type of accounting information is intended to satisfy the needs of external users of
accounting information?
R
A) Cost accounting
B) Managerial accounting
AD
C) Tax accounting
D) Financial accounting
5) Which of the following is false regarding managerial accounting information?
ES
A) It is often used by investors.
B) It is more detailed than financial accounting information.
C) It can include nonfinancial information.
D) It focuses on divisional rather than overall profitability.
wertyuiop
, wertyuio
6) Financial accounting standards are known collectively as GAAP. What does that acronym
stand for?
A) Generally Accepted Accounting Principles
B) Generally Applied Accounting Procedures
IM
C) Governmentally Approved Accounting Practices
D) Generally Authorized Auditing Principles
PR
7) International accounting standards are formulated by the IASB. What does that acronym
stand for?
A) Internationally Accepted Standards Board
B) International Accounting Standards Board
C) International Accountability Standards Bureau
ES
D) International Accounting and Sustainability Board
8) Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called Wooden
Wheels. Jack transferred $650,000 of the cash that he borrowed to the store on the first day
SI
of the year. How many reporting entities exist in this scenario?
A) One reporting entity
B) Two reporting entities
VE
C) Three reporting entities
D) Four reporting entities
G
R
AD
ES
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