?
A?
VI
TU
_S
ED
OV
PR
AP
,AP
TABLE OF CONTENTS
Solutions Manual: Principles of Accounting, Volume 1: Financial Accounting, 1st Edition
PR By Mitchell Franklin, Patty Graybeal, and Dixon Cooper
Chapter 1 OVRole of Accounting in Society
Chapter 2 Introduction to Financial Statements
Chapter 3 Analyzing and Recording Transactions
Chapter 4 The Adjustment Process
ED
Chapter 5 Completing the Accounting Cycle
Chapter 6 Merchandising Transactions
Chapter 7 Accounting Information Systems
Chapter 8
_S
Fraud, Internal Controls, and Cash
Chapter 9 Accounting for Receivables TU
Chapter 10 Inventory
Chapter 11 Long-Term Assets
Chapter 12 Current Liabilities
Chapter 13 Long-Term Liabilities
VI
Chapter 14 Corporation Accounting
Chapter 15 Partnership Accounting
A?
Chapter 16 Statement of Cash Flows
?
1
,Solutions Manual for Principles Of Accounting (Volume 1) Financial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 1: Financial Accounting
Chapter 1: Role of Accounting in Society
AP
Principles of Accounting, Volume 1: Financial Accounting
PR Chapter 1: Role of Accounting in Society
Multiple Choice
1. LO 1.1 Accounting is sometimes called the “language of .”
A. Wall Street
B. business
C. Main Street
OV
D. financial statements
Solution
B
ED
2. LO 1.2 Financial accounting information .
A. should be incomplete in order to confuse competitors
B. should be prepared differently by each company
C. provides investors guarantees about the future
D. summarizes what has already occurred
Solution
_S
D
3. LO 1.2 External users of financial accounting information include all of the following except
.
A. lenders such as bankers
TU
B. governmental agencies such as the IRS
C. employees of a business
D. potential investors VI
Solution
C
4. LO 1.2 Which of the following groups would have access to managerial accounting
information?
A. bankers
B. investors
A?
C. competitors of the business
D. managers ?
Solution
D
5. LO 1.2 All of the following are examples of managerial accounting activities except
.
A. preparing external financial statements in compliance with GAAP
B. deciding whether or not to use automation
C. making equipment repair or replacement decisions
D. measuring costs of production for each product produced
Solution
A
6. LO 1.3 Which of the following is not true?
A. Organizations share a common purpose or mission.
Page 1 of 11
, classmerit.com — The Marketplace to Buy and Sell Study Materials
Solutions Manual for Principles Of Accounting (Volume 1) Financial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 1: Financial Accounting
Chapter 1: Role of Accounting in Society
AP B. Organizations have inflows and outflows of resources.
C. Organizations add value to society.
D. Organizations need accounting information.
Solution
A
PR
7. LO 1.3 The primary purpose of what type of business is to serve a particular need in the
community?
A. for-profit
B. not-for-profit
C. manufacturing
OV
D. retail
Solution
B ED
8. LO 1.3 Which of the following is not an example of a retailer?
A. electronics store
B. grocery store
C. car dealership
D. computer manufacturer
E. jewelry store
Solution
_S
D
9. LO 1.3 A governmental agency can best be described by which of the following statements?
A. has a primary purpose of making a profit
B. has a primary purpose of using taxpayer funds to provide services
TU
C. produces goods for sale to the public
D. has regular shareholder meetings
Solution
B
10. LO 1.3 Which of the following is likely not a type of not-for-profit entity?
VI
A. public library A?
B. community foundation
C. university
D. local movie theater
Solution
D
11. LO 1.4 Which of the following is not considered a stakeholder of an organization?
?
A. creditors
B. lenders
C. employees
D. community residents
E. a business in another industry
Solution
E
12. LO 1.4 Stockholders can best be defined as which of the following?
A. investors who lend money to a business for a short period of time
B. investors who lend money to a business for a long period of time
A?
VI
TU
_S
ED
OV
PR
AP
,AP
TABLE OF CONTENTS
Solutions Manual: Principles of Accounting, Volume 1: Financial Accounting, 1st Edition
PR By Mitchell Franklin, Patty Graybeal, and Dixon Cooper
Chapter 1 OVRole of Accounting in Society
Chapter 2 Introduction to Financial Statements
Chapter 3 Analyzing and Recording Transactions
Chapter 4 The Adjustment Process
ED
Chapter 5 Completing the Accounting Cycle
Chapter 6 Merchandising Transactions
Chapter 7 Accounting Information Systems
Chapter 8
_S
Fraud, Internal Controls, and Cash
Chapter 9 Accounting for Receivables TU
Chapter 10 Inventory
Chapter 11 Long-Term Assets
Chapter 12 Current Liabilities
Chapter 13 Long-Term Liabilities
VI
Chapter 14 Corporation Accounting
Chapter 15 Partnership Accounting
A?
Chapter 16 Statement of Cash Flows
?
1
,Solutions Manual for Principles Of Accounting (Volume 1) Financial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 1: Financial Accounting
Chapter 1: Role of Accounting in Society
AP
Principles of Accounting, Volume 1: Financial Accounting
PR Chapter 1: Role of Accounting in Society
Multiple Choice
1. LO 1.1 Accounting is sometimes called the “language of .”
A. Wall Street
B. business
C. Main Street
OV
D. financial statements
Solution
B
ED
2. LO 1.2 Financial accounting information .
A. should be incomplete in order to confuse competitors
B. should be prepared differently by each company
C. provides investors guarantees about the future
D. summarizes what has already occurred
Solution
_S
D
3. LO 1.2 External users of financial accounting information include all of the following except
.
A. lenders such as bankers
TU
B. governmental agencies such as the IRS
C. employees of a business
D. potential investors VI
Solution
C
4. LO 1.2 Which of the following groups would have access to managerial accounting
information?
A. bankers
B. investors
A?
C. competitors of the business
D. managers ?
Solution
D
5. LO 1.2 All of the following are examples of managerial accounting activities except
.
A. preparing external financial statements in compliance with GAAP
B. deciding whether or not to use automation
C. making equipment repair or replacement decisions
D. measuring costs of production for each product produced
Solution
A
6. LO 1.3 Which of the following is not true?
A. Organizations share a common purpose or mission.
Page 1 of 11
, classmerit.com — The Marketplace to Buy and Sell Study Materials
Solutions Manual for Principles Of Accounting (Volume 1) Financial Accounting, 1e Mitchell Franklin, Patty Graybeal, Dixon Cooper
OpenStax Principles of Accounting, Volume 1: Financial Accounting
Chapter 1: Role of Accounting in Society
AP B. Organizations have inflows and outflows of resources.
C. Organizations add value to society.
D. Organizations need accounting information.
Solution
A
PR
7. LO 1.3 The primary purpose of what type of business is to serve a particular need in the
community?
A. for-profit
B. not-for-profit
C. manufacturing
OV
D. retail
Solution
B ED
8. LO 1.3 Which of the following is not an example of a retailer?
A. electronics store
B. grocery store
C. car dealership
D. computer manufacturer
E. jewelry store
Solution
_S
D
9. LO 1.3 A governmental agency can best be described by which of the following statements?
A. has a primary purpose of making a profit
B. has a primary purpose of using taxpayer funds to provide services
TU
C. produces goods for sale to the public
D. has regular shareholder meetings
Solution
B
10. LO 1.3 Which of the following is likely not a type of not-for-profit entity?
VI
A. public library A?
B. community foundation
C. university
D. local movie theater
Solution
D
11. LO 1.4 Which of the following is not considered a stakeholder of an organization?
?
A. creditors
B. lenders
C. employees
D. community residents
E. a business in another industry
Solution
E
12. LO 1.4 Stockholders can best be defined as which of the following?
A. investors who lend money to a business for a short period of time
B. investors who lend money to a business for a long period of time
