Test Bank for Financial Accounting: IFRS Edition 3rd Edition by Earl Stice, James Stice, Chapter 1-15 | All Chapters

TEST BANK
Principles of Financial Accounting IFRS Edition,, 3rd Edition
by Earl K. Stice, James D. Stice
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, Table of Content
PART I: FINANCIAL REPORTING AND THE ACCOUNTING CYCLE

1. Accounting Information: Users and Uses

2. Financial Statements: An Overview

3. The Accounting Cycle: The Mechanics of Accounting

4. Completing the Accounting Cycle
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5. Internal Controls: Ensuring the Integrity of Financial Information



PART II: OPERATING ACTIVITIES

6. Cash
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7. Receivables

8. Inventory and the Cost of Sales
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9. Completing the Operating Cycle
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PART III: INVESTING AND FINANCING ACTIVITIES

10. Investments: Property, Plant, and Equipment and Intangible Assets

11. Financing: Long-Term Liabilities
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12. Financing: Equity
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13. Investments: Debt and Equity Securities



PART IV: OTHER DIMENSIONS OF FINANCIAL REPORTING
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14. Statement of Cash Flows

15. Analyzing Financial Statements

, Chapter 1—Accounting Information: Users and Uses


MULTIPLE CHOICE

1. Which of the following is NOT typically true of accounting information?
a. The information is quantitative in nature.
b. The information relates to future time periods.
c. The information relates to specific accounting entities.
d. The information is primarily financial in nature.
ANS: B PTS: 1 DIF: Easy OBJ: 1.1
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NAT: AACSB Reflective Thinking | AICPA FN Measurement

2. Which of the following is true about the double-entry system of bookkeeping?
a. It was developed in the 1300s−1400s in France.
b. It was developed in the 1800s in Italy.
c. It was developed in the 1300s−1400s in Italy.
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d. It was developed in the 1800s in the United States.
ANS: C PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement
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3. Businesses use accounting systems to
a. Analyze transactions
b. Handle routine bookkeeping tasks
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c. Evaluate the performance and health of the business
d. All of these are correct
ANS: D PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

4. Which of the following is the most correct definition of accounting?
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a. A system for providing quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic decisions.
b. An entity without a profit objective, oriented toward providing services efficiently and
effectively.
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c. The preservation of a systematic, quantitative record of an activity.
d. The procedures and processes used by a company to analyze transactions and handle
routine bookkeeping tasks.
ANS: A PTS: 1 DIF: Easy OBJ: 1.1
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NAT: AACSB Reflective Thinking | AICPA FN Measurement

5. Which of the following is NOT a function of accounting?
a. Accumulating economic information about organizations
b. Measuring economic information about organizations
c. Executing sales transactions for organizations
d. Communicating economic information about organizations
ANS: C PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

, 6. Which of the following is NOT a key component of the definition of accounting?
a. Financial
b. Qualitative
c. Useful
d. Decision-oriented
ANS: B PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

7. Which of the following is NOT a step in the decision making process?
a. Identify the issue.
b. Identify alternatives.
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c. Select the option that will result in the greatest financial increase.
d. Gather information.
ANS: C PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Decision Modeling

8. Accounting can be best described as a
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a. Manufacturing activity
b. Service activity
c. Retailing activity
d. All of these are correct
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ANS: B PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement
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9. Which of the following is NOT a typical source of monetary resources used by business
enterprise as capital?
a. Investors
b. Creditors
c. Business earnings
d. Employees
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ANS: D PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

10. Accountants typically perform what action related to the financial results of business
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activities?
a. Report the results of business activities
b. Advise on how to structure business activities
c. Both report the results of and advise on how to structure business activities
d. None of these are correct
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ANS: C PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Reporting

11. The accounting cycle includes all of the following, EXCEPT:
a. Recording
b. Summarizing
c. Analyzing
d. Interpreting
ANS: D PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement