TEST BANK
Accounting: What the Numbers Mean
David H. Marshall
12th Edition
,Table of Contents
1. Accounting — Present and Past
PART ONE: Financial Accounting
2. Financial Statements and Accounting Concepts/Principles
3. Fundamental Interpretations Made from Financial Statement
Data
4. The Bookkeeping Process and Transaction Analysis
5. Accounting for and Presentation of Current Assets
6. Accounting for and Presentation of Property, Plant, and
Equipment, and Other Noncurrent Assets
7. Accounting for and Presentation of Liabilities
8. Accounting for and Presentation of Stockholders’ Equity
9. The Income Statement and the Statement of Cash Flows
10. Corporate Governance, Notes to the Financial Statements,
and Other Disclosures
11. Financial Statement Analysis
PART TWO: Managerial Accounting
12. Managerial Accounting and Cost–Volume–Profit
Relationships
13. Cost Accounting and Reporting
14. Cost Planning
15. Cost Control
16. Costs for Decision Making
Epilogue: Accounting — The Future
Appendix: Campbell Soup Company Annual Report (or similar)
,Accounting - What the Numbers Mean, 12e (Marshall)
Chapter 1 Accounting—Present and Past
1) Which of the following entities would not require accounting information pertaining to their
economic activities?
A) Social clubs.
B) Not-for-profit entities.
C) State governments.
D) All of these entities require accounting information.
Answer: D
Difficulty: 1 Easy
Topic: What Is Accounting?
Learning Objective: 01-02 Identify who the users of accounting information are and explain
why they find accounting information useful.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) The authoritative financial accounting standards-setting body in the United States is presently
the:
A) Securities and Exchange Commission (SEC)
B) International Accounting Standards Board (IASB)
C) Public Company Accounting Oversights Board (PCAOB)
D) Financial Accounting Standards Board (FASB)
E) Accounting Principles Board (APB)
Answer: D
Difficulty: 1 Easy
Topic: How Has Accounting Developed?
Learning Objective: 01-05 Explain the role that the FASB plays in the development of financial
accounting standards.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
, 3) Which of the following statements about the Financial Accounting Standards Board is
correct?
A) The FASB is an agency of the Federal government.
B) The FASB has the authority to fine a noncompliant firm.
C) The FASB follows a due process procedure that permits input from interested parties before
an Accounting Standards Update (ASU) is issued.
D) The FASB is controlled by the American Institute of CPAs.
Answer: C
Difficulty: 2 Medium
Topic: How Has Accounting Developed?
Learning Objective: 01-05 Explain the role that the FASB plays in the development of financial
accounting standards.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) Major classifications of accounting activity would not include:
A) financial accounting, internal auditing, public accounting.
B) internal auditing, governmental accounting, managerial accounting.
C) financial accounting, national accounting, cost accounting.
D) auditing, income tax accounting, governmental accounting.
Answer: C
Difficulty: 1 Easy
Topic: What Is Accounting?
Learning Objective: 01-03 Identify the variety of professional services that accountants provide.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Which of the following is not an example of a decision or informed judgment that a potential
investor would make from accounting information?
A) Future profitability based on past profitability.
B) Probability of success of a new product development.
C) A forecast of dividends.
D) Assessment of risk that a company may have more debt than it can repay if the economy
enters a recession.
Answer: B
Difficulty: 2 Medium
Topic: What Is Accounting?
Learning Objective: 01-02 Identify who the users of accounting information are and explain
why they find accounting information useful.
Bloom's: Understand
AACSB: Reflective Thinking
Accounting: What the Numbers Mean
David H. Marshall
12th Edition
,Table of Contents
1. Accounting — Present and Past
PART ONE: Financial Accounting
2. Financial Statements and Accounting Concepts/Principles
3. Fundamental Interpretations Made from Financial Statement
Data
4. The Bookkeeping Process and Transaction Analysis
5. Accounting for and Presentation of Current Assets
6. Accounting for and Presentation of Property, Plant, and
Equipment, and Other Noncurrent Assets
7. Accounting for and Presentation of Liabilities
8. Accounting for and Presentation of Stockholders’ Equity
9. The Income Statement and the Statement of Cash Flows
10. Corporate Governance, Notes to the Financial Statements,
and Other Disclosures
11. Financial Statement Analysis
PART TWO: Managerial Accounting
12. Managerial Accounting and Cost–Volume–Profit
Relationships
13. Cost Accounting and Reporting
14. Cost Planning
15. Cost Control
16. Costs for Decision Making
Epilogue: Accounting — The Future
Appendix: Campbell Soup Company Annual Report (or similar)
,Accounting - What the Numbers Mean, 12e (Marshall)
Chapter 1 Accounting—Present and Past
1) Which of the following entities would not require accounting information pertaining to their
economic activities?
A) Social clubs.
B) Not-for-profit entities.
C) State governments.
D) All of these entities require accounting information.
Answer: D
Difficulty: 1 Easy
Topic: What Is Accounting?
Learning Objective: 01-02 Identify who the users of accounting information are and explain
why they find accounting information useful.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) The authoritative financial accounting standards-setting body in the United States is presently
the:
A) Securities and Exchange Commission (SEC)
B) International Accounting Standards Board (IASB)
C) Public Company Accounting Oversights Board (PCAOB)
D) Financial Accounting Standards Board (FASB)
E) Accounting Principles Board (APB)
Answer: D
Difficulty: 1 Easy
Topic: How Has Accounting Developed?
Learning Objective: 01-05 Explain the role that the FASB plays in the development of financial
accounting standards.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
, 3) Which of the following statements about the Financial Accounting Standards Board is
correct?
A) The FASB is an agency of the Federal government.
B) The FASB has the authority to fine a noncompliant firm.
C) The FASB follows a due process procedure that permits input from interested parties before
an Accounting Standards Update (ASU) is issued.
D) The FASB is controlled by the American Institute of CPAs.
Answer: C
Difficulty: 2 Medium
Topic: How Has Accounting Developed?
Learning Objective: 01-05 Explain the role that the FASB plays in the development of financial
accounting standards.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) Major classifications of accounting activity would not include:
A) financial accounting, internal auditing, public accounting.
B) internal auditing, governmental accounting, managerial accounting.
C) financial accounting, national accounting, cost accounting.
D) auditing, income tax accounting, governmental accounting.
Answer: C
Difficulty: 1 Easy
Topic: What Is Accounting?
Learning Objective: 01-03 Identify the variety of professional services that accountants provide.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Which of the following is not an example of a decision or informed judgment that a potential
investor would make from accounting information?
A) Future profitability based on past profitability.
B) Probability of success of a new product development.
C) A forecast of dividends.
D) Assessment of risk that a company may have more debt than it can repay if the economy
enters a recession.
Answer: B
Difficulty: 2 Medium
Topic: What Is Accounting?
Learning Objective: 01-02 Identify who the users of accounting information are and explain
why they find accounting information useful.
Bloom's: Understand
AACSB: Reflective Thinking
