Financial Accounting 16th Edition by Carl Warren & Christine Jonick : Comprehensive Test Bank | Chapters 1–17 ; Verified Exam Questions & Complete Answers

TEST BANK for Financial Accounting
16th Edition by Carl Warren,
Christine Jonick
COMPLETE CHAPTERS 1-17| A+ PASS
GUARANTEED




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, Chapter 1: Introduction to Accounting and Business

True / False

1. A merchandising business buys products from other businesses to sell to customers.

a. True

b. False

CORRECT ANSWER: True

DIFFICULTY: Easy

Bloom's: Remembering

LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms

ACCT.AICPA.BB.01 - Industry

ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic



2. The role of accounting is to provide many different users with financial information to make economic
decisions.

a. True

b. False

CORRECT ANSWER: True

DIFFICULTY: Moderate

Bloom's: Remembering

LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose

ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic



3. Accounting information users need reports about the economic activities and condition of businesses.

a. True

b. False

CORRECT ANSWER: True
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DIFFICULTY: Easy
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Bloom's: Remembering
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,LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose

ACCT.AICPA.BB.01 - Industry

ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic



4. Managerial accounting information is used by external and internal users equally.

a. True

b. False

CORRECT ANSWER: False

DIFFICULTY: Easy

Bloom's: Remembering

LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose

ACCT.ACBSP.APC.25 - Managerial Characteristics/Terminology ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic



5. Senior executives cannot be criminally prosecuted for the wrongdoings they commit on behalf of the
companies where they work.

a. True

b. False

CORRECT ANSWER: False

DIFFICULTY: Easy

Bloom's: Understanding LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01 ACCREDITING
STANDARDS: ACCT.ACBSP.APC.01 - Purpose

ACCT.AICPA.BB.03 - Legal

ACCT.AICPA.FN.03 - Measurement BUSPROG: Ethics



6. Financial accounting provides information to all users, while the main focus for managerial accounting is to
provide information to the management.
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a. True
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b. False
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, CORRECT ANSWER: True

DIFFICULTY: Moderate

Bloom's: Remembering LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01 ACCREDITING
STANDARDS: ACCT.ACBSP.APC.01 - Purpose

ACCT.AICPA.FN.03 - Measurement

BUSPROG: Analytic



7. Proper ethical conduct implies that you only consider what's in your best interest.

a. True

b. False

CORRECT ANSWER: False

DIFFICULTY: Easy

Bloom's: Remembering LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01 ACCREDITING
STANDARDS: ACCT.ACBSP.APC.02 - GAAP

ACCT.AICPA.BB.03 - Legal

ACCT.AICPA.FN.03 - Measurement BUSPROG: Ethics



8. Some of the major fraudulent acts committed by senior executives started as what they considered to be
small ethical lapses that grew out of control.

a. True

b. False

CORRECT ANSWER: True

DIFFICULTY: Moderate

Bloom's: Remembering LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01 ACCREDITING
STANDARDS: ACCT.ACBSP.APC.02 - GAAP

ACCT.AICPA.BB.03 - Legal

ACCT.AICPA.FN.03 - Measurement BUSPROG: Ethics



9. A business is an organization in which basic resources or inputs, such as materials and labor, are assembled
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and processed to provide outputs in the form of goods or services to customers.

a. True
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b. False
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