TEST BANKfor Financial Accounting
e e e e
13th Edition
e
by C William Thomas and Wendy M. Tietz
e e e e e e e
Verified Chapter's 1 - 12 | Complete
e e e e e e
,TABLEOF CONTENTS e e e
1. The Financial Statements
e e e
2. Transaction Analysis
e e
3. Accrual Accounting and Income
e e e e
4. Internal Control and Cash
e e e e
5. Receivables and Revenue
e e e
6. Inventory and Cost of Goods Sold
e e e e e e
7. Plant Assets, Natural Resources, and Intangibles
e e e e e e
8. Current and Contingent Liabilities
e e e e
9. Long-Term Liabilities
e e
10. Stockholders' Equity
e e
11. The Statement of Cash Flows
e e e e e
12. Financial Statement Analysis
e e e
,1. The Financial Statements
e e e
Full Test Bankfor Financial Accounting 13thEdition C. William Thomas, Wendy M Tietz
e e e e e e e e e e e e e
FinancialAccounting,13e (Thomas/Tietz) e e e
Chapter 1 TheFinancial Statements e e e
LearningObjective 1-1 e e
1) Accountingisan informationsystem that measuresbusiness activities.
e e e e e e e e
Answer: TRUE
e e
Diff: 1 e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
2) Bookkeepingis a mechanicalpart of accounting. e e e e e e
Answer: TRUE
e e
Diff: 1 e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
3) Accountingis oftencalled the language of business.
e e e e e e e
Answer: TRUE
e e
Diff: 1 e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
4) Accountingproduces financialstatements, which report information about abusiness.
e e e e e e e e e
Answer: TRUE
e e
Diff: 1 e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement, Reporting
e e e
5) Theaccountingprocessbegins and ends with peoplemakingdecisions.
e e e e e e e e e
Answer: TRUE
e e
Diff: 1 e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
, 6) Accounting information is usedbyinvestors andcreditors, butnotbyregulatory bodies.
e e e e e e e e e e e e
Answer: FALSE
e e
Explanation: It is usedby individuals, investors,creditors, nonprofits, and regulatorybodies.
e e e e e e e e e e e
Diff: 1
e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: IndustrySector, Legal/RegulatoryAICPA
e e e e e e
Functional: Measurement, Reporting
e e e
7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to use
e e e e e e e e e e e e e e e e e
accountinginformation.
e e
Answer: FALSE e
Diff: 1
e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: IndustrySector, Legal/RegulatoryAICPA
e e e e e e
Functional: Measurement, Reporting
e e e
8) The business records of a sole proprietorship should include the proprietor's personal finances.
e e e e e e e e e e e e
Answer: FALSE
e e
Diff: 1
e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
9) Apartnership is a taxpaying entity.
e e e e e
Answer: FALSE
e e
Diff: 1
e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
10) Stockholders have nopersonal obligation for thecorporation'sdebts. e e e e e e e e
Answer: TRUE
e e
Diff: 1
e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
11) Accounting:
A) measuresbusinessactivities. e e
B) processes data intoreports andcommunicates the data to decision makers.
e e e e e e e e e e
C) is often called the language ofbusiness.
e e e e e e
D) is allof theabove.
e e e e
Answer: D
e e
Diff: 2
e
LO: 1-1 e
e e e e
13th Edition
e
by C William Thomas and Wendy M. Tietz
e e e e e e e
Verified Chapter's 1 - 12 | Complete
e e e e e e
,TABLEOF CONTENTS e e e
1. The Financial Statements
e e e
2. Transaction Analysis
e e
3. Accrual Accounting and Income
e e e e
4. Internal Control and Cash
e e e e
5. Receivables and Revenue
e e e
6. Inventory and Cost of Goods Sold
e e e e e e
7. Plant Assets, Natural Resources, and Intangibles
e e e e e e
8. Current and Contingent Liabilities
e e e e
9. Long-Term Liabilities
e e
10. Stockholders' Equity
e e
11. The Statement of Cash Flows
e e e e e
12. Financial Statement Analysis
e e e
,1. The Financial Statements
e e e
Full Test Bankfor Financial Accounting 13thEdition C. William Thomas, Wendy M Tietz
e e e e e e e e e e e e e
FinancialAccounting,13e (Thomas/Tietz) e e e
Chapter 1 TheFinancial Statements e e e
LearningObjective 1-1 e e
1) Accountingisan informationsystem that measuresbusiness activities.
e e e e e e e e
Answer: TRUE
e e
Diff: 1 e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
2) Bookkeepingis a mechanicalpart of accounting. e e e e e e
Answer: TRUE
e e
Diff: 1 e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
3) Accountingis oftencalled the language of business.
e e e e e e e
Answer: TRUE
e e
Diff: 1 e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
4) Accountingproduces financialstatements, which report information about abusiness.
e e e e e e e e e
Answer: TRUE
e e
Diff: 1 e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement, Reporting
e e e
5) Theaccountingprocessbegins and ends with peoplemakingdecisions.
e e e e e e e e e
Answer: TRUE
e e
Diff: 1 e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
, 6) Accounting information is usedbyinvestors andcreditors, butnotbyregulatory bodies.
e e e e e e e e e e e e
Answer: FALSE
e e
Explanation: It is usedby individuals, investors,creditors, nonprofits, and regulatorybodies.
e e e e e e e e e e e
Diff: 1
e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: IndustrySector, Legal/RegulatoryAICPA
e e e e e e
Functional: Measurement, Reporting
e e e
7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to use
e e e e e e e e e e e e e e e e e
accountinginformation.
e e
Answer: FALSE e
Diff: 1
e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: IndustrySector, Legal/RegulatoryAICPA
e e e e e e
Functional: Measurement, Reporting
e e e
8) The business records of a sole proprietorship should include the proprietor's personal finances.
e e e e e e e e e e e e
Answer: FALSE
e e
Diff: 1
e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
9) Apartnership is a taxpaying entity.
e e e e e
Answer: FALSE
e e
Diff: 1
e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
10) Stockholders have nopersonal obligation for thecorporation'sdebts. e e e e e e e e
Answer: TRUE
e e
Diff: 1
e
LO: 1-1 e
AACSB: Reflective Thinking e e
AICPA Bus Persp: Legal/Regulatory
e e e
AICPA Functional: Measurement
e e e
11) Accounting:
A) measuresbusinessactivities. e e
B) processes data intoreports andcommunicates the data to decision makers.
e e e e e e e e e e
C) is often called the language ofbusiness.
e e e e e e
D) is allof theabove.
e e e e
Answer: D
e e
Diff: 2
e
LO: 1-1 e
