TESTBANK
e
FinancialAccountingFundamentals,8thEdition
e e e e
ByJohnWild,Chapter1-13
e e e e e e
,Chapter1:AccountinginBusiness
e e e e
Chapter2:AccountingforBusinessTransactions Chapter3:AdjustingAccountsfor
e e e e e e e e e e
FinancialStatements Chapter4:AccountingforMerchandisingOperations Chapter5:
e e e e e e e e e e
InventoriesandCostofSales
e e e e e
Chapter6:Cash,Fraud,andInternalControl Chapter7:Accountingfor
e e e e e e e e e e
Receivables Chapter8:AccountingforLong-TermAssets Chapter9:
e e e e e e e e e
AccountingforCurrentLiabilities
e e e e
Chapter10:AccountingforLong-TermLiabilities Chapter11:CorporateReporting
e e e e e e e e e
andAnalysis Chapter12:ReportingCashFlows
e e e e e e e
Chapter13:AnalysisofFinancialStatements
e e e e e
, Answers are attheEnd of Each Chapter
e e e e e e e
Chapter1:AccountinginBusiness
e e e e
Studentname:e e
TRUE/FALSE-Write'T'ifthestatementistrueand'F'ifthestatementisfalse.
e e e e e e e e e e e e e e e
1) Accountingisaninformationandmeasurementsystemthatidentifies,records,
e e e e e e e e e
andcommunicatesanorganization'sbusinessactivities.
e e e e e
⊚ true ee e
⊚ false
2) Accountingincludestheanalysisandinterpretationofinformation.
ee e
e e e e e e e
⊚ true ee e
⊚ false ee e
3) Financialaccountingfocusesontheneedsofexternalusers,whogetaccounting
informationfrom general-purpose financial statements.
e e e e e e e e e e e
e e e e
⊚ true ee e
⊚ false ee e
4) Internalusersofaccountinginformationdonotdirectlymanagetheorganizationand
havelimitedaccesstoitsaccountinginformation.
e e e e e e e e e e e
e e e e e
⊚ true ee e
⊚ false
5) Auditorsverifytheeffectivenessofinternalcontrols.
ee e
e e e e e e
⊚ true ee e
⊚ false ee e
6) Externalauditorsexaminefinancialstatementstoverifythattheyarepreparedaccording
togenerallyacceptedaccountingprinciples.
e e e e e e e e e e e
e e e
⊚ true ee e
⊚ false
7) Externalusersincludelenders,shareholders,customers,andregulators.
ee e
e e e e e e e
⊚ true ee e
⊚ false ee e
, 8) Internalusersincludelenders,shareholders,brokersandnonexecutiveemployees.
e e e e e e e e
⊚ true
ee e
⊚ false
9) Opportunitiesinaccountingincludeauditing,consulting,marketresearch,andtaxplanning.
ee e
e e e e e e e e e e
⊚ true
ee e
⊚ false ee e
10) Thefraudtriangleshows thatthreefactorsthatpusha persontocommitfraud
areopportunity,pressure,andrationalization.
e e e e e e e e e e e e e
e e e
⊚ true
ee e
⊚ false ee e
11) Internalcontrolsareprocedurestoprotectassets,ensurereliableaccounting,
promoteefficiency,andupholdcompanypolicies.
e e e e e e e e e
e e e e
⊚ true
ee e
⊚ false
12) Apartnershipisabusinessownedbytwoormorepeople.
ee e
e e e e e e e e e e
⊚ true
ee e
⊚ false
13) Ownersofacorporationarecalledshareholdersorstockholders.
ee e
e e e e e e e e
⊚ true
ee e
⊚ false
14) Inapartnership,theownersarecalledstockholders.
ee e
e e e e e e e
⊚ true
ee e
⊚ false
15) Thebalancesheetshowsacompany'snetincome orlossoveraperiodoftime.
ee e
e e e e e e e e e e e e e e
⊚ true
ee e
⊚ false ee e
16) TheFinancialAccountingStandardsBoard(FASB)isgiventhetaskofsettinggenerally
e e e e e e e e e e e e
acceptedaccountingprinciples(GAAP)fromtheSecuritiesandExchangeCommission.
e e e e e e e e e
⊚ true ee e
⊚ false ee e
e
FinancialAccountingFundamentals,8thEdition
e e e e
ByJohnWild,Chapter1-13
e e e e e e
,Chapter1:AccountinginBusiness
e e e e
Chapter2:AccountingforBusinessTransactions Chapter3:AdjustingAccountsfor
e e e e e e e e e e
FinancialStatements Chapter4:AccountingforMerchandisingOperations Chapter5:
e e e e e e e e e e
InventoriesandCostofSales
e e e e e
Chapter6:Cash,Fraud,andInternalControl Chapter7:Accountingfor
e e e e e e e e e e
Receivables Chapter8:AccountingforLong-TermAssets Chapter9:
e e e e e e e e e
AccountingforCurrentLiabilities
e e e e
Chapter10:AccountingforLong-TermLiabilities Chapter11:CorporateReporting
e e e e e e e e e
andAnalysis Chapter12:ReportingCashFlows
e e e e e e e
Chapter13:AnalysisofFinancialStatements
e e e e e
, Answers are attheEnd of Each Chapter
e e e e e e e
Chapter1:AccountinginBusiness
e e e e
Studentname:e e
TRUE/FALSE-Write'T'ifthestatementistrueand'F'ifthestatementisfalse.
e e e e e e e e e e e e e e e
1) Accountingisaninformationandmeasurementsystemthatidentifies,records,
e e e e e e e e e
andcommunicatesanorganization'sbusinessactivities.
e e e e e
⊚ true ee e
⊚ false
2) Accountingincludestheanalysisandinterpretationofinformation.
ee e
e e e e e e e
⊚ true ee e
⊚ false ee e
3) Financialaccountingfocusesontheneedsofexternalusers,whogetaccounting
informationfrom general-purpose financial statements.
e e e e e e e e e e e
e e e e
⊚ true ee e
⊚ false ee e
4) Internalusersofaccountinginformationdonotdirectlymanagetheorganizationand
havelimitedaccesstoitsaccountinginformation.
e e e e e e e e e e e
e e e e e
⊚ true ee e
⊚ false
5) Auditorsverifytheeffectivenessofinternalcontrols.
ee e
e e e e e e
⊚ true ee e
⊚ false ee e
6) Externalauditorsexaminefinancialstatementstoverifythattheyarepreparedaccording
togenerallyacceptedaccountingprinciples.
e e e e e e e e e e e
e e e
⊚ true ee e
⊚ false
7) Externalusersincludelenders,shareholders,customers,andregulators.
ee e
e e e e e e e
⊚ true ee e
⊚ false ee e
, 8) Internalusersincludelenders,shareholders,brokersandnonexecutiveemployees.
e e e e e e e e
⊚ true
ee e
⊚ false
9) Opportunitiesinaccountingincludeauditing,consulting,marketresearch,andtaxplanning.
ee e
e e e e e e e e e e
⊚ true
ee e
⊚ false ee e
10) Thefraudtriangleshows thatthreefactorsthatpusha persontocommitfraud
areopportunity,pressure,andrationalization.
e e e e e e e e e e e e e
e e e
⊚ true
ee e
⊚ false ee e
11) Internalcontrolsareprocedurestoprotectassets,ensurereliableaccounting,
promoteefficiency,andupholdcompanypolicies.
e e e e e e e e e
e e e e
⊚ true
ee e
⊚ false
12) Apartnershipisabusinessownedbytwoormorepeople.
ee e
e e e e e e e e e e
⊚ true
ee e
⊚ false
13) Ownersofacorporationarecalledshareholdersorstockholders.
ee e
e e e e e e e e
⊚ true
ee e
⊚ false
14) Inapartnership,theownersarecalledstockholders.
ee e
e e e e e e e
⊚ true
ee e
⊚ false
15) Thebalancesheetshowsacompany'snetincome orlossoveraperiodoftime.
ee e
e e e e e e e e e e e e e e
⊚ true
ee e
⊚ false ee e
16) TheFinancialAccountingStandardsBoard(FASB)isgiventhetaskofsettinggenerally
e e e e e e e e e e e e
acceptedaccountingprinciples(GAAP)fromtheSecuritiesandExchangeCommission.
e e e e e e e e e
⊚ true ee e
⊚ false ee e