TEST BANK
Horngren's Accounting, The Financial Chapters
Tracie Miller-Nobles
13th Edition
All Chapters Complete (Questions with Verified Answers)
,@ProfdocDigitalLibraries <Best Online Study Materials>
Table of Contents
1. Accounting and the Business Environment
2. Recording Business Transactions
3. The Adjusting Process
4. Completing the Accounting Cycle
5. Merchandising Operations
6. Merchandise Inventory
7. Accounting Information Systems
8. Internal Control and Cash
9. Receivables
10.Plant Assets, Natural Resources, and Intangibles
11.Current Liabilities and Payroll
12.Partnerships
13.Corporations
14.Long-Term Liabilities
15.Investments
16.The Statement of Cash Flows
17.Financial Statement Analysis
,@ProfdocDigitalLibraries <Best Online Study Materials>
(All Chapters Download link at the end of this file)
Chapter F:1 Accounting and the Business Environment
Learning Objective F:1-1
1) Accounting is the information system that measures business activities, processes the information into
reports, and communicates the results to decision makers.
Answer: TRUE
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2: Why is Accounting Important? (H1)
2) Critical thinking and judgment skills are not necessary for accountants because technology has made
the activities routine.
Answer: FALSE
Explanation: Technology plays an important supporting role in performing routine accounting
functions. This allows accountants to have more time to focus on reviewing and evaluating economic
activities using critical thinking and judgment.
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2: Why is Accounting Important? (H1)
3) Accounting starts with economic activities that accountants review and evaluate using critical thinking
and judgment to create useful information that helps individuals make good decisions.
Answer: TRUE
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2: Why is Accounting Important? (H1)
4) Accounting is referred to as the language of business because it is the method of communicating
business information to decision makers.
Answer: TRUE
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
, @ProfdocDigitalLibraries <Best Online Study Materials>
PE Question Type: Concept
H2: Why is Accounting Important? (H1)