TEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDER

True / False 1. A merchandising business buys products from other businesses to sell to customers. a. True b. False ANSWER: True 2. The role of accounting is to provide many different users with financial information to make economic decisions. a. True b. False ANSWER: True 3. Accounting information users need reports about the economic activities and condition of businesses. a. True b. False ANSWER: True 4. Managerial accounting information is used by external and internal users equally. a. True b. False ANSWER: False 5. Senior executives cannot be criminally prosecuted for the wrongdoings they commit on behalf of the companies where they work. a. True b. False ANSWER: False 6. Financial accounting provides information to all users, while the main focus for managerial accounting is to provide information to the management. a. True b. False ANSWER: True 7. Proper ethical conduct implies that you only consider what's in your best interest. a. True b. False ANSWER: False 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 ANSWER: True 9. A business is an organization in which basic resources or inputs, such as materials and labor, are assembled and processed to provide outputs in the form of goods or services to customers. a. True b. False ANSWER: True 10. Two factors that typically lead to ethical violations are relevance and timeliness of accounting information. a. True b. False ANSWER: False 11. Financial accounting reports are relevant only to users within the business. a. True b. False ANSWER: False 12. The Sarbanes-Oxley Act established standards for corporate responsibility and disclo