TEST BANK for Financial Accounting 13th Edition by C William Thomas and Wendy M. Tietz

TEST BANK for Financial Accounting
13th Edition
by C William Thomas and Wendy M. Tietz
Verified Chapter's 1 - 12 | Complete

,TABLE OF CONTENTS
1. The Financial Statements

2. Transaction Analysis

3. Accrual Accounting and Income

4. Internal Control and Cash

5. Receivables and Revenue

6. Inventory and Cost of Goods Sold

7. Plant Assets, Natural Resources, and Intangibles

8. Current and Contingent Liabilities

9. Long-Term Liabilities

10. Stockholders' Equity

11. The Statement of Cash Flows

12. Financial Statement Analysis

,1. The Financial Statements



Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz

Financial Accounting, 13e (Thomas/Tietz)
Chapter 1 The Financial Statements

Learning Objective 1-1

1) Accountingoisoanoinformationosystemothatomeasuresobusinessoactivit
ies.oAnswer:o TRUE
Diff:o1
LO:o 1-1
AACSB:o ReflectiveoThinking
AICPAoBusoPersp:o Legal/Regulator
yoAICPAoFunctional:o Measurement

2) Bookkeepingoisoaomechanicalopartoofoaccounti
ng.oAnswer:o TRUE
Diff:o1
LO:o 1-1
AACSB:o ReflectiveoThinking
AICPAoBusoPersp:o Legal/Regulator
yoAICPAoFunctional:o Measurement

3) Accountingoisooftenocalledotheolanguageoofobusin
ess.oAnswer:o TRUE
Diff:o1
LO:o 1-1
AACSB:o ReflectiveoThinking
AICPAoBusoPersp:o Legal/Regulator
yoAICPAoFunctional:o Measurement

4) Accountingoproducesofinancialostatements,owhichoreportoinformationoaboutoaobusin
ess.oAnswer:o TRUE
Diff:o1
LO:o 1-1
AACSB:o ReflectiveoThinking
AICPAoBusoPersp:o Legal/Regulatory
AICPAoFunctional:o Measurement,oReporting

5) Theoaccountingoprocessobeginsoandoendsowithopeopleomakingodecisi
ons.oAnswer:o TRUE
Diff:o1
LO:o 1-1
AACSB:o ReflectiveoThinking
AICPAoBusoPersp:o Legal/Regulator
yoAICPAoFunctional:o Measurement

, 6) Accountingoinformationoisousedobyoinvestorsoandocreditors,obutonotobyoregulatoryobo
dies.oAnswer:o FALSE
Explanation:o Itoisousedobyoindividuals,oinvestors,ocreditors,ononprofits,oandoregulatoryobodies.
Diff:o1
LO:o 1-1
AACSB:o ReflectiveoThinking
AICPAoBusoPersp:o IndustryoSector,oLegal/RegulatoryoAI
CPAoFunctional:o Measurement,oReporting

7) SinceoHabitatoforoHumanityoisonotoconcernedoaboutomakingoaoprofit,otheoentityodoesonotoneed
otoouseoaccountingoinformation.
Answer:o FALSE
Diff:o1
LO:o 1-1
AACSB:o ReflectiveoThinking
AICPAoBusoPersp:o IndustryoSector,oLegal/RegulatoryoAI
CPAoFunctional:o Measurement,oReporting

8) Theobusinessorecordsoofoaosoleoproprietorshiposhouldoincludeotheoproprietor'sopersonalofin
ances.oAnswer:o FALSE
Diff:o1
LO:o 1-1
AACSB:o ReflectiveoThinking
AICPAoBusoPersp:o Legal/Regulator
yoAICPAoFunctional:o Measurement

9) Aopartnershipoisoaotaxpayingoenti
ty.oAnswer:o FALSE
Diff:o1
LO:o 1-1
AACSB:o ReflectiveoThinking
AICPAoBusoPersp:o Legal/Regulator
yoAICPAoFunctional:o Measurement

10) Stockholdersohaveonoopersonaloobligationoforotheocorporation'sode
bts.oAnswer:o TRUE
Diff:o1
LO:o 1-1
AACSB:o ReflectiveoThinking
AICPAoBusoPersp:o Legal/Regulator
yoAICPAoFunctional:o Measurement




11) Accounting:
A) measuresobusinessoactivities.
B) processesodataointooreportsoandocommunicatesotheodataotoodecisionomakers.
C) isooftenocalledotheolanguageoofobusiness.
D) isoalloofotheoabov
e.oAnswer:o D
Diff:o2
LO:o 1-1