Test Bank for Accounting what the numbers mean 12th edition by David Marshall Chapters 1-16 Covered

Test Bank
Accounting what the numbers mean
12th edition by David Marshall
Chapters 1-16 Covered

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Ch. 1 Accounting—Present and Past
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Part 1: Financial Accounting
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Ch. 2 Financial Statements and Accounting Concepts/Principles
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Ch. 3 Fundamental Interpretations Made from Financial Statement Data
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Ch. 4 The Bookkeeping Process and Transaction Analysis
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Ch. 5 Accounting for and Presentation of Current Assets
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Ch. 6 Accounting for and Presentation of Property, Plant, and Equipment, and Other
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Noncurrent Assets j




Ch. 7 Accounting for and Presentation of Liabilities
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Ch. 8 Accounting for and Presentation of Stockholders’ Equity
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Ch. 9 The Income Statement and the Statement of Cash Flows
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Ch. 10 Corporate Governance, Notes to the Financial Statements, and Other Disclos
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ures

Ch. 11 Financial Statement Analysis
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Part 2: Managerial Accounting
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Ch. 12 Managerial Accounting and Cost– Volume–Profit Relationships
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Ch. 13 Cost Accounting and Reporting
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Ch. 14 Cost Planning
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Ch. 15 Cost Control
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Ch. 16 Costs for Decision Making
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,Accountingj-
jWhatjthejNumbersjMean,j12ej(Marshall)jChapterj1j Accounting

—PresentjandjPast

1) Whichjofjthejfollowingjentitiesjwouldjnotjrequirejaccountingjinformationjpertainingjtojtheirjeco
nomicjactivities?
A) Socialjclubs.
B) Not-for-profitjentities.
C) Statejgovernments.
D) Alljofjthesejentitiesjrequirejaccountingjinformation.

Answer:j DjDifficulty:j
1jEasy
Topic:j WhatjIsjAccounting?
LearningjObjective:j 01-
02jIdentifyjwhojthejusersjofjaccountingjinformationjarejandjexplainjwhyjtheyjfindjaccountingjinfor
mationjuseful.
Bloom's:j Rememberj AACSB:j
AnalyticaljThinking
Accessibility:j KeyboardjNavigation

2) Thejauthoritativejfinancialjaccountingjstandards-
settingjbodyjinjthejUnitedjStatesjisjpresentlyjthe:
A) SecuritiesjandjExchangejCommissionj(SEC)
B) InternationaljAccountingjStandardsjBoardj(IASB)
C) PublicjCompanyjAccountingjOversightsjBoardj(PCAOB)
D) FinancialjAccountingjStandardsjBoardj(FASB)
E) AccountingjPrinciplesjBoardj(APB)

Answer:j DjDifficulty:j
1jEasy
Topic:j HowjHasjAccountingjDeveloped?
LearningjObjective:j 01-
05jExplainjthejrolejthatjthejFASBjplaysjinjthejdevelopmentjofjfinancialjaccountingjstandards.
Bloom's:j Rememberj AACSB:j
AnalyticaljThinking
Accessibility:j KeyboardjNavigation

, 3) WhichjofjthejfollowingjstatementsjaboutjthejFinancialjAccountingjStandardsjBoardjisjcor
rect?
A) ThejFASBjisjanjagencyjofjthejFederaljgovernment.
B) ThejFASBjhasjthejauthorityjtojfinejajnoncompliantjfirm.
C) ThejFASBjfollowsjajduejprocessjprocedurejthatjpermitsjinputjfromjinterestedjpartiesjbeforejanjA
ccountingjStandardsjUpdatej(ASU)jisjissued.
D) ThejFASBjisjcontrolledjbyjthejAmericanjInstitutejofjCPAs.

Answer:j CjDifficulty:j
2jMedium
Topic:j HowjHasjAccountingjDeveloped?
LearningjObjective:j 01-
05jExplainjthejrolejthatjthejFASBjplaysjinjthejdevelopmentjofjfinancialjaccountingjstandards.
Bloom's:j UnderstandjAACSB:
j AnalyticaljThinking

Accessibility:j KeyboardjNavigation

4) Majorjclassificationsjofjaccountingjactivityjwouldjnotjinclude:
A) financialjaccounting,jinternaljauditing,jpublicjaccounting.
B) internaljauditing,jgovernmentaljaccounting,jmanagerialjaccounting.
C) financialjaccounting,jnationaljaccounting,jcostjaccounting.
D) auditing,jincomejtaxjaccounting,jgovernmentaljaccounting.

Answer:j CjDifficult
y:j1jEasy
Topic:j WhatjIsjAccounting?
LearningjObjective:j 01-
03jIdentifyjthejvarietyjofjprofessionaljservicesjthatjaccountantsjprovide.jBloom's:j Remember
AACSB:j AnalyticaljThinkingjAccessibili
ty:j KeyboardjNavigation

5) Whichjofjthejfollowingjisjnotjanjexamplejofjajdecisionjorjinformedjjudgmentjthatjajpotentialjinvest
orjwouldjmakejfromjaccountingjinformation?
A) Futurejprofitabilityjbasedjonjpastjprofitability.
B) Probabilityjofjsuccessjofjajnewjproductjdevelopment.
C) Ajforecastjofjdividends.
D) Assessmentjofjriskjthatjajcompanyjmayjhavejmorejdebtjthanjitjcanjrepayjifjthejeconomyjenters
jajrecession.




Answer:j BjDifficulty:j
2jMedium
Topic:j WhatjIsjAccounting?
LearningjObjective:j 01-
02jIdentifyjwhojthejusersjofjaccountingjinformationjarejandjexplainjwhyjtheyjfindjaccountingjinfor
mationjuseful.
Bloom's:j UnderstandjAACSB: