,DOWNLOAD THE Test Bank for Financial Accounting 13th Edition Thomas
m m m m m m m m m
Financialm Accounting,m 13em (Thomas/Tietz)
Chapterm1 ThemFinancialmStatements
LearningmObjectivem1-1
1) Accountingmis man minformation msystem mthatmmeasures mbusiness mactivit
ies.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
2) Bookkeepingmis ma mmechanical mpartmofmaccounti
ng.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
3) Accountingmis moften mcalledmthemlanguagemofmbusin
ess.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
4) Accountingmproduces mfinancialmstatements,mwhich mreportminformation maboutma mbusin
ess.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory
AICPAmFunctional:m Measurement,mReporting
5) Themaccountingmprocess mbegins mandmends mwith mpeoplemmakingmdecisi
ons.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
1
Copyright m©m2022 mPearson mEducation,mIn
c.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Accounting 13th Edition Thomas
m m m m m m m m m
6) Accountingminformation mis musedmbyminvestors mandmcreditors,mbutmnotmbymregulatorymb
odies.mAnswer:m FALSE
Explanation:m m Itmis musedmbymindividuals,minvestors,mcreditors,mnonprofits,mandmregulatorymbodies.
Diff:m1
LO:m m 1-1
AACSB:m m Reflective mThinking
AICPAmBusmPersp:m Industry mSector,mLegal/Regulatory mAI
CPAmFunctional:m Measurement,mReporting
7) SincemHabitatmformHumanitymis mnotmconcernedmaboutmmakingma mprofit,mthementitymdoes mnotmneed
mtomusemaccountingminformation.
Answer:m m FALSE
Diff:m1
LO:m m 1-1
AACSB:m m Reflective mThinking
AICPAmBusmPersp:m Industry mSector,mLegal/Regulatory mAI
CPAmFunctional:m Measurement,mReporting
8) Thembusiness mrecords mofma msolemproprietorshipmshouldmincludemthemproprietor's mpersonalmfina
nces.mAnswer:m FALSE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
9) Ampartnershipmis ma mtaxpayingmentit
y.mAnswer:m FALSE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
10) Stockholders mhavemnompersonalmobligation mformthemcorporation's mde
bts.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
2
Copyright m©m2022 mPearson mEducation,mIn
c.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Accounting 13th Edition Thomas
m m m m m m m m m
11) Accounting:
A) measures mbusiness mactivities.
B) processes mdata mintomreports mandmcommunicates mthemdata mtomdecision mmakers.
C) is moften mcalledmthemlanguagemofmbusiness.
D) is mallmofmthemabov
e.mAnswer:m D
Diff:m2
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory
AICPAmFunctional:m Measurement,mReporting
12) Amdisadvantagemofmgeneralmpartnerships mis:
A) doublemtaxation mofmdistributedmprofits.
B) thempartnership's massets maremcommingledmwith meach mpartner's mpersonalmassets.
C) onlymindividuals mcan mbempartners.
D) each mpartnermmaymconductmbusiness min mthemnamemofmthementitymandmmakemagreements mthatmlegall
ymbindmallmpartners.
Answer:m m D
Diff:m2
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
13) Which mofmthemfollowingmstatements mis mTRUEmforma mlimitedmliabilitymcompany?
A) Members mhavemunlimitedmliabilitymformthemdebts mofmthembusiness.
B) Members mhavemlimitedmliabilitymformdebts monlymupmtomthemextentmofmtheirminvestmentmin mthemLLC.
C) Themowners mhavemunlimitedmliabilitymformthemdebts mofmthembusiness.
D) Members maremnotmtaxedmlikemmembers mofma mpartners
hip.mAnswer:m B
Diff:m2
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
14) Which mofmthemfollowingmstatements mis mTRUEmforma mlimitedmliabilitympartnership?
A) Allmpartners mhavemlimitedmliabilitymformthemdebts mofmthempartnership.
B) Allmthempartners maremconsideredmtombemlimitedmpartners.
C) Themgeneralmpartnermhas munlimitedmliabilitymformthemdebts mofmthempartnership.
D) Themlimitedmpartners mhavemunlimitedmliabilitymformthemdebts mofmthempartner
ship.mAnswer:m C
Diff:m2
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
3
Copyright m©m2022 mPearson mEducation,mIn
c.
mynursytest.store
m m m m m m m m m
Financialm Accounting,m 13em (Thomas/Tietz)
Chapterm1 ThemFinancialmStatements
LearningmObjectivem1-1
1) Accountingmis man minformation msystem mthatmmeasures mbusiness mactivit
ies.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
2) Bookkeepingmis ma mmechanical mpartmofmaccounti
ng.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
3) Accountingmis moften mcalledmthemlanguagemofmbusin
ess.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
4) Accountingmproduces mfinancialmstatements,mwhich mreportminformation maboutma mbusin
ess.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory
AICPAmFunctional:m Measurement,mReporting
5) Themaccountingmprocess mbegins mandmends mwith mpeoplemmakingmdecisi
ons.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
1
Copyright m©m2022 mPearson mEducation,mIn
c.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Accounting 13th Edition Thomas
m m m m m m m m m
6) Accountingminformation mis musedmbyminvestors mandmcreditors,mbutmnotmbymregulatorymb
odies.mAnswer:m FALSE
Explanation:m m Itmis musedmbymindividuals,minvestors,mcreditors,mnonprofits,mandmregulatorymbodies.
Diff:m1
LO:m m 1-1
AACSB:m m Reflective mThinking
AICPAmBusmPersp:m Industry mSector,mLegal/Regulatory mAI
CPAmFunctional:m Measurement,mReporting
7) SincemHabitatmformHumanitymis mnotmconcernedmaboutmmakingma mprofit,mthementitymdoes mnotmneed
mtomusemaccountingminformation.
Answer:m m FALSE
Diff:m1
LO:m m 1-1
AACSB:m m Reflective mThinking
AICPAmBusmPersp:m Industry mSector,mLegal/Regulatory mAI
CPAmFunctional:m Measurement,mReporting
8) Thembusiness mrecords mofma msolemproprietorshipmshouldmincludemthemproprietor's mpersonalmfina
nces.mAnswer:m FALSE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
9) Ampartnershipmis ma mtaxpayingmentit
y.mAnswer:m FALSE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
10) Stockholders mhavemnompersonalmobligation mformthemcorporation's mde
bts.mAnswer:m TRUE
Diff:m1
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
2
Copyright m©m2022 mPearson mEducation,mIn
c.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Accounting 13th Edition Thomas
m m m m m m m m m
11) Accounting:
A) measures mbusiness mactivities.
B) processes mdata mintomreports mandmcommunicates mthemdata mtomdecision mmakers.
C) is moften mcalledmthemlanguagemofmbusiness.
D) is mallmofmthemabov
e.mAnswer:m D
Diff:m2
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory
AICPAmFunctional:m Measurement,mReporting
12) Amdisadvantagemofmgeneralmpartnerships mis:
A) doublemtaxation mofmdistributedmprofits.
B) thempartnership's massets maremcommingledmwith meach mpartner's mpersonalmassets.
C) onlymindividuals mcan mbempartners.
D) each mpartnermmaymconductmbusiness min mthemnamemofmthementitymandmmakemagreements mthatmlegall
ymbindmallmpartners.
Answer:m m D
Diff:m2
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
13) Which mofmthemfollowingmstatements mis mTRUEmforma mlimitedmliabilitymcompany?
A) Members mhavemunlimitedmliabilitymformthemdebts mofmthembusiness.
B) Members mhavemlimitedmliabilitymformdebts monlymupmtomthemextentmofmtheirminvestmentmin mthemLLC.
C) Themowners mhavemunlimitedmliabilitymformthemdebts mofmthembusiness.
D) Members maremnotmtaxedmlikemmembers mofma mpartners
hip.mAnswer:m B
Diff:m2
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
14) Which mofmthemfollowingmstatements mis mTRUEmforma mlimitedmliabilitympartnership?
A) Allmpartners mhavemlimitedmliabilitymformthemdebts mofmthempartnership.
B) Allmthempartners maremconsideredmtombemlimitedmpartners.
C) Themgeneralmpartnermhas munlimitedmliabilitymformthemdebts mofmthempartnership.
D) Themlimitedmpartners mhavemunlimitedmliabilitymformthemdebts mofmthempartner
ship.mAnswer:m C
Diff:m2
LO:m m 1-1
AACSB:m Reflective mThinking m AIC
PAmBusmPersp:m Legal/Regulatory mA
ICPAmFunctional:m Measurement
3
Copyright m©m2022 mPearson mEducation,mIn
c.
mynursytest.store