Test Bank for Essentials of Accounting for Governmental and Not-for-Profit Organizations, 15th Edition by Copley

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CollegenAccounting,n15en(Slater)
Chaptern1 AccountingnConceptsnandnProcedures

LearningnObjectiven1-1

1) ThentypenofnbusinessnorganizationnwherenthenownersnarenNOTnpersonallynliablenfornthenbusiness’sndebts
isna:
A) corporation
B) partnership
C) solenproprietorship
D) Allnofnthenabov
enAnswer:n A
Diff:n2
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples

2) Thenpurposenofnthenaccountingnprocessnisntonprovidenfinancialn informationnabout:
A) solenproprietorships
B) smallnbusinesses
C) largencorporations
D) Allnofnthesenanswersnarencorrec
tnAnswer:n D
Diff:n1
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples

3) Accountingnprovidesninformationnto:
A) investors
B) government
C) managers
D) Allnofnthesenanswersnarencorrec
tnAnswer:n D
Diff:n2
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples




1
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4) Whichnofnthenfollowingnisnancharacteristicnofnansolenproprietorship?
A) Businessnownednbynmorenthannonenperson.
B) Easyntonform.
C) Eachnstockholdernactsnasnannownernofnthencompany.
D) Canncontinuenindefinitely
.nAnswer:n B
Diff:n1
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples

5) Anpartnershipnisnanbusinessnwhich:
A) isneasyntonform
B) endsnwithnthendeathnofnanpartner
C) isnownednbynmorenthannonenperson
D) Allnofnthesenanswersnarencorrec
tnAnswer:n D
Diff:n1
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples

6) Whichnisnannadvantagenofnansolenproprietorshipnformnofnbusiness?
A) Therenisnlimitednpersonalnrisk.
B) Thenbusinessncanncontinuenindefinitely.
C) Thenownernmakesnallnthendecisions.
D) Thenbusinessnisnownednbynstockholders
.nAnswer:n C
Diff:n1
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples

7) WhichnofnthenfollowingnisnNOTnantypenofnbusinessnorganization?
A) Corporation
B) Partnership
C) Solenproprietorship
D) LimitednAssetnCorporatio
nnAnswer:n D
Diff:n1
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples




2
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, ACCESS Test Bank for College Accounting A Practical Approach 15thEditi
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8) Ancorporation:
A) isnlegallynseparatenfromnitsnowners
B) isnownednbynstockholders
C) hasnlimitednriskntonstockholders
D) Allnofnthenabov
enAnswer:n D
Diff:n2
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples

9) Thenbasicnaccountingnequationnis:
A) Assetsn+nLiabilitiesn=nOwner’snEquity
B) Assetsn=nLiabilitiesn-nOwner'snEquity
C) Assetsn=nOwner’snEquityn-nLiabilities
D) Assetsn=nLiabilitiesn+nOwner'snEquit
ynAnswer:n D
Diff:n1
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples

10) Anlawnfirmnwouldnbenconsideredna:
A) merchandisencompany
B) manufacturer
C) servicencompany
D) retailern
Answer:n Cn
Diff:n1
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples

11) GAAPnstandnfor .
A) GenerallynAcceptednAccountingnPractices
B) GeneralnAccountingnAcceptednPractices
C) GenerallynAcceptednAccountingnPrinciples
D) GeneralnAccountingnApplicationnPractice
snAnswer:n C
Diff:n1
LO:n 1-1
AACSB:n ReflectivenThinking
LearningnOutcome:n Definenaccountingnterms,naccountingnconceptsnandnprinciples




3
Copyrightn©n2023nPearsonnEducation,nInc.
mynursytest.store