TEST BANK
p
Financial Accounting Fundamentals, 8th Edition
p p p p
ByJohnWild,Chapter1-13
p p p p p p
,Chapterp1:pAccountingpinpBusiness
Chapterp2:pAccountingpforpBusinesspTransactions p Chapterp3:pAdjustingpAccountspfor
FinancialpStatements p Chapterp4:pAccountingpforpMerchandisingpOperations p Chapter
p
5:pInventories pand pCost pof pSales
p
Chapter p6:pCash,pFraud, pandpInternal pControl p Chapterp7:pAccounting
forpReceivables p Chapterp8:pAccountingpforpLong-TermpAssets
p
p Chapterp9:pAccountingpforpCurrentpLiabilities
Chapterp10:pAccountingpforpLong-TermpLiabilities p Chapterp11:pCorporate
ReportingpandpAnalysis p Chapterp12:pReportingpCashpFlows
p
Chapterp13:pAnalysispofpFinancialpStatements
, Answers pare pat pthe pEnd pof pEach pChapter
Chapterp1:pAccountingpinpBusiness
Student pname: p
TRUE/FALSE p- pWrite p'T' pif pthe pstatement pis ptrue pand p'F' pif pthe pstatement pis pfalse.
1) Accounting pis pan pinformation pand pmeasurement psystem pthat pidentifies,
precords, p andcommunicates pan porganization's pbusiness pactivities.
⊚ p p p true
⊚ p p pfalse
2) Accounting pincludes pthe panalysis pand pinterpretation pof pinformation.
⊚ p p p true
⊚ p p pfalse
3) Financial paccounting pfocuses pon pthe pneeds pof pexternal pusers, pwho pget paccounting
informationfrom p general-purpose p financial p p statements.
⊚ p p p true
⊚ p p pfalse
4) Internal pusers pof paccounting pinformation pdo pnot pdirectly pmanage pthe porganization pand
havelimited paccess pto pits paccounting pinformation.
⊚ p p p true
⊚ p p pfalse
5) Auditors pverify pthe peffectiveness pof pinternal pcontrols.
⊚ p p p true
⊚ p p pfalse
6) External pauditors pexamine pfinancial pstatements pto pverify pthat pthey pare pprepared
paccording
togenerallypaccepted paccounting pprinciples.
⊚ p p p true
⊚ p p pfalse
7) External pusers pinclude plenders, pshareholders, pcustomers, pand pregulators.
⊚ p p p true
⊚ p p pfalse
, 8) Internal pusers pinclude plenders, pshareholders, pbrokers pand pnonexecutive pemployees.
⊚ p p p true
⊚ p p pfalse
9) Opportunities
pplanning. pin paccounting pinclude pauditing, pconsulting, pmarket presearch, pand ptax
⊚ p p p true
⊚ p p pfalse
10) The pfraud ptriangle pshows pthat pthree pfactors pthat ppush pa pperson pto pcommit pfraud
areopportunity, ppressure,pand prationalization.
⊚ p p p true
⊚ p p pfalse
11) Internal pcontrols pare pprocedures pto pprotect passets, pensure preliable paccounting,
promoteefficiency, pand puphold pcompany ppolicies.
⊚ p p p true
⊚ p p pfalse
12) A ppartnership pis pa pbusiness powned pby ptwo por pmore ppeople.
⊚ p p p true
⊚ p p pfalse
13) Owners pof pa pcorporation pare pcalled pshareholders por pstockholders.
⊚ p p p true
⊚ p p pfalse
14) In pa ppartnership, pthe powners pare pcalled pstockholders.
⊚ p p p true
⊚ p p pfalse
15) The pbalance psheet pshows pa pcompany's pnet pincome por ploss pover pa pperiod pof ptime.
⊚ p p p true
⊚ p p pfalse
16) The pFinancial pAccounting pStandards pBoard p(FASB) pis pgiven pthe ptask pof psetting pgenerally
accepted paccounting pprinciples p(GAAP) pfrom pthe pSecurities pand pExchange pCommission.
⊚pp
p true
⊚pp
p false
p
Financial Accounting Fundamentals, 8th Edition
p p p p
ByJohnWild,Chapter1-13
p p p p p p
,Chapterp1:pAccountingpinpBusiness
Chapterp2:pAccountingpforpBusinesspTransactions p Chapterp3:pAdjustingpAccountspfor
FinancialpStatements p Chapterp4:pAccountingpforpMerchandisingpOperations p Chapter
p
5:pInventories pand pCost pof pSales
p
Chapter p6:pCash,pFraud, pandpInternal pControl p Chapterp7:pAccounting
forpReceivables p Chapterp8:pAccountingpforpLong-TermpAssets
p
p Chapterp9:pAccountingpforpCurrentpLiabilities
Chapterp10:pAccountingpforpLong-TermpLiabilities p Chapterp11:pCorporate
ReportingpandpAnalysis p Chapterp12:pReportingpCashpFlows
p
Chapterp13:pAnalysispofpFinancialpStatements
, Answers pare pat pthe pEnd pof pEach pChapter
Chapterp1:pAccountingpinpBusiness
Student pname: p
TRUE/FALSE p- pWrite p'T' pif pthe pstatement pis ptrue pand p'F' pif pthe pstatement pis pfalse.
1) Accounting pis pan pinformation pand pmeasurement psystem pthat pidentifies,
precords, p andcommunicates pan porganization's pbusiness pactivities.
⊚ p p p true
⊚ p p pfalse
2) Accounting pincludes pthe panalysis pand pinterpretation pof pinformation.
⊚ p p p true
⊚ p p pfalse
3) Financial paccounting pfocuses pon pthe pneeds pof pexternal pusers, pwho pget paccounting
informationfrom p general-purpose p financial p p statements.
⊚ p p p true
⊚ p p pfalse
4) Internal pusers pof paccounting pinformation pdo pnot pdirectly pmanage pthe porganization pand
havelimited paccess pto pits paccounting pinformation.
⊚ p p p true
⊚ p p pfalse
5) Auditors pverify pthe peffectiveness pof pinternal pcontrols.
⊚ p p p true
⊚ p p pfalse
6) External pauditors pexamine pfinancial pstatements pto pverify pthat pthey pare pprepared
paccording
togenerallypaccepted paccounting pprinciples.
⊚ p p p true
⊚ p p pfalse
7) External pusers pinclude plenders, pshareholders, pcustomers, pand pregulators.
⊚ p p p true
⊚ p p pfalse
, 8) Internal pusers pinclude plenders, pshareholders, pbrokers pand pnonexecutive pemployees.
⊚ p p p true
⊚ p p pfalse
9) Opportunities
pplanning. pin paccounting pinclude pauditing, pconsulting, pmarket presearch, pand ptax
⊚ p p p true
⊚ p p pfalse
10) The pfraud ptriangle pshows pthat pthree pfactors pthat ppush pa pperson pto pcommit pfraud
areopportunity, ppressure,pand prationalization.
⊚ p p p true
⊚ p p pfalse
11) Internal pcontrols pare pprocedures pto pprotect passets, pensure preliable paccounting,
promoteefficiency, pand puphold pcompany ppolicies.
⊚ p p p true
⊚ p p pfalse
12) A ppartnership pis pa pbusiness powned pby ptwo por pmore ppeople.
⊚ p p p true
⊚ p p pfalse
13) Owners pof pa pcorporation pare pcalled pshareholders por pstockholders.
⊚ p p p true
⊚ p p pfalse
14) In pa ppartnership, pthe powners pare pcalled pstockholders.
⊚ p p p true
⊚ p p pfalse
15) The pbalance psheet pshows pa pcompany's pnet pincome por ploss pover pa pperiod pof ptime.
⊚ p p p true
⊚ p p pfalse
16) The pFinancial pAccounting pStandards pBoard p(FASB) pis pgiven pthe ptask pof psetting pgenerally
accepted paccounting pprinciples p(GAAP) pfrom pthe pSecurities pand pExchange pCommission.
⊚pp
p true
⊚pp
p false
