fairness—whether it is just for these communities to bear a larger share of the negative impacts of industrial
development and environmental degradation.Legally, environmental regulations such as the Clean Air Act
or the Clean Water Act are designed to curb pollution and protect public health. However, enforcement of
these laws is often inadequate, and the legal system may not always provide sufficient redress for
communities that suffer from environmental harm. This raises questions about the effectiveness of current
legal structures in promoting environmental justice.#### 7.2 **Climate Change and Global
Responsibility**Climate change presents a particularly difficult ethical and legal challenge. While the
causes of climate change are now widely accepted (mainly human activities such as burning fossil fuels and
deforestation), the responsibility for addressing climate change is unevenly distributed across the globe.
Wealthier nations, which have historically contributed more to greenhouse gas
Test Bank For
Fundamental Accounting Principles Vol 1, 16th Edition By Larson
Chapter 01 Accounting in Business
True / False Questions
1. Accounting is an information system that identifies, measures, records and communicates
relevant information that objectively and correctly represents an organization's economic
activities.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and importance of accounting.
Topic: 01-02 Power of Accounting
2. Accounting information helps people make better decisions about the performance of a
business.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and importance of accounting.
Topic: 01-02 Power of Accounting
3. The main objective of accounting is to help people to invest in new products and
businesses.
FALSE
Accessibility: Keyboard Navigation
, Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and importance of accounting.
Topic: 01-07 External Information Users
4. Recordkeeping" is another term for "accounting".
FALSE
fairness—whether it is just for these communities to bear a larger share of the negative impacts of
industrial development and environmental degradation.Legally, environmental regulations such as the
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and importance of accounting.
Topic: 01-03 Focus of Accounting
5. A sole proprietorship is a business owned by one or more persons.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
6. A partnership requires no special legal requirements to start, other than to register the
business name and obtain a business licence.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
7. Ownership of a corporation is divided into units called shares.
TRUE
Clean Air Act or the Clean Water Act are designed to curb pollution and protect public health. However,
enforcement of these laws is often inadequate, and the legal system may not always provide sufficient
redress for communities that suffer from environmental harm. This raises questions about the
effectiveness of current legal structures in promoting environmental justice.#### 7.2 **Climate Change
and Global Responsibility**Climate change presents a particularly difficult ethical and legal challenge.
While the causes of climate change are now widely accepted (mainly human activities such as burning
fossil fuels and deforestation), the responsibility for addressing climate change is unevenly distributed
across the globe. Wealthier nations, which have historically contributed more to greenhouse gas
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of business organization.
, Topic: 01-05 Business Organizations
8. In the partnership form of business, the owners of a business are called shareholders.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
9. Unlimited liability is an advantage for both a proprietorship and a partnership.
FALSE
fairness—whether it is just for these communities to bear a larger share of the negative impacts of
industrial development and environmental degradation.Legally, environmental regulations such as the
Clean Air Act or the Clean Water Act are designed to curb pollution and protect public health. However,
enforcement of these laws is often inadequate, and the legal system may not always provide sufficient
redress for communities that suffer from environmental harm. This raises questions about the
effectiveness of current legal structures in promoting environmental justice.#### 7.2 **Climate Change
and Global Responsibility**Climate change presents a particularly difficult ethical and legal challenge.
While the causes of climate change are now widely accepted (mainly human activities such as burning
fossil fuels and deforestation), the responsibility for addressing climate change is unevenly distributed
across the globe. Wealthier nations, which have historically contributed more to greenhouse gas
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
10. Although a proprietorship is not a separate legal entity, a partnership is.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
11. A corporation is responsible for its actions and any debts incurred. It can enter into its own
contracts, and it can buy, own, and sell property.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
, Topic: 01-05 Business Organizations
12. Non-business organizations often operate educational and religious services for profit.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-04 Forms of Organization
13. Sole proprietorships and partnerships are not subject to income tax in Canada.
TRUE
fairness—whether it is just for these communities to bear a larger share of the negative impacts of industrial
development and environmental degradation.Legally, environmental regulations such as the Clean Air Act o
the Clean Water Act are designed to curb pollution and protect public health. However, enforcement of thes
laws is often inadequate, and the legal system may not always provide sufficient redress for communities tha
suffer from environmental harm. This raises questions about the effectiveness of current legal structures in
promoting environmental justice.#### 7.2 **Climate Change and Global Responsibility**Climate change
presents a particularly difficult ethical and legal challenge. While the causes of climate change are now wide
accepted (mainly human activities such as burning fossil fuels and deforestation), the responsibility for
addressing climate change is unevenly distributed across the globe. Wealthier nations, which have historical
contributed more to greenhouse gas
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-12 Taxation
14. External users include lenders such as banks, and other creditors such as suppliers and
bondholders.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Identify users and uses of, and opportunities in, accounting.
Topic: 01-07 External Information Users
15. Internal users include creditors, shareholders, internal auditors and managers.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-03 Identify users and uses of, and opportunities in, accounting.
Topic: 01-08 Internal Information Users
development and environmental degradation.Legally, environmental regulations such as the Clean Air Act
or the Clean Water Act are designed to curb pollution and protect public health. However, enforcement of
these laws is often inadequate, and the legal system may not always provide sufficient redress for
communities that suffer from environmental harm. This raises questions about the effectiveness of current
legal structures in promoting environmental justice.#### 7.2 **Climate Change and Global
Responsibility**Climate change presents a particularly difficult ethical and legal challenge. While the
causes of climate change are now widely accepted (mainly human activities such as burning fossil fuels and
deforestation), the responsibility for addressing climate change is unevenly distributed across the globe.
Wealthier nations, which have historically contributed more to greenhouse gas
Test Bank For
Fundamental Accounting Principles Vol 1, 16th Edition By Larson
Chapter 01 Accounting in Business
True / False Questions
1. Accounting is an information system that identifies, measures, records and communicates
relevant information that objectively and correctly represents an organization's economic
activities.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and importance of accounting.
Topic: 01-02 Power of Accounting
2. Accounting information helps people make better decisions about the performance of a
business.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and importance of accounting.
Topic: 01-02 Power of Accounting
3. The main objective of accounting is to help people to invest in new products and
businesses.
FALSE
Accessibility: Keyboard Navigation
, Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and importance of accounting.
Topic: 01-07 External Information Users
4. Recordkeeping" is another term for "accounting".
FALSE
fairness—whether it is just for these communities to bear a larger share of the negative impacts of
industrial development and environmental degradation.Legally, environmental regulations such as the
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and importance of accounting.
Topic: 01-03 Focus of Accounting
5. A sole proprietorship is a business owned by one or more persons.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
6. A partnership requires no special legal requirements to start, other than to register the
business name and obtain a business licence.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
7. Ownership of a corporation is divided into units called shares.
TRUE
Clean Air Act or the Clean Water Act are designed to curb pollution and protect public health. However,
enforcement of these laws is often inadequate, and the legal system may not always provide sufficient
redress for communities that suffer from environmental harm. This raises questions about the
effectiveness of current legal structures in promoting environmental justice.#### 7.2 **Climate Change
and Global Responsibility**Climate change presents a particularly difficult ethical and legal challenge.
While the causes of climate change are now widely accepted (mainly human activities such as burning
fossil fuels and deforestation), the responsibility for addressing climate change is unevenly distributed
across the globe. Wealthier nations, which have historically contributed more to greenhouse gas
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of business organization.
, Topic: 01-05 Business Organizations
8. In the partnership form of business, the owners of a business are called shareholders.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
9. Unlimited liability is an advantage for both a proprietorship and a partnership.
FALSE
fairness—whether it is just for these communities to bear a larger share of the negative impacts of
industrial development and environmental degradation.Legally, environmental regulations such as the
Clean Air Act or the Clean Water Act are designed to curb pollution and protect public health. However,
enforcement of these laws is often inadequate, and the legal system may not always provide sufficient
redress for communities that suffer from environmental harm. This raises questions about the
effectiveness of current legal structures in promoting environmental justice.#### 7.2 **Climate Change
and Global Responsibility**Climate change presents a particularly difficult ethical and legal challenge.
While the causes of climate change are now widely accepted (mainly human activities such as burning
fossil fuels and deforestation), the responsibility for addressing climate change is unevenly distributed
across the globe. Wealthier nations, which have historically contributed more to greenhouse gas
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
10. Although a proprietorship is not a separate legal entity, a partnership is.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
11. A corporation is responsible for its actions and any debts incurred. It can enter into its own
contracts, and it can buy, own, and sell property.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
, Topic: 01-05 Business Organizations
12. Non-business organizations often operate educational and religious services for profit.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-04 Forms of Organization
13. Sole proprietorships and partnerships are not subject to income tax in Canada.
TRUE
fairness—whether it is just for these communities to bear a larger share of the negative impacts of industrial
development and environmental degradation.Legally, environmental regulations such as the Clean Air Act o
the Clean Water Act are designed to curb pollution and protect public health. However, enforcement of thes
laws is often inadequate, and the legal system may not always provide sufficient redress for communities tha
suffer from environmental harm. This raises questions about the effectiveness of current legal structures in
promoting environmental justice.#### 7.2 **Climate Change and Global Responsibility**Climate change
presents a particularly difficult ethical and legal challenge. While the causes of climate change are now wide
accepted (mainly human activities such as burning fossil fuels and deforestation), the responsibility for
addressing climate change is unevenly distributed across the globe. Wealthier nations, which have historical
contributed more to greenhouse gas
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-12 Taxation
14. External users include lenders such as banks, and other creditors such as suppliers and
bondholders.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Identify users and uses of, and opportunities in, accounting.
Topic: 01-07 External Information Users
15. Internal users include creditors, shareholders, internal auditors and managers.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-03 Identify users and uses of, and opportunities in, accounting.
Topic: 01-08 Internal Information Users
