TEST BANK for Financial Accounting 13th Edition by C William Thomas and Wendy M. Tietz Verified Chapter's 1 - 12 | Complete

TEST BANK for Financial Accounting
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13th Edition
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by C William Thomas and Wendy M. Tietz
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Verified Chapter's 1 - 12 | Complete
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,TABLE OF CONTENTS b b b




1. The Financial Statements
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2. Transaction Analysis
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3. Accrual Accounting and Income
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4. Internal Control and Cash
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5. Receivables and Revenue
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6. Inventory and Cost of Goods Sold
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7. Plant Assets, Natural Resources, and Intangibles
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8. Current and Contingent Liabilities
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9. Long-Term Liabilities
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10. Stockholders' Equity
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11. The Statement of Cash Flows
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12. Financial Statement Analysis
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,1. The Financial Statements
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Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
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Financial Accounting, 13e (Thomas/Tietz)
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Chapter 1 The Financial Statements
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Learning Objective 1-1 b b




1) Accounting is an information system that measures business
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activities.Answer: TRUE
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Diff: b1
LO: b 1-1
AACSB: b Reflective bThinking
AICPA bBus bPersp: b Legal/Regulatory
AICPA bFunctional: b Measurement
b




2) Bookkeeping is a mechanical part of b b b b b


accounting.Answer: TRUE
b b b


Diff: b1
LO: b 1-1
AACSB: b Reflective bThinking
AICPA bBus bPersp: b Legal/Regulatory
AICPA bFunctional: b Measurement
b




3) Accounting is often called the language of
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business.Answer: TRUE
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Diff: b1
LO: b 1-1
AACSB: b Reflective bThinking
AICPA bBus bPersp: b Legal/Regulatory
AICPA bFunctional: b Measurement
b




4) Accounting produces financial statements, which report information about a
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business.Answer: TRUE
b b b


Diff: b1
LO: b 1-1
AACSB: b Reflective bThinking
AICPA bBus bPersp: b Legal/Regulatory
AICPA bFunctional: b Measurement, bReporting

5) The accounting process begins and ends with people making
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decisions.Answer: TRUE
b b b


Diff: b1
LO: b 1-1
AACSB: b Reflective bThinking
AICPA bBus bPersp: b Legal/Regulatory
AICPA bFunctional: b Measurement
b

, 6) Accounting information is used by investors and creditors, but not by regulatory
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bodies.Answer: FALSE
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Explanation: It is used by individuals, investors, creditors, nonprofits, and regulatory bodies.
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Diff: b1
LO: b 1-1
AACSB: b Reflective bThinking
AICPA bBus bPersp: b Industry bSector, bLegal/Regulatory
AICPA bFunctional: b Measurement, bReporting
b




7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to
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useaccounting information.
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Answer: FALSE b


Diff: b1
LO: b 1-1
AACSB: b Reflective bThinking
AICPA bBus bPersp: b Industry bSector, bLegal/Regulatory
AICPA bFunctional: b Measurement, bReporting
b




8) The business records of a sole proprietorship should include the proprietor's personal
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finances.Answer: FALSE
b b b


Diff: b1
LO: b 1-1
AACSB: b Reflective bThinking
AICPA bBus bPersp: b Legal/Regulatory
AICPA bFunctional: b Measurement
b




9) A partnership is a taxpaying
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entity.Answer: FALSE
b b b


Diff: b1
LO: b 1-1
AACSB: b Reflective bThinking
AICPA bBus bPersp: b Legal/Regulatory
AICPA bFunctional: b Measurement
b




10) Stockholders have no personal obligation for the corporation's
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debts.Answer: TRUE
b b b


Diff: b1
LO: b 1-1
AACSB: b Reflective bThinking
AICPA bBus bPersp: b Legal/Regulatory
AICPA bFunctional: b Measurement
b




11) Accounting:
A) measures business activities. b b


B) processes data into reports and communicates the data to decision makers.
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C) is often called the language of business.
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D) is all of the
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above.Answer: D
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Diff: b2
LO: b 1-1