Test Bank for College Accounting A Practical Approach 14th Canadian Edition Jeffrey Slater, Debra Good

College Accounting: A Practical Approach – 14th
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Canadian Edition
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TEST BANK
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Jeffrey Slater
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Debra Good
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Comprehensive Test Bank for Instructors and
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Students
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© Jeffrey Slater & Debra Good
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All rights reserved. Reproduction or distribution without permission is prohibited.




©STUDYSTREAM

, College Accounting, 14e (Slater)
Chapter 1 Accounting Concepts and Procedures
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1.1 Learning Objective 1-1

1) The type of business organization that can continue indefinitely is known as a:
A) corporation.
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B) partnership.
C) sole proprietorship.
D) All of the above
Answer: C
Diff: 2
LO: 1-1
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AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

2) The purpose of the accounting process is to provide financial information about:
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A) sole proprietorships.
B) small businesses.
C) large corporations.
D) All of these answers are correct.
Answer: D
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Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

3) Accounting provides information to:
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A) investors.
B) government.
C) managers.
D) All of these answers are correct.
Answer: D
Diff: 2
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

4) Which of the following is a characteristic of a sole proprietorship?
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A) Business owned by more than one person
B) Easy to form
C) Each stockholder acts as an owner of the company
D) Can continue indefinitely
Answer: B
Diff: 1
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles


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, 5) A partnership is a business which:
A) is easy to form.
B) ends with the death of a partner.
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C) is owned by more than one person.
D) All of these answers are correct.
Answer: D
Diff: 1
LO: 1-1
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AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

6) Which is an advantage of a sole proprietorship form of business?
A) There is limited personal risk.
B) The business can continue indefinitely.
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C) The owner makes all the decisions.
D) The business is legally separate from the owner.
Answer: C
Diff: 1
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

7) Which of the following is NOT a type of business organization?
A) Corporation
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B) Partnership
C) Sole proprietorship
D) An Accounting organization
Answer: D
Diff: 1
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

8) A corporation:
A) is legally separate from its owners.
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B) is owned by stockholders.
C) has limited risk to stockholders.
D) All of the above
Answer: D
Diff: 2
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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Copyright © 2019 Pearson Education, Inc.

, 9) The Sarbanes-Oxley Act was passed to:
A) prevent financial statement fraud at public companies.
B) replace inventory accounting procedures.
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C) improve the accuracy of the company's financial reporting.
D) Both A and C are correct.
Answer: D
Diff: 2
LO: 1-1
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AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

10) A law firm would be considered a:
A) merchandise company.
B) manufacturer.
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C) service company.
D) retailer.
Answer: C
Diff: 1
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

11) Generally Accepted Accounting Principles are the procedures and guidelines that must be followed
every other year.
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Answer: FALSE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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12) The function of accounting includes analyzing, recording, classifying, summarizing, reporting,
strategic management and environmental assessment.
Answer: FALSE
Diff: 1
LO: 1-1
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AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

13) A sole proprietorship ends with the death of the owner.
Answer: TRUE
Diff: 1
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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Copyright © 2019 Pearson Education, Inc.