Test Bank for Fundamental Accounting Principles 25th Edition | Wild, Shaw & Larson

TEST BANK FOR
Fundamental Accounting Principles, 25th Edition, John Wild
Chapter 1-26




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, Answers at the End ofEach Chapter b b b b b b




Chapter 01: b




Studentname:
b




1) Which of the following is not accomplished by accounting?
b b b b b b b b




A) Identifies business activities. b b




B) Records business activities. b b




C) Communicates business activities. b b




D) Eliminates the need for interpreting financial data.
b b b b b b




E) Helps people make better decisions.
b b b b




2) Which of the following is an external user of accounting information?
b b b b b b b b b b




A) Purchasing manager. b




B) Human resource manager.
b b




C) Lender.
D) Chief executive officer (CEO).
b b b




E) Marketing manager. b




3) The primary objective of financial accounting is to:
b b b b b b b




A) Serve the decision-making needs of internal users.
b b b b b b




B) Provide accounting information that serves external users.
b b b b b b




C) Monitor consumer needs, tastes, and price concerns.
b b b b b b




D) Provide information on both the costs and benefits of looking after products and
b b b b b b b b b b b b




b services.
E) Know what, when, and how much product to produce.
b b b b b b b b




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, 4) The area of accounting aimed at serving the decision-making needs of internal users is:
b b b b b b b b b b b b b




A) Financial accounting. b




B) Managerial accounting. b




C) External auditing. b




D) SEC reporting.
b




E) Bookkeeping.




5) Which of the following is not an external user of accounting information?
b b b b b b b b b b b b




A) Shareholders.
B) Customers.
C) Purchasing managers. b




D) Government regulators. b




E) Creditors.




6) Which of the following is not true regarding a Certified Public Accountant?
b b b b b b b b b b b




A) Must meet education requirements.
b b b




B) Must pass an examination.
b b b




C) Must exhibit ethical character.
b b b




D) Must meet experience requirements.
b b b




E) Cannot hold any certificate other than a CPA.
b b b b b b b




7) Which of the following factors is not a component of the fraud triangle?
b b b b b b b b b b b b




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, A) Opportunity
B) Pressure
C) Rationalization
D) All of the above are components of the fraud triangle.
b b b b b b b b b




8) Which of the following is not true regarding ethics:
b b b b b b b b




A) Ethics are beliefs that separate right from wrong.
b b b b b b b




B) Good ethics are good business.
b b b b




C) Ethics do not affect the operations or outcome of a company.
b b b b b b b b b b




D) Accountants face ethical choices as they prepare financial reports. b b b b b b b b




E) Ethics are accepted standards of good and bad behavior.
b b b b b b b b




9) A corporation is:
b b




A) A business legally separate from its owners.
b b b b b b




B) Controlled by the FASB. b b b




C) Not responsible for its own acts and own debts.
b b b b b b b b




D) The same as a limited liability partnership.
b b b b b b




E) Not subject to double taxation.
b b b b




10) The group that sets international preferred accounting practices is called the:
b b b b b b b b b b




A) AICPA.
B) IASB.
C) CAP.
D) SEC.
E) FASB.




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